CBD’s popularity is taking the wellness market by storm. Officially only legalized four years ago, it faces a polarizing reputation. CBD, or “cannabidiol,” originates from the hemp plant—the same plant that produces marijuana, which remains illegal in most US states. Many consumers have started looking for the ingredient in their skin care, hair care, supplements and wellness brands. While the CBD category is still in its early stages, the opportunity is endless for brands to enter the market and better target consumers.

Before entering the market or enhancing any advertising initiatives, companies must understand critical questions. Who are the typical CBD consumers? What are their perceptions of the category? Who purchases CBD products most frequently?

Provoke Insights, a full-service market research firm and brand consultancy, seeks to answer these key questions. Since 2021, Provoke Insights has conducted an annual nationwide study among Americans to understand the state of the CBD market. Using last year’s data and the fresh-off-the-press survey from March 2022, it is possible to track CBD awareness and discover what key benefits keep consumers purchasing again.

The Current State of the Market

Awareness of CBD is high in the US. Most Americans (81%) are familiar with the ingredient in the short time since it has been legalized; this is equivalent to about 180 million Americans. However, awareness has plateaued with familiarity since last year: it was also 81% in 2021.

Familiarity equates to trial; 42% of those familiar with CBD have purchased it. This proportion equates to approximately 82 million Americans who have tried products with the ingredient. Past purchasers of CBD are also the primary drivers of year-over-year growth. Two-thirds of those who purchased CBD in the past are planning to purchase it again this year.

As such a large portion of those aware of CBD have not purchased it, there is an opportunity to encourage trial among this audience. Almost a quarter (24%) of those who are aware but have not used CBD say they are likely to purchase it in the next year.

While sales continue to grow, awareness levels may be at their saturation point. Brands must stay mindful of just how many Americans already know about CBD and its origins. As a result, advertising needs to extend beyond products just containing CBD. Now, the focus must be on promoting individual brands and products, and determining the unique selling proposition.

Understanding CBD

Understanding the multitude of benefits of CBD allows for more concise and targeted marketing. Pain relief is the top perceived advantage (69%), followed by relief for anxiety and depression (59%). Younger adults are more likely to perceive CBD as a mental health aid, with 73% of Generation Z and 65% of Millennials ranking it as a top benefit. As a result, marketers should promote the mental advantages of CBD to this younger cohort.

There is a gap in perception regarding CBD as a sleep aid. Those who purchase CBD are much more inclined to know about this benefit than non-buyers. There is an opportunity to promote the benefits of CBD among those who suffer from sleep issues, such as insomnia.

Reducing inflammation is the least known benefit to consumers (46%). Anti-inflammatory products may be an untapped opportunity for the CBD industry as many consumers need to be educated about this remedy.

What’s Preventing Purchases?

Educating consumers about the benefits of CBD is critical for growing sales among these reluctant buyers. One-third (34%) of those aware of CBD are unlikely to purchase the product within the next year. The leading reason for rejection is lack of need (31%). If consumers were more aware of CBD’s advantages, there might be more opportunities for usage.


Brand name does not prove to be a factor in convincing Americans to purchase, as only 5% are concerned about CBD not being associated with a well-known brand. As the brand name is not a driver to purchase, small companies can make a name for themselves.

A harder audience to convert are those who are concerned about the lack of regulation (19%), its association with marijuana (16%), lack of efficacy (16%), and fears of testing positive on a drug screen (16%).

Who’s Buying CBD?

Brands that arm themselves with primary target audience data can craft smart marketing and messaging campaigns that resonate with their customers. With a large proportion of the American population purchasing CBD, identifying exactly who these consumers are is crucial.

The typical CBD purchaser can best be described as the Young, Optimistic Parent. Forty-four percent of purchasers have children in their households, and 72% are optimistic about the future. These shoppers are parents of younger children, as 45% are Millennials. They are also likely to be Democrats (39%) or Independents (30%). People purchasing it are also more concerned with their health (46%) than those who do not buy CBD products.

CBD purchasers are highly aware of their impact on the environment. They tend to be conscious consumers who look for sustainable options wherever possible. Over half (54%) of CBD purchasers, compared to 40% of non-purchasers, would pay more for products that are sourced sustainably. Of the Americans who purchased CBD, almost two-thirds (64%) consider themselves environmentally conscious. Most CBD shoppers prefer to buy from small businesses (62%). However, they prefer shopping online whenever possible (51%).

Change is in the air for those who purchase CBD. In the last three months, 16% of buyers have embarked on a major home improvement, while 12% have started a new job. A quarter of buyers (25%) have taken a vacation within the country—perhaps to relieve stress from that home project and new job! CBD users have disposable income and are not afraid to use it to relax. Whether buying CBD or going on vacation, these purchasers eagerly look for ways to unwind.

Branding Recommendations

While awareness of CBD is saturated, there is significant untapped growth potential. Spend less time informing consumers about what CBD entails because consumers have a strong grasp of the ingredient. The next step is educating them on all the benefits. Advertising to those who suffer from insomnia and inflammation may be growth areas for the industry.

More concise targeting is another method to grow sales. Create messaging and buy media to efficiently reach the Young Optimistic Parents. Also, advertise mental health aids to Generation Z and Millennials as they are more attune to this benefit.

Companies do not need to be established to make it in this industry. Consumers are not looking for tried-and-true brands in this category. CBD brands should differentiate the product among other CBD brands and advertise to those with critical health issues.

Methodology

Provoke Insights conducted a 15-minute online survey among 1,500 Americans between 21 and 65. The study was fielded from March 1-10, 2022. A random stratified sample methodology was used to ensure a high degree of representation of the US population (household income, age, gender, geography, ethnicity, and parental status). Results based on this sample have a maximum margin of sampling error of +/- 2.5% at a 95% confidence level. Statistical differences between subgroups indicated in this research were tested at a 95% confidence level. Check out Provoke Insights for the latest CBD research.

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