Hemp Derived Cannabidiol Market Trends, Industry & Size 2031

Report Description

The North America hemp-derived cannabidiol market size was USD 4.55 Billion in 2022 and is likely to reach USD 40.51 Billion by 2031, expanding at a CAGR of 27.5% during 2023–2031. The growth of the market is attributed to the increasing adoption and awareness of cannabidiol or CBD for numerous health conditions.

Cannabidiol is a variant of Phyto cannabinoid which is one of the different cannabinoids present in cannabis plants. This plant has up to 40% of tetrahydrocannabinol present in its extract. Clinical research and studies shows that CBD can be effective against chronic diseases such as anxiety, movement disorders, body & internal pain and cognition.

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CBD can be consumed in different ways, such as inhaling cannabis vapor & smoke, aerosol spray , or by mouth. It can be supplied in liquid state such as CBD oil, which contains only the pure CBD acting as an active catalyst ingredient. Other means include CBD-dominant hemp extract oil, dried cannabis, prescription liquid solution and capsules.

The CBDs do not have relative psychoactivity as the tetrahydrocannabinol or the THC and can alter the effects of these terpenes present on the body under the scenario where both CBD and THC are present.

According to the Food and Drug Administration or the FDA report survey in the United States, one in every American uses CBD, whereas more than 50% of Americans believe that CBD is legal on all states. More than 65% of the Americans use CBD for pain and inflammation relief purposes.

The COVID-19 pandemic has hindered the growth of the North America hemp-derived cannabidiol market mainly because of the disruption caused in the hemp CBD supply chain management. The strict protocols enforced by the government authorities made distribution of cannabis more difficult than normal.

The medical purposes also saw a decline as they can conduct viruses at a faster pace, especially unhealthy individuals. After the COVID pandemic, however, the hemp-derived cannabidiol market is expecting to boom back to even a two digit CAGR expansion.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing the range of applications of hemp-derived CBD along with the demand and requirement of hemp oil are projected to boost the North America market growth during the forecast period, 2021-2028.

• Rapid growth in the research and development activities regarding the potential of CBD from hemp, measuring their benefits verses that side-effects and the amount of funding and investments from both the Government administrative bodies and private investors are major factors driving the market expansion in the coming years.

• The high cost and prices of CBD products becomes a huge restraint in the North America hemp-derived CBD market. The prices are also fluctuating between the companies that produce CBD, depending upon their manufacturing cost. The main reason for this is the availability and the legality of CBD in certain countries of this region, while not available in others.

• The administration of hemp-derived CBD needs to be strict, especially regarding age, underaged children consuming can cause dire consequences. The process of obtaining medical marijuana and CBD is not streamline, even with a doctor’s prescription, which ultimately restricts the regional market growth.

• R&D investment and technological advancement are expected to offer significant opportunities for the market players. Researchers and scientists have now discovered new kinds of CBD which can be used for different and daily applications such as skincare & personal industries, food & beverage industries, and antiaging & anti-acre properties.

Scope of North America Hemp-Derived Cannabidiol Market Report

The report on the North America hemp-derived cannabidiol market size includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

North America Hemp-derived Cannabidiol Market Segment Insights

Hemp-derived cannabidiol distillate segment is projected to represent a large market share

Based on Products, the North America hemp-derived cannabidiol market is divided into hemp-derived cannabidiol distillate, hemp-derived cannabidiol isolate, and hemp-derived cannabidiol terpenes. The hemp-derived cannabidiol distillate segment is expected to constitute the major share of 58.2% of the market in 2019. This can be attributed to the increased consumption of distillates forms of CBD, owing to their medical and wellness purposes.

The government reforms have become positive in regard to the legalization of hemp in various countries of this region where there is an increase in adoption of hemp-derived distillate products and CBD. Meanwhile the hemp-derived cannabidiol terpenes segment are anticipated to grow the fastest with a CAGR of 31.1% during the forecast period, 2021-2028 owing to the increase in awareness plus additional health benefits.

Hemp-derived cannabidiol terpenes have shown great effectiveness towards sleep-inducing effects, increasing entourage effects, and many more which can propel its market presence. There has also been heavy investment and funding provided by the government authorities and private investors to find new applications for hemp-derived cannabidiol terpenes.

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Personal care & cosmetics segment is anticipated to register a major market share

On the basis of end-users, the North America hemp-derived cannabidiol market is segmented into personal care & cosmetics, food & beverages, nutraceuticals, and others. The personal care & cosmetics segment is expected to constitute a major share of 31.6% of the market in 2019. This is attributed to the increasing application of hemp-derived CBD in numerous personal care plus cosmetic products.

The growing use of these products in various personal remedies, including the mix of oils with coffee along with the use of some products in edible form and making them user-friendly. This rise in adoption and awareness of the hemp-derived CBD products will fuel the regional market growth.

Meanwhile, the food & beverages segment is anticipated to rise at the highest CAGR with 28.3% during the forecast period, 2021-2028. The endorsement of cannabidiol food products along with the rising awareness in regard to the health benefits of CBD are the major factors that drives the growth of this segment in this regional market.

United States of America is expected to dominate the market

On the basis of regions, the North America hemp-derived cannabidiol market is categorized as the United States of America, Canada, and Mexico . The market in the United States of America is expected to constitute a major share of 82.3% in 2019.

This regional market growth can be attributed to multiple factors such as rising awareness on the benefits of the hemp-derived CBD, supportive government reforms, favorable climate conditions, presence of major hemp cultivation companies, and increasing consumer preference towards CBD based products.

However, the market in Mexico is anticipated to expand at a high CAGR of 31.9% during the forecast period, 2021-2028, due to the increasing usage of CBD based products owing to the presence of non-psychotropic ingredients. There is also the economic development which supports the usage of CBD based products along with the favorable government laws which ultimately fuels the market growth in this country.