Cannabidiol, commonly called CBD, is the new kid on the block, influencing a wide variety of emerging beauty products based on cannabis-derived ingredients. By drawing on favorable properties of existing products in the beauty industry, like lotions and oils, the rise of CBD-based products is undeniable.
With potential benefits like relief from pain, anxiety, and depression, CBD is being hailed as a game-changer for treating a variety of serious ailments including pain, epilepsy, and multiple sclerosis. Although derived from marijuana or hemp, CBD lacks tetrahydrocannabinol, or THC; as a result, using CBD will not get you high.
Due to the complexities surrounding the legal classifications of marijuana and hemp, there is some uncertainty and controversy surrounding CBD. But despite these concerns, the CBD market is growing at an astounding rate, with sales expected to multiply sevenfold by 2021, to $2.15 billion from approximately $292 million in 2016.
CBD: A Fad or a Trend?
With thousands of CBD products including oils, tinctures, vaporization liquids, and pills currently available in stores and online, the weight of CBD's market impact must be properly analyzed and understood. Is the CBD boom a fad or a trend? The distinction is a crucial one that cannot be ignored.
A fad is a short-lived phenomenon, fading in a relatively brief period. When the fad runs its course, you should see a marked decrease in social conversations, a rise in negative conversations, and low user retention levels.
By comparison, a trend has a much longer lifespan and is far more sustainable as a market force. Trends indicate long-term market influence, an increase in positive social conversations, and a high user retention rate.
Tracking social data provides a solid blueprint for market performance within a vertical, but an accurate analysis of consumer analytics requires looking beyond the volume of specific words used by social media users. Social data is a double-edged sword; while incredibly valuable, it can also be dangerous if you misinterpret what the data means in the proper context.
The Impact of CBD Products on the Beauty Category
In terms of CBD in relation to the overall beauty vertical, we need to examine the following:
- Are social media conversations around CBD growing?
- If so, where does the growth rank relative to other ingredients?
- Is CBD retaining users?
- What products is CBD penetrating?
- What brands is CBD penetrating?
- Where are the consumers of CBD-based products coming from?
A deep dive into the social media analytics reveals surprisingly detailed answers to these questions.
Specifically, we want to focus on the rate at which CBD is growing in conversations and retaining users. By using the trend analysis tool in the Social Standards Consumer Analytics Platform, we can see how CBD compares to other ingredients in the cosmetics category.
What Does the Social Data Reveal?
The data reveals that CBD is growing at a fast rate in US beauty conversations, increasing approximately 200% YOY (July ’18 vs. ‘17). Growth in US conversations falls in a similar range to copaiba oil and vitamin b12.
U.S. Monthly Social Volume for CBD in Beauty Conversations
So is CBD a trend or a fad? The data suggests the CBD trend may be stabilizing. User retention dipped slightly in June and new user percentage declined by 2% since July 2017. User retention is still significantly higher than many other ingredients such as copaiba oil and vitamin b12. In short, CBD has a very loyal following.
U.S. Monthly Social Volume (blue) and User Retention (black) for CBD in Beauty Conversations
In terms of geography, CBD conversation is highly concentrated in the West Coast, particularly in states near or surrounding those that have legalized marijuana. As CBD has become more accepted, its reliance on California has decreased and is likely to continue to do so.
The darker the blue, the higher the percentile relative to other states
CBD and Beauty Products- What Does the Future Hold?
At first glance, the marriage of CBD and beauty products may not seem obvious, but there are intersecting points of interest which support the combination. Beauty products based on organic products will always be in demand, and the change in perception of cannabis based upon rapid changes in numerous state laws have definitely contributed to it being considered a trendy ingredient. More research is clearly needed in order to explore the potential health and wellness benefits of CBD, but all of these factors point to CBD as a serious player in the beauty category for the foreseeable future.
By using the Social Standards Consumer Analytics Platform to examine conversations and consumer insights regarding this trendy ingredient, sellers can reasonably anticipate how CBD-based products will perform and strategize appropriately.