The COVID-19 pandemic has not only affected people’s respiratory health but also their mental being. According to the World Health Organization, the COVID-19 pandemic triggered a 25% increase in anxiety and depression worldwide. Thus, the rising cases of mental health issues have increased dependency on therapies and medications to treat the same. This, in turn, has heightened the dependency on CBD products. As a result, people are seeking ways to calm their anxiety and, hence, the need for CBD products is rising at an impressive rate.
CBD has found a place in oils to treat people suffering from mental health issues. According to Future Market Insights, sales of CBD oil are expected to register a staggering double digit compound annual growth rate (CAGR) of 31.5% by the end of 2031. This is owing to CBD oil acting as a pain relief drug and favorable regulation to use CBD oil in regions like North America and Europe. Furthermore, use of CBD oil in capsules, gels, and cosmetics for treating skin conditions and acne is increasing its usage in the pharmaceutical industry.
How are anxiety levels pushing up CBD oils consumption?
According to Kaiser Family Foundation, 4 in 10 adults suffered from anxiety or depressive disorder in the United States during the pandemic. Legalisation of the same for treatment and medicinal purposes is expanding the market for CBD oils. This, in turn, has given a rise to depending on CBD oils to improve overall mood and well-being.
Furthermore, the use of CBD oil is not only limited to consuming it directly but has also extended to consuming the same in everyday drinks. Adults ages 25 to 35 years experienced panic and anxiety attacks in the time of pandemic owing to work and education stress. Thus, they exhibited a growing inclination towards adding CBD oil in tea, coffee, and other drinks.
Prescriptions to consume CBD oils in limited quantities has accelerated their uptake. For instance, Cheff Botanicals not only provides CBD oils that can be consumed but also provides CBD massage oil to calm the mind and promote natural sleep. Thus, by offering CBD massage oil, the company is focusing on reducing anxiety and improving the overall well-being.
Organic flavors: Making CBD oils more consumable
The strong and bitter taste of CBD oils does not go down with certain consumers. Thus, manufacturers of CBD oils are focusing on adding organic flavors of different fruits to CBD oils. Moreover, adding natural flavors to the CBD oil enhances the overall taste of the oil and makes it more consumable.
For instance, Hempmeds, the subsidiary of Medical Marijuana, expanded its Dixie botanicals dew drops CBD oil tinctures line by including the flavor of strawberry and tangerine. The flavors have been launched in two different sizes of 250g and 500g amber bottles that preserve the freshness of the oil. Moreover, the company’s vanilla flavored CBD oil has gained popularity owing to its taste and the design of the dropper which makes the oil easier to consume.
Furthermore, another subsidiary of Medical Marijuana—Kannaway—won a case from Finnish High Supreme Administrative Court of proving the legality of the importation of CBD oil in Finland. This, in turn, is not only helping the legal importation of CBD oil in Finland but also has opened up business opportunities for other manufacturers for CBD in the region. In addition, companies are expanding their overall CBD products portfolios by focusing on certain age groups.
For instance, in February 2022, Aurora Cannabis announced the launch of KG7 products. These products consist of 500mg gluten-free CBD oil for adult consumers with an active lifestyle. Moreover, the products are made with 100% hemp-derived CBD isolate and are THC free. Thus, with the addition of organic flavors, manufacturers of CBD oils are targeting consumers who prefer organic extract of fruits in the CBD oil.
How are after-effects of ‘Coronasomnia’ increasing dependency on CBD oils?
The pandemic has affected sleeping patterns and deprived people of sleep as the lines between professional and personal life blurred. Thus, ‘coronasomnia’ has become prevalent. Cleveland Clinic states that insomnia rates in China grew from 14.6% to 20% in the peak of the lockdown period in the country. This, in turn, pushed people to seek professional help for mental health issues. Moreover, the aftereffects of the pandemic are equally worse as people are trying to cope with constant changes and challenges in life. This has made them rely on CBD oils.
Companies are focusing on producing CBD oils for particular illnesses that target the need of the consumer. For instance, Green Care Medical offers Full Spectrum Oil Sleep Formula that uses melatonin to promote a healthy night’s sleep. In addition, the CBD oil is ISO certified and is available in three different flavors: orange, chamomile and lavender. Furthermore, the company is focusing on developing more natural flavors that will satisfy the taste buds of consumers. Moreover, the difficulty of coping with insomnia is affecting the overall health of people. This, in turn, is increasing the inclination towards consuming CBD oil for better sleep.
The future of CBD oils
Despite the proven and documented health medical benefits on individuals, the issue of legalisation is restraining the growth of CBD oils in certain countries. Manufacturers of CBD products are following guidelines set by government authorities of different countries to expand the CBD product portfolio. Moreover, the legalisation of CBD products in North America and Europe has opened doors for manufacturers to sell CBD oils.
Moreover, manufacturers are hoping to advertise CBD oil as a dietary supplement in the future owing to its advantages and benefits. Furthermore, approval from the US FDA to remove the barriers of CBD oil and to normalize its use will play a key role in the wide usage of the same. As more people become aware of the benefits of CBD oils, their adaption is expected to increase.
Moving ahead, manufacturers are eyeing on opportunities to customize CBD oil by changing the format and size according to the target audience. This, in turn, is expected to increase the growth of CBD oil for patients suffering from different ailments. Furthermore, an increase in the number of mental health issues along with people seeking professional health is expected to increase the dependency on CBD oils to receive a feel-good experience by consuming the same.
Nandini Roy Choudhury is client partner, Food and Beverage, at Future Market Insights. She is an experienced research professional and client research partner at ESOMAR-certified market research and consulting firm Future Market Insights (FMI). FMI is headquartered in Dubai, with offices in the US, UK, and India. MarketNgage is the Market Research Subscription Platform from FMI that assists stakeholders in obtaining in-depth research across industries, markets, and niche segments.