COWEN
COLLABORATIVE INSIGHTS
Figure 18 Interest Broad Based from Edibles...
February 25, 2019
Consumer Products Opportunities (Azer)
In 2018, the CBD market in the U.S. has been estimated to have generated revenues ranging from ~S600 mm to as much as $2 bn. In our 2019 global cannabis outlook report (here), we had believed the CBD purchases in the U.S. likely skewed to the lower- end of that range. However, with new survey data from Cowen’s proprietary consumer survey, we can see that among our ~2,500 respondents (18+) in January 2019 nearly 7% reported using CBD as a supplement. Coupled with the diverse form factors reportedly being used (including close to 20% for beverages, which was surprising to us), we are now inclined to size the current market at closer to $2 bn.
Indeed, looking at Google search trends, we can see that interest looks to have climbed steadily in 2016 and 2017, and accelerated meaningfully in 2018, which has continued into 2019.
Figure 17 CBD Interest Has Been Increasing
U.S. Google Trends: CBD
100
80
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Source: Google Trends and Cowen and Company
Encouragingly, interest has been rising consistently among different form factors, ranging from supplements like CBD gummies, to topicals and oils. The rising interest and popularity in this broad range of CBD offerings should support a diverse category and multiple competitors that cater to a large base of consumers with different needs, requiring various applications.
Figure 19 ...to Topicals... Figure 20 ...To Oil
100 80 60 40 20
5/1/2016
U.S. Google Trends: CBD
8/7/2016 11/13/2016
Gummies
2/19/2017 5/28/2017
9/3/2017 12/10/2017
3/18/2018 6/24/2018 9/30/2018
1/6/2019
U.S. Google Trends: CBD U.S. Google Trends: CBD Oil
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Source: Google Trends and Cowen and Company
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Source: Google Trends and Cowen and Company Source: Google Trends and Cowen and Company
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