Cannabidiol Market size accounted for USD 12.8 billion in 2021 and is estimated to grow with 21.7% CAGR between 2022 and 2028. Rising awareness of health benefits of cannabidiol (CBD) and its effectiveness in pain management & various other treatments is propelling the CBD industry growth.
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Also, cannabis has been used to treat pain since far back and more recently various studies have stated that certain components of cannabis including CBD are responsible for pain-reliving effects. For instance, according to a study from the Michigan University, in 2021, out of 878 patients with fibromyalgia, 72% patients were reported using CBD to manage their pain. Therefore, CBD helped to decrease their pain as compared to other drug therapies. Thus, widespread use of CBD products along with changing consumer opinion has increased the adoption of CBD products, thereby propelling the market statistics.
Cannabidiol (CBD) is a chemical compound obtained from marijuana and hemp plants and is commonly used for medical purposes. Cannabidiol (CBD) is used for treating pain, anxiety, muscle disorder (dystonia), Crohn disease, Parkinson disease and many other medical conditions. Hence, cannabidiol is gaining widespread popularity across regions.
|Cannabidiol (CBD) Market Size in 2021:||12,818.6 Million (USD)|
|Forecast Period:||2022 to 2028|
|Forecast Period 2022 to 2028 CAGR:||21.7%|
|2028 Value Projection:||56,259.1 Million (USD)|
|Historical Data for:||2017 to 2021|
|No. of Pages:||290|
|Tables, Charts & Figures:||393|
|Segments covered:||Product, Application, Route of administration, Source, Distribution Channel and Region|
|Pitfalls & Challenges:|
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The outbreak of COVID-19 pandemic had significantly impacted the cannabidiol market. The CBD industry witnessed a significant drop in 2020-2021 owing to the disruption of the supply chain, retail access and limitations imposed on the movement of people. This has largely affected the several company’s operations.
Furthermore, the market players revealed that overall CBD sales went down during the pandemic but gradually recovered due to the rise demand for CBD supplements and vitamins. A sluggish growth was observed in CBD supplements industry as retail shop owners started other distribution medium such as home deliveries and curbside pickup for the sale of the product.
Cannabidiol-based products are being rigorously adopted in the society in varied forms such as beauty & health products as well as pet products. The main factor which is responsible for the increased adoption is the change in consumer’s beliefs about products derived from cannabis as well as the number of ways cannabidiol products can be applied and consumed.
After legalizing cannabidiol in many countries, there has been a fast-growing interest in various product forms such as tinctures, oils, body lotions, capsules, vaping products, transdermal patches, and other personal care products. These products have become popular owing to their multiple uses which includes possible healing properties as well as their ability to soothe pets.
In addition, Center for Food Safety (CFS) evaluates companies which sell CBD based products based on their production process, processing methods, testing protocols, and transparency to consumers. Such initiatives by the government spiked the interest of consumers which has led to increased adoption of CBD based products.
Cannabidiol based products have gained traction over the recent years due to the increased adoption for a wide array of medical conditions. This has created a potential for illegal manufacturers to develop synthetic products which does not contain cannabidiol, whereas contains chemical compounds which produces the same effects as cannabidiol but also has negative effects on the body. These illegal products are cost effective than the original ones and claim to have increased level of CBD which can treat various health conditions.
For instance, as of February 2020, more than 2,800 patients hospitalized due to e-cigarette, vaping, use-associated lung injury (EVALI) and around 68 deaths had been reported in the U.S. alone. Thus, owing to such cases of mislabelling and utilization of synthetic marijuana, FDA had sent warning letters to many companies after testing their products and were found to have no traces of CBD in them, thereby limiting the market demand.
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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.
Major market players operating in the global cannabidiol (CBD) industry include :
few other players.
These industry players are noted to adopt organic and inorganic strategies such as merger, acquisition, new product launch, etc. in order to capture high revenue share in the cannabidiol (CBD) market. These strategies will enhance their market presence and as well as gain competitive advantage in the business.
Some of the recent industry developments:
The cannabidiol market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2028, for the following segments:
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By Route of Administration
By Distribution Channel
The above information is provided for the following regions and countries: