Cannabidiol (CBD) is a chemical in the cannabis sativa plant, also known as marijuana or hemp. Over 80 chemicals, known as cannabinoids, have been identified in the cannabis sativa plant. Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In various medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the global cannabidiol market is anticipated to grow at a lucrative rate over the forecast period.
The global cannabidiol market size was estimated to be valued at US$ 3665.5 Million in 2021, and is expected to witness a CAGR of 47.3% over the forecast period (2021-2028).
The increasing demand for cannabidiol in health and fitness is expected to propel the growth of the global cannabidiol market over the forecast period.
There is a growing demand for healthy food products enriched with nutrients for achieving fitness goals and avoid injuries such as inflammation, pain, and others. Key manufacturers in the market are focusing on introducing products infused with CBD oil. CBD oil is a legal and non-psychoactive component of hemp, which can be used in various industries such as food, health products, pharmaceuticals, and beauty. For instance, according to 2018 data from the Harvard Health Institute, CBD is often used to solve various health problems such as insomnia and anxiety.
Figure 1. Global Cannabidiol Market Value (US$ Mn) & Y-o-Y Growth (%)
Global Cannabidiol Market – Regional Insights
North America dominated the market in 2020 with a revenue share of 37.3% and will continue to retain its leading position in the market. Due to a large number of health-conscious people in this region, along with growing acceptance for CBD-based products, there is a boost for CBD based products in this region. It has the highest number of CBD companies and lenient laws regarding the utilization of CBD products. In the Asia-Pacific region, due to the installation of cannabis production plants, especially in China, the market is expected to experience the fastest growth during the forecast period. China is the largest cannabis growing country in Asia, producing nearly half of the world's cannabis. Approximately 90% of the country’s products are exported to the United States, Germany, the United Kingdom, the Netherlands, and Japan, and hemp has been grown in three provinces for the extraction of cannabidiol.
|Base Year:||2020||Market Size in 2021:||US$ 3665.5 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||47.3%||2028 Value Projection:||US$ 55200.2 Mn|
Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Maricann, Inc. (Wayland Group Corporation), Tilray, GW Pharmaceuticals, plc, ABcann Medicinals, Inc., Organigram Holding, Inc., Tikun Olam, The Cronos Group, ENDOCA, Isodiol International, Inc., MEDICAL MARIJUANA, INC., Cannoid, LLC, Elixinol, Folium Biosciences, NuLeaf Naturals, LLC, and Pharmahemp d.o.o.
|Restraints & Challenges:||
Figure 2. Global Cannabidiol Market Share (%), By Region, 2021
Global Cannabidiol Market – Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 pandemic has caused unprecedented lockdowns all around the world, collapsing daily operations and changing consumer behaviors in nearly every industry. As the response to COVID-19 ramps up, several retail stores have shut down. The market started experiencing a shortage in supply due to the nationwide shutdown of transportation and manufacturing in major raw material manufacturing countries, such as China and India. In addition, due to supply chain disruptions in the U.S., the supply of other raw materials has been limited, which is disrupting the manufacturing, and in turn, the supply chain of CBD consumer health products. The Coronavirus or COVID-19 outbreak that started from Wuhan, China has spread across continents, affecting various industries globally. Supply of key materials such as probes required for interventional ablation have been severely disrupted due to forced quarantine, and imposed lockdowns in various countries, which has led to disruption in the link between warehouses. On the other hand, the existence of strict regulations and the high cost of cannabidiol products are some of the major factors limiting the growth of the market. In addition, the absence of legalization initiatives in many Asian and African countries is another main factor impeding the global cannabidiol market growth.
Global Cannabidiol Market: Restraint
Although, favorable regulations are still being presented from a variety of regions for the utilization of cannabis and associated products majority of the regions still have strict regulatory presence regarding its usage. Moreover, lack of information and awareness regarding the various benefits in the developing regions of the world such as Latin America, East Asia, Europe and others are some factors which can restrict the growth of the market.
Major players operating in the global cannabidiol market include Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Maricann, Inc. (Wayland Group Corporation), Tilray, GW Pharmaceuticals, plc, ABcann Medicinals, Inc., Organigram Holding, Inc., Tikun Olam, The Cronos Group, ENDOCA, Isodiol International, Inc., MEDICAL MARIJUANA, INC., Cannoid, LLC, Elixinol, Folium Biosciences, NuLeaf Naturals, LLC, and Pharmahemp d.o.o.
Cannabidiol (CBD) is a compound commonly found in hemp and marijuana plants, this extract is found to be effective against numerous disorders such as chronic pain, neurological pain, anxiety, sleep disorder, as well as nausea and stress. Hence, cannabidiol is gaining widespread popularity across various regions. This extract consists approximately 40% of the entire plant and it is known to not cause any dependence effects on the human body. 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 is also showing positive results in treating various health disorders such as Alzheimer’s disease, multiple sclerosis, Parkinson’s disease, and others.
Increased adoption of cannabidiol for skincare products is driving the market growth in the forecast period. Cannabidiol skin care has antioxidant properties that helps in reducing the signs of aging and also have an anti-inflammatory effect on sebocytes, the skin cells that produce sebum. Due to its anti-inflammatory properties, CBD may be able to help reduce swelling, pain, and redness from existing breakouts, or irritation from skin conditions such as eczema and psoriasis. For instance, in April 2019, Folium Biosciences announced plans to launch nine active cosmeceutical and lifestyle products that will be infused with CBD in the U.S. to meet the demand for skincare products in the market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.