Dog Treats, DVDs, and CBD: 2019’s Hottest Product Category
The health and wellness industry has given us some powerful cultural trends recently: Quinoa, kale, gluten-free…the list goes on. Yet cannabidiol (CBD) has the potential to dwarf all of them. The CBD product category is exploding and brands are scrambling to take advantage – while simultaneously trying to gain more clarity into regulatory compliance issues and the tricky terrain of CBD digital marketing.
To help you stay up to speed, let’s take a closer look at some of the latest developments in the CBD space.
A DVD of “The Avengers,” a bucket of popcorn, and a side of CBD oil
The retail adoption of CBD products continues to surge. You may have heard about CBD products popping up at CVS and Walgreens – but did you know you can also buy CBD gummies, sprays, oils, and lip balms at your neighborhood video store?
Family Video, the largest movie rental chain in the United States, is rolling out CBD items in 250 stores nationwide. Thanks to streaming services and Redbox, the movie rental business isn’t quite what it used to be, and Family Video expects CBD sales to help drive in-store revenue.
So far, so good – at least according to media reports. The video chain claims it is moving CBD merchandise quickly and may extend its CBD offerings to all locations nationwide.
Staying ahead of the curve on compliance
The 2018 U.S. Farm Bill opened the CBD floodgates, as it pushed CBD out of its gray area legal status. Yet while CBD is now legal to manufacture and sell (at least federally), there is still significant uncertainty around regulatory standards. Right now, there is little guidance with concerning standards for CBD extraction or production.
That uncertainty also extends to CBD digital marketing. Right now, the Food and Drug Administration and Federal Trade Commission have offered little in the way of advertising and marketing guidelines, though they have sanctioned several companies for making false or misleading health claims.
Many CBD brands are choosing to prepare for compliance by following established industry practices within the food and health supplement categories. That means complying with the terms of the FDA’s Food Safety and Modernization Act as well as following industry standards and best practices for all growing, production, and manufacturing.
A dog treat worth begging for
Pet owners spent $72 billion on their animals in 2018, a nearly 10% year-over-year increase. This reflects a trend that’s even more popular than CBD – spoiling our pets and treating them like proxy children.
Direct to consumer (DTC) brands are driving growth in this market. Today, you can have DTC brands ship curated boxes of food, treats and toys for your pets to your home on a weekly or monthly basis.
CBD, of course, is the next evolution. Pet owners have been treating canine anxiety and other issues with their own CBD stocks. Now, brands are jumping into the fray, offering their own spins on CBD pet products (Bacon Flavor CBD Dog Treats, anyone?).
While this might sound a bit whimsical, smart CBD brands understand that it’s big business. Pets are projected to be one of the fastest-growing segments of the CBD market over the next five years, reaching $125 million in sales annually at a yearly growth rate of 57%.
At BIGEYE, we’re fascinated by the evolution of the CBD market – but we’re also deeply cognizant of the challenges that come with CBD digital marketing. Brands not only need a compelling campaign, but they also need to focus on compliance.
The challenge doesn’t end there. Because the world’s largest digital ad platforms remain closed to CBD products, brands can’t simply rely on Google and Facebook to find their audience.
Don’t be intimidated – we can help you navigate this terrain successfully. Contact us today to learn more about what the right CBD marketing agency can do for your brand.