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The cannabidiol market size is projected to increase by USD 4.46 billion at a CAGR of 23.59% between 2023 and 2028. Changes in legalization and regulations regarding CBD, such as the legalization of hemp-derived CBD in many countries, are creating new opportunities for market expansion. The growing focus on health and wellness, where consumers are increasingly seeking natural and holistic remedies, are driving the demand for CBD products such as CBD oil. Additionally, the increasing popularity of CBD oil, known for its potential health benefits and versatility, is fueling CBD market growth as more consumers incorporate it into their daily routines.
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The CBD market forecast report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share by the marijuana segment is significant during the forecast period. It offers easy access to a wide range of cannabidiol products, backed by the popularity of online shopping and e-commerce platforms for purchase of marijuana. Consumers benefit from competitive pricing, detailed information, and user reviews. Online channels also provide companies an opportunity to expand their consumer base and enter new markets, contributing to segment growth during the forecast period.
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The marijuana segment was valued at USD 7.39 billion in 2018. While online distribution is on the rise, the offline channel remains significant in the cannabidiol market. It offers personalized experiences, product visibility, and immediate purchases, enhancing customer trust and satisfaction. Educated professionals provide advice on product selection, ensuring the safety and legality of cannabidiol products such as CBD-infused cosmetics. These factors will drive the growth of the offline distribution channel during the forecast period.
The marijuana segment is expected to witness significant market share growth during the forecast period. Marijuana can be consumed through various methods, such as smoking it in joints, pipes, or blunts or using more potent forms like hashish. However, use of medical marijuana is restricted in many countries, with limited circumstances allowing its use. Efforts by governments to legalize medical cannabis are anticipated to drive further growth in the CBD market during the forecast period.
North America is estimated to contribute 48% to the growth of the global market during the forecast period.
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Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the largest markets are the US and Canada due to the government legalization of medical cannabis and the presence of several companies. North America is a highly matured market for cannabis products due to a trend toward the legalization of cannabis products in various countries and the growing popularity of CBD products.
Moreover, Canadian companies are legally permitted to export cannabidiol products to the US. In the US, which is one of the largest markets for medical cannabis, around 33 states have approved the use of cannabis for medical applications. Patients who are prescribed medical cannabis are issued a medical cannabis card, which serves as an identification card. It enables them to use the product on a doctor's recommendation. Hence, such factors are driving the cannabidiol market in North America during the forecast period. Our report examines historical data from 2018 to 2022 besides analyzing the current market scenario.
The CBD market is witnessing significant growth due to the increasing awareness of its health benefits. CBD, a non-psychoactive compound derived from marijuana, is known for its therapeutic properties, including its ability to alleviate anxiety and pain. The market is expanding rapidly, driven by the legalization of cannabis in various regions and the growing demand for cannabis-infused edible products CBD-infused products. Health and wellness stores, as well as commercial retailers like CVS Health and Rite Aid, are stocking CBD-infused body care products, edibles, topicals, and beverages. R&D activities and innovations in product development are further driving CBD market growth, with companies actively participating in the market.
The legalization and regulatory changes for cannabidiol are driving market growth. The manufacturing, distribution, and sales of cannabidiol (CBD) products are being fueled by government recognition of the potential therapeutic uses of CBD and the adoption of favorable regulations. For instance, in the US, the 2018 Farm Bill legalized hemp cultivation, the primary source of CBD, leading to the commercialization of CBD products nationwide.
Moreover, this legalization has expanded consumer access to a variety of CBD products, including oils, capsules, edibles, and cosmetics. This expansion has also led to increased innovation and R&D activities in the global cannabidiol industry, driven by growing product demand and a supportive regulatory framework. Companies are leveraging these opportunities to advance the industry further. Similarly, countries like Germany, Switzerland, and Australia allow the sale of CBD products under specific conditions, ensuring product quality and consumer safety through adherence to regional regulations. This regulatory environment has also created new markets and employment opportunities, driving the growth of the CBD market in the forecast period.
The E-commerce industry's growth is a significant trend in the market. With increasing internet and smartphone usage, online shopping is becoming popular, especially among millennials. Platforms like Alibaba and Amazon offer convenience, security, and discounts, driving demand in the market. companies are targeting tech-savvy customers, expanding their reach. Online sales also help companies reduce operating costs and overheads.
Companies are leveraging these opportunities to advance the industry further. Similarly, countries like Germany, Switzerland, and Australia allow the sale of CBD products under specific conditions, ensuring product quality and consumer safety through adherence to regional regulations. This regulatory environment has also created new markets and employment opportunities, driving cannabidiol market growth in the forecast period.
The high cost of cannabidiol products is challenging market growth. Prices may fluctuate, which especially impacts patients authorized to use medical cannabis in countries like Canada. Fluctuating prices are due to legislation which has caused the demand and price of cannabis products to increase. Like any product that has only hit the market recently and is experiencing high demand, cannabidiol products are experiencing price inflation.
Additionally, processes such as extraction and refinement of cannabidiol require special machinery and also take a long time, which further increases the price of cannabidiol oil. For instance, one of the commonly used extraction methods is expensive CO2 extraction. Moreover, to ensure compliance regarding potency, among other regulatory mandates, companies conduct a third-party lab analysis on every product sold. They are then issued a certificate of analysis that shows the amount of cannabinoid content in the product. Hence such factors will hamper cannabidiol market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The CBD market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The CBD market is rapidly expanding due to the increasing demand for hemp-based products and growing awareness of the health benefits of cannabidiol. It encompasses a wide range of products, including skincare products targeting issues like acne and wrinkles. Companies are actively involved in this market, leveraging merger and acquisition (M&A) activity to strengthen their presence. CBD is gaining recognition for its potential in treating conditions such as epilepsy and schizophrenia, driving the demand for cannabis extracts, tinctures, and other forms. The market extends to various sectors, including pharmaceuticals, personal care products, and food and beverages, with both B2B and B2C segments contributing to its growth.
The cannabidiol market is experiencing significant growth, driven by various factors such as the increasing demand for CBD-based products in beauty care, stress relief solutions, and dietary supplements. CBD, a non-psychoactive compound derived from cannabis, has gained attention for its potential health benefits, including its immunomodulatory attributes, making it appealing to fitness-oriented citizens and individuals seeking herbal wellness alternatives. CBD-based products span a wide range, including body lotions, lip balms, succulents, coffee, gums, chocolates, baked goods, and candies, catering to different consumer preferences and lifestyles. These products are increasingly available through wholesalers, hospital pharmacies, retail pharmacies, and bulk CBD oil providers, ensuring accessibility for consumers across various channels.
In the pharmaceutical sector, CBD is being explored for its potential in treating seizures, inflammation, and other medical conditions, driving collaboration and research efforts in the CBD industry. Additionally, advancements in hemp production facilities have led to lower CBD production costs, making CBD products more affordable and accessible to a wider consumer base. Companies are playing key roles in shaping the CBD market landscape, offering innovative CBD solutions and expanding the market reach of CBD-infused cosmetics products, catering to the growing demand for natural and nutrient-rich skincare products aligned with fitness goals and overall well-being.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.59% |
Market growth 2024-2028 |
USD 44.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.79 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 48% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., Cannabis Science Inc., Cannoid LLC, Canopy Growth Corp., Charlottes Web Holdings Inc., Cronos Group Inc., Elixinol, Endoca BV, Folium Biosciences, Isodiol International Inc., Medical Marijuana Inc., MediPharm Labs Inc., Medterra CBD, NuLeaf Naturals LLC, PharmaHemp d.o.o., Tikun Olam, and Tilray Brands Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our CBD market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this CBD market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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