The Global Cannabidiol (CBD) Market is estimated to reach around USD 2,740 million in 2021 and is projected to grow at a CAGR of 51% during the forecast period. Cannabidiol (CBD) is one of the 113 cannabinoids identified in the cannabis plant. The CBD-based products include oil, dried cannabis, capsules, and liquid solution. The products can be consumed in multiple ways like, inhaling smoke or vapor and eating.
The demand for CBD-based products is driving market growth due to its healing properties for a number of health conditions and medical disorders. Heart diseases, cancer, anxiety, depression, pain relief, and inflammation are some health conditions that can be potentially treated using cannabidiol. CBD has been widely used in food and beverages and is marketed mostly in the United States. The energy drinks and protein bars are infused with CBD in small amounts. However, the regulations regarding the usage of CBD in edible products are stringent, which in turn, can hamper market growth to some extent.
The legalization of CBD products in various countries across the globe is expected to strengthen the cannabidiol market growth. In European countries, the legalization of CBD products depends on the Tetrahydrocannabinol (THC) concentration, another known cannabinoid present in cannabis plants. In the U.S., the recreational use of cannabis is legalized in 17 states. Further, China manufactures hemp-based products in other countries, which too can boost market growth during the forecast period.
Government regulations are another supporting factor for the CBD market growth. For instance, the U.S. Food and Drug Administration (FDA) has approved a purified form of CBD Epidiolex, which helps in seizure treatments in patients aged two years and old. Hence, FDA has also concluded the CBD drugs to be safe and effective. Furthermore, in November 2020, the Court of Justice in Europe has stated that CBD is not narcotic. This ruling can provide a major impetus to the European CBD market.
The growing clinical trials and research and development investments by collaboration and legalization of CBD in other many parts of the globe are also expected to create new growth opportunities and thus, propel the CBD market growth.
FIGURE 1: GLOBAL CANNABIDIOL (CBD) MARKET
Key Factors Impacting the Growth of Cannabidiol Market:
- Technological advancements
- Increasing market demand for health management
- Growing manufacturing of drugs
- An increasing number of social media influencers
The global cannabidiol (CBD) market report has been segmented by source, distribution channel, end-use, and region
FIGURE 2: Cannabidiol (CBD) Market Segmentation
Based on source, the cannabidiol (CBD) market is divided into hemp and marijuana. The hemp segment is expected to grow faster during the predicted period. The demand for hemp plants and seeds for medicinal purposes is rising, which is expected to significantly contribute to market growth.
Health benefits of hemp seeds include its nutritional benefits, reduced risk of heart disease, asthma, and other health conditions, and improved digestion. The hemp oil-based products are expected to fuel the CBD market due to their availability in the market. Other CBD-based products available are capsules, solutions, tinctures, lotions, and edibles.
The marijuana segment also accounts for a significant market share due to its medical use. The rising demand for it in treating muscle pain, nausea, and cancer are expected to contribute to the segment’s growth. The legalization of marijuana for personal medical use can also have a positive impact on market growth.
By Distribution Channel
Based on distribution channel, the market is bifurcated into B2B and B2C. The B2C segment is further divided into hospital pharmacies, online, and retail stores. The business to business (B2B) segment is expected to dominate the market during the forecast period. The demand for CBD oil as a raw product for other business segment can assist the growth of this segment. Furthermore, the legalization of cannabis testing in various countries is projected to increase the demand for raw CBD materials, which is expected enhance the supply chain between B2B segment.
The business to customers (B2C) segment is also expected to hold a significant market share during the forecast period. The hospital pharmacies segment is expected to dominate the B2C segment due to the rising demand for personal cannabis medical products. Pharmacies and other online stores have a wide range of CBD products that can assist in the B2C segment growth.
Global Cannabidiol (CBD) Market, by End-Use
Based on end-use, the market is segmented into medical, personal use and cosmetics, pharmaceuticals, and food and beverage. The medical segment is further classified into chronic pain, mental disorder, cancer, and others. The medical segment is expected to grow rapidly during the analysis period due to the ability of CBD to fight certain diseases. The clinical trials and R&D activities for CBD medical uses are expanding, thus strengthening the CBD market growth. The rising collaborations between companies, research institutes, and pharmaceutical companies are expected to enhance the CBD products network and support market growth.
