What does it take to make it in the CBD coffee market? Chances are that first impressions may be everything.
Hemp Industry Daily reports that around 70% of adults in the United States consume coffee, and roughly 86% of the people interested CBD-infused coffee have not yet tried it. This shows a significant opportunity in the market.
However, successfully converting coffee drinkers to a particular CBD-infused product may not be as easy as it might seem.
This is because brand loyalty is important to the typical coffee consumer. Convenience, taste preferences, and budget often determine which brand of coffee a consumer prefers.
Earning this customer loyalty can have a significant impact on the coffee company. A study published in the International Journal of Hospitality Management found that a 5% increase in customer retention resulted in a 25 – 77% increase in profit.
This profit growth occurs because a loyal customer is usually willing to purchase coffee products frequently, try other products the company may offer, encourage other coffee consumers to become customers of that brand, and help establish a positive image for the company. Loyal customers may also be less sensitive to price increases.
This brand loyalty can be a positive boost to a brand, but it can be difficult to earn. In the case of new businesses offering CBD-infused coffee products, it may be difficult to sway those first customers try their products because it means the coffee consumers must break the loyalty they already have for their favorite coffee brand.
Then, when a coffee consumer does try the CBD-infused product, the product must be convenient enough, tasty enough and affordable enough to earn that person’s loyalty. An article in Hemp Industry Daily suggests that a CBD-infused coffee company may need to offer a product that exceeds their customers’ needs or expectations in at least one of these categories to be successful.
With that in mind, what is it that consumers might expect from CBD-infused coffee? Some users reportedly describe it as a product that can provide the alertness that comes with caffeinated beverages, like coffee, but without the jittery feeling that caffeine can cause. Users also reportedly note little to no CBD flavor, depending on the coffee product.
However, an article in published by Healthline Media, Inc. highlighted some concerns shared by Bonni Goldstein, MD, a medical doctor from California.
“Those who want to use CBD for serious medical conditions, such as seizure disorders or inflammation from autoimmune disorders, should not take CBD in this manner, as accurate CBD dosing is extremely important for efficacy in these types of illnesses,” Goldstein reportedly says.
She also pointed to a recent study that examined the stability of CBD in cannabis tea. It found that temperature can affect the CBD content in the drink, which can cause the dosing inconsistencies Goldstein previously mentioned.
The inconsistent dosage of CBD in an infused coffee product could be another hurtle for companies trying to sell it. If the dose is too low or too high, the product may not meet the expectations of consumers.
Still, enough coffee drinkers seem to be interested in the potential that CBD-infused drinks offer. As businesses race to fill the gap in the market, they are not only competing to provide customers their first taste of CBD-infused coffee, but also to present those customers a product worthy of their loyalty.