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The global cannabidiol (CBD) market size was valued at USD 2.19 billion in 2019 and is projected to reach USD 39.99 billion by 2027, exhibiting a CAGR of 46.4% during the forecast period.
CBD is known for medical relief as it provides relief in several conditions without offering psychoactive effects caused by tetrahydrocannabinol (THC). The CBD market is evolving at a faster rate due to its increasing use in several application areas such as food, pharma, and others, making it a booming sector within the cannabis industry. Despite the immense potential to grow, the manufacturers are focusing on different aspects to understand the market, users, current trends, and challenges imposed by the regulatory bodies.
COVID-19 Pandemic affects In-Store Operations and Sales Of CBD Products
The outbreak of COVID-19 and measures imposed by several governments such as social distancing and lockdowns have resulted in the aggravation of the market. The food services sector and other food businesses such as the bakery sector, beverage servings, and dairy have a huge decline in their revenue generation since January 2020. The lockdown has impacted several table-services across the world and operators got concerned about the cash flow and weathering the storm. According to the International Facility Management Association (IMFA), 84% of in-store operations got affected due to the pandemic, of which, food services represent a significant share in 2020.
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Demand for CBD in Health & Fitness to Boost its Popularity Among Consumers
The consumers are seeking innovative and healthy food products enriched with nutrients to maintain health goals & to avoid injury and infection such as inflammation, pain, and others. The manufacturers are introducing products infused with novel ingredients such as CBD. Cannabidiol and cannabidiol Isolate oils (CBD oil) is the legalized and non-psychoactive element of cannabis that has conquered several industries such as food, health products, pharma & beauty, and others. According to the Harvard Health Institute 2018, it is commonly utilized to address the health issues associated with human life such as insomnia, anxiety, and others. Thus, the consumers are proliferating the demand for such innovative CBD products to maintain health-life balance.
Increasing Government Approvals for CBD Products to Aid Market
The rapid development of therapies, medicines, and other consumer products derived from cannabis and its positive health benefits has resulted in increased approvals for these products. The U.S. Food and Drug Administration (FDA) has recognized several potential opportunities that CBD may offer and acknowledge the possibilities to infuse it in various food and non-food applications. However, the FDA is working towards the protection of public health and improving the efficiency of regulatory pathways for the marketing of appropriate CBD products (including cannabidiolic acids). The manufacturers are increasingly focused on sourcing CBD to incorporate it into the food and other products. Thus, the rising dependency of products will aid CBD oil market growth rate during the forecast period.
Abundant Utility of CBD in the Production of Pharmaceutical Products to Incite Business
The rapidly growing pharmaceutical industry across the world is recognizing the importance and benefits of cannabis and its by-products. It is one of the major elements of cannabis that is adopted by the pharmaceutical industry to offer health safety assurance over several disorders. CBD properties such as plant-based in nature and natural alternatives to several conventional medicines are vigorously marketed among the manufacturers and the consumers worldwide. Thus, the governments in several regions and countries are approving its utility in medicines and other medical therapies, which is expected to increase the sales and distribution of these products during the forecast period (2020-2027).
Additional Barriers in terms of Marketing of CBD Products and Lack of Consumer Awareness
The CBD-based products are gaining wide popularity among the consumers in developed economies such as the U.S., Canada, U.K., Russia, and others but not in the developing economies especially in Asia and the Middle East. The myth associated with the product that it delivers psychoactive effect to the consumers as THC products are popular for recreational purposes. The consumers are not well aware of its benefits, functions, and offerings that are beneficial in several ways. However, the manufacturers are constantly working on creating consumer awareness and developing informative packaging that will clear the consumer’s intention towards the product. Thus, the efforts to reinforce the marketing activity will offer CBD oil industry growth opportunities.
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Wider Availability of Marijuana Leads to its Increasing Utility in CBD Production
With the increasing adoption of serving innovative and refined products in the market, the manufacturers are utilizing a huge quantity of marijuana for the production of CBD oil. The availability of marijuana, especially in Europe and North America has promoted its dominance over hemp-derived products in the CBD oil market. Furthermore, increasing legalization and acceptance in developing countries have spurred competition among companies. Hemp is also gaining popularity, as the demand from consumers is evolving in different regions.
