Cannabis was once considered to be an illicit substance of abuse predominantly due to its psychoactive effect and potential of leading to physical, social, and emotional harm. It was also regarded to be the most widely cultivated, trafficked, and abused illicit drug in the world. But, recent developments in research related to cannabis has completely changed its perception as an abusive drug globally.
Though it’s possible to isolate more than 113 different Cannabinoids from cannabis plants, the most notable one is the phytocannabinoid TetraHydroCannabinol (THC), followed by Cannabidiol (CBD), yet another significant constituent of the plant. THC is the primary psychoactive compound in cannabis and banned globally across many countries as it impinges parts of the brain responsible for thinking, memory, pleasure, coordination, and movement. However, CBD, with countless medical benefits, doesn’t have any psychoactive properties and has recently changed the perception of cannabis globally.
The legality of CBD Products
While the legal status of cannabis for recreational purposes in most nations is illegal, the legal status for use of CBD has been made permissible in certain countries because CBD is an extract from the cannabis plant, the same plant that produces the psychoactive THC, its usage is highly restricted by regulation and legislation.
The map above shows the current status of cannabis legality around the world. However, even some countries where cannabis is illegal might still allow CBD to be sold for medical purposes.
The United Nations Commission on Narcotic Drugs (CND) recently voted to remove cannabis and cannabis resins from their “Most Dangerous Drug” category based on the 2019 recommendation of the World Health Organization (WHO). Subsequently, the shift in global attitudes towards cannabis has softened and many jurisdictions are permitting cannabis use for recreation, medication, or both.
Most of the European countries have legalized CBD products in some way. While countries like France and Norway only allow CBD isolates (100% CBD with no THC), the rest allow extraction of CBD from industrial Hemp that contains less than 0.2% of THC.
In the US, the 2018 Farm Bill legalized the cultivation, processing, and sale of Hemp that contains less than 0.3% THC. However, the individual states have their own status of the legality of CBD within their borders. And, in countries like India, the use of cannabis in any form is strictly illegal.
Understanding CBD Customer Preference & Product Gaps – An Analysis
As per the latest report by MarketStudyReport LLC, the global CBD market size would reach USD 24.08 billion by 2027. Apart from its medical benefits, the availability in various forms such as oil, capsules, tincture, oils, concentrates, lip balms, and lotions, as well as edibles such as ice creams, candies, coffees, and gums, are also driving the market for CBD. In a dynamic and fast-growing market landscape such as the CBD, it’s quintessential for the brands to understand the benefits the customers are seeking and product gaps of their target audience to serve them better and drive the business.
For this analysis, using our proprietary text mining algorithm, we extracted reviews from relevant customer conversations and reviews from online sources such as social media, e-commerce websites, blogs, and discussion forums. In order to understand the reason why customers use CBD products and their issues with their current products, we deployed AI-Powered Natural Language Processing (NLP) Engine and Sentiment Analysis Algorithms to derive the following insights for the top 3 CBD using countries.
CBD’s psychiatric benefits and its ability to treat some neuropsychiatric disorders are clearly evident in the analysis, as stress and anxiety relief emerged as the #1 benefit of CBD usage, followed by using it as a sleeping aid, especially in the USA and Germany. Also, due to CBD’s anti-inflammatory properties, it’s widely used for general pain relief in the UK and USA. Our analysis also highlights that CBD is widely used as an energy booster and in treating arthritis and knee pain.
The Sentiment Analysis highlighted the product gaps. The product smell and product worthiness (value for money) are the attributes that predominantly displeases the US and UK customers. The analysis also highlights that German customers are widely discontent with product packaging and product ingredients.
SetuServ’s VOCIS platform provides customer insights and market intelligence for the CBD and cannabis industry. Combining our automated insights generated by our AI-powered systems along with human SME intelligence, CBD insights guides brands in deeply understanding the market landscape and device strategies to navigate the market challenges.