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Author Hannah Rubery Categories CBD, E-Liquid, Manufacturing Posted on

Important CBD Statistics for CBD Brands to Know

Keeping in the know is but one of the ways to get ahead of the competition, and CBD is no different. The CBD market is one that is hotly contested with similar products often competing in the same space. Making your products stand out and tailoring your products to the needs of your market, are key to creating a popular brand.

Here are some important CBD statistics that may help you make an informed decision when deciding on your next CBD product range. Or, if you have yet to hit the CBD market, these stats may soon incite your enthusiasm for developing your own CBD brand.

CBD statistics for the UK

  • In May 2021, it was estimated that the UK CBD industry would generate £690 million in annual sales for 2021. This was up from the previous estimation in 2019 which estimated it would reach £526 million in 2021.
  • It is currently estimated that the UK CBD industry is valued at £700 million.
  • The UK is the 2nd largest CBD market in the world, with the US leading the charge.
  • Between 8 and 11% of UK adults have tried CBD
  • The highest age group of users was 25- to 29-year-olds at 15%
  • CBD usage is higher among women
  • Users of CBD typically report using it for better well-being, sleep, pain management and anxiety.
  • 54% better health & well-being, 54% sleep, 42% pain, and 38% anxiety.
  • 24% of all adults prefer to manage their mental health holistically with methods like CBD
  • 50% of millennials would prefer to use CBD oil over anti-depressant
  • UK market growth from 2018 to 2019 was up to 6 times greater than expected - £300 million compared to the forecasted £100 million.
  • British CBD users spend approximately £25 per month on CBD products
  • Consumers prefer to buy CBD online

CBD statistics in the US

  • 26% of Americans are using CBD in 2022
  • 64% of these use CBD for pain
  • 21% of men and 16% of women have tried CBD
  • 50% of pet owners use CBD for their pets
  • 40% of users used CBD for pain, 20% for anxiety and 11% for sleep
  • CBD consumers are an average age of 40
  • 44% of CBD users spend between $20 and $80 a month on CBD products
  • Non-users open to trying CBD said price (25%), lack of studies (18%) and distrust in claims (14%) were the biggest barriers to usage.

Important CBD statistics to ensure reputability

Only 34% of CBD products tested from a UK sample were correctly labelled. It was found from testing 29 CBD products that 10 of them had less than 50% of the advertised CBD content and one product even had 0% of CBD.

Similarly, 55% tested levels of THC above the allowed threshold for UK CBD products, which therefore meant these products were in fact illegal.

It’s become a worrying problem in the CBD market, not just for the UK, as these products reflect negatively on the market. Responsible brands should strive to ensure their products are safe and regulatory. Testing samples of products before they go to market can help reduce any potential discrepancies and cement your brand as a trustworthy and reputable addition to the market.

At Xyfil, all of our CBD products go through strict laboratory testing to ensure that they adhere to regulatory standards. This also means reaffirming the quantity of CBD, THC and other cannabinoids. Our CBD is sourced from organically grown, certified hemp farms in Colorado, US. This helps to create a premium basis for our CBD products which then go through extraction and further testing to remove any potential contaminants.

With a range of CBD products that we can cater for, we can tailor towards the regulations for the country you wish to sell in. Contact us today to find out how we can help you.

Author Hannah Rubery Categories CBD, E-Liquid, Manufacturing, Production, White Label Posted on

Is it Profitable to Start a CBD Brand in 2022?

New CBD start-ups are hardly in short demand but doing it right and doing it well can be a different matter. Does this mean that you shouldn’t consider starting a CBD brand in 2022? Absolutely not! In fact, now is a great time to join the CBD market and we’ll tell you why.

The growth of the CBD market

Data has shown that the UK’s CBD market has blown well past the estimates previously thought. In 2021, the CBD market was worth £690 million, where only a few years ago it had previously been estimated to be worth £526 million by 2021. It’s now forecasted that the UK CBD market could reach £1 billion by 2025. Is there a reason for this surge?

There have been notions that the UK’s market worth has grown so well due to our evolved regulatory framework. Across the globe, most other countries where CBD is legal, do not have much or any regulation regarding CBD products. In this case the UK is leading the way with our regulatory framework that is working to ensure UK CBD products are both safe and good quality. As of March 2021, all CBD products in the UK must be filed for approval through the Foods Standards Agency (FSA).

