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By product, the cannabidiol market is segmented into oil, tinctures, suppository, transdermal patches, isolates, tablet, capsules, vape oil, creams and roll-on, CBD inhalers and others. The oil segment accounted for over USD 3.1 billion revenue in 2021. CBD oil is made by extracting CBD from cannabis plant and is commonly used in pain relayed disorders owing to its extensive benefits.
As an increasing number of people are noted to adopt a sedentary lifestyle involving limited muscular movement, it has led to an increasing prevalence of chronic pain among adults. 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, the market is anticipated to witness a significant surge in the coming years.
The cannabidiol (CBD) market based on application is bifurcated into anxiety/ stress, sleep/insomnia, chronic pain, migraine, skin care, seizures, joint pain & inflammation, neurological conditions, and others. The chronic pain segment is expected to surpass USD 18.7 billion by 2028. Increasing demand for cannabidiol (CBD) products have been noted since recent years owing to its widespread medical applications and pain relief treatment. CBD helps in reducing chronic pain by acting on variety of biological process in the body.
Moreover, CBD possesses antioxidant, anti-inflammatory and analgesic properties. Therefore, CBD products reduces the anxiety that is often experienced by the people suffering from the chronic pain. Thus, the increasing demand for CBD in the treatment of chronic pain is augmenting the market statistics.
By route of administration, the cannabidiol market is divided into oral, topical, inhalation, transdermal patches, rectal and sublingual. The oral route of administration segmented accounted for market share of 52.2% in 2021. Increasing use of oral route of administration has been noted in recent years and to address the same, suppliers have developed products that work efficiently when consumed orally.
For instance, in July 2020, U.S. FDA 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. Hence, as oral route of administration remains highly preferred by suppliers as well as consumers, the segment is expected to witness significant demand in the coming years.
Based on the source, the cannabidiol market is segmented into marijuana and hemp. The hemp segment is expected to grow at significant pace of 22% in the forecast period. Hemp-derived CBD products are gaining demand in the analysis timeframe. This can largely be attributed to smooth regulatory pathways developed for low tetrahydrocannabinol (THC) levels.
The THC content in hemp pants is negligible and developing 100% CBD-based products is possible, resulting in a higher market proportion. Thus, such aforementioned factors enabled consumers to opt for hemp-based CBD, thereby it is expected to remain dominated segment throughout the forecast timeframe.
By distribution channel, the cannabidiol (CBD) market is segmented into online and offline. The offline segment is further sub-segmented into hospital pharmacies and retail stores. The offline distribution channel segment registered for 52.4% business share in 2021 and is estimated to grow at lucrative market pace during the forthcoming years. This can be attributed 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. As the market is noted to be in its infancy, the offline distribution channel is expected to account for a larger proportion throughout the forecast period.
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North America cannabidiol market accounted for USD 7.7 billion in 2021. Supportive regulatory stance in the region paves way for regional cannabidiol industry expansion. It also boosts the confidence of consumers to opt for alternative treatment methods that involve the consumption of cannabidiol.
For instance, North America, particularly U.S., is one of the largest consumers of cannabidiol and marijuana/hemp derived products. This can be largely attributed 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. It also redefined hemp and hemp-derived products and augmented the market demand in the country.