Published: December 2022 | Report Code: 12023 | Available Format: PDF
The global CBD oil market is estimated to generate $5,230.9 million in 2022, and it is expected to advance at a compound annual growth rate of 20.8% during 2022–2030, to reach $23,720 million by 2030.
CBD, also known as cannabidiol, is a chemical found in the Cannabis sativa plant and extracted from hemp or cannabis. Hemp is the preferred feedstock, as it has a high CBD content. Due to its therapeutic properties, the demand for CBD in the health and wellness sector is increasing. In addition, the rising usage of CBD-rich products due to the government approvals for medical, recreational, and research purposes is a major factor expected to boost their production.
Furthermore, according to the Alcohol and Drug Foundation (ADF), the cannabis plant produces between 80 and 100 cannabinoids such as delta-9-tetrahydrocannabinol (THC) and CBD; and nearly 300 non-cannabinoid chemicals. Each of them has a significant impact on the body.
Moreover, the demand for medical-use cannabidiol is growing among patients suffering from depression, anxiety, movement disorders, and pain. Moreover, the popularity of cannabidiol tinctures is rising among recreational users, whose number is expected to burgeon in the coming years.
Additionally, the promotion of cannabidiol-containing products by companies as having wellness advantages will drive the market expansion. Major skincare companies are using cannabidiol oil in products to treat pimples, crumples, and other conditions. Moreover, many countries governments and key players are widely investing in research and development activities. For instance, ItsHemp has developed Hemp Heros Full Spectrum CBD Capsules and Endoca Raw Hemp Oil Capsules.
The marijuana category is expected to grow at a CAGR of 22% and maintain its dominance throughout the projection period. The increasing adoption of purified CBD products and the growing legalization of marijuana and marijuana-derived products for several medical and research purposes are the key driving factors for the category. For instance, ancient Indian Ayurvedic practices utilized cannabis as an active ingredient in medicine, to improve digestion and blood pressure. Medical marijuana is a widely used drug for various purposes, and after its legalization, it has grabbed the attention of many growers, manufacturers, and researchers.
The hemp category is expected to witness steady growth during the forecast period. This growth is mainly ascribed to the mushrooming demand for hemp in the pharmaceutical industry and surging awareness among consumers of health and fitness, along with the increasing consumer income and legalization of cannabis. Moreover, industrial hemp seeds contain protein, calories, and other nutrients. People use it mainly for diet purposes, eczema, constipation, and other purposes. Many industries, such as personal care & cosmetics and food & beverages, are using these seeds to develop products for fitness, health, and wellness.
Market Size in 2022
Revenue Forecast in 2030
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Source; By End Use; By Sales; By Region
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The business-to-business category dominated the market, with a revenue share of 52%, in 2022, and the situation is predicted to remain the same during the forecast period. This is due to the rising number of wholesalers, investors, and manufacturers of CBD oil products. The demand is also increasing because cannabidiol products need are growing in several sectors, such as food and additives, cosmetics sectors, and health and wellness, and the pharmaceuticals sector has increased the demand for businesses to procure cannabidiol raw material or precursor material for their item in bulk.
Moreover, two-thirds of the U.S. states have legalized such seeds for medical purposes, and others are considered doing the same. Moreover, many key players in the medical sector are directly working with big farmers for these products.
The pharmaceuticals category is expected to dominate the market during the forecast period. Many pharmaceutical companies are performing trials to examine the effect of cannabidiol oil on certain health conditions and its pros and cons on the human body. In addition, companies are making CBD tinctures, gummies, capsules, and other products, for numerous conditions.
Moreover, the rapid change in the usage of cannabidiol from herbal preparations to pharmaceutical drugs is also propelling the growth of the market, along with the increasing awareness on the medical benefits of this oil, including its healing properties. This is driving the demand for products containing this ingredient in the pharmaceutical industry.
North America is expected to hold the largest market share, of over 84%, and remain the largest during the forecast period. This is because of the legalization of cannabidiol for medical and research purposes in the continent. The status of the product as a natural phytocompound, its strong promotion by firms as a wellness and lifestyle product, the launch of cannabidiol-based pharmaceuticals, including Epidiolex and Sativex, and the wide availability of various products containing this compound are further expected to propel the sale of cannabidiol oil in the region in the coming years.
The growing deregulation of this ingredient and hemp across countries has garnered interest among CBD market players. This has led to a surge in market activities, including licensing, hemp and marijuana production, investment in R&D, and downstream product distribution. Various companies are trying to ensure supply chain certainties, enter newer geographies, and even ramp up the production of a differentiated array of CBD products. These steps are aimed at developing a loyal customer base, expansion of the supply chain, and generating brand equity in the nascent stage of the market.
The legalization of CBD across the U.S. and Canada has caused a cascading effect, leading to several countries joining the bandwagon of decriminalizing to even deregulating cannabis and CBD-based products. Countries in Europe, APAC, and LATAM, such as the U.K., Norway, Spain, Japan, South Korea, Thailand, Mexico, Brazil, and South Africa, have legalized complete or partial sales of CBD-infused products. While regulations are varied across geographies, the countries have increased the production of hemp and downstream hemp-based CBD products. This has also helped national and state governments generate additional jobs and increase revenue from the sales of the products and licensing fees. Other potential upsides include income from recreational and medical tourism and sales of paraphernalia.
Furthermore, with stakeholders, such as government agencies, expediting regulatory approvals for the products, investing in research for mass-commercialization and manufacturing, and improvising supply chain logistics, the CBD oil market is expected to witness significant growth during the forecast period.
The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017–2030.
Based on Source
Based on Sales
Based on End-use
During 2022–2030, the CBD oil market will witness a growth of 20.8%.
The government approval in several countries for the use of CBD for research and medicinal purposes is the major factor behind the growth of the CBD oil industry.
The sales of tinctures in the CBD oil market are driven by their popularity among recreational users and anxiety, depression, pain, and movement disorder patients.
North America is expected to hold the largest market share in the coming years.
Countries with laws favorable for the CBD oil market growth include the U.S., the U.K., Norway, Spain, Japan, South Korea, Thailand, Mexico, Brazil, and South Africa.
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