Alcohol is on its way out among younger crowds, at least according to a new study. Younger consumers who are diverse and more affluent now prefer CBD beverages over alcohol for various reasons, including for socializing and “on-the-go” relief of anxiety, insomnia, and depression. The new information comes from cannabis market research firm High Yield Insights which ran a study this month of over 4,000 CBD users. The study included 1,200 people who drink CBD beverages.
According to the results, those consumers that use CBD drinks are younger, with 62 percent being Gen Z or Millennials. They are also affluent, with 33 percent living in households with income over $100,000.
The study also found that a significant number of respondents now use CBD since the beginning of the COVID-19 pandemic. The study also found that “CBD beverages users are much more likely than CBD users overall to use infused drinks to alleviate nausea and for exercise recovery. They also express more openness to household brands entering the CBD market.”
High Yield Insights collected the data in partnership with global consumer survey company InnovateMR. According to a statement released this week, it is the first study of its kind to research such consumer patterns concerning CBD and CBD beverages.
Furthermore, researchers note that the study also reviewed other categories, such as “currently used as well as those they would consider using or have discontinued using.”
According to a statement, “the study included over 35,000 respondents who answered key questions about their anxiety levels, impacts of the pandemic on their life, and their impressions of CBD products. Nearly 4,200 current CBD users gave additional responses about how and why they currently use CBD, product categories they would consider using in the future, and factors they consider when making a CBD purchase.”
“The beverage format appeals to consumers new to CBD because it is accessible, easy to dose, and resembles functional drinks in the mainstream market. Convenience was cited as a purchase driver for 42% of survey respondents and 45% report using other foods and beverages with enhanced ingredients,” said Mike Luce, President of High Yield Insights and a 20-year veteran in consumer insights and market research in a statement.
He continued: “CBD beverages is an omnichannel category as well. Drinks users are twice as likely to have purchased from a supermarket or drug store than CBD buyers overall. Picking up a single can or bottle is a relatively inexpensive solution for curious mainstream consumers. This is evident in the responses from non-users, who indicated greater interest in CBD beverages than any other format.”
Consumers use Hemp-derived CBD for many reasons. Research shows that many people use it for its anti-inflammatory and pain-relieving properties. Others prefer it because it has the potential to treat anxiety, stress, and depression. As a recent press release noted, “this has spurred increased interest in CBD as consumer seek out new products to add to their health and wellness repertoire. However, because many CBD companies are largely unknown by consumers, current and potential consumers face the challenge of finding a product suited to their needs.”
“The CBD market is ripe for innovation and brand-building,” noted Luce in a statement. “Of the 4,200 users surveyed, only 28 percent report having found a product, brand, or format that works for them. Efficacy is utmost in the mind of consumers. About 40 percent of CBD users indicated achieving the desired result as a driver for more frequent purchase, which was second only to lower prices.”