cbd market value 2021

December 15, 2021 By admin Off

North America cannabidiol market size crossed USD 4.3 billion in 2020. Several factors such as supportive regulatory framework, large-scale adoption offered by consumers as well as the higher intensity of suppliers in the region increasingly contribute to the sizeable regional market demand. The increasing geriatric population and higher disease prevalence will also boost the industry expansion in the region.

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Market, By Source.

While some areas of the healthcare sector remain to be impacted, the CBD sales have increased since the advent of the COVID-19 pandemic as restrictive movement and isolation largely impact the human body in several ways causing chronic pain and concerns surrounding mental health, among others. Further, several studies are also noted to remain underway to test the effectiveness of CBD-derived products against the lung damage caused by COVID-19.

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Hemp-based CBD products witness a smooth entry into the market.

Market, By Route of Administration.

The chronic pain segment size is expected to reach USD 36.5 billion by 2027. A considerable demand has been observed from cannabidiol products in the recent years for pain treatment. This is largely due to the better results offered by cannabidiol products as well as its advantages over opioids. CBD is studied to have negligible trace of toxic compounds and minimal cases of side effects have been observed.

Hemp-derived CBD products will register around 36% growth rate through 2027. This can be largely attributed to the smooth regulatory pathways developed for low THC levels. The THC content in hemp pants is negligible and developing 100% CBD-based products is possible, resulting in a higher market proportion.

The cannabidiol oil segment revenue was over USD 1.7 billion in 2020. CBD oil is largely consumed across regions owing to its extensive benefits, particularly for pain related disorders. The significant disease burden of chronic pain is identified on a global level, and it is estimated that nearly 1 in 10 adults suffer from chronic pain. Hence, with such concerning statistics and regulatory authorities addressing the consumption of CBD.

The oral route of administration segment accounted for nearly USD 3.5 billion revenue in 2020. A significant consumer preference has been observed for oral route of administration and to address the same, suppliers have increasingly developed products that work efficiently when consumed orally. For instance, in July 2020, USFDA approved Epidiolex (a pure oral solution) developed by GW Pharmaceuticals for the treatment of seizures in patients over one year. The drug has earlier been approved for seizures associated with rare types of epilepsy.

The rising prevalence of cancer leads to an increasing number of patients undergoing chemotherapy and increasingly experience nauseatic conditions. Also, as several people across the globe are noted to adopt a sedentary lifestyle, muscular disorders have also surged in the recent years. Cannabidiol products are noted to remain effective against these and are gaining popularity among patients. Also, it is observed that cannabidiol products undergo multiple clinical trials encompassing the treatment of numerous disorders such as neuropathic pain, among others. Hence, even though conventional medicine exists for the treatment of such illnesses, concerns surrounding its side effects are largely paving the way for CBD products in the market. Moreover, its proven therapeutic benefits have led to the commercial approval from regulatory authorities such as FDA and Court of Justice of the European Union.

Market, By Application.

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Prominent players operating in the market include Aurora Cannabis, Canopy Growth Corporation, Cronos Group, CV Sciences, Inc., Medterra, and Tilray. Companies are noted to adopt organic and inorganic strategies to enhance their market presence and as well as gain competitive advantage in the market.

Large scale adoption of cannabidiol products as alternative to conventional medicine.

Even though the regulatory framework is noted to fuel the market demand, several loopholes limit the potential growth of CBD market across sectors. For instance, CBD products are granted access for medical and cosmetic use across geographies, regulatory authorities have resisted the approval of cannabidiol as a food & beverage additive. States such as Texas authorize the consumption of hemp-derived CBD-infused food and beverages, minimal recognition is observed on a federal level creating obstacles in the supply network.

The offline distribution channel segment dominated more than 53% cannabidiol market share in 2020, due to an increased consumer confidence on offline purchases as compared to online channels. Further, as the penetration of counterfeit products increases, offline channels are largely preferred by consumers.

Cannabidiol Market size surpassed USD 7.1 billion in 2020 and is estimated to grow at over 35% CAGR between 2021 and 2027. Supportive regulatory stance in majority of the countries paves way for the market expansion. Moreover, CBD has been found to be effective against numerous medical disorders such as chronic pain, neurological pain, anxiety, sleep disorder, as well as nausea and stress.

Additionally, North America, particularly U.S., is one of the largest consumers of cannabidiol and marijuana/hemp derived products. This can be largely credited to the introduction of Farm Bill in 2018 that legalized virtually every CBD based product consumed for medicinal and cosmetic purposes. The bill legalized cannabidiol products with less than 0.3% THC content across U.S. states.

Market, By Distribution Channel.

Market, By Product.

Recent Industry Developments:

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The above information is provided for the following regions and countries:

It is expected that U.S. consumer sales of cannabidiol (CBD) will reach around 1.8 billion U.S. dollars by 2022, which would represent a significant increase from around half a billion U.S. dollars in 2018. Following a similar trajectory, sales of legal cannabis in the U.S. are projected to hit 23 billion U.S. dollars in 2025.

Cannabidiol is a naturally occurring substance found in cannabis. However, CBD does not cause any of the psychoactive effects that come from another active ingredient found in the plant: tetrahydrocannabinol (THC). The health benefits of the plant extract continue to be examined, and the World Health Organization states that CBD exhibits no effects indicative of any abuse or dependence potential. The CBD retail industry is already flourishing, with a wide range of products marketed as treatments for chronic pain, anxiety, and depression.

What are the benefits of CBD?

Of BDSA’s 2025 $19.5 billion CBD sales forecast, mainstream retail, which includes grocery, drug, ecommerce, natural/vitamin, pet/vet and beauty channels, will seize a lion’s share of that figure, clocking in at $14.92 billion or 77%. The pharmaceutical channel is estimated to take up a 12% of that pie at $2.36 billion. And, dispensaries will grab 11% at $2.22 billion. Currently, the cannabis dispensary channel is the only legal channel for CBD-infused ingestibles.

If this prediction about the FDA comes to pass, there is sure to be a floodgate of interest from traditional food and beverage brands as well as major retailers. Much of that growth will transpire as ingestibles come to market and legalization continues to expand throughout the country. Consumers actively seeking functional benefits for pain relief, improved sleep, stress and anxiety management will drive this boom.

Other key findings and trends culled from BDSA’s forecast include:

With CBD product sales surging, a new forecast predicts that the market will soar to $19.5 billion in 2025. This projection takes into account a compound annual growth rate of nearly 37% over that period. But there is a catch: The estimate hinges on whether the U.S. Food and Drug Administration will finally approve CBD as a legal additive in 2022. Top cannabis market research firm BDSA, which made this prediction, believes the agency will do so. This would be a significant watershed for the space because even though CBD was legalized as a result of the passage of the U.S. Farm Bill in late December 2018, there are currently no FDA-approved drug products that contain CBD.

*Nearly 50% of all adults are now consuming cannabis in fully legal states. As the cannabis consumer population continues to grow, BDSA predicts this momentum will continue well into the future. According to the cannabis data researcher, only 8% of adults oppose cannabis legalization, and even the most mature legal markets in the U.S. are continuing to expand;

*The percentage of adults consuming cannabis across all fully legal cannabis states increased by 11% from the first quarter of 2018 to the first quarter in 2021;