U.S. Cannabinoids Market

The U.S. cannabinoids market size was valued at USD 4.25 billion in 2020 and is projected to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the growing number of consumers adopting isolated cannabinoid products and increasing awareness about cannabinoid products.

In the U.S., the use of cannabinoids for different purposes has significantly increased due to various factors such as favorable regulations by the government and entrance of many new players in the market. Furthermore, the rising demand for both major and minor cannabinoids along with the expansion of confirmatory researches for claiming health benefits are key reasons that impact to increase the growing awareness about cannabinoid use among medical practitioners. According to a 2018 survey of dermatologists, around 90% of the total 530 respondents were agreeing for prescribing cannabidiol (CBD) based products to patients in the U.S. Moreover, approximately 55% patients asked dermatologists for the products. Besides that, the rising approval of cannabidiol-based products in many countries can be due to governments’ earning revenue through taxation.

Various growth opportunities of the market were possible due to the sanctioning of Farm Bill 2018, which prompted to the legalization of CBD and THC in some states of the U.S. In the country, the liberalization policies are permitting companies to enlarge their operations in the domain, which push to the rising adoption and acceptance of CBD treatments. Presently, Cannabinoid products are extensively used for treating chronic diseases such as cancer and arthritis although the products are specially designed for psychoactive drugs. Increasing awareness about health benefits given by cannabinoids and rising visibility of cannabinoid products through online and offline channel are aspects for the market growth. For instance, the American Society of Anaesthesiologists conducted a survey in 2019 and found that approximately 76% of people want to use cannabinoid compounds for pain management.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing legalization of cannabis and its derivatives for medical use in some states is one of the major factor responsible for the market growth over the forecast period.
• Rising popularity among the youth and growing adoption of cannabinoid products by many consumers are expected to boost the cannabinoid market growth.
• Increasing number of medical practitioners who are prescribing cannabinoids for many health issues. This is expected to boost the market in the country.
• Growing incidences of cancer, sclerosis spasticity, and nausea are driving the demand for cannabinoid product, which further push the market growth.
• Legal issues, high cost of cannabinoid products, and complexity in the extraction processes are key challenges anticipated to impede the market expansion.
• Cannabinoids side effects such as hallucinations, blood pressure problems, dizziness, impaired mental functioning, and lung problems are estimated to hamper the market.

Scope of the Cannabinoids Market Report

The report on the U.S. cannabinoids market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Cannabinoids Market Segment Insights

Cannabidiolic acid segment is expected to expand at a rapid pace

Based on products, the U.S. cannabinoids market is segmented into cannabidiol, tetrahydrocannabinol, cannabinol, cannabidiolic acid, and others. The cannabidiol segment is expected to hold a key share of the market during the forecast period owing to increasing adoption of isolated cannabinoid products and growing awareness about cannabinoid products in the U.S. The legalization of cannabinoid products are offering significant opportunity for the segment expansion. Increasing investments by companies, rising number of research activities, and growing awareness about synthetic CBD are estimated to propel the segment growth over the forecast period.

Meanwhile, the tetrahydrocannabinol segment is anticipated to register a moderate growth rate in the coming years owing to the rising demand for tetrahydrocannabinol productsdue to factors such as growing awareness about health benefits of THC, positive results of clinical studies, legalization of THC products, and strategic investments by corporations.

On the other hand, the cannabidiolic acid segment is expected to expand at a rapid pace during the forecast period due to high efficiency for managing health conditions and health benefits. The growing number of market players along with rising awareness about health benefits given by cannabidiolic acid-related products such as reducing inflammation, pain relieving, and reducing serotonin levels are estimated to boost the segment growth. For instance, GreenWay Herbal Products LLC, in 2019, launched their cannabinoid product range containing CBDa-CBD formula.

Segments

The U.S. cannabinoids market has been segmented on the basis of

Products

• Cannabidiol
• Tetrahydrocannabinol
• Cannabinol
• Cannabidiolic Acid
• Others

Country

• The US

Key Players

• Mile High Labs International
• Global Cannabinoids
• GenCanna
• CBD, Inc. Group
• SparkCBD
• Rhozo Sciences
• Maricann, Inc.

Competitive Landscape

Key players competing in the U.S. cannabinoids market are Mile High Labs International, Global Cannabinoids, GenCanna, CBD, Inc. Group, SparkCBD, Rhozo Sciences, and Maricann, Inc. Moderate competition is present among market players due to high cost of machinery and expensive extraction processes. However, existing key players are implementing product diversification strategy to own major market share.

Some of the key business strategies adopted by these players include mergers, acquisitions, partnerships, collaborations, and capacity expansion. Furthermore, emergence of considerable funding for research and development activities play a vital role in promotion of startups for launching new and innovative products. The gradual process of the U.S. Food and Drug Administration (FDA) approval for cannabinoid and rising adoption of cannabinoid products among people represent a key aspect for the market development in the country.