Sales of
-enhanced water surged 142 percent in just two years despite weak results from the overall cannabidiol industry, according to market analysis from SPINS, a data technology company focused on the wellness sector. In a new report released on Thursday, SPINS explores the performance of the CBD industry, showing that while the overall sector is experiencing a decline, the use of CBD as a functional ingredient in consumer packaged goods is a market segment with the potential for explosive growth.In June, a study from ResearchandMarkets.com showed that the global cannabis-infused food and
market is expected to grow to . In its report, SPINS notes that the growth presents companies with the opportunity to develop new CBD products, which consumers turn to for their perceived health benefits including , help with relaxation and improved .CBD Water Sales Up 142%
To complete the report, SPINS analyzed CBD product sales between June 12, 2020, and June 12, 2022. The analysis showed that sales of functional beverages, including those infused with CBD, are on the rise. Sales of CBD water saw a 142 percent increase, rising by $6.7 million during the time period.
Chris Clifford, the founder and CEO of Day One Beverages, says that his company’s CBD sparkling water “lets consumers access CBD’s ability to get you calm and focused.”
“It’s a perfect way to get started and be present, whether it’s time to get a task done or time to wind down after a long day,” Clifford wrote in an email to High There. “CBD presents a new form of healthy self-care, and zero calorie beverages become a serious treat with the inclusion of CBD.”
Clifford added that Day One Bevereages’ line of CBD sparkling waters, which have no sugar or other sweeteners and deliver 20mg of wide-spectrum CBD, are popular with many demographic groups. Younger consumers, however, are showing the most interest in the company’s products.
“CBD beverages appeal to a wide variety of consumers, but we’ve been seeing it resonate with the working millennial and the physically active Gen-X demos in particular,” said Clifford. “We see CBD as an anti-inflammatory in 2 ways; it’s great at helping muscles relax and recover after a workout and, when you think of anxiety and stress as a kind of ‘inflammation of the mind,’ CBD helps people reduce the noise of their own thoughts and get present again.”
Other CBD-Infused Products Also Showed Strong Growth
In addition to CBD water sales, the SPINS market report also showed strong growth in the CBD skincare category, with cannabidiol-infused face products increasing sales by 31 percent. CBD topicals for pain relief were up $1.2 million, an increase of 43 percent. Sales of sleep supplements that also contain CBD were up by 34 percent.
Scott Dicker, SPINS’ senior market insights analyst, said that the research showed mixed results across the CBD products category.
“The main CBD subcategory overall is experiencing a huge drop off, with a decline of 52.6% in the [multi-outlet] and Natural Enhanced Channels over the last two years,” Dicker said in a statement from SPINS. “However, there are bright spots within this sector that are experiencing growth. The sleep health focus in this category is seeing a 72.4% increase, with $1.9M in change. On the functional ingredient side, CBD is growing in several categories including shelf-stable water, face care, pain-relieving topicals and sleep supplements. In the SPINS Pet Channel, the CBD ingredient has grown 15.7%, with $1.3M in change.”
“While we expect this decline to level off, the customer base for this ingredient will continue to remain niche, and it will most likely never reach the same initial hype and growth as it did when it first started hitting the main market,” Dicker added.