SA consumers have shown an increased interest in cannabidiol (CBD) products, but misconceptions and stigmas surrounding CBD products and their benefits are hampering the market’s growth.
For the past four years, there has been a growing demand in the CBD industry, fuelled by increasing global trends and changes in local legislation.
In 2018, SA legalised cannabis for personal consumption, while CBD products with a quantity less than 20mg for daily dose were legalised in 2019. These changes have opened the market and contributed towards international market growth, which is predicted to grow to $91.5bn by 2028.
Since the legalisation, we’ve seen an emergence of CBD suppliers in SA in established retailers, niche specialist stores, as well as social media.
As a relatively new category and product, with a range of health and wellness benefits claimed, how do South Africans use and perceive CBD products, and what is their future potential? Beyond residual stigma-related perceptions, what are the key barriers to overcome?
KLA, a diverse group of senior marketing, research, and data specialists, investigated this with an online survey via the YourView online research panel in November 2021.
The results made for interesting reading. This is what KLA found:
Understanding has enabled high levels of trial
For most people, there is a general understanding as to what CBD is: 88% understand it to be a chemical that derives from cannabis or hemp that does not have any psychoactive effects.
The high rate of understanding is one of the factors that enable a willingness to try CBD products, with 71% having tried them at least once.
Overall, there is considerable interest in trying CBD products, with 27% saying they would be interested in trying them in the future, having never tried them before. And only 12% said they have not tried them and are not interested in trying them.
The belief in CBD’s benefits has helped enable trial
Seventy-six percent of the surveyed people feel CBD products are best suited to help with stress and anxiety.
In addition, 54% believe they improve sleep, 48% believe they relieve muscle pain and inflammation, and 45% feel they help with headaches and migraines.
Only 3% believe CBD products have no benefits and 27% feel they are mainly for recreational purposes.
Interestingly, among the more mature age groups, there is higher interest to try CBD products, with 37% of 45-50-year-olds and 48% of 55-year-olds interested in trying them. This is due to the belief that it’s effective in assisting with muscle pain, inflammation, and joint pain.
The lack of education creates uncertainty around legalities. As it stands, CBD products with a daily 20mg dosage are considered legal, while higher doses require a prescription.
The Cannabis for Private Purposes Bill is being reviewed by parliament, which aims to further commercialise the industry. Due to limited information, there is also apprehension regarding the benefits and reliability of CBD products, which affects price perceptions.
To move forward, consumers would need more information to validate the price points. There are vast parts of the category that have been untapped due to this hindrance.
Shifting perceptions would enable further growth and with this growth, CBD products would become more accessible to the mass market.