Global Cannabidiol Market Size & Growth Trends Analysis Report

The growing acceptance and legalization of CBD and cannabis products in many nations is a significant motivator for the global cannabidiol market. For instance, the 2018 U.S. Farm Bill authorized CBD derived from hemp, greatly increasing its availability and commercial expansion. Moreover, more people are becoming aware of the possible health advantages of CBD, including its ability to reduce anxiety, ease pain, and anti-inflammatory qualities. The consumer demand for CBD-infused goods, such as oils, sweets, and topical applications, has surged due to this understanding. Many diverse CBD products have also proliferated in the market, ranging from beverages to cosmetics, to meet the demands and tastes of different customer segments. This variety draws in a larger customer base, which propels market expansion even further. Additionally, the industry is growing due to large expenditures made in CBD research and product development by pharmaceutical and wellness companies. These efforts have produced new and inventive products which in turn have provided multiple opportunities for the entire market to grow in the upcoming years.

The market is nevertheless subject to several limitations. Notwithstanding the increasing legality of certain products, legislative ambiguities and regional and national differences can impede market expansion and provide difficulties for companies. It can be expensive to produce high-quality CBD products, and uneven quality control might result in differences in the safety and efficacy of the product, which can undermine consumer confidence and disrupt the market. Furthermore, as CBD is associated with cannabis, there is still some stigma and ignorance surrounding it, which may discourage potential customers. In addition to cultivation, extraction, and distribution, the CBD business has a convoluted supply chain that presents logistical difficulties and raises operating expenses.

However, there are multiple opportunities in the market as well. There are chances for