According to a recent report from market intelligence firm Grand View Research, the market is witnessing significant growth owing to the rising health-conscious consumer base demanding easy-to-consume dosage forms of supplements. And that includes CBD gummies.
The global gummy market size was valued at $16.28 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.6% from 2020 to 2028, according to the “Gummy Market Size, Share & Trends Analysis Report,” released this month, August 2021.
End-user Insights
Manufacturers, such as CBDfx, are offering gummies containing Cannabidiol (CBD) along with turmeric and spirulina. Derived from organically grown hemp, CBD attracts consumers demanding supplements with organic, clean label and natural claims. Rising consumer interest in whole food supplements is also expected to favor segment growth.
The adult end-user segment dominated the market with a revenue share of more than 62% in 2020. The rising demand for convenient dietary supplements from working professionals, sports enthusiasts, elderly consumers and pregnant women is expected to augment the growth of the adult end-user segment over the forecast period.
The trend of clean labels and organic products has shifted consumer preference toward botanicals. Consumers are willing to pay more for supplements with such health claims owing to their anti-inflammatory and anticancer properties.
The expansion of the dietary supplement industry in the U.S. coupled with healthy changes in daily routine owing to increased awareness regarding preventive healthcare has led to a rise in the consumption of gummies.
Gummies have a gel-like consistency, are softer in texture and are easily chewable as compared to hard pills and tablets. Moreover, the product is available in a variety of flavors. All these factors are boosting the product demand across the globe, thereby supporting market growth.
Distribution Channel Insights
The non-store distribution channel segment is expected to witness the fastest CAGR of more than 14% during the forecast period. Increasingly sophisticated consumer demands coupled with the rising penetration of e-commerce are mainly driving the growth of this segment. Key manufacturers are accessing new distribution channels to connect with the diverse consumer base, which has increased the product sales through the non-store-based channels, such as online stores and other e-retailers like Amazon.
Wellness products held the highest share of 36% in 2019 among all the products sold through direct selling, globally. Therefore, direct selling offers potential opportunities for gummy supplement brands. However, the COVID-19 pandemic resulted in a decline in the sales from direct selling owing to lockdowns imposed across various regions to limit the disease spread.
Online channels offer a convenient one-click solution. The rising young and working-class population is likely to boost the growth of the segment with the growing penetration of smartphones and e-commerce sites.
Brick-and-mortar CBD retailers would be wise to use those digital tools to reach consumers and deliver product via in-store and curbside pickup.
