Global Cannabidiol (CBD) Market Research Report: Forecast (2022-27)

The cannabinoid derived from the cannabis plant contains less than 0.3% of THC levels. CBD or cannabidiol, made using hemp extract & oil, has been legalized for either medicinal, recreational, or other personal uses across some regions. CBD can be consumed in various forms like edibles, flowers, topicals, oil & tinctures, pills & capsules, and other methods (vapes, sprays).

Many innovative ways to consumer CBD have been developed to enhance the taste & interest of customers. Consumable products like creams, lotions, oils, etc., premixed with CBD, are known as topicals. On the other front, CBD consumed through food products like gummies, candies, beverages, chocolates, etc., are known as edibles. Oil & tinctures infused with CBD extracts are observed to be used primarily for aromatherapy. Nevertheless, Pills & Capsules have been developed mainly for medical treatments using CBD.

Market Insights:

The Global Cannabidiol (CBD) Market is projected to grow at a CAGR of 30.48% during the forecast period, i.e., 2022-27. The use of Cannabis has been prevailing worldwide for many ages. However, the actual legalized use & application of cannabinoids through various methods has been witnessed mainly in the past decade. The Cannabidiol (CBD) Market has depicted a consistent growth globally during the historical period, primarily due to the growing legalization of CBD for medicinal uses and increasing research & development for its more diversified use. With the mounting government support for the CBD application in food & beverages, the medical industry has also been a key contributor to the market growth in the previous few years. For instance:

• In 2019, the Australian Health Ministry announced the investment of approximately USD 2.03 million in the research & viability of medical Cannabis for cancer treatment on nearly 11,000 patients.

During 2020, with the Covid-19 pandemic, the market sustained a notable growth due to the booming use of CBD for recreational purposes and the treatment of Covid-19 related stress, anxiety, sleep disorders, etc. Nevertheless, the rising legalization of cannabis cultivation by national governments in recent years is another crucial aspect expected to boost the market in the forthcoming period. For instance:

• In 2021, the State government of Himachal Pradesh, India, decriminalized cannabis production in the state after two Indian states, i.e., Uttarakhand & Madhya Pradesh, legalized the cultivation in the previous few years.

Covid-19 had fueled the Global Cannabidiol (CBD) Market

The frequent Covid-19 waves have stressed researchers to look for alternate Covid-19 treatment methods. CBD’s anti-inflammatory properties have brought it to the attention of scientific communities to conduct clinical trials on CBD. As a result of clinical trials, CBD was able to hinder the replication of the virus as per the Department of Cancer and Research, University of Chicago Medicine. Moreover, with rigorous research & drug developments, the study identified that CBD’s anti-inflammatory property has been effective to cure severe Covid-19 patients, too. For instance:

• In 2021, a Placebo-controlled clinical trial was performed for CBD on severe Covid-19 patients living in Ribeirão Preto, Brazil. 

In addition, research studies behind the treatment of COVID-19 patients using CBD have been progressed since 2020 as pharmaceutical companies have started collaborating with the leading universities to check the potential of CBD as a therapeutic. As of 2022, Akseera Pharma Corp, a Canadian company, has collaborated with the University of Waterloo for the study of CBD as a beneficial treatment for Covid-19 patients. Hence, such studies by pharmaceutical companies in collaboration with universities or research & development organizations would positively impact the Global CBD Market in the forthcoming years

Market Segmentation

Based on the Application:

• Medical Use
• Beauty & Personal Care
• Pets
• Recreational

Of them all, the application of CBD for medical uses has gained a considerable share in the Global Cannabidiol (CBD) Market for the past few years, owing to the legalized use of cannabidiol for medical purposes across several countries like India, Argentina, & Nordic countries, among others. Endocannabinoids present in the human body is necessary for regulating emotions, stress, sleep, etc. Either the endocannabinoids are naturally released in the body or through some food intake, or they can be consumed & released with the controlled dosage of cannabidiol-based products. Additionally, the surging inclination of CBD usage for mental disorders (such as anxiety, stress, depression, insomnia, etc.) and chronic pains, migraine, spasms, etc., have also infused the demand for CBD for medical uses during 2017-21 and, in turn, contributed to the overall market growth.