CBD oil has gained importance in the manufacturing of health products and the products help in treatments such as chronic pain, anxiety, and other mental health disorders. CBD is derived from the cannabis plant and further processing is carried out to extract CBD oil for commercial use purposes.
Pharmaceuticals are the Major Consumers of CBD Owing to the Offerings of Health Benefits
The pharmaceutical industry is one of the sectors that is constantly focussing on innovations, discovery, and research on new and effective medicinal products for consumers. The manufacturers have found a huge significance of CBD in their product manufacturing owing to its wider offerings such as neuroprotective properties, pain relief property, and others. According to the report published by IQVIA Institute for Human Data Science 2018, the global pharmaceutical industry was valued at US$ 1.2 trillion and was expected to reach US$ 1.5 trillion in 2023 with a CAGR of 4 to 5%. Thus, the rapidly growing sector further ensures a huge demand for cannabidiol and its products in the near future. However, the food & beverage sector is further fueling-up the utility of CBD in their processing with the response to meet the demand for fortified foods in the market.
North America Cannabidiol Market Size, 2016-2027 (USD Billion)
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The countries across North America such as the U.S. and Canada have begun the process of liberalizing their laws for cannabidiol products in the past few years. The demographics of consumers continue to radially shift and the utility of CBD has become mainstream among several manufacturers such as food, pharma, and cosmetics. The surging demand among different age groups and gender are expected to prompt their spendings toward the products. However, the sales of these products, especially smoking, vaping, and edibles are gaining huge traction in the European market, owing to the rising influence towards the tobacco-free products among the consumers. The growing demand for such products in the region is expected to create huge competition for North America in a few years.
Asia Pacific holds a significant cannabidiol market share and countries such as China, Japan, and India are representing a developing market scenario for these products. The increasing legalization and approvals of cannabidiols to use in several products are fueling-up the potential and serving a huge opportunity for manufacturers to operate in the market. The capitalization on consumer awareness and product marketing by the manufacturers are some of the key factors to propel the market growth.
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Market Players are Constantly Focussing on Launching Innovative Cannabidiol Products to Meet the Demand
Cannabis and cannabidiol markets are highly regulated under the various government bodies across the world. The companies operating in the countries which have received the approval status for cannabis products well earlier than other countries are dominating the industry. Better know-how of the product raw material production, R&D in the launch of varied product categories, a stronghold on the supply chain are few of the advantages aiding these companies to gain a competitive advantage in the market and also helping in to focus on expanding to other countries.
Medterra CBD is one of the major players in the global marketplace and focuses on delivering new and innovative products such as CBD-based oil, gummies, capsules, and others. For instance, In April 2020, they have launched innovative CBD Gummies, new benefit-focused products to meet the demand. The strong dominance of key player and their reinforced production and distribution capabilities in the market has resulted in the consolidated market globally.
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The market research report provides a detailed cannabidiol market analysis and focuses on key aspects such as leading companies, product types, and leading distribution channels of the product. Besides this, the report offers insights into the market trends and highlights key industry developments.
Value (USD Billion)
By Source, Application, and Region
Fortune Business Insights says that the global cannabidiol market size was USD 2.19 billion in 2019 and is projected to reach USD 39.99 billion by 2027.
In 2019, the North America market value stood at USD 1.01 billion.
Growing at a CAGR of 46.4%, the market will exhibit steady growth in the forecast period (2020-2027).
The marijuana segment is expected to be the leading segment in this market during the forecast period.
The increasing legalization of products is one of the major factors driving the growth of the market.
Medical Marijuana, Inc., ENDOCA, and Cannoid LLC are the major players in the market.
North America dominated the market share in 2019.
Innovative offerings within lifestyle ad cosmeceutical products are expected to drive the adoption in the global marketplace.
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