Industry Reports  GMIPulse   Press Room   Infographics   Whitepapers   Blog   About Us

Cannabidiol (CBD) Market Size By Product (Oil, Tinctures, Suppository, Transdermal Patches, Isolates, Tablet, Capsules, Vape Oil, Creams And Roll-On), By Application (Anxiety/Stress, Sleep/Insomnia, Chronic Pain, Migraine, Skin Care, Seizures, Joint Pain & Inflammation, Neurological Conditions), By Route of Administration (Oral, Topical, Inhalation, Transdermal Patches, Rectal, Sublingual), By Source (Marijuana, Hemp), By Distribution Channel (Online, Offline {Hospital Pharmacy, Retail Stores}), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027

Published Date: Jun 2021 |   |  Report ID: GMI4541  |  Authors: Sumant Ugalmugle, Rupali Swain

Report Format: PDF  |  Pages: 230  |  Base Year: 2020




Industry trends

Cannabidiol Market size surpassed USD 7.1 billion in 2020 and is estimated to grow at over 35% CAGR between 2021 and 2027. Supportive regulatory stance in majority of the countries paves way for the market expansion. Moreover, CBD has been found to be effective against numerous medical disorders such as chronic pain, neurological pain, anxiety, sleep disorder, as well as nausea and stress.
 

Get more details on this report - Request Free Sample PDF
 

While some areas of the healthcare sector remain to be impacted, the CBD sales have increased since the advent of the COVID-19 pandemic as restrictive movement and isolation largely impact the human body in several ways causing chronic pain and concerns surrounding mental health, among others. Further, several studies are also noted to remain underway to test the effectiveness of CBD-derived products against the lung damage caused by COVID-19.
 

Large scale adoption of cannabidiol products as alternative to conventional medicine

The rising prevalence of cancer leads to an increasing number of patients undergoing chemotherapy and increasingly experience nauseatic conditions. Also, as several people across the globe are noted to adopt a sedentary lifestyle, muscular disorders have also surged in the recent years. Cannabidiol products are noted to remain effective against these and are gaining popularity among patients. Also, it is observed that cannabidiol products undergo multiple clinical trials encompassing the treatment of numerous disorders such as neuropathic pain, among others. Hence, even though conventional medicine exists for the treatment of such illnesses, concerns surrounding its side effects are largely paving the way for CBD products in the market. Moreover, its proven therapeutic benefits have led to the commercial approval from regulatory authorities such as FDA and Court of Justice of the European Union.
 

Limited approval from the authorities and high level of monitoring restricts the market growth

Even though the regulatory framework is noted to fuel the market demand, several loopholes limit the potential growth of CBD market across sectors. For instance, CBD products are granted access for medical and cosmetic use across geographies, regulatory authorities have resisted the approval of cannabidiol as a food & beverage additive. States such as Texas authorize the consumption of hemp-derived CBD-infused food and beverages, minimal recognition is observed on a federal level creating obstacles in the supply network.
 

Large-scale awareness surrounding CBD oil has created a stable cannabidiol market demand

Get more details on this report - Request Free Sample PDF
 

The cannabidiol oil segment revenue was over USD 1.7 billion in 2020. CBD oil is largely consumed across regions owing to its extensive benefits, particularly for pain related disorders. The significant disease burden of chronic pain is identified on a global level, and it is estimated that nearly 1 in 10 adults suffer from chronic pain. Hence, with such concerning statistics and regulatory authorities addressing the consumption of CBD.
 

Treatment of chronic pain creates sufficient demand for CBD products

The chronic pain segment size is expected to reach USD 36.5 billion by 2027. A considerable demand has been observed from cannabidiol products in the recent years for pain treatment. This is largely due to the better results offered by cannabidiol products as well as its advantages over opioids. CBD is studied to have negligible trace of toxic compounds and minimal cases of side effects have been observed.
 

Large number of customers prefer offline channels

The offline distribution channel segment dominated more than 53% cannabidiol market share in 2020, due to an increased consumer confidence on offline purchases as compared to online channels. Further, as the penetration of counterfeit products increases, offline channels are largely preferred by consumers.
 

