Consumer Health – An Ever-Expanding Market
The global consumer health market, which includes key categories of over-the-counter products such as vitamins and dietary supplements, is valued at over $250 billion USD.1 Fueled by demand from health-focused consumers, an aging population, and growing wealth in emerging markets, the future growth of the multi-billion dollar global consumer health industry is expected to continue unabated through the coming decades. The main challenge currently facing the consumer health industry is to successfully determine which ideas to support through scale-up to shepherd into the market.
CBD – A Consumer Health Revolution
CBD (cannabidiol), one of many cannabinoids derived from the plant Cannabis sativa L. (cannabis) has gained enormous popularity among consumers in recent years. While CBD consumers are represented across genders, ages, and social classes, individuals aged 26-41 and 42-57 account for more than two-thirds (71%) of CBD users.3 With the perception of CBD continuing to increase positively over recent years, price is currently significant, but consumer research suggests that claims with regard to safety and trustworthiness will become key.4
CBD brands and manufacturers are combining functional ingredients such as mushrooms, botanicals, and adaptogens with CBD to create products with a wider appeal. Wellness and CBD sectors are experiencing mergers and acquisitions, where non-CBD companies are partnering with or acquiring CBD brands to give them a competitive edge in the space and expand the breadth of consumers they reach. An influx of capital from wellness-focused consumer-packaged goods (CPG) companies will expand the horizons for CBD in the consumer market, which reached $12.8 USD billion in 2021 and is estimated to grow at a 21.7% compound annual growth rate (CAGR) between 2022 and 2028.5 Globally, the CBD consumer health market is predicted to grow by 24.6% yearly over the next seven years to $43.8 billion USD, which indicates its significant growth potential.1
Cannabinoids – Regulatory Ambiguity
The continued ambiguity around the legality of hemp-derived CBD in consumer products has led to confusion for manufacturers and consumers alike. Inconsistent regulations – or no regulations at all – in individual states have created problems for manufacturers and endangered public health. Still, it is these very regulatory frameworks that do and will continue to shape how, when, and why people buy CBD.
Currently, CBD companies are mostly left to self-regulate, but increasing public awareness and education about cannabinoid benefits will accompany the mainstreaming of CBD. While this will allow consumers to feel more confident and safe when purchasing CBD products, it will also force manufacturers to improve their quality assurance and compliance efforts. The CBD industry, which is currently fragmented and unstable due to the regulatory landscape and a lack of dominant players, will continue to undergo upheaval until it finds its roots and is firmly established.
The Vantage Advantage
Manufacturers already selling high-quality CBD products will be the first to reap the rewards of their investments in R&D and production. Companies still searching for CBD suppliers have important decisions to make, often with limited information and minimal understanding of the CBD market landscape. Foreseeing these concerns among CPG and regulatory organizations, Vantage Hemp Co. has executed strategic market entry targeting specific geographic markets, understanding the regulations within each and adjusting its business model accordingly. Vantage’s Director of Operations, Ty Simpson, shared that, “Vantage has uniquely positioned itself to meet global manufacturing demand through its strong capabilities in product development and its dedication to regulatory transparency and compliance.”
Vantage understands the challenges of launching new products and how identifying the ideal contract manufacturing organization can have a significant impact on the timing and success of your product development program. Vantage offers flexible solutions to both emerging and established companies through extensive and robust contract manufacturing capabilities that provide custom product formulations, competitive pricing, and the opportunity for product differentiation. Vantage’s broad range of products (full-spectrum CBD oils & isolates, tablets, topicals, tinctures, and capsules) provide versatility and can be differentiated by adding ingredients and creating a strong brand around the product with a focus on safety and trustworthiness. Josh Murphy, Vantage’s Channel Sales Manager, noted, “Vantage’s deep understanding of client and consumer needs coupled with our commitment to delivering the highest quality products ensures your consumers will always be satisfied with your CBD products.”
- New kid on the block? Insights on CBD in the consumer health market. KPMG. Accessed May 20, 2022. https://assets.kpmg/content/dam/kpmg/ie/pdf/2020/12/ie-whitepaper-insights-on-cbd-in-the-consumer-health-market-unlocked.pdf
- Moltke J, Hindocha C. Reasons for cannabidiol use: a cross-sectional study of CBD users, focusing on self-perceived stress, anxiety, and sleep problems. J Cannabis Res. 2021;3(1):5. doi:10.1186/s42238-021-00061-5
- The latest CBD market and consumer trends (and an existential question). Natural Products INSIDER. Published July 30, 2021. Accessed July 9, 2022. https://www.naturalproductsinsider.com/herbs-botanicals/latest-cbd-market-and-consumer-trends-and-existential-question
- Gutkowski A. Toronto 2022. Lift & Co Expo. Accessed May 20, 2022. http://agenda-2022
- Cannabidiol Market Statistics; Global Forecasts – 2028. Global Market Insights Inc. Accessed July 10, 2022. https://www.gminsights.com/industry-analysis/cannabidiol-cbd-market