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Cannabidiol Market size to exceed $56.2bn by 2028

  • Published Date: April 8, 2022

Cannabidiol (CBD) Market size is set to surpass USD 56.2 billion by 2028, according to a new research report by Global Market Insights Inc.

The market is expected to witness significant growth owing to positively changing regulatory scenario coupled with the novel product launches. Additionally, it is observed that cannabidiol products are undergoing multiple clinical trials encompassing the treatment of numerous disorders such as neuropathic pain, among others. Therefore, 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.

Increasing sales in retail stores will spur the market trends

Cannabidiol products were sold mostly via dispensary sales and online platforms. However, this scenario changed after the implementation of Farm Bill in 2018. Many of the cannabidiol product manufacturing companies initially started marketing and selling their products via online platforms. Manufacturers then witnessed the potential of cannabidiol industry, thus started company tie ups with huge retail stores such as The Vitamin Shoppe, CVS Pharmacy (Consumer Value Stores), Walgreens and Rite Aid. CVS was the first retail store that introduced cannabidiol based products in eight states of U.S.

Further, The Kroger Co. also joined this market and started selling CBD based products in 22 states in the U.S. Tie ups with such huge retailers resulted in the revenue spike for most of the companies. Thus, the increased adoption of CBD products in retail stores across the globe is predictable to augment the cannabidiol market demand.

Side effects associated with CBD products may hamper the market revenue

Cannabidiol is known for its potential for treating various ailments such as anxiety, seizures, neurological conditions, cancer related nausea, chronic pain, and others. In addition, research and studies conducted by various institutions have concluded that cannabidiol based products can produce few side effects despite being very effective for the treatment of various medical conditions. Few of the side effects reported by the users of cannabis includes dry mouth, drowsiness, low blood pressure and light headedness.

Also, liver damage has also been witnessed in some of the studies conducted in animals as well as in humans. Further, CBD is known to increase the level of coumadin (blood thinner) which can interact with other medications causing adverse side effects in the body. Thus, the aforementioned factors can negatively impact the growth of CBD market.

Increasing adoption of tinctures to treat wide array of medical conditions will fuel the business landscape

Cannabidiol market by product is segmented into oil, tinctures, suppository, transdermal patches, isolates, tablet, capsules, vape oil, creams and roll-on, CBD inhalers and others. The tinctures segment accounted for of USD 1,811.3 million in 2021 and is anticipated to witness over 22.4% CAGR 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. Furthermore, increased utilization of tinctures for a wide array of medical conditions such as anxiety, nausea, pain, inflammation and other ailments is likely to further drive the industry expansion.

CBD products benefit people with various forms of anxiety that will spur the market statistics

Cannabidiol market is divided into anxiety/ stress, sleep/insomnia, chronic pain, migraine, skin care, seizures, joint pain & inflammation, neurological conditions, and others. Anxiety/stress segment witnessed over 21.2% revenue share in 2021 is set to register a significant CAGR during the forecast timeframe. 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. Such factor will increase the product demand.

Browse key industry insights spread across 290 pages with 373 market data tables & 20 figures & charts from the report, “Cannabidiol (CBD) Market Analysis By Product (Oil, Tinctures, Suppository, Transdermal Patches, Isolates, Tablet, Capsules, Vape oil, Creams & Roll-on, CBD Inhalers), Application (Anxiety/Stress, Sleep/Insomnia, Chronic Pain, Migraines, Skin Care, Seizures, Joint Pain & Inflammation, Neurological Conditions), Route of Administration (Oral, Topical, Inhalation, Transdermal Patches, Rectal, Sublingual), Source (Marijuana, Hemp), Distribution Channel (Online, Offline {Hospital Pharmacy, Retail Stores}), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:

Topical-based products comprises analgesic and anti-inflammatory properties that will bolster the industry statistics

Based on route of administration, the cannabidiol market is segmented into oral, topical, inhalation, transdermal patches, rectal and sublingual. The topical route of administration segment accounted for 20% business share in 2021 projected to record a lucrative CAGR in the coming years. The topical cannabis infused products are meant to be directly applied on the site of pain or inflammation to work in a specific area. Also, increasing use of CBD based creams and ointments has observed in recent years, as these products comprises analgesic and anti-inflammatory properties.

Rising application of marijuana-based CBD product is anticipated to drive the market share

Based on source, the cannabidiol market is segmented into marijuana and hemp. The marijuana segment is set to exhibit more than 21% CAGR during the analysis period. CBD extracted from marijuana plants is either in oil or powder form. These derived products can be mixed into gels or creams and can also put into capsules and consumed orally or rubbed on the skin.

Moreover, tetrahydrocannabinol (THC) plays a major role in development of products for neurological disorders such as dementia, epilepsy, Alzheimer’s, and other disorders. THC contains psychoactive properties owing to which it is banned in majority of the countries.

Online distribution channel is expected gain increasing preference

Based on distribution channel, the CBD market is segmented into online and offline. The online segment is slated to cross USD 27.7 billion by 2028. 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, thereby boosting the market revenue.

Changing regulatory scenarios along with availability of cannabidiol-based products in Europe will spur the industry landscape

Europe cannabidiol market is poised to surpass USD 15.4 billion by 2028. This is attributed to the availability and adoption of cannabidiol based products. Also, the approvals of CBD based medications in various European countries further enhance the market outlook.

For instance, Sativex (CBD based oromucosal spray) was approved by the European Union in 2011 and was made available in countries such as Italy, Sweden, Denmark, Austria, and Czech Republic. However, Sativex is not yet approved in the U.S. market. Such product launch and availability of wide array of products will propel the industry demand in Europe.

Inorganic growth strategies by industry players will foster the industry projection

Key players in the global CBD industry 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, partnerships, collaborations, business expansion and acquisitions to consolidate their presence.

For instance, in January 2022, Tilray Brands, Inc., announced the expansion of its medical cannabis products offering in Australia. The company also launched a new medical cannabis e-learning platform for healthcare professions in New Zealand and Australia. This strategy is likely to expand their customer base and outreach to untapped economies.

Authors: Sumant Ugalmugle, Rupali Swain