Oral route of administration remains highly preferred

The oral route of administration segment accounted for nearly USD 3.5 billion revenue in 2020. A significant consumer preference has been observed for oral route of administration and to address the same, suppliers have increasingly developed products that work efficiently when consumed orally. For instance, in July 2020, USFDA approved Epidiolex (a pure oral solution) developed by GW Pharmaceuticals for the treatment of seizures in patients over one year. The drug has earlier been approved for seizures associated with rare types of epilepsy.
 

Hemp-based CBD products witness a smooth entry into the market

Hemp-derived CBD products will register around 36% growth rate through 2027. This can be largely attributed to the smooth regulatory pathways developed for low THC levels. The THC content in hemp pants is negligible and developing 100% CBD-based products is possible, resulting in a higher market proportion.
 

Supportive government stance in North America positions it as one of the largest consumers of CBD

Get more details on this report - Request Free Sample PDF
 

North America cannabidiol market size crossed USD 4.3 billion in 2020. Several factors such as supportive regulatory framework, large-scale adoption offered by consumers as well as the higher intensity of suppliers in the region increasingly contribute to the sizeable regional market demand. The increasing geriatric population and higher disease prevalence will also boost the industry expansion in the region.
 

Additionally, North America, particularly U.S., is one of the largest consumers of cannabidiol and marijuana/hemp derived products. This can be largely credited to the introduction of Farm Bill in 2018 that legalized virtually every CBD based product consumed for medicinal and cosmetic purposes. The bill legalized cannabidiol products with less than 0.3% THC content across U.S. states.
 

Mergers and acquisitions represent a higher competitive rivalry among industry participants

Prominent players operating in the market include Aurora Cannabis, Canopy Growth Corporation, Cronos Group, CV Sciences, Inc., Medterra, and Tilray. Companies are noted to adopt organic and inorganic strategies to enhance their market presence and as well as gain competitive advantage in the market.
 

Recent Industry Developments:

  • In April 2021, The Valens Company announced that it has entered a definitive agreement to acquire Green Roads for nearly USD 60 million. The acquisition grants The Valens Company access into the U.S. market through a well-developed network of Green Roads.
     
  • In October 2020, Real Brands Inc. merged with Canadian American Standard Hemp Inc. The merger was targeted at augmenting collaborative efforts while creating shareholder value.
     

The cannabidiol market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Product

  • Oil
  • Tinctures
  • Suppository
  • Transdermal patches
  • Isolates
  • Tablet
  • Capsules
  • Vape oil
  • Creams and roll-on
  • Others

Market, By Application

  • Anxiety/stress
  • Sleep/insomnia
  • Chronic pain
  • Migraines
  • Skin care
  • Seizures
  • Joint pain & inflammation
  • Neurological conditions
  • Others

Market, By Route of Administration

  • Oral
  • Topical
  • Inhalation
  • Transdermal patches
  • Rectal
  • Sublingual

Market, By Source

  • Marijuana
  • Hemp

Market, By Distribution Channel

  • Online
  • Offline
    • Hospital pharmacy
    • Retail stores

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Switzerland
    • The Netherlands
  • Asia Pacific
    • Australia
    • New Zealand
    • Japan
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Peru
    • Colombia
  • Middle East & Africa
    • South Africa
    • Israel
    • Turkey
       

Frequently Asked Questions (FAQ) :

The market size of CBD surpassed USD 7.1 billion in 2020 and is estimated to grow at over 35% CAGR between 2021 and 2027.
North America market size crossed USD 4.3 billion in 2020. Several factors such as supportive regulatory framework, large-scale adoption offered by consumers as well as the higher intensity of suppliers in the region increasingly contribute to the sizeable regional market demand.
The cannabidiol oil segment revenue was over USD 1.7 billion in 2020 and will grow substantially during the forecast period, with higher adoption for pain-related disorders.
Hemp-derived CBD products will register around 36% growth rate through 2027. This can be largely attributed to the smooth regulatory pathways developed for low THC levels.
The chronic pain application segment is expected to reach USD 36.5 billion by 2027 owing to the higher benefits of the product over opioids.
The offline distribution channel segment dominated more than 53% market share in 2020, due to an increased consumer confidence on offline purchases as compared to online channels.
Prominent players operating in the market include Aurora Cannabis, Canopy Growth Corporation, Cronos Group, CV Sciences, Inc., Medterra, and Tilray.