On the other hand, Cannabis-derived beauty & personal care products have the potential to be a long-lasting trend, particularly in skincare, as it states themselves as natural ingredient-based products for a healthy & sustainable lifestyle. The consumer curiosity & their biased nature for “natural” products have helped thrust the beauty & personal care segment as cannabis is perceived as “natural” by consumers. As a result, many cosmetic brands have introduced products injected with cannabidiol extracts. For instance:

• Kiehl’s Cannabis Sativa infused face oil has been recognized as a must-have by popular skincare critics worldwide.

Based on Product Type:

• Edibles
• Flower
• Oil & Tinctures
• Pills & Capsules
• Topicals
• Others (Vape, Spray, etc.)

Gummies, candies, brownies, etc., have been a common source in the recreational & medical application of CBD. The primary factor that attributed to the market growth for edibles during 2017-21 is the enhanced taste of CBD through them. Edibles are consumed primarily for leisure, mainly across the US, Canada, the Netherlands, & Uruguay in light of the regulation for legalized CBD.

Regional Landscape

Based on the Geography, the Global Cannabidiol (CBD) Market expands across:

• North America
• South America
• Europe
• Asia-Pacific

Amongst all regions globally, North America held the dominant share in the Cannabidiol (CBD) Market during the historical period. It attributes primarily to the legalization of cannabis, especially in Canada & the US, for recreational & medical use for health & wellness purposes. Besides, increasing government relaxations toward hemp production, the surging inclination toward using CBD in food & beverages, and escalating research & development in medical cannabis are other crucial factors projected to propel the market growth in the forecast period. For instance:

• Under the US Agriculture Improvement Act of 2018 (Farm Bill), the US government legalized the production & sale of products derived from hemp with a tetrahydrocannabinol (THC), the psychoactive component of marijuana, of not more than 0.3% concentration.
• In 2022, PepsiCo launched a hemp seed-infused drink under Rockstar Energy.
• In 2021, Truss CBD USA, a joint venture majority-owned by Molson Coors Beverage Company and operated with Canadian cannabis producer Hexo, launched Veryvell, a line of sparkling, nonalcoholic CBD drinks in Colorado.
• In 2020, 33 states in the United States completely legalized Cannabis & related products for recreational uses.

Such innovations in the F&B industry and the peaking interest of consumers toward multiple ways of consuming CBD are predicted to propel the regional market in the upcoming years.

Market Dynamics:

Key Drivers: Growing Inclination of Government toward Approving CBD to treat Mental Disorders

Since 2017, products derived from cannabis have been gaining significant interest owing to their health-related benefits for anxiety, muscle pain, seizures, etc. In addition, progressive research & drug developments have evaluated that important medical therapies could be well-performed using CBD. As a result, due to its non-psychoactive behavior, CBD has emerged as a treatment for seizures in recent years.

In the light of controlled clinical trials, the US government approved a CBD-based drug for epilepsy treatment in 2018. Therefore, such approvals for CBD-based drugs & medicines by government authorities worldwide are likely to drive the Global Cannabidiol (CBD) Market during 2022-27. For instance, in 2018:

• The U.S. Food & Drug Administration approved Epidiolex (CBD) oral solution to treat seizures. The medicine has been made specifically to treat two severe epilepsies associated with a seizure.
• The government of the United Kingdom has allowed doctors to prescribe CBD-based products.
• The government of South Korea also legalized and has been strictly regulating the usage of CBD-based medicines & products.

Growth Restraint: Illegal/Black Market Interference

The illegal sale of CBD has posed a hindrance in the growth of the Global Cannabidiol (CBD) Market in recent years since it was initially illegal for recreational or leisure activities, which, in turn, propagated the black market of CBD. In addition, North America witnessed the growing cases of black Cannabidiol (CBD) even after the legalization of cannabis due to high taxes imposed by governments of countries like Canada & the US on CBD-based products bought from legal market providers. Furthermore, the lack of legal dispensaries also propelled the black market of CBD. As of 2019, according to the US government, California had reported the majority of black CBD sales.

Despite the Australian government legalizing CBD in late 2020 for medical uses, illegal sales of CBD were still observed in the country during 2021 since it was cheaper for consumers instead of purchasing it from legalized vendors. It further ignited the sales of black CBD, which, as a result, negatively impacted the global market growth during the historical period. The same trend is likely to be followed in the coming years if the national governments do not reduce taxes or put stricter regulations on the illegal possession of CBD.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Cannabidiol (CBD) Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Cannabidiol (CBD) Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Cannabidiol (CBD) Market based on the competitive benchmarking matrix?
5. What are the key results derived from the surveys conducted during the Global Cannabidiol (CBD) Market study?