The CBD Phenomenon continues... where will it go?
Hello readers, and welcome back to this week’s Inflection Point. Chances are you have heard of Cannabidiol or CBD. This week we are analyzing the growth behind this trend and where CBD can go from here. From gummies to shampoo we are here to tell you where CBD may go in the future.
Cannabidiol, better known as CBD, has taken the world by storm and does not seem to be slowing down anytime soon. Over 80 chemicals, known as cannabinoids, are found in the Cannabis sativa plant. The most famous of these chemicals is Delta-9-tetrahydrocannabinol or THC. CBD derives from hemp, a form of the Cannabis sativa plant, but only contains trace amounts of THC. CBD seems to affect certain chemicals in the brain; however, these are different from THC. Over the past two years, the relative impact score for “Cannabidiol” has increased by 696%, with the future estimate forecasting continued growth. So what has been driving CBD’s growth and demand?
CBD’s growth is driven mainly by consumer consumption. In recent years, studies have begun to emerge toting the safety and efficacy of CBD. The gained validation from the studies about the benefits of CBD has been a significant contributing factor to the substance’s new found popularity. Supplement companies took notice, and we have seen CBD supplements experience exponential growth. Over the past two years, the relative impact score for “Cannabidiol Supplement” has increased by 612%. Our future estimate predicts continued growth in the coming months. What types of CBD stand to gain from its rise in popularity?
The three main types of CBD are Broad Spectrum CBD, Full Spectrum CBD, and CBD Isolate. The main difference between Broad Spectrum and Full Spectrum CBD is the THC content. Full Spectrum CBD contains minor traces of THC, while Broad Spectrum contains nearly no THC. CBD Isolate is different from Broad and Full Spectrum because it includes no compounds from the original plant and is pure CBD. We used NWO.ai to compare the different types of CBD to understand better which types of CBD are ready to explode. According to our absolute impact scores, Broad Spectrum CBD ranks the highest amongst its peers, thus signaling that these products may gain the most from the growing CBD trend. But which products are generating the most consumer energy and demand?
There is such a wide variety of CBD products it can be overwhelming to see which product types are trending compared to others. We used this absolute score comparison table, over the past two years, to see what our platform predicts for some of the most popular CBD products. “CBD Shampoo” ranks at the top of the list with “CBD Supplement” and “CBD Skincare” following. “CBD Deodorant” and “CBD Gummies” finish the list. Something to note is although “CBD Gummies” finished last the comparison above, the relative impact score has increased by 2999%, which may indicate that this trend is gaining traction compared to the other signals. "CBD Gummies" still has the least amount of total volume on our platform; however, it is outperforming the other signals relative to its own past performance. CBD seems to have found some footing in the beauty and cosmetics industry as one of the benefits of CBD is the ability to soothe skin. The popularity of shampoos has grown as more companies such as Prose, R + Co., and other high-end shampoo brands include CBD in their product lines.
All signs seem to point at CBD. It is a growing trend with a bright future as consumers have grown fond of the substance and its benefits. Most notably is the increasing presence in the hair care space because of CBD's soothing ability on irritated skin. We would not be surprised to see more companies begin to incorporate the ingredient into their products and continue to grow the CBD trend.
We hope you enjoyed this week’s Inflection Point and learned a thing or two about the future of CBD. As always, have a great weekend and tune in next week.
Cheers!
About NWO.ai
NWO.ai's predictive platform enables leading Fortune 500 companies and government agencies to anticipate and track global cultural shifts by aggregating, analyzing, and producing actionable reports on human-generated data. We are leveraging petabytes of external, noisy, and unstructured data from various sources –including search, social media, blogs, news, patent databases, and SEC filings and we are continuously adding more sources. Our mission is to answer the what, when, and most importantly, 'why' behind a consumer trend and enable our customers to detect these shifts as early as possible.
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