Cannabidiol Market size worth over $108.8 Bn by 2027

Cannabidiol (CBD) Market size is set to exceed USD 108.8 billion by 2027, according to a new research report by Global Market Insights Inc.

In recent years, CBD market is noted to be in its emerging stage, as consumers are observed to remain highly aware about different products and its effect on health. However, majority of users are noted to be new to the consumption of CBD in one form or the other. Furthermore, with a widespread activity towards commercializing CBD in key economies of Asia Pacific and Europe, it is noted to influence relatively smaller nations to consider the legalization.


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Growing medical application of CBD along with increasing consumer awareness will propel the market demand

There has been an exponential growth in use of CBD for medical conditions such as anxiety, seizures, muscle disorders, and Parkinson’s disease among other conditions. In the recent years, cannabidiol based products have been sold as supplements in several countries such as the U.S., Canada, UK, Netherlands, Italy, and others. Moreover, CBD is claimed to have additional benefits for several ailments without having any negative effects. For instance, CBD has been studied for its pain-relieving effect in individuals with chronic pain and neuropathic, especially when the patients are unaffected by other treatments. Furthermore, with an increasing consumer awareness and regulatory guidance for the users to identify different products, the cannabidiol market is expected to witness substantial demand in the coming years.  

Side effects associated with CBD products may slow down the market growth

Cannabidiol is known for its potential for treating various ailments such as anxiety, seizures, neurological conditions, cancer related nausea, chronic pain, and others. However, studies and research done by various institutions have concluded that CBD based products can still cause few side effects despite being effective for a range of medical conditions. Few of the side effects reported by the users include dry mouth, drowsiness, low blood pressure and light headedness. Additionally, CBD is known to increase the level of coumadin (blood thinner) which can interact with other medications causing adverse side effects in the body.

Utilization of tinctures for a wide array of medical conditions

The tinctures segment accounted for the second largest cannabidiol market proportion at over USD 992.9 million in 2020 and will show considerable growth of 36.4% during the forecast period. This is due to the long shelf life of tinctures and can be applied on skin or placed under the tongue for faster absorption. Also, CBD tinctures are generally made from high CBD strains of hemp with 60 to 70 percent alcohol. Moreover, increased utilization of tinctures for a wide array of medical conditions such as anxiety, nausea, pain, inflammation, and other ailments will drive the segment growth.

CBD products benefit people with various forms of anxiety

Anxiety/stress segment held around 21.9% CBD market share in 2020. CBD products benefit people with other forms of anxiety such as social anxiety disorder (SAD) and post-traumatic stress disorder (PTSD). For instance, a study conducted by National Institute of Drug Abuse (NIDA) stated that, CBD has been shown to reduce stress in animals & human beings and observed as having lower behavioral signs of anxiety. Their physiological symptoms of anxiety including increased heart rate also improved.

Browse key industry insights spread across 230 pages with 371 market data tables & 22 figures & charts from the report, “Cannabidiol (CBD) Market Size By Product (Oil, Tinctures, Suppository, Transdermal Patches, Isolates, Tablet, Capsules, Vape oil, Creams & Roll-on), By Application (Anxiety/Stress, Sleep/Insomnia, Chronic Pain, Migraines, 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}), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

Increasing use of CBD based topical products owing its anti-inflammatory property

The topical route of administration segment revenue was more than USD 1.4 billion in 2020. The topicals (cannabis-infused products) should be applied directly to the site of inflammation or pain to work in a specific area. Increasing use of CBD based creams and ointments has observed in recent years, as these products comprises analgesic and anti-inflammatory properties. Also, this route of administration of the have greater distribution and bioavailability.

Increasing application of marijuana-based CBD product

The marijuana segment size in the cannabidiol market is estimated to reach USD 30.7 billion by 2027. CBD is extracted from marijuana plants as either an oil or powder. These can be mixed into creams or gels, and they can be put into capsules and taken orally or rubbed on the skin. Additionally, tetrahydrocannabinol (THC) plays an important role in development of products for neurological disorders such as dementia, Alzheimer’s, epilepsy, and other disorders. THC is highly regulated majority of the countries owing to its psychoactive properties; thus, it is anticipated to have slow market growth as compared to hemp.

Online distribution channel is predicted to show positive trend

The online segment dominated 46.6% of the global CBD market share in 2020. Online segment offers various advantages over offline such as cost-effective prices, more variety, easy returns, convenience, and privacy for discreet purchases. Thus, owing to these advantages, customers are largely attracted towards online selling platforms. Furthermore, increasing consumers preference for online CBD products will further show a higher growth rate.

Changing regulatory scenarios and awareness regarding the potential benefits of cannabidiol-based products in Europe

Europe cannabidiol (CBD) market revenue is expected to surpass USD 28.7 billion by 2027, attributed to the changing regulatory scenarios and increase in awareness regarding the potential benefits of cannabidiol-based products. In addition, over the counter (OTC) sales in various countries such as Germany and France among others will largely fuel the market expansion. Also, increasing government support for CBD manufacturers with products containing less than 0.2% THC will contribute largely to the European industry demand.

Inorganic growth strategies by market players

Key companies in the CBD market are Aurora Cannabis, Canopy Growth Corporation, Cronos Group, CV Sciences, Inc., Medterra and Tilray, among others.

Companies are focusing on strategies such as new launches, collaborations, partnerships, and acquisitions to consolidate their market share. For instance, in January 2020, Mota Ventures Corp announced agreement to acquire Sativida OU, Spain based CBD producer and online retailer. The acquisition establishes the company’s presence in Europe as well as Latin America, thereby strengthening the market presence.  

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