"Market Intelligence that Adds Flavour to Your Success"

Cannabidiol Market Size, Share & COVID-19 Impact Analysis, By Source (Marijuana and Hemp), Application (Food & Beverages, Pharmaceuticals, Pet Care, Cosmetics, and Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI103215

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global cannabidiol market size was USD 2,770.8 million in 2020 and is projected to grow from USD 3,675.1 million in 2021 to USD 55,791.3 million in 2028 at a CAGR of 47.49% between 2021 and 2028.


Based on the analysis, the global CBD market exhibited a lower growth of 26.42% in 2020 compared to the average year-on-year growth during 2017-2019. The substantial rise in CAGR is attributed to the market’s demand and growth, coupled with the market functioning returning to pre-pandemic levels once the pandemic is over. The global COVID-19 pandemic outbreak has had an unprecedented and staggering impact on the global economy. This has negatively affected the demand for cannabidiol across all regions amid the pandemic.


Cannabidiol is extracted from cannabis or hemp, but more specifically from hemp due to its naturally high CBD content. The product is often mistaken for its psychoactive counterpart, tetrahydrocannabinol (THC) extracted from the same plant. It has several benefits in treating anxiety, helping prevent seizures and inflammation, and reducing pain. The market is evolving faster due to its increasing utilization in the cosmetics, food, and pharmaceutical industries. The CBD market exhibits immense growth potential as consumers become aware of the benefits of the product.


The manufacturers are focusing on formulating new product offerings infused with CBD oil to provide consumers with easy access. For instance, in February 2020, Colgate acquired Hello Product, LLC to launch a brand collection of CBD oral care. The company aims to provide consumers with a range of highly effective, naturally friendly products that will elevate their everyday lives. Such factors are expected to fuel the demand for the product in the upcoming years.


CANNABIDIOL MARKET TRENDS


Request a Free sample to learn more about this report.


Demand for CBD in Health & Fitness to Boost its Popularity Among Consumers


Consumers seek innovative and healthy food products enriched with nutrients for achieving fitness goals and avoiding injuries such as inflammation, pain, and others. The manufacturers are introducing products infused with novel ingredients such as CBD oil. Cannabidiol oils are 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, CBD is commonly utilized to address human life's health issues such as insomnia, anxiety, etc. Thus, the demand for such innovative CBD products from the consumer end proliferates to maintain a healthy life balance.


DRIVING FACTORS


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 CBD products. The United States Food and Drug Administration (FDA) has recognized several potential opportunities that CBD may offer and acknowledged the possibilities of infusing it in various food and non-food applications. However, the FDA is working towards protecting public health and improving the efficiency of regulatory pathways to market appropriate products (including cannabidiol acids). The manufacturers are increasingly focused on sourcing CBD to incorporate it into food and other products. Thus, the rising dependency on products will aid the growth of the global CBD industry during the forecast period.


Abundant Utility of CBD in the Pharmaceutical Sector to Propel Market Growth 


The rapidly growing pharmaceutical industry globally recognizes the importance and benefits of cannabis and its by-products. CBD is one of the major elements of cannabis adopted by the pharmaceutical industry to offer health safety assurance over several disorders. It has properties such as being plant-based in nature and a natural alternative to several conventional medicines that are vigorously marketed among manufacturers and consumers worldwide. Thus, governments in several regions and countries are approving its utility in medicines and other medical therapies, which is expected to expand and increase the sales and distribution of these products during the forecast period. 


RESTRAINING FACTORS


Additional Barriers in Terms of Marketing of CBD Products and Lack of Consumer Awareness


CBD-based products are gaining wide popularity among consumers in developed economies such as the U.S., Canada, the U.K., Russia, and others but not in developing economies, especially in Asia and the Middle East. The myth associated with the product delivering psychoactive effects due to its popularity among consumers for recreational purposes hampers its market performance. Consumers are not well aware of its benefits, functions, and offerings that are beneficial in several ways. However, manufacturers are constantly working on creating consumer awareness and developing informative packaging to clear consumers' intentions towards the product. Thus, the efforts to reinforce the marketing activity will offer growth opportunities for the global cannabidiol market.   


CBD MARKET SEGMENTATION ANALYSIS


By Source Analysis


To know how our report can help streamline your business, Speak to Analyst


Wider Availability of Marijuana Leads to its Increasing Utility in CBD Production


With the increasing adoption of innovative and refined products in the market, manufacturers are utilizing a huge quantity of marijuana to produce CBD. The availability of marijuana, especially in Europe and North America, has promoted its dominance over hemp-derived products in the market. Furthermore, the increasing legalization and acceptance in developing countries have spurred competition among companies.


Hemp is also gaining popularity as consumer demand evolves in different regions.


By Application Analysis


Pharmaceuticals are the major consumers of CBD owing to its health-benefiting offerings.


The pharmaceutical industry is one of the sectors that constantly focuses on innovations, discovery, and research on new and effective medicinal products. The manufacturers have found a huge significance of CBD in their product manufacturing, owing to its wider offerings such as neuroprotective properties, pain relief properties, etc. According to the IQVIA Institute for Human Data Science 2018, the global pharmaceutical industry was valued at USD 1.2 trillion. It was further expected to reach USD 1.5 trillion by 2023 at a 4-5% CAGR. Thus, the rapidly growing sector will further ensure a huge demand for cannabidiol and its products in the coming years.


The food & beverage sector fuels the utility of CBD in their processing with the response to meet the demand for fortified foods in the market.


IMPACT OF COVID-19


In-Store Closure Due to COVID-19 Negatively Affected Sales of CBD Products


The COVID-19 outbreak and measures imposed by several governments, such as social distancing and lockdown, have resulted in the aggravation of the market. The food services sector and other businesses, such as the bakery, beverage servings, and dairy have observed a huge decline in their revenue generation since January 2020. The lockdown has impacted several table services worldwide, and the operators are concerned about the cash flow and weathering the storm. According to the International Facility Management Association (IMFA), 84% of in-store operations were affected due to the pandemic, of which food services represented a significant share in 2020.


REGIONAL INSIGHTS


North America Cannabidiol Market Size, 2020 (USD Million)

To get more information on the regional analysis of this market, Request a Free sample


North America accounted for the largest cannabidiol market share and stood at USD 1,276.7 million in 2020. Countries such as the U.S. and Canada have started to liberalize their laws for cannabidiol products in the past few years which has led to an increased acceptance amongst people. The demographics of consumers continue to shift radially, and the utility of CBD has become mainstream among several manufacturers of food, pharma, and cosmetics. The surging demand among different age groups and gender are expected to prompt their spending toward the product.


The sales of these products, especially smoking, vaping, and edibles, are gaining huge traction in the European market, owing to the rising influence of tobacco-free products among 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 share of the market, and countries such as China, Japan, and India are representing a developing market scenario for such products. The increasing legalization and approvals of cannabidiol for use in several products offer several manufacturers potential opportunities to operate in the market. For instance, in 2019, Thailand became the first Southeast Asian country to legalize cannabis for medicinal use and research purposes. It also legalized the utilization of hemp for the production of textiles, garments, and others. The capitalization on consumer awareness and product marketing by the manufacturers are some of the key factors driving the market growth.


South America is experiencing a significant boom in cannabis legalization, with Uruguay being the first country to legalize it for recreational purposes in 2013. The explosion of this industry in the region is driven by the consumers changing viewpoints as there is more to cannabis than simply getting high. Medicinal use of cannabis is permitted in Peru, Uruguay, and Colombia, while the rest of the countries in the region decriminalize the possession of marijuana for personal use. Thus, these factors have cumulatively aided in driving the regional market.


To know how our report can help streamline your business, Speak to Analyst


Middle East and Africa exhibit slower growth in comparison to other regions as the use of cannabis and its derived products is prohibited in UAE and Saudi Arabia. However, Lebanon became the first country in the Middle East to legalize cannabis for medicinal use. In Africa, cannabidiol is legalized for medicinal use, and it must not contain more than 0.03% of THC. Africanpure, an online CBD store in South Africa has emerged as one of the largest commercial CBD oil brands in the country. Thus, these factors are contributing to fueling regional market growth.


KEY INDUSTRY PLAYERS


Extensive Focus of Key Players on Launching Innovative CBD Products


Various government bodies across the world highly regulate the global CBD market. The companies operating in the countries that have received the approval status for cannabis products well earlier than other countries dominate the industry. The product's better know-how, raw material production, extensive research and development for launching various product categories, and a stronghold on the supply chain are a few of the advantages aiding these companies in gaining a competitive edge in the market. This further helps the companies expand their presence in other countries.


