The size of the global cannabidiol market was anticipated to be USD 9.3 billion in 2020. It is likely to record a compound annual growth rate of over 22.2% during the outlook period (2020 to 2025).
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. CBD oil has many benefits in health, and especially it is beneficial for stress relief. Also, the use of CBD oil in treating various health disorders like Alzheimer’s diseases, multiple sclerosis, and Parkinson’s diseases 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 the cannabinoid. 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 on the projects related to the medical treatments associated with the compounds of the cannabis plant. Government organizations are launching various programs to continue research on the development of drugs using cannabis. The government-run National Research Foundation recently initiated a program to research the use of cannabis plants in different medical treatment procedures.
Increased adoption of products for CBD skincare acts as a demand catalyst.
CDB skincare has antioxidant properties that primarily counteract the signs of aging in the geriatric population, enhancing market development. R&D investment and demand for skincare products are amplifying the growth of the market. In the years to come, the increased demand for CBD products in Australia would put the CBD skincare market in the nation on a growth trajectory.
There has been a significant increase in medical treatment with cannabis-related products in Australia and overseas. The demand for cannabidiol (CBD) for medical and wellness purposes is high due to its healing properties, which are a key driver of the global cannabidiol market growth. Also, the high level of demand from the pharmaceutical industry for the marketing of different cannabidiol-containing products in the manufacturing process is expected to drive the growth of the market. This includes increasing the use of CBD-containing products for conditions such as epilepsy, anxiety, chronic pain, and addiction. Many of the currently available products also contain a mixture of THC and CBD.
The cannabidiol market is mainly driven by an increase in the use of cannabidiol (CBD) in medical applications, supplements, beverages, and skincare.
The market for cannabidiol is associated with significant cannabidiol therapy that receives FDA approval or moves forward in human clinical trials. According to WHO, Epidiolex® is a liquid oral formulation of pure CBD derived from plants. It is produced by GW Pharmaceuticals in the United Kingdom. It has shown positive results in Phase 3 trials of Dravet and Lennox-Gastaut syndromes, both of which are treatment-resistant seizure disorders. The published results of this therapeutic application are covered by Section 9: Therapeutic Applications.
Rising incidences of chronic diseases such as cancer, diabetes, and others are solely leveling up the growth rate of the market. According to the World Health Organization (WHO), 2.5% of the global population is around 147 million people are consuming 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 due to cancer and other chronic diseases are prompting the market's demand to the extent. Rising research and development activities in the healthcare sector are impelling the growth rate of the Cannabidiol market. Growing investments in the research activities by government and non-government organizations are ascribed to boost the market demand. CBD oil contains a deficient concentration of tetrahydrocannabinol (THC), so there is abundant oil usage for medical purposes. Creating awareness over the usage of cannabis appropriately is also leveraging the growth rate of the cannabidiol market.
However, stringent rules and regulations by the government in approving new products are slightly hindering the growth rate of the market. In some countries, the cultivation of the cannabis crop is illegal, and this is impeding the demand for CBD oil. Besides, fluctuations in the availability of raw materials in the industries limit the growth rate of this market. Long-term use of medicines with cannabis is showing some adverse effects, which is restraining the growth rate of the market. The dearth of skilled people in the laboratories is also an attribute of declining this market's demand.
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 a 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 major challenges during these tough times. However, the rising number of people with anxiety disorders during this time is elevating the demand for Cannabidiol in major countries. This is expected to drive the market tremendously and predict that the market shares will hit the highest target by 2021.
Market Size Available
2019 to 2025
2020 to 2025
Based on Type, Distribution Channel, End-Users, and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
This research report on the global cannabidiol market has been segmented and sub-segmented based on the type, distribution channel, end-users, and region.
Cannabidiol market - By Type:
Based on the Type, the Hemp segment leads with the prominent shares of the market due to rising crop cultivation according to the climatic conditions. The legalization of the growing industrial hemp crop is also likely to fuel the growth rate of the market. Marijuana is next to the hemp segment in ruling the significant shares with the growing awareness over the use of marijuana in medical conditions. Growing support from the government authorities in promoting the drugs which are effective in treating various health conditions.
Cannabidiol market - By Distribution Channel:
A B2C distribution channel is substantially growing over the past few years. The hospital pharmacies segment is ruling with the highest shares of the market. The increasing scale of hospitals with the rising patient count is anticipated to propel the market's demand. The government's launch of new reimbursement policies is bolstering the growth rate of the global cannabidiol market.
Cannabidiol Market - By End Users:
The medical segment held with the highest shares of the market. Rising investments in the manufacturing of new drugs in favor of the end-users by both public and private organizations are elevating the growth rate of the market. Occurrences of mental disorders and chronic pain are increasing among people, gearing up the market's demand.
Cannabidiol Market - By Region:
Geographically, the North American Cannabidiol market accounted for holding the highest shares of the global market. Around 2.2 million Americans of age above 12 years are using cannabis for medical purposes, which is surging the growth rate of the market in this region. Focus on selling CBD-based products by the best retailers in the US is likely to promote the shares of the market to the next level. CVS Health, one of the top retailers, plans to sell CBD oil in more than 1500 stores. This is a great initiative for the market to grow tremendously. The trend towards 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. Steady economic growth in developed countries like the UK, Germany, and others is greatly influencing the demand of the market. Growing demand for CBD-based products in skincare and pharmacies is accelerating the growth rate of the market to the extent. The government is introducing the latest reimbursement policies for the common people, which is likely to fuel the market demand in this region.
The Asia Pacific Cannabidiol market is predicted to be growing at a CAGR of 11.2% between 2020 to 2025 and is forecasted to be the fastest-growing region of all. India and China are the two major countries contributing the dominant shares to the market. China cultivates the highest hemp crop in the world.
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 had a substantial share of the Cannabidiol market in terms of sales and revenue in 2019.
NOTABLE HAPPENINGS IN THIS MARKET IN THE RECENT PAST:
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 CBD Oil Market, By Source Type
6.1.3 Market Size Estimations & Forecasts (2019-2024)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 CBD Oil Market, By Distribution Channel
6.2.3 Market Size Estimations & Forecasts (2019-2024)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 CBD Oil Market, By End-Use
6.3.1 Personal Care & Cosmetics
6.3.2 Food & Beverages
6.3.4 Market Size Estimations & Forecasts (2019-2024)
6.3.5 Y-o-Y Growth Rate Analysis
6.3.6 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Source Type
7.2.3 By Distribution Channel
7.2.4 By End-Use
7.3.1 By Country
220.127.116.11 Rest of Europe
7.3.2 By Source Type
7.3.3 By Distribution Channel
7.3.4 By End-Use
7.4 Asia Pacific
7.4.1 By Country
18.104.22.168 South Korea
22.214.171.124 South East Asia
126.96.36.199 Australia & NZ
188.8.131.52 Rest of Asia-Pacific
7.4.2 By Source Type
7.4.3 By Distribution Channel
7.4.4 By End-Use
7.5 Latin America
7.5.1 By Country
184.108.40.206 Rest of Latin America
7.5.2 By Source Type
7.5.3 By Distribution Channel
7.5.4 By End-Use
7.6 Middle East and Africa
7.6.1 By Country
220.127.116.11 Middle East
7.6.2 By Source Type
7.6.3 By Distribution Channel
7.6.4 By End-Use
8. Key Player Analysis
8.1 Pharmahemp d.o.o
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.3 NuLeaf Naturals LLC
8.4 Folium Biosciences
8.6 Cannoid LLC
8.7 Medical Marijuana Inc
8.8 Isodiol International Inc
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures