Products containing hemp oil extracts are one of the fastest-growing categories in the food-and-drug retailing landscape, and demand has only increased during the COVID-19 pandemic.
Sales of hemp extract oil products are projected to more than triple during the next few years, reaching an estimated $16.8 billion by 2025, according to research from Brightfield Group. The growth will be driven by increasing consumer interest in CBD as well as by new-product innovation that expands the availability of the hemp-derived ingredient, the research firm said in a recent report.
“The growing diversification and sophistication of hemp extract oil products appeals to a much broader consumer audience beyond cannabis users and natural food store consumers,” the report stated.
Increased awareness around the potential health benefits of hemp extract oil, as well as consumers’ growing interest in natural, functional products has led consumers to explore the hemp extract oil product category, according to Brightfield Group.
Many consumers have become familiar with hemp extract oil in dietary supplement form, such as gummies and tinctures, but it is also increasingly available in other familiar forms, such as edibles and beverages. Brightfield Group projected that the hemp extract oil beverage market alone could reach $1.5 billion by 2025.
This presents a natural opportunity for convenience retailers seeking to expand their share of the growing hemp extract oil market by adding a broader range of edibles and beverage products, along with vapes and supplements.
In the hemp extract oil beverage category, consumers are seeking great-tasting products that deliver a consistent amount of hemp extract oil at a competitive price. These consumers tend to be health-focused, so they prefer hemp extract oil beverages that feature better-for-you attributes such as low levels of sugar, reduced calories and clean ingredients.
Demand for hemp extract oil products had already been increasing sharply before the onset of the COVID-19 pandemic a year ago, but the spread of the disease has only served to heighten consumer concern about their mental and physical well-being, leading more consumers to discover the benefits of hemp extract oil. Now is the time to offer these consumers hemp extract oil products that meet their demands for flavor, efficacy and value.
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