Presented by Alexandra Curley, Senior Consultant, High Yield Insights, Ireland. Illustrated by two brief case studies: the consumer who uses CBD for sleep and the emergence of the consumer who incorporates CBD into their exercise regime. In consumer goods markets everyone is looking for the next big thing. But how can we spot trends in emerging markets? High Yield Insights recently conducted a research survey of over 35,000 US adults, of which over 4,000 currently use CBD and 10,000 expressed an interest in trying it. Drilling down into need states and psychographics, we have identified learnings that can apply to any market with legal access to CBD. The sample size allows for challenging assumptions and dated conclusions about the current and potential cannabis consumer, inclusive of CBD products. Access the recording of this presentation via the NewMR Play Again page: https://newmr.org/play-again/

3. Applying robust panel data for insights into
emerging consumer goods markets.
A Case-Study in the Legal Cannabis Industry
April 2021

4. Abstract of Presentation
Using large samples and robust research enables us to focus first on need states and psychographics, the resulting
learnings can apply to any market with legal access to CBD.
The findings challenge common perceptions on what seem to be well-understood trends, such as CBD for sleep issues.
Our large sample size of over 35,000 adults allowed for spotting and analyzing emerging opportunities such as CBD for
exercise recovery.
Existing CBD players can inform innovation and brand positioning. Emerging brands and entrants can tap into unmet
consumer needs and identify pockets for rapid growth. With over 10,000 respondents expressing interest in CBD, that
subset of data enables a detailed analysis of tomorrow’s adopter of CBD products. Finally, all 35,322 respondents
answered questions on the impact of Covid-19 on lifestyles, shopping habits, and wellness. This critical component can
support decision-makers seeking to respond and anticipate the needs of current and future consumers.

5. Methodology
● High Yield Insights & InnovateMR conducted a national study among 4,177
US CBD consumers
● Qualification Target: CBD users (past 3 months)
● Adults aged 21+
● LOI = 17 Min (mobile & desktop)
● The sample outgo was census balanced by age, gender, region, ethnicity,
income, education, and employment status
● Field Dates: September 25th - October 14th 2020
● The sample was supplied using InnovateMR’s proprietary panel,
PointClub™. InnovateMR also conducted the programming services and
data deliverables

6. Market Evolution & the Universal Application of
Data
Established Niche
● Pain Relief
● Stress & Anxiety
● Sleep Issues
● Mood Management
● Isolate, Distillate, Broad- and
Full-Spectrum Derivatives
● Exercise Recovery
● Gender-Specific
Needs
● Alternative to Alcohol
● Intimate Products
Emerging
● Substitution for Rx, OTC
● High Ratio CBD:THC Products
● Pet Products
● More Formats (Beverages, etc.)
● Increased Bioavailability

7. SLEEP ISSUES
CASE STUDY:
With four in 10 CBD users using CBD to manage
sleep issues, we were able to get under the skin
of the CBD “Sleep Treaters” and identify new
targets for brands which are already, or are
thinking of, targeting this consumer need state.

8. Drilling Down into CBD for Sleep
● 28% of adults described having sleep
issues as a result of the pandemic.
● Among CBD users this figure rose to 42%.
● 60% of adults who listed sleep disorders
as a condition they suffered from, said
that the pandemic had impacted their
sleep.
● A similar proportion (59%) who used CBD
to treat or manage their sleep disorder,
cited the pandemic as a contributing
factor.
Population surveyed
Current CBD users
CBD for Sleep Issues users
35,322
4,177
1,506

9. Demographics of CBD for Sleep Users
Females Dominate
40% of female CBD users use CBD to manage
sleep
28% of male CBD users use CBD to manage sleep
Millennials & Gen Z (40%)
Gen X (31%)
Seniors & Boomers (29%)
Scope to Grow for Seniors
Base: 1,506 CBD users aged 21+ who use CBD to treat sleep issues

10. Most trustworthy methods to learn about CBD
15%
29%
30%
40%
49%
User reviews (online
or in-app)
CBD brand
website
Online forum/
discussion
group
Via search
engine
Blogs
Base: 1,506 CBD users aged 21+ who use CBD to treat sleep issues

