Cannabidiol Market Overview

The Cannabidiol Market is expected to be around USD 25670.56 million by 2031 from USD 2550 million in 2021, growing at a CAGR of 17.2% during the forecast period 2021 to 2031.

Cannabidiol, a chemical compound found in cannabis Sativa plants, is extracted from hemp. Hemp is more commonly extracted due to its naturally high levels of cannabidiol. It is an effective treatment for anxiety, seizures, and pain relief. The high demand for CBD drives the market because of its healing properties. The rising acceptance and increased use of CBD-infused products due to government approvals is another major factor driving the market.

Global Cannabidiol Market Scope:

Source Type Analysis

In 2021, the marijuana segment was dominant and represented a share of 52% of the market’s revenue. The growing acceptance of CBD-rich products drive this segment, and the legalization of marijuana and marijuana-derived products for various medical applications is driving the segment. The high efficacy of cannabidiol from marijuana is another key driver for the segment’s growth.

The growing demand for cannabidiol from hemp and the rising health awareness among consumers is expected to drive rapid growth. The demand for cannabidiol within the pharmaceutical industry is expected to rise with increasing consumer disposable income and the legalization of medical cannabis. High-demand CBD products include oils, tinctures, capsules, concentrates, lip balms, and capsules.

Due to its anti-inflammatory and anti-aging properties, hemp-derived products CBD is gaining popularity. Many industries, including pharmaceuticals, nutraceuticals, personal care, cosmetics, and food and beverage, are creating CBD-derived products for their health and wellness goals. This segment’s significant cannabidiol market growth would be due to the key factors mentioned above.

Sales Type Analysis

The B2B segment dominated the market and accounted for over 53% of revenue in 2021. This segment is expected to grow profitable during the forecast period. This is due to increased wholesale and bulk CBD oil suppliers and demand for CBD oil. The expanding consumer base has also led to an increase in the supply of CBD oil products.

The B2C segment will see lucrative growth in the sub-segment of hospital pharmacies. This is due to the increased number of companies with exclusive partnerships with retail pharmacies. Customers can now purchase CBD products from an independent entity. Market participants will also have significant opportunities due to the increased stockpiling by pharmacies and exclusive collaborations between companies and retail pharmacies. There will also be an increase in patients choosing CBD treatment.

End-Use Analysis

The leading market was the pharmaceuticals segment, which accounted for over 68% of the revenue share in 2021. The segment is anticipated to grow at an impressive rate during the forecasted period. In the coming years, the market will be driven by the growing number of clinical trials that examine CBD’s effects on specific health conditions. Many companies also purchase bulk CBD oils in bulk and make CBD-infused products. Many people use these products as a pain relief and stress management option. These products are most often in the growth phase.

Over the forecast period, the pharmaceuticals market is expected to experience the fastest growth. The market’s growth is expected to be boosted by the rapid transformation of cannabidiol (from herbal preparations to prescription medications) into a more effective product. The pharmaceutical industry’s growth is expected to see a rise in demand for cannabidiol due to growing awareness about its medical application and healing properties.

Key Market Segments:

By Source Type

• Hemp
• Marijuana

By Sales Type

• B2B
• By End-use
  • Pharmaceuticals
  • Wellness
• B2C
• By Sales Channel
  • Hospital Pharmacies
  • Online
  • Retail Stores

By End-Use

• Medical
• Chronic Pain
• Mental Disorders
• Cancer
• Others
• Personal Use
• Pharmaceuticals
• Wellness
• Food & Beverages
• Personal Care & Cosmetics
• Nutraceuticals
• Others

Market Dynamics:

Using cannabidiol oil to make skin care products that treat wrinkles and acne is becoming more common. Sephora has recently added cannabidiol (or CBD skincare) to its stores. Ulta Beauty plans to launch a line of cannabidiol-based products. Many new companies are entering the market for cosmetics infused with cannabidiol. Aphria, a distributor and producer of medical and recreational cannabis-based products in Canada, launched its Cannabidiol-based cosmetics line in Germany in 2019.