One of the reasons why a lot of consumers are turning to CBD products now are due to the reported benefits for those with stress and anxiety. Although there is much research still underway to prove any sort of medical benefit, many believe that CBD can help them. And after the influx of stress and anxiety thanks to the recent pandemic and global lockdowns, people are looking for ways to help. It is important to note however that those who sell CBD in the UK cannot make any medical claims about their products unless they are regulated, medicinal products registered with the government.

What’s holding back CBD in the UK?

As mentioned, the lack of medical verification on the effects and benefits of CBD is one thing that does hinder the CBD market. Many of the studies and clinical trials were only able to begin after its legalisation in 2017. And while we wait for these results and further testing, many reputable companies are unable to express the benefits of their CBD products.

This leads onto the next issue; awareness and education. The lack of public education and awareness around CBD, especially on the legality and effects, has left a largely untapped market in the UK. Currently, younger demographics (between 18 and 30) are the most likely to use CBD. As the regulations change and more information becomes readily available for the public, we should see an even greater increase in market growth.

How to start your own CBD business

Starting now is the perfect time to create and establish your brand before the tidal wave of others that are sure to follow. Even if you only offer a limited range of products in the beginning, ensuring your presence in the CBD market will help you in the long run. Where do you begin then?

Sourcing your product

Possibly one of the most vital parts of establishing a CBD brand is sourcing your materials. Whether you’re looking to launch a CBD vape range, CBD topicals range, CBD oil drops or other product types, your CBD should be of the highest quality. Ensuring the hemp that your CBD is sourced from is organic and grown on regulated farms helps to establish your product’s quality. When it comes to health and wellness, customers are much more clued into the quality of products. With many articles across the web pushing for those who buy CBD products to check their ingredients, lab reports and more, transparency is key.

Organically grown hemp means that your products are more likely to be free of any harmful chemicals that could be present in pesticides – hemp is well-known for absorbing all nutrients from its environment. Many choose to source their hemp from farms in the US where most of the high-quality, high-grade hemp is grown. Now sourcing your own hemp can be costly and time-consuming, as well as the process of importing and processing into CBD oil. This is why many brands turn to wholesale CBD manufacturers like Xyfil.

Branding and target audience

There are already several CBD brands that have established themselves as market leaders, even in the early stages of this market. Because of this, newcomers will need to position their products with smart branding to truly stand out. Finding a demand that is currently not being met and targeting key types of customers will work to your advantage.

We know that the majority of those who are likely to use CBD are aged between 18 and 30. Do you want to create a brand that caters for the younger audience or young at heart? Thinking about the type of customer you want to reach, and their needs will help guide your brand.

Diversify your product range

When first starting out it’s probably a good idea to launch your key product that’s tailored towards the audience you wish to hit. That way it helps establish your brand and your products. Once your brand name and message are out there, diversifying your range allows for more opportunities to upsell and entice more customers. If you’re looking to upsell and increase customers’ order values, then creating products that are co-ordinating are the perfect next step. For example, CBD disposables could give way to CBD vape liquids or CBD shots that can be added to E-Liquids, all of which you can find in Xyfil’s repertoire.

White label manufacture or OEM?

When it comes to producing CBD products with a trusted CBD manufacturer like Xyfil, you often have a choice of white label manufacture or OEM. OEM allows for much more versatility with CBD products by creating recipes, product types and more that are completely your own.

However, for hitting markets quickly, white label manufacture is unrivalled. Especially in the current market where CBD products are only allowed on shelves after being registered and approved by the FSA. Therefore, using CBD products and formulas already registered like Xyfil’s CBD product list, helps to get on shelves quicker and with less cost overall.

Whatever you choose the CBD market in the UK is quickly growing and is a worthwhile investment to join. But to make the most of the CBD market, and with the regulations that are being established here, it is imperative to make sure your products are high quality. Xyfil is proud to be a leading CBD manufacturer in the UK with our high-grade CBD oil sourced from organic, regulated hemp farms in the US. Make the most of our award-winning CBD formulas and well-established products that have helped many brands already hit shelves in the UK.