Despite the fact that most U.S. states have recently completed their second month of shelter-in-place, with retail stores temporarily closed for business and many closed for good, there are some industries that are prospering from the lockdown.
CBD companies are beginning to release reports of increased online sales as people look for ways to escape the stress, anxiety and sheer boredom of being stuck at home.
According to a new survey completed by the Brightfield group, close to 40% of CBD consumers plan to use CBD more frequently because of the crisis with coronavirus. Another 15% of CBD users plan to increase their daily dose in an effort to alleviate conditions like stress and anxiety which have been greatly exacerbated over the last eight weeks.
"Anxiety is the #1 ailment of CBD users - 53% of them report it. Depression and insomnia, which likely to spike over the coming months, are #3, and #4. For those that truly need CBD and are relying on it for their health and wellbeing, consumption is expected to continue or increase. With so much of the country in quarantine right now, many are turning to self-care indulgences to keep themselves sane and even just pass the time, which is likely to help boost some CBD self-care products during quarantine time." - Bethany Gomez, Brightfield Group managing director.
Overall sentiment of consumers seems to be shifting away from shopping at retail locations and moving towards online shops because companies can deliver the goods to the comfort of your home with no added risk of contracting COVID-19. The recent survey from Brightfield Group shows that close to 30% of consumers plan to purchase their much needed CBD online while the pandemic continues to wreak havoc across the country
"As the response around COVID-19 has ramped up and stores are shutting down, we are seeing e-commerce sales spike amongst some of the largest CBD companies"- Bethany GomezIt is more important than ever for CBD businesses to shift their strategy to focus on e-commerce if they want to stay ahead of the curve.
However, not all businesses will be blessed with this spike in sales as the data clearly shows a few being disproportionately affected by the lockdown.
"The industry was already suffering from overcrowding, we are tracking more than 3,500 brands in early 2020 and limited access to capital, which was making it very difficult for many brands to keep the lights on before the crisis. Many of these brands have lost tens of thousands of dollars tied up in trade shows that have been cancelled, putting them in a vulnerable position coming into the heart of the crisis."
It remains to be seen whether this spike in sales will continue once life begins to return to normal and stores reopen to the public, but the data is encouraging and makes clear that it is still possible to do well in the midst of a global pandemic.