Cannabidiol Market

Global Cannabidiol Market Size (2023 to 2028)

The global cannabidiol market was anticipated to be USD 17.27 billion in 2023. and is likely to record a compound annual growth rate (CAGR) of 23.3% during the forecast to be worth USD 49.22 billion by 2028. 

Global Cannabidiol Market Share Insights:

• Based on type, the marijuana segment led the market and captured 53.4% of the global cannabidiol market share in 2022.
• Based on the distribution channel, the B2B segment captured 51% of the global market share in 2022.
• The North American cannabidiol market is expected to be worth USD 13.22 Billion by 2027.
• The European cannabidiol market has the second-largest global market share and is expected to be worth USD 11.56 billion by 2027.

Cannabidiol (CBD) is found naturally in marijuana plants. Though the oil is derived from marijuana, it does not have any harmful effects like any other product derived from cannabis. On the contrary, CBD oil has many health benefits and is especially beneficial for stress relief. Also, CBD oil in treating various health disorders such as Alzheimer's, multiple sclerosis, and Parkinson's disease is showing positive results. According to the National Institute of Drug Abuse, the National Institute of Health (NIH) has spent around USD 140 million on the research and development of cannabinoids. In addition, the institute has spent around USD 36 million on 70 projects only to examine the properties of cannabis. Also, the National Institute of Health (NIH) has increased the funding of projects related to the medical treatments associated with the compounds of the cannabis plant. Furthermore, government organizations are launching various programs to continue the R&D of drugs using cannabis. For instance, the government-run National Research Foundation recently initiated a program to research the use of cannabis plants in different medical treatment procedures.

MARKET DRIVERS:

Increased adoption of products for CBD skincare acts as a demand catalyst.

The antioxidant properties of CBD can fight the signs of aging in the geriatric population, which is one of the major factors promoting the adoption of CBD in the cosmetic industry and driving market growth. In addition, the growing investments in R&D and increasing demand for skincare products are propelling the market’s growth rate. Therefore, in the years to come, the CBD skincare market is anticipated to grow significantly, which is expected to result in the growth of the cannabidiol market.

The cannabidiol market growth is further driven by increased cannabidiol (CBD) use in medical applications, supplements, beverages, and skin care.

The usage of cannabidiol in medical applications has been growing continuously over the past few years. According to WHO, Epidiolex® is a liquid oral formulation of pure CBD derived from plants. GW Pharmaceuticals in the United Kingdom produce it. It has shown positive results in Phase 3 trials of Dravet and Lennox-Gastaut syndromes, which are treatment-resistant seizure disorders. In multiple countries, the adoption of cannabis-related products in medical treatments has spiked in recent years. The demand for cannabidiol (CBD) for medical and wellness purposes is gaining attention owing to its associated healing properties, which are now one of the primary drivers of the global cannabidiol market growth.

Furthermore, the high demand from the pharmaceutical industry for marketing different cannabidiol-containing products in the manufacturing process is expected to boost the market's growth. This includes increasing CBD-containing products for conditions such as epilepsy, anxiety, chronic pain, and addiction. Many currently available products also contain a mixture of THC and CBD.

The growing patient count suffering from chronic diseases such as cancer, diabetes, and others is propelling the cannabidiol market's growth rate.

According to the World Health Organization (WHO), 2.5% of the global population, around 147 million people, consumes marijuana in different forms annually. This is eventually propelling the demand for CBD oil. In 2018, the National Center for Biotechnology Information (NCBI) stated that 62% of the population uses CBD oil to treat various health disorders. Increasing complications from cancer and other chronic diseases boost the market's demand. In addition, rising research and development activities in the healthcare sector are propelling the growth rate of the Cannabidiol market. Growing investments in research activities by government and non-government organizations are ascribed to boosting the market demand. CBD oil contains a poor concentration of tetrahydrocannabinol (THC), so there is abundant oil usage for medical purposes. Creating awareness of the use of cannabis appropriately is also leveraging the growth rate of the CBD oil market.

MARKET RESTRAINTS:

However, strict rules and regulations by the government in approving new products are slightly hindering the market's growth rate. Furthermore, in some countries, the cultivation of the cannabis crop is illegal, impeding the demand for CBD oil. Besides, fluctuations in the availability of raw materials in the industries and long-term use of medicines with cannabis are showing some adverse effects that limit the growth rate of this market. Finally, the absence of skilled people in the laboratories is expected to contribute to the market's growth rate decline during the forecast period.