11. Products used less often as a result of CBD use
53% of CBD sleep treaters who use OTC sleep aids say that they use them less often as
a result of using CBD. This figure stands at 40% among those who use prescription sleep
aids.
Competitive Context
Over the Counter Sleep Aids (53%)
Prescription Sleep Aids (40%)
Base: 1,506 CBD users aged 21+ who use CBD to treat sleep issues

12. Our Thoughts on CBD for Sleep
● There is huge consumer interest in products that
help achieve the holy grail of 7-9 hours a night.
● Robust CBD consumer panel data is critical if
companies are to capitalize on consumer demand
for natural sleep solutions.
● The differing needs of CBD consumers will
inform the direction of brand tiering in this young
market.
● Sleep is a key market opportunity for health and
wellness brand operators.

13. How a survey of over 35,000 adults enabled us
not only to identify an emerging consumer niche,
but also to put some ‘meat on the bones’ to
understand the consumer, their motivations and
their usage and purchase habits.
EXERCISE RECOVERY
CASE STUDY:

14. Drilling Down into CBD for Exercise Recovery
● Compared to other usage occasions such
as pain management, addressing stress/
anxiety or sleep issues, the use of CBD for
exercise recovery is definitely niche.
● Just over one in 10 current CBD
consumers use it for Exercise Recovery.
● This is the equivalent to less than 2% of
the adult population.
35,322
4,177
488
Population surveyed
Current CBD users
CBD for Exercise Recovery users

15. Demographics of CBD for Exercise Recovery users
Male Majority
Male (54%)
Female (45%)
Non-binary (1%)
Current
CBD users
use CBD for
Exercise
Recovery
Generation Instagram
12%
Base: 488 CBD users aged 21+ who use CBD for Exercise Recovery
GenZ + Millennials (61%)
Gen X (25%)
Boomers + Seniors (14%)

16. Attitudes to Branding
Open to CBD-only products
from well-known companies
I fear that cannabis is going to
become too corporate
Prepared to pay more for CBD-
only products from specialist
CBD brands
Prepared to pay for CBD-only
products from household brands
43%
31%
27%
14%
Base: 488 CBD users aged 21+ who use CBD for Exercise Recovery

17. CBD Categories Used
Drinks represent
the biggest
opportunity for
CBD exercise-
recovery
products.
Use and Interest in CBD, by Category
Base: 488 CBD users aged 21+ who use CBD for Exercise Recovery

18. Our Thoughts on CBD for Exercise Recovery
● Current users, appear to identify a market gap
that marries, the specialist knowledge of indie
brands with the standards of the big brands.
● Although currently dominated by men, women
may drive growth as this aligns with broader
exercise trends.
● Current lockdown restrictions are curbing some
opportunities, but continued consumer research
will help to identify which new adaptive
behaviours are here to stay.

19. Key Takeaways
● Robust research is of critical importance in this emerging market because it
enables you to analyze subsets of data to really get under the skin of the
current, potential and former consumer.
● Quality data is hard to come by in the CBD industry. There is an
indisputable need for research that is of comparable quality to the data sets
that CPG companies have been used to dealing with.
● As we have hopefully illustrated, by tackling research through the lens of
consumer need states, we are able to separate what we actually know
about CBD consumers and what we think we know about CBD consumers.
This provides greater clarity on market evolution and helps identify new
niches.

20. Leadership
High Yield Insights is led by industry
veterans of brand strategy,
consumer insights, market
intelligence, and analytics.
As a company, High Yield Insights
fosters data-driven discussions in
and about the cannabis market and
cannabis consumer. High Yield’s
team, across multiple practice areas,
has a single focus: insights that
drive strategic decisions forward.
President and Co-Founder
Mike Luce
Senior Consultant
Alexandra Curley
Senior Analyst
Claire Birks

21. About High Yield Insights
High Yield Insights is a strategic partner to clients seeking advanced, data-
driven insights about the cannabis consumer of today and tomorrow.
Twitter: @HiYieldInsight
Email: contact.us@highyieldinsights.com
Web: www.highyieldinsights.com