The global cannabidiol market size was valued at USD 3.42 billion in 2020 and is expected to reach USD 13.25 billion by 2028, expanding at a CAGR of 21.1% during the forecast period, 2021–2028. The growth of the market is attributed to the high demand of marijuana in the market on account of its healing properties along with rise in adoption and use of products for certain medical applications.
Cannabidiol (CBD), widely known for pain relief, is basically a compound in cannabis plant and is largely used for therapeutic reasons. In medical applications, cannabidiol oil is extensively used for the treatment of various health conditions such as stress relief, diabetes prevention, anxiety and depression treatment, pain relief, inflammation, and cancer symptom relief. Due to the increasing acceptance of CBD-based products, the global cannabidiol market is attributed to boost in the coming years.
As the market have a huge profit margin and rising demand for medical treatment for various serious disorders, several retailers are actively focusing on selling cannabis-based products. Some of the key retailers in the market are CVS Health, Walgreens Boots Alliance, and Rite Aid. Rising awareness regarding the medical benefits of CBD, the demand for the hemp and marijuana products is growing rapidly from key players. The COVID-19 situation have led to restricted lockdowns globally, which affected consumer behavior and the cannabidiol market. The stores were shut down and observed shortage of supply due to global shutdown of manufacturing and transportation. The supply chain of other raw materials was also disrupted across the globe.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing legalization of cannabis and rising government approvals of CBD products for medical use are key factors driving the market growth.
- Growing awareness regarding the therapeutic benefits of CBD and rising popularity of its derivative products among the youth are likely to propel the market expansion in the coming years.
- Wide incidences of chronic illness such as cancer and other health conditions related to depression and stress are boosting the demand for cannabinoid products. This is projected to further push the market growth.
- Strict government regulations on the usage of CBD products as well as its high cost of extraction and development process present key challenges, which is expected to limit the market growth.
- Increasing recommendation of CBD products by medical practitioners for various therapy purposes for many health issues. This is projected to propel the overall market growth.
Scope of the Report
The report on the global cannabidiol market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Cannabidiol Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Source Types (Hemp and Marijuana), Distribution Channels (B2B and B2C [Hospital Pharmacies, Online, and Retail Stores]), End-users (Medical [Chronic Pain, Mental Disorders, Cancer, and Others], Personal Use, Pharmaceuticals, and Wellness [Food & Beverages, Personal Care & Cosmetics, Nutraceuticals, and Others])
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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ENDOCA; Cannoid, LLC; Medical Marijuana, Inc.; Folium Biosciences; Elixinol; NuLeaf Naturals, LLC; Isodiol International, Inc.; and Pharmahemp d.o.o.
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Market Segment Insights
Marijuana segment is expected to grow at a rapid pace
Based on source types, the global cannabidiol market is bifurcated into hemp and marijuana. The hemp segment is expected to account for a key share of the market during the forecast period owing to rising adoption of CBD-based products and high effectiveness of cannabidiol extracted from marijuana. However, the marijuana segment is anticipated to expand at a rapid pace during the forecast period due to rising demand from the pharmaceutical sector and rising awareness among consumers regarding healthcare.
B2B segment is projected to expand at a considerable CAGR
On the basis of distribution channels, the market is bifurcated into B2B and B2C. The B2C segment is further divided into hospital pharmacies, online, and retail stores. The business to business (B2B) segment is projected to expand at a considerable CAGR during the forecast period due to an increase in the number of wholesale CBD oil providers and increase in demand for CBD oil as a raw material. Meanwhile, the business to customer (B2C) segment is anticipated to hold a key market share during the forecast period owing to collaborations of companies with retail pharmacies.
Pharmaceutical’s segment is expected to expand at a robust growth rate
Based on end users, the global cannabidiol market is segmented into medical, personal use, pharmaceuticals, and wellness. The medical segment is further classified as chronic pain, mental disorders, cancer, and others while the wellness segment is sub-divided into food & beverages, personal care & cosmetics, nutraceuticals, and others. The pharmaceuticals segment is expected to expand at a robust growth rate in the coming years owing to number of rising trials and positively effect of CBD on certain health conditions. On the other hand, the medical segment is anticipated to grow rapidly during the forecast period due to increase in number incidences of uncertain health conditions.
North America is anticipated to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a key share of the market in 2020 and is anticipated to constitute a key market share in the coming years owing to presence of large health-conscious population and presence of major players in the region. Approval of US farm bill in 2020 and gradual expansion of legalization of cannabis products for medical applications across several states of the US present significant factors to boost the regional market growth. Meanwhile, the market of Asia Pacific is projected to register a fast growth rate due to rising establishment of major plants for hemp producing units especially in China. Moreover, increasing implementation of several government policies to support the adoption of CBD products in the region for medical purposes are key drivers of the regional market growth.
Segments
Segments Covered in the Report
The global cannabidiol market has been segmented on the basis of
Source Types
Distribution Channels
- B2B
- B2C
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- Hospital Pharmacies
- Online
- Retail Stores
End-users
- Medical
- Chronic Pain
- Mental Disorders
- Cancer
- Others
- Personal Use
- Pharmaceuticals
- Wellness
- Food & Beverages
- Personal Care & Cosmetics
- Nutraceuticals
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- ENDOCA
- Cannoid, LLC
- Medical Marijuana, Inc.
- Folium Biosciences
- Elixinol; NuLeaf Naturals, LLC
- Isodiol International, Inc.
- Pharmahemp d.o.o.
Competitive Landscape
Key players competing in the global cannabidiol market are ENDOCA; Cannoid, LLC; Medical Marijuana, Inc.; Folium Biosciences; Elixinol; NuLeaf Naturals, LLC; Isodiol International, Inc.; and Pharmahemp d.o.o. Various companies are launching innovative products and initiating various market strategies such as merger and acquisitions with other companies to enhance their market position.
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