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}), COVID19 Impact Analysis, Regional Outlook, Application 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

Summary Table of Contents Industry Coverage Methodology

Industry trends

Cannabidiol Market size was valued at over USD 7.1 billion in 2020 and is estimated to grow at a 35.7% CAGR between 2021 and 2027.

Cannabidiol Market Overview

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Supportive regulatory stance in majority of the countries paves way for the market growth. 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 in the country.

Cannabidiol is one of the compounds derived from marijuana and hemp plants and is employed for medicinal purposes. Cannabidiol has been found to be effective against numerous disorders such as chronic pain, neurological pain, anxiety, sleep disorder, as well as nausea and stress. Hence, cannabidiol is gaining widespread popularity across regions.

The increasing cases across the globe and restrictive movement of people and goods have impacted the growth of every sector and every industry operating within. Large-scale organizations to small enterprises have witnessed a shrink in sales. While some areas of the healthcare sector remain to be impacted, CBD sales have increased since the advent of the pandemic. This is largely due to the fact that factors such as restrictive movement and isolation largely impact the human body in several ways causing chronic pain or propels the concerns surrounding mental health, among others. Hence, as consumers gain awareness about the benefits of cannabidiol as an alternative mode of treatment, it is anticipated to register a sharp demand from the consumers.

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. Hence, with increasing supply capabilities across the globe, the market is predicted to observe increasing demand during the forecast period.

Large scale adoption of cannabidiol products as alternative to conventional medicine will spur the cannabidiol market expansion

The consumption of CBD is widely debated across countries. While countries in Asia Pacific and Middle East & Africa regions have shown restrain towards the widespread legalization of cannabidiol, countries in Europe and North America have had a fairly liberal stance on the same. Its proven therapeutic benefits have led to commercial approval from regulatory authorities such as FDA and Court of Justice of the European Union. The rising prevalence of cancer leads to an increasing number of patients undergoing chemotherapy and increasingly experience nauseatic conditions.

Further, 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.

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

Even though the regulatory framework is noted to propel the market, several loopholes limit the potential growth of the industry 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 and restricts the industry growth.

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

Cannabidiol Market Share

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The CBD oil segment accounted for USD 1.7 billion in 2020. CBD oil is largely consumed across regions attributed to its extensive benefits, particularly for pain related disorders. 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 set that nearly 1 in 10 adults suffer from chronic pain.

Treatment of chronic pain creates sufficient demand for CBD products

The chronic pain segment in the cannabidiol market will reach USD 36.5 billion by 2027. A considerable demand has been observed from cannabidiol products in 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. As consumers gain awareness about the advantages of CBD over opioids, a significant preferential shift is slated to drive the demand during the forecast timeline.

Oral route of administration remains highly preferred

The oral route of administration exceeded USD 3.5 billion 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.

Hemp-based CBD products showcase a smooth entry into the market owing to relatively easier regulatory guidelines

The hemp segment is expected to expand at a 36% growth rate through 2027 led by 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.

Large number of customers prefer offline channels, thus boosting the segment growth

The offline distribution channel dominated more than 53% of the CBD market share in 2020 on account of the increased consumer confidence in 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 anticipated to account for a larger proportion throughout the forecast period, while its online counterpart expands with a relatively higher CAGR.

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

Global Cannabidiol Market

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North America cannabidiol market size was over USD 4.3 billion in 2020. The region is expected to remain dominant throughout the forecast period in the consumption of CBD products. 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 growth. The growing geriatric population and higher disease prevalence also contribute significantly to the market demand in the region.

Mergers and acquisitions represent a higher competitive rivalry among the industry participants

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

Some of the 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 (CBD) 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 cannabidiol (CBD) industry size had attained more than USD 7.1 billion in 2020 and will expand at a CAGR of 35.7% CAGR up to 2027.
Annual revenue from the cannabidiol oil market exceeded USD 1.7 billion in 2020 and will grow commendably with higher adoption for pain-related disorders.
The CBD market share from the chronic pain application segment is expected to reach over USD 36.5 billion by 2027 owing to the higher benefits of the product over opioids.
Offline distribution channels accounted for more than 53% of the CBD market share in 2020 owing to the growing consumer confidence in offline purchases.
The CBD revenue share in North America recorded close to USD 4.3 billion in 2020 and will witness expansion through 2027 driven by increasing consumption of the products in the region.

Premium Report Details

  • Published Date: Jun 2021
  • Pages: 230
  • Tables: 371
  • Charts / Figures: 22
  • Companies covered: 10
  • Countries covered: 19

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