Medterra CBD is one of the major players and focuses on delivering new and innovative products such as oils, gummies, capsules, etc. For instance, In April 2020, Medterra CBD launched innovative CBD Gummies, new benefit-focused products to meet the demand. The strong dominance of key players and their reinforced production and distribution capabilities has resulted in a consolidated market globally.


LIST OF KEY PLAYERS PROFILED IN THE CBD MARKET:



  • Medical Marijuana Inc. (California, U.S.)

  • Cannoid, LLC (Colorado, U.S)

  • Isodiol International Inc. (Vancouver, Canada)

  • ENDOCA (Chicago, U.S.)

  • Folium Biosciences (Texas, U.S.)

  • Aurora Cannabis Inc. (Edmonton, Canada)

  • Pharmahemp d.o.o (Slovenia, Europe)

  • Elixinol Global (Sydney, Australia)

  • CV Sciences (California, U.S.)

  • Medterra CBD (California, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • In June 2021, Vertical Wellness, the US-based cannabidiol company, announced an agreement to merge with Canada-based company CanaFarma Hemp Products Corp., which offers multiple hemp-related products and services. This merger will help Vertical Wellness transform into a public entity with a combined worth of  $50 million.

  • In May 2021, the US Senate introduced new legislation filed under the Hemp Access and Consumer Safety Act. Under this act, a specific labelling and packaging system for cannabinol products must be established. Thus, this act will enable manufacturers to develop cannabidiol-based products using FDA-approved processes and market them using different sales channels.

  • In April 2021, KD. Pharma, a leader in lipid technology, acquired manufacturing units of Swiss cannabidiol and phytoextract specialist firms. This move will help the company supply active pharmaceutical ingredients (APIs) to develop new cannabinoid-based products for the emerging market.

  • In March 2021, Enveric Bioscience, a US-based biotechnology company, acquired an exclusive license to use Diverse Biotech's molecules to treat various diseases. Every will expand its product pipeline with this license by adding cannabidiol with existing drugs to lessen side effects experienced by cancer patients.

  • In February 2021, Jazz Pharmaceuticals, an Ireland-based company, acquired GW Pharmaceuticals, a leader in the cannabis pharmaceutical sector. With this acquisition, Jazz Pharmaceuticals intends to diversify its product portfolio and position itself as a global leader in the field of neuroscience. This deal will also help accelerate the development of cannabidiol-based pharmaceuticals currently in the pipeline, which can be used to treat diseases such as schizophrenia and autism, among others.


REPORT COVERAGE


An Infographic Representation of Cannabidiol (CBD) Market

To get information on various segments, share your queries with us



The CBD market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and distribution channels. Besides this, the report offers insights into the market trends and highlights key industry developments.


Report Scope & Segmentation










































  ATTRIBUTE



  DETAILS



Study Period



 2017-2028



Base Year



 2020



Forecast Period



 2021-2028



Historical Period



 2016-2019



Unit



  Value (USD Million)



By Source




  • Marijuana

  • Hemp



By Application




  • Pharmaceuticals

  • Food and Beverages

  • Pet Care

  • Cosmetics

  • Others



 


 


 


 


 


   By Geography




  • North America (By Source, Application, and By Country)

    • The U.S. (By Source)

    • Canada (By Source)

    • Mexico (By Source)



  • Europe (By Source, Application, and By Country)

    • Russia (By Source)

    • Austria (By Source)

    • Italy (By Source)

    • Germany (By Source)

    • U.K. (By Source)

    • Rest of Europe (Source)



  • Asia Pacific (By Source, Application, and By Country)

    • China (By Source)

    • Australia (By Source)

    • India (By Source)

    • Japan (By Source)

    • Rest of Asia Pacific (By Source)



  • South America (By Source, Application, and By Country)

    • Argentina (By Source)

    • Brazil (By Source)

    • Rest of South America (By Source)



  • The Middle East and Africa (By Source, Application, and By Country)

    • South Africa (By Source)

    • UAE (By Source)

    • Rest of ME&A (By Source)





Frequently Asked Questions

Fortune Business Insights says that the global CBD market size was USD 2,770.8 million in 2020 and is projected to reach USD 55,791.3 million in 2028.

In 2020, North America market stood at USD 1,276.7 million.

Growing at a CAGR of 47.49%, the CBD market will exhibit steady growth during the forecast period (2020-2028).

The marijuana segment is expected to lead 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 2020.

Innovative offerings within lifestyle and cosmeceutical products are expected to drive adoption in the global marketplace.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • May, 2021
  • 2020
  • 2016-2019
  • 160

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X