The CBD oil market size is expected to advance at a CAGR of 20.8% during 2021–2030, to reach $23,720 million by 2030.
This growth is mainly ascribed to the legalization of marijuana and hemp in many countries, growing usage of CBD for pain relief and euphoria, growing research and development activities among pharmaceutical enterprises, and increasing awareness among people. Cannabidiol is a chemical found in the cannabis plant, which is now being used to treat movement disorders, depression, pain, and anxiety.
The APAC region is expected to grow significantly throughout the projection period. This is owing to the setup of many hemp-producing units in China, partly because China has the largest industrial hemp cultivation area in the Asia-Pacific region. Additionally, it delivers almost half the hemp produced across the globe and exports almost 80% of the hemp to the U.K., Germany, the U.S., Netherlands, and Japan. The government law is also supporting the cannabidiol industry. In India, as per the drugs & cosmetics act of 1940, to manufacture cannabis, permissions needed to be obtained. Further, the lower production cost and high output are expected to lead to intense competition between Chinese firms with the U.S., Canadian, and European hemp enterprises.
On a supply and distribution front, several market players, such as Aroura Cannabis Inc., Medical Marijuana Inc., and Tilray Inc., have heavily invested in the U.S. in different activities, such as obtaining licenses to cultivate, warehousing, distributing through specialty stores, acquiring similar companies, and signing purchase agreements. Furthermore, consumers across the country are more aware of the therapeutic benefits of the compound and differentiated array of CBD-infused products. These factors have created a rapidly growing opportunity for the market growth.
North America is expected to be the largest consumer of cannabidiol oil over the next few years, which is mainly driven by its wide usage in the U.S. Market players are increasing their knowledge hoard on the medical benefits of the compound and the various products containing it and are now promoting their offerings to wellness-conscious customers.
CBD is a pleiotropic compound, which provides benefits, such as pain relief, reduction in inflammation, lessen symptoms associated with some mental health, heart health conditions, and cancer-related symptoms. In order to garner interest among consumers and counter the negative image associated with cannabis, players are branding their products as lifestyle and wellness drugs. This move offers additional advantages, including high-volume consumption with day-to-day administration and expedited approvals by agencies regulating drugs and narcotic compounds. Furthermore, CBD-infused products used in food & beverages, tinctures, and creams have a high reuse frequency and are likely to encourage daily usage among a rising number of consumers, which, in turn, will increase the demand for cannabidiol oil.
Some of the major CBD oil market players are Aphria Inc., CV Sciences Inc., Endoca BV, Isodiol International Inc., Aurora Cannabis Inc., Canopy Growth Corporation, Tilray Inc., Folium Biosciences, Gaia Botanicals LLC, and CBDfx.