by Cannabidiol, also known as CBD, is one of the naturally occurring cannabinoids found in the cannabis plant. It is a major non-psychoactive component found in cannabis and hemp. Cannabidiol is often used for chronic pain and anxiety relief. It is currently being studied for its potential therapeutic properties for various conditions including epilepsy, PTSD, rheumatoid arthritis, diabetes, alcoholism, cancers, and neurological diseases. Cannabidiol has significant medical benefits with negligible side effects.
The global cannabidiol market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global cannabidiol market growth is expected to be flourished by growing acceptability of medical cannabis. Expanding legalization of medical cannabis in many countries and increasing incidence of chronic diseases are the major drivers expected to boost the market growth over the forecast period. For instance, according to National Conference of State Legislatures (NCSL), as of June 2019, medical cannabis was legalized in 33 U.S. states with many other states considering legislation. Medical cannabis has been proven effective to treat various symptoms associated with cancer, multiple sclerosis, epilepsy, chronic pain, arthritis, and mental illnesses. This growing acceptance for medical cannabis is expected to fuel the growth of cannabidiol market. The cannabidiol market opportunity is also expected increase due to its relaxation and anti-inflammatory properties, which help relieve anxiety, pain, and insomnia.
Segment Analysis
The Cannabidiol market is dominated by the Medical segment, contributing over 65% of the total market share. CBD finds extensive application for conditions such as Chronic pain, Anxiety, Depression, and Insomnia due to its anti-inflammatory and analgesic properties. The increasing legalization of marijuana for medical usage globally and rising geriatric population prone to chronic conditions are the key factors augmenting this segment. While Medical remains dominant, the Wellness segment is expected to witness the fastest growth during the forecast period due to rising health consciousness among millennials and growing popularity of CBD for general wellness benefits like stress relief.
PEST Analysis
Political: Government regulations regarding the usage and production of CBD vary across different countries. While some countries have legalized it for both medical and recreational purposes, others permit only for medical use or have imposed a blanket ban. Favorable legislation globally is positively impacting the market growth.
Economic: Strong economy, rising disposable incomes, and increasing healthcare spending are driving higher demand for premium wellness products like CBD. Growth in e-commerce is also boosting the accessibility and sales volumes.
Social: Changing consumer preferences towards herbal and natural ingredients are propelling the popularity of CBD. Increasing social acceptance of marijuana also favors market expansion. Growth in lifestyle diseases and focus on preventive healthcare further supports market growth.
Technological: Advancements in extraction technologies allow production of high-quality CBD isolates and formulations. Developers are investing in R&D for new delivery mechanisms and therapeutic applications to expand the consumer-base.
Key Takeaways
The global Cannabidiol market is expected to witness high growth on account of increasing legalization of marijuana, rising prevalence of lifestyle diseases, growing preference for herbal medicinal ingredients and expanding application scope of CBD. The global cannabidiol market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regional analysis: North America dominated the global market in 2020 and is expected to maintain its lead during the forecast period as well. U.S. constitutes the major growth engine in this region owing to its early legalization of marijuana and progressive consumer attitudes. Meanwhile, Europe and Asia Pacific are expected emerge as the fastest growing regional market attributed to growing medicinal use, and liberalizing regulatory environment across various countries like India, China, the U.K., Germany, France etc.
Key players: Key players operating in the Cannabidiol market are Village farms, Canopy Growth Corporation, Aurorafy Wellness Products, CV Sciences, INC, Green Roads, Isodiol International INC, MEDCANICORP, and Receptra Naturals. Village farms has been the largest producer of CBD, while Canopy Growth Corporation holds majority of the market share. These players are focusing on new product launches and strategic collaborations to strengthen their market positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
