Topical treatments and nutraceutical supplements are taking up more and more space in our medicine cabinets and on our kitchen countertops these days. Americans alone spend more than $30 billion a year on dietary supplements like vitamins, minerals, and herbal supplements with about 80% of US adults taking supplements to improve their health. Some of them are helpful, and some of them are of doubtful benefit.
How is it that such a booming industry revolves around products that are widely unregulated and have no real set standard?
What is a Nutraceutical?
A nutraceutical is defined as any substance that is a food, or part of a food, and provides medical or health benefits, including the prevention and treatment of disease. Products as diverse as isolated nutrients, dietary supplements, and diets to genetically engineered “designer” foods, herbal products and processed foods like cereals, soups, and beverages may be included under that umbrella.
The consumption of nutraceuticals by the vast majority of the public is usually without a medical prescription and/or supervision. That means that consumer confidence has a huge impact on the growth and survival of the supplement industry.
CBC Oil: A Hot Ingredient
Over the past decade, there has been growing interest in the development of therapies and other products derived from cannabis and its components, including cannabidiol (CBD).
CBC oil, derived from the Hemp plant, is one such supplement. It’s being touted as 2019’s hottest nutraceutical ingredient. It’s been used in various forms since the 1940’s for its medicinal benefits. It’s one of more than a hundred phytocannabinoids unique to the Hemp plant and is responsible for the plant’s therapeutic properties. It’s a safe and non-addictive compound that has the potential to treat a range of conditions from general aches and pains to stress, inflammation, and mild depression.
Preparation of CBD oil involves extracting the CBD from the hemp plant and diluting it with a carrier oil like hemp seed or coconut oil. It is then used in tinctures, capsules, and other edibles. It’s also used topically in lotions and balms to soothe sore muscles and calm rashes.
CBD is Not Regulated
CBD is currently being produced without any regulation, resulting in products that vary widely in quality, said Marcel Bonn-Miller, an adjunct Assistant Professor of Psychology in Psychiatry at the University of Pennsylvania School of Medicine. The FDA has not stepped in to regulate products like CBD oil because of the legally murky nature of marijuana. States are struggling to put regulations in place, but funding is limited.
In the past month, both CVS and Walgreens have announced that they’re going to start carrying hemp-derived CBD topical products in select states. The world will be watching to see what happens, as this area is still a shade of gray as far as the FDA is concerned. Herbal supplements are regulated by the FDA, but not as drugs or as foods. They fall under the “dietary supplement” category. Some of the rules for dietary supplements are as follows:
- Manufacturers don’t need to seek FDA approval before selling dietary supplements.
- Companies can claim products address a nutrient deficiency, support health, or are linked to body functions – if they have supporting research and they include a disclaimer that the FDA hasn’t evaluated the claim.
- Companies aren’t allowed to make a specific medical claim. (“This herb reduces the frequency of urination due to an enlarged prostate.”)
- Manufacturers must follow good manufacturing practices to ensure that supplements are processed consistently and meet quality standards. This is designed to keep the wrong ingredients and contaminants out of supplements and make sure that the right ingredients are included in appropriate amounts.
- The FDA is responsible for monitoring dietary supplements on the market. If it finds a product to be unsafe, it can take action against the manufacturer or distributor or both, and may issue a warning or require that the product be removed from the market.
CBD From a Marketing Standpoint
The future is looking brighter by the day for CBD marketers, though they still have some hurdles to cross as things are ironed out. On December 20, 2018, the $867 billion farm bill legalizing hemp farming throughout the country was signed into law, though legality of products continues to vary state to state. CBD oil is legal in the United States as long as it’s derived from industrial hemp.
Most of the discrepancy stems from the fact that the amount of tetrahydrocannabinol, THC – the component responsible for the psychotropic activities of the marijuana plant – allowable varies through the states. Companies are also unable to market to audiences under the age of 18, so they can’t capitalize on digital and social ads that have a tendency to boost other startup brands.
Marketing CBD can prove to be sticky, but marketers all over are scrambling to conquer the corner. Without the ability to cater to the younger population, they’re having to rely on alternative methods and get a little creative in their approach.
Influencers
While the bigger-named influencers frequently collect bandwidth on Facebook, Pinterest, and YouTube, where paid marijuana promotions are banned, microinfluencers, with a smaller following, have the freedom to choose to partner with CBD companies, and they often have higher engagement with their content.
Direct to Consumer
Brands that utilize a post-purchase email triggering referrals are finding success. Direct Sales companies like Kannaway are taking advantage of the word of mouth service that satisfied consumers are able to share, accelerating growth. Referral links have never been easier to share.
Subscribe
Some CBD companies are taking a lesson from the likes of Amazon and offering a monthly subscribe-and-save option. That not only locks consumers into a commitment, but also primes them for an upsell or expansion later on.
Content is King
Today’s shopper is savvy and doesn’t want to be sold to. Customers are looking for solutions to their problems and information they can’t get anywhere else. By offering quality content, companies have a way to create a complete brand experience. Content doesn’t have to be relegated to just talking about the products themselves. Posts on testimonials, industry trends, behind the scenes production, etc. can really go far.
Word-of-Mouth
However you look at it, there are going to be a lot of startups hitting the market, and those already established have a head start. There’s no doubt that good old-fashioned word-of-mouth will be one of the strongest methods of marketing surrounding the growing popularity of the new market.
Consumers are aware that the nutritional supplement and herbal marketplace is full of companies making half-promises on products that don’t have the purity to deliver, so making sure that your product exceeds expectations will be the way to stand out from the crowd.
The CBD market is estimated to rise to around $2.1 billion by 2020. Getting your foot in the door now will ensure you have a piece of the pie later. Working with Clock Tower Insight, you can ensure your have an understanding on where your message stands and how poised you are to take over the market in the future.