Curiosity in the CBD Market is Heating Up – What’s All the Hype?

 In Blog

If you’ve been keeping up with beauty news and trends—or even general news—chances are you’ve been privy to the buzz around the benefits of cannabidiol (CBD) becoming mainstream. Hemp-based CBD is a non-psychoactive ingredient in cannabis that does not cause users to become intoxicated, as they would with THC.

CBD has hit the eCommerce market offering a wide variety of products for consumers, including health, wellness, skin care, and pet goods. CBD has a natural ability to positively interact with the body’s endocannabinoid system, the system that maintains homeostasis and balance in the body. This positive interaction makes CBD products both beneficial and diverse. Consumers are adding CBD products to their routines for anti-anxiety, anti-inflammatory and anti-stress effects.

With the CBD industry growth expected to reach $22 billion in the next three years, it’s no wonder CBD creams, lotions, and lip balms are hitting the shelves of CVS, with Rite Aid not far behind with plans to pilot new products. Even luxury brand department stores like Barneys, Neiman Marcus, and DSW have taken the plunge.

So, What’s all the Hype? Insights into the CBD eCommerce Scene

Curious to see if we could measure the impact of this excitement on consumer behavior, our team pulled data looking at the surge of CBD searches and product views on Amazon from 2016 to 2018 examining the metrics from Jumpshot’s Insights tool.

Here’s what stood out:

CBD and Hemp Product Views

  • CBD and hemp product views on Amazon sprouted from 3.2M in 2016 to an impressive 8.8M in 2018. Up 70% in 2017 and 63% in 2018, year-over-year.
  • October 2018 totaled 860,067 CBD and hemp product views on Amazon, a number which grew to 861,336 in November 2018.

CBD and Hemp Product Searches  

Since 2016, product views for CBD and hemp goods on Amazon spiked significantly with searches tripling from 3.7M in 2016 to 9.4M in 2018. Year-over-year, searches showed steady advancement — 63% growth in year two, up slightly from 60% growth in year one for 2017 and 2018 respectively.  

For both searches and views, Q4 YoY shows the strongest consumer product engagement with a noticeable peak during this period. This increase in interest makes sense: CBD oil beauty products make great holiday gifts.

An additional intriguing find in the data is how much searches for CBD/hemp outpaced views. Year-over-year, searches climbed past views, with nearly 9% YoY growth over views.

We surmise the difference in search and view volume is a result of searches now producing large amounts of information readily available to the consumer. The average search for an individual no longer drives the need to click and view products to become informed. This is especially true if potential consumers are just curious about the product and not looking to purchase immediately.

Not Exactly Your Grandmother’s Beauty Products

Looking at top brands for product views and searches, Nutiva, Manitoba Harvest, Zatural, and Nature’s Landscape are the leaders, representing an average of 5% market share of all brands viewed and searched.

While these major brands held a modest percentage of market share, the “others” category stole the show representing an average of 60% of the market share in consumer curiosity for CBD and hemp oil. Although some brands are in the lead for CBD or hemp oil, no real brand is the winner in the category as the market has been flooded with options.

Categorizing CBD: Beauty or Health or Household?

In 2018 the top CBD products on Amazon were slotted under the companies Health & Household Category. As the CBD eCommerce market takes shape, this product category may change.

If companies like Barneys and Neiman Marcus are betting on CBD beauty products, there’s a good chance that retailers will start placing these items in the Beauty category. For full visibility, a CBD cream or lotion will need to rank well on Amazon for generic CBD terms vs. “CBD beauty products”.

Some companies, namely Sephora, are already immersed in marketing CBD beauty products on Google PLAs. If you do a search for “CBD beauty products”, you’ll have no trouble discovering that Sephora monopolizes the game. 

The 411 on CBD Beauty Products

In addition to being marketed as being beneficial for sleep, anxiety, and mood instability, top products on Amazon for hemp or CBD have started to add skin and hair benefits to their descriptions. The skin and hair industry is big business, global cosmetic products are expected to reach $863B by 2024.  

In terms of price, the Top 10 products browsed within CBD/hemp searches on Amazon in 2018 showed a huge range in price point, from under $10 to over $50,  attracting the curious consumer and the luxury seasoned patron alike.

Allure’s list of the 17 best CBD skin-care products includes a detailed list of beauty products that offer something for almost every avenue. Not only the luxury buyer but also the more frugal or medium-price-range browsers can find quality. Idi Pekar Tissue Repair serum will reduce inflammation and hydrate for a cool $148. Lord Jones’s High CBD Pain & Wellness Body Lotion ($60) relieves muscle pain and stiffness. Cannuka Nourishing Body Cream offers anti-inflammatory and skin-calming benefits for $28.

With the potential benefits of CBD and new products coming out on the market, in a few years, even your grandmother may be claiming CBD elixirs and potions for her beauty routine. We will continue to watch this industry as it takes off.

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