COVID-19 impact on the Cannabidiol market:

COVID-19 outbreak has spread to more than 100 countries worldwide, where the World Health Organization declared it a public health emergency. The Covid-19 pandemic has resulted in a decline in CBD oil sales in the first half of 2020 due to the shutdown of manufacturing units and distribution channels due to the lockdown implemented in various nations. The same trend is likely to continue in the foreseen years as consumers are now turning towards healthy products like functional foods to improve their disease resistance and immunity to combat the coronavirus spread.

Due to the impact of the novel coronavirus, there are lockdown restrictions and travel bans in most countries. This has led to the downfall of the market shares. Key players have seen significant challenges during these tough times. However, the rising number of people with anxiety disorders elevates the demand for Cannabidiol in substantial countries. This is expected to drive the market tremendously and showcase a healthy CAGR in the coming years.

REPORT COVERAGE:

This research report on the global cannabidiol market has been segmented and sub-segmented based on the type, distribution channel, end-users, and region.

Global Cannabidiol market - By Type:

• Hemp
• Marijuana

Based on the type, the hemp segment led the cannabidiol market in 2022, owing to the rising crop cultivation according to climatic conditions. In addition, legalizing the growing industrial hemp crop is also likely to fuel the market's growth rate.

On the other hand, the marijuana segment is anticipated to account for a healthy share of the cannabidiol market during the forecast period owing to the growing awareness of the use of marijuana in medical conditions. In addition, growing support from the government authorities in promoting effective drugs for treating various health conditions further promotes the segment’s growth.

Global Cannabidiol Market - By Distribution Channel:

• B2B
• B2C
  • Hospital Pharmacies
  • Online
  • Retail Stores

Based on the distribution channel the B2C distribution channel has been substantially growing over the past few years. The hospital pharmacies sub-segment registered a leading share of the market in 2022. The increasing scale of hospitals, the rising patient count, and the government's launch of new reimbursement policies favor the segment's growth rate.

Global Cannabidiol Market - By End Users:

• Medical
  • Chronic Pain
  • Mental Disorders
  • Cancer
  • Others
• Personal Use
• Pharmaceuticals
• Wellness
  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

Based on the end-user, the medical segment held with the highest share of the cannabidiol market in 2022. Rising investments in manufacturing new drugs in favor of the end-users by public and private organizations are elevating the market's growth rate. In addition, mental disorders and chronic pain are increasing among people, gearing up the market's growth. 

Global Cannabidiol Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

Geographically, the North America Cannabidiol market accounted for the most significant global market share in 2020 and is forecasted to register 32.9% during the forecast period. Around 2.2 million Americans above 12 years are using cannabis for medical purposes, surging the market growth rate in this region. Focus on selling CBD-based products by the best retailers in the US is likely to promote the market shares to the next level. CVS Health, one of the top retailers, plans to sell CBD oil in more than 1500 stores. This is an excellent initiative for the market to grow tremendously. In addition, the trend toward skincare products and the growing usage of cannabis in skincare products escalate CBD oil demand in North America. 

The European Cannabidiol market is following North America in holding the dominant shares of the market. However, steady economic growth in developed countries like the UK and Germany dramatically influences the development of the market. In addition, the growing demand for CBD-based products in skincare and pharmacies and the governments of the EU countries are introducing the latest reimbursement policies for ordinary people, likely to fuel the market in this region. 

The Asia pacific Cannabidiol market is predicted to grow at a CAGR of 34.68% between 2022 to 2028 and is forecasted to be the fastest-growing region. India and China are the two major countries contributing the dominant market shares. China cultivates the highest hemp crop in the world. 

The Latin America Cannabidiol market is forecasted to grow at a CAGR of 20.2% during the forecast period. Many Latin American governments are finally taking steps to create legal markets for cannabis and CBD products, but business opportunities for domestic retail sales are still limited. Thus, it adds further difficulty in approving imports and completing the shipping process to Latin America on time.

KEY MARKET PLAYERS:

The global cannabidiol market is concentrated with well-established players like Pharmahemp d.o.o, ENDOCA, NuLeaf Naturals LLC, Folium Biosciences, Elixinol, Cannoid LLC, Medical Marijuana Inc., and Isodiol International Inc. ENDOCA substantially shared the Cannabidiol market in terms of sales and revenue in 2019.

RECENT HAPPENINGS IN THIS MARKET:

• In June 2020, Cualeaf launched easily consumable cannabis capsules, which are very effective for customers in treating diseases. The product launch is expected to propel the company's portfolio. 
• In November 2020, Canopy Growth Corporation announced the operating and secured storage license received from Health Canada. With this license, the company is to fulfill the various demand of the customers.