Based on the region, the global cannabidiol market has been segmented by North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, & Rest of the World. In terms of revenue, North America holds a dominant position in the global cannabidiol market. The region's dominance is attributable to favorable government policies for the prevention of disease and HCIT adoption, increasing funding for cannabidiol, rising prevalence of chronic diseases, and the presence of well-developed healthcare infrastructure. For Instance, in 2010, the U.S. government implemented the Patient Protection and Affordable Care Act which encourages a high quality of care and reduces costs. The act has encouraged the creation of Accountable Care Organizations (ACOs), including the Medicare Shared Savings Program (MSSP). Also, In Canada, The implementation of the population health commitment by the Canadian government, and increasing prevalence of chronic diseases in the country. In Europe, According to a report carried out by the Organization for Economic Co-operation and Development (OECD), in the year 2017, the average per head expenditure on healthcare in Europe was USD 4077. Furthermore, Asia Pacific is estimated to project the fastest growth rate in the global cannabidiol market during the forecast period. This growth can be accredited to several factors, such as the potentially large patient pool, the rapid development of health infrastructure coupled with increasing healthcare expenditure. In this region, the healthcare system focuses majorly on reducing treatment costs and increasing patient awareness. The growing investment by industry players through the development of new manufacturing units in the region and rising expenditure also contribute to market growth in the Asia Pacific.
The report analyzes factors affecting the cannabidiol market from both demand and supply side and further analyses market dynamics affecting the market during the forecast year such as driver, restrain, opportunities and future trends. The report also provides comprehensive Porter’s model analysis on the cannabidiol market for all six regions namely; North America, Western Europe, Eastern Europe, Asia Pacific, Middle East and the Rest of the world.
Major companies are investing in research and development. Key market players are also adopting inorganic development strategies like as acquisition of local brands. Similarly, other business models such as joint venture and market entry strategies are helping prominent vendors to make their presence felt in the cannabidiol market and increase their product portfolio. The key leading players in the market include Isodiol International, Inc., Medical Marijuana, Inc., ENDOCA, Cannoid Inc., Elixinol Global Limited, Folium Biosciences, NuLeaf Naturals, LLC, Pharmahemp d.o.o., Aphria Inc., Freedom Leaf, Inc, Green Roads of Florida, LLC, and General Cannabis Corp.
This report also includes the profiles of key cannabidiol market companies along with their SWOT analysis and market strategies. In addition, these competitive landscapes provide a detailed description of each company including future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launch, new product developments, and other latest industrial developments.
Recent Developments in the Global Cannabidiol (CBD) Market
- In March 2021, pharmaceutical company, CanaQuest has been awarded by Global Health & Pharma with international CBD life science R&D excellence award 2020. The company utilizes cannabinoid molecules and other botanical compounds to develop health products.
- In March 2021, Greenheart CBD, an Irish company was the first CBD company to offer decentralized finance token. The token helped the company to expand and offer cost-effective products to its token holders.
- In November 2020, the University of Dundee and University of Cordoba partnered and modified the CBD compound in cannabis to fight against skin diseases.
FIGURE 3: GLOBAL CANNABIDIOL (CBD) MARKET (USD MILLION), 2021–2030
What does this Report Provide?
A detailed understanding of the global cannabidiol (CBD) market demand from a qualitative and quantitative perspective. The report provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the global market for cannabidiol (CBD).
The major market drivers, challenges, and opportunities for the global cannabidiol (CBD) market have also been covered in the report. This report further includes the market shares of the leading companies operating in the market, along with their production capacities and the growth strategies adopted by them.
By Distribution Channel:
- Hospital Pharmacies
- Retail Stores
- Chronic Pain
- Mental Disorder
- Personal Use and Cosmetics
- Food and Beverage
North American Cannabidiol (CBD) Market
- North America, by Country
- The U.S.
- North America by Source
- North America by Distribution Channel
- North America by End-Use
European Cannabidiol (CBD) Market
- Europe, by Country
- The U.K.
- The Rest of Europe
- Europe by Source
- Europe by Distribution Channel
- Europe by End-Use
Asia Pacific Cannabidiol (CBD) Market
- Asia Pacific, by Country
- South Korea
- The Rest of Asia Pacific
- Asia Pacific by Source
- Asia Pacific by Distribution Channel
- Asia Pacific by End-Use
The Middle East and Africa Cannabidiol (CBD) Market
- The Middle East and Africa, by Country
- The UAE
- Saudi Arabia
- South Africa
- The Rest of Middle East and Africa
- Middle East and Africa by Source
- Middle East and Africa by Distribution Channel
- Middle East and Africa by End-Use
South American Cannabidiol (CBD) Market
- South America, by Country
- The Rest of South America
- South America by Source
- South America by Distribution Channel
- South America by End-Use
Reasons to Buy This Report:
- Market size estimation of the cannabidiol market on a regional and global basis
- Unique research Usage for market size estimation and forecast
- Profiling of major companies operating in the market with key developments
- Broad scope to cover all the possible segments helping every stakeholder in the market
We provide customization of the study to meet specific requirements:
- By Segment
- By Sub-segment
- By Region/Country
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