Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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.
Cannabidiol Market Report Coverage
||Market Size in 2021:
||US$ 3665.5 Mn
|Historical Data for:
||2017 to 2019
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 55200.2 Mn
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East: GCC Countries, Israel, and Rest of Middle East
- Africa: South Africa, North Africa, and Central Africa
- By Product: Oil, Tinctures, Suppository, Transdermal Patches, Vape Oil, Isolates, Creams and Roll-on, Capsules, Tablet, Others
- By Source Type: Hemp, Marijuana
- By Application: Medical (Chronic Pain, Mental Disorders, Cancer, Others), Personal Use, Pharmaceuticals, Wellness(Food & Beverages, Personal Care & Cosmetics, Nutraceuticals, Others)
- By Distribution Channel: Hospital Pharmacies, Online Stores, Retail Stores
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.
- Increasing favorable regulations regarding the usage of cannabis and associated products globally
- Growing awareness amongst individuals regarding the various benefits associated with cannabidiol
- Growth in the volume of manufacturing activities of hemp
- High levels of demands from the pharmaceutical industry with commercialization of various goods consisting of cannabidiol in the manufacturing process
|Restraints & Challenges:
- Majority of the regions still have strict regulatory presence regarding CBD usage
- Lack of information and awareness regarding the various benefits in the developing regions of the world
- Lack of standardizations regarding the quality of products and their manufacturing process resulting in lower quality product development
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.