The Cannabidiol or CBD market has witnessed significant growth in recent years owing to rising awareness about medical benefits of CBD. CBD is one of the chemical compounds found in cannabis plants and is known to have therapeutic properties that help in pain relief, reducing anxiety and depression, and improving sleep. The market for CBD products such as oils, capsules, gummies and creams is growing rapidly due to increasing adoption for conditions like chronic pain, arthritis, cancer pain, epilepsy, schizophrenia and other neurological disorders. The medical advantages associated with CBD and emergence of strong research validating its efficacy have boosted the demand for CBD products across various application areas.
The Global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the Cannabidiol market are CV Sciences, Medical Marijuana Inc., Isodiol, ENDOCA, Elixinol Global Limited and Charlottes Web Holdings Inc.
The rapidly growing demand for CBD products across various applications such as pharmaceutical, food and beverages, personal care and cosmetics is a major factor driving the market growth. According to an article published by the Brightfield Group in 2020, the hemp-derived CBD market is projected to grow from $1.8 billion in 2020 to $10.4 billion by 2024.
Technological advancements in extraction methods have led to development of standardized CBD products with high purity and efficiency. Research into expanding therapeutic benefits of CBD is further fueling its adoption.
Market Trends
Standardization of CBD products – Cannabis regulations globally are shifting towards standardization of CBD products with stringent quality control and purity checks. This is expected to boost consumer confidence and catalyze market growth.
Evolving application scope – R&D initiatives are exploring effectiveness of CBD in new therapeutic areas such as cancer, mental illness, neurological disorders and more. This expanding application scope will create new revenue pockets.
Market Opportunities
Growing demand in Asia Pacific- Countries like China, South Korea and Thailand are gradually legalizing CBD with increasing awareness about its benefits. This makes APAC a lucrative regional market going forward.
Rising penetration in wellness industry – Integration of CBD in health supplements, skincare and cosmetics is opening new avenues driven by its therapeutic profile and growing acceptance as a wellness ingredient.
Impact of COVID-19 on Cannabidiol Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global cannabidiol market. During the pandemic, demand for cannabidiol products increased as people sought alternative remedies to boost immunity and reduce anxiety levels. However, supply chain disruptions led to shortages of raw materials which hampered production activities. Several cannabis companies had to scale down operations due to lockdowns and restrictions on movement of goods. Recreational use of cannabis products also declined considerably due to closure of dispensaries and cannabis lounges.
With restrictions now being lifted, the market is recovering steadily. The growing acceptance of cannabis for medical use is driving demand from the healthcare sector. Cannabidiol is widely used to alleviate symptoms of chronic conditions like arthritis, epilepsy and multiple sclerosis. Researchers are exploring its potential in treating COVID-19 patients as well. Its anti-inflammatory and antioxidant properties make it beneficial for lung recovery. This will facilitate the market's growth in the coming years. Consumers' adoption of online channels for product purchase is also benefiting market players. They are adopting strategies like heavy discounts and flexible delivery options to capture this demand. Overall, while the pandemic delayed market expansion initially, focus on cannabis therapeutics will help drive its progress going forward.
Geographical Regions with High Cannabidiol Market Concentration
North America dominates the global cannabidiol market in terms of value. The U.S. and Canada constitute over 70% of the total regional market. Wide acceptance of cannabis for medical use and growing awareness regarding its benefits have boosted product demand. Favorable regulations supporting domestic production and consumption further encourage market growth. Research on cannabis applications is extensively carried out in these countries with many clinical trials underway for new product formulations.
Europe is another major regional market for cannabidiol driven by increasing product legalization. Countries like Germany and the U.K. have emerged as high potential markets based on their progressive cannabis laws and rising chronic disease prevalence. Availability of innovative cannabidiol-based formulations for pet care is also propelling the European market. With many such nations expected to relax regulations further, the regional market will continue expanding rapidly over the coming years.
Fastest Growing Region in the Cannabidiol Market
The Asia Pacific region is projected to witness the fastest growth in the global cannabidiol market during the forecast period. This can be attributed to changing consumer mindsets and surging adoption of cannabidiol products for various therapeutic uses. Countries like China, South Korea and India are emerging as highly lucrative markets as governments adopt supportive policies around cannabis cultivation and imports. Rising health issues like mental health disorders are elevating the need for effective natural remedies like cannabidiol in the region. Moreover, increasing western influence and extensive millennial population base will continue driving the APAC cannabidiol market.