The COVID-19 pandemic caused unprecedented global lockdowns, causing daily operations to collapse and changing consumer behavior in almost every industry. Retail stores shut down as the COVID-19 response intensifies. Due to the national shutdown of transport and manufacturing in major raw materials manufacturing countries like China and India, the market began experiencing a supply shortage. Due to disruptions in U.S. supply chains, other raw materials have been scarce, which has disrupted the manufacturing process and, in turn, the supply chains of CBD consumer-health products.

Cannabidiol, out of all the cannabinoids, is the most commonly used for therapeutic purposes due to its lack of psychoactive effects. Cannabidiol oil can be used in many medical applications. It is used for anxiety and depression treatment, pain relief, stress relief, and diabetes prevention. The market demand for CBD-based products to treat ailments is expected to grow at an impressive rate during the forecast period.

Buyers are more likely to purchase cannabidiol products due to increasing awareness about its therapeutic benefits. These products have a higher profit margin, so commercial retailers are now concentrating on cannabis-based products. Many health and wellness retailers now offer CBD-based products, such as Walgreens Boots Alliance, CVS Health, Rite Aid, and CVS Health. CVS Health has decided to sell CBD topicals in all 800 stores. Walgreens Boots Alliance also offers CBD-containing topicals in 1500 of its stores across the U.S.

However, market growth is slowed by strict regulations and high prices for cannabidiol products. Market growth is also impeded by the lack of legalization efforts in many Asian and African nations. Cannabidiol-based products, which are used for many medical conditions, have seen a lot of popularity in recent years. It has allowed illegal producers to make synthetic medicines that don’t contain cannabidiol but still contain chemical compounds that offer similar benefits to cannabidiol.

However, these chemicals can also be harmful to the body. These products may have lower prices than the originals, but they contain more Cannabidiol. This can be used to treat many health problems. For example, in the U.S., synthetic cannabis was responsible for approximately 68 deaths, and more than 2800 people were hospitalized due to vaping, e-cigarettes, and use-associated lung injuries. This is limiting the market.

Regional Analysis

North America was the dominant market player in 2021, with a revenue share of 75.0%. It will maintain its position as the market leader. The market is accepting a large population of CBD-based products. The U.S. Farm Bill was approved in 2020. North America has the highest number of cannabis products and cannabidiol. It is home to the largest number of CBD-related companies and the most relaxed laws concerning the use of CBD products.

Due to the establishment of a hemp-producing plant in China, regions such as Europe and Asia will see significant annual growth rates during the forecast period. China is Asia’s largest hemp grower, accounting for nearly half the world’s total hemp production. China exports approximately 90% of its innovative products and refined products to the U.S.A, the U.K, Germany, the Netherlands, and Japan. It has also started growing hemp in three provinces for cannabidiol extract purposes. New government policies that support the industry, low production costs for cannabidiol, large-scale manufacturing infrastructure, and expertise will create fierce competition among Canadian, U.S., and European Union hemp businesses with low-cost CBD supply.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

The market offers users the health benefits of Cannabidiol without intoxication. They are quickly gaining popularity. Companies are focusing on expanding their product lines, entering new markets, and gaining new customers to increase the level of competition in the global marketplace. Due to a large number of competitors, the market is fragmented. Many companies are creating new products and expanding their reach in different regional markets to maintain their market position.

Companies are also entering into multiple partnerships to expand their customer base and increase their distribution network. Nano Hydrate introduced its product marketing services in January 2021. They use innovative technologies to promote natural treatment using pharmaceutical-grade cannabidiol branding. The goal was to create a program allowing existing brands to reach the niche CBD market and expand the possibilities for cannabis-infused beverages. As CBD-infused products become more popular worldwide, the competition for this market will only increase.

Market Key Players:

• ENDOCA
• Cannoid, LLC
• Medical Marijuana, Inc.
• Folium Biosciences
• Elixinol
• Aurora Cannabis
• NuLeaf Naturals, LLC
• Green Roads
• Isodiol International Inc.
• Medterra CBD
• Pharmahemp d.o.o.
• Canopy Growth Corporation, Aphria, Inc.
• Other Key Players

For the Cannabidiol Market research study, the following years have been considered to estimate the market size: