Global Cannabidiol Market was valued at USD 1.45 billion in 2018 and is expected to expand at a CAGR of 38.6 % over the forecast period 2019–2026.
CBD is one of 113 chemicals that can be found in the cannabis plant. It has many properties such as anti-inflammatory properties, helps to reduce anxiety and stress, improves the quality of sleep, and boosts cognition. The CBD market is mainly driven by the rapid legalization across countries globally, growing acceptance and awareness among consumers regarding the therapeutic effect of cannabidiol, and increasing use of CBD across various industries such as cosmetics, food and beverage, and pharmaceuticals. CBD use in the medical sector includes reducing anxiety, relieving pain, and resolving sleep issues, which is likely to provide huge opportunities in upcoming years. However, some regulations and restrictions from the FDA, who haven’t yet given the all-clear to add CBD to food products may hamper the growth of the CBD market during the forecast period.
Rising consumer awareness regarding the health benefits of CBD products is expected to drive market growth during the forecast period.
Growing awareness and acceptance for CBD and its products, due to its numerous health benefits will continue to drive the market. Currently, over 7% of the American population use CBD products. That number is expected to grow to 10% over the forecast period, and as CBD continues gaining popularity, it will continue to attract even greater numbers of new consumers into the market.
Hemp-derived CBD is anticipated to grow at highest CAGR during the forecast period 2019–2026
Hemp-derived CBD has a huge demand for use in cosmetics and personal care products is ascending rapidly owing to the anti-inflammatory, anti-seborrheic, and antioxidant properties. Many beauty and cosmetics brands such as The Body Shop and MGC Derma are producing beauty products that infused with hemp-derived CBD. In addition to this, pet products based on hemp-derived CBD is one of the emerging areas in the CBD market.
North America holds the largest market share in the CBD market and expected to continue its dominance during the forecast period
North America region is expected to hold the largest market share in the global CBD market, due to the tremendous use of CBD products in countries such as the U.S. and Mexico. U.S. CBD market is expected to reach USD 26.35 billion during the forecast period. Currently, the CBD derived from hemp is the only way for cannabis players to enter the US market legally. Apart from this, traditional marijuana-based products will be a key opportunity for CBD companies in the U.S. market. In addition to this, the FDA has given green signal for the many CBD based products in the U.S., which is a major expected reason to drive the market growth.
Competitive Landscape
Some of the leading companies of the CBD market are Canopy Growth, Cronoc Group, Hexo Corp, Tilray Inc, and Aurora Cannabis among others. These companies have adopted strategies such as focusing on specific product segments, mergers and acquisition and expansion in the other geographic regions to gain an early competitive edge in the CBD market. Many of these smaller companies are ‘niching down’ and focusing on specific CBD products, like CPD pet products or CBD beverages.
In March 2019, Tilray Inc made an acquisition of hemp company Manitoba Harvest for USD 320 million, to further expand in the US CBD market.