Already in April PetFoodIndustry.com published an article about pet CBD sales and market development during Covid-19, especially for e-commerce. First conclusion reflects the general market trend for consumer goods. In the early days of the pandemic, there was a spike in sales, not only but especially in e-commerce.
The second point, is more interesting, as it differs from other products, as the CBD e-commerce sales continued to be at a higher level than normal even during the latter days. :
“They spiked up and then have held at about 30% above what typical e-commerce sales are,” said Gomez. “So there’s been some spikes and some cyclical nature — it can be up or down from one day to the next — but on average for brands that have a strong e-commerce presence to begin with they’re seeing their sales up and sustained.”
The third point, the CBD market will see a correction in terms of the number of market participants. Trending markets always bring up start-ups as well as well-established companies that want to be part of the market. Bethany Gomez, managing director of market research and consumer insights firm Brightfield Group says “At the end of 2019 we were counting more than 3,500 CBD brands operating in the space. While the market has grown exponentially and is very, very strong and much larger than it was a year ago, it can’t sustain 3,500 brands.”
So CBD is a good indicator not only for the development of e-commerce sales on an upward trend, but also general market development. It shows that also in new industries old rules are valid, only sustainable companies and concepts will survive in the long-term.
related links and articles:
- Petfoodindustry – Purina acquires UK natural pet food maker Lily’s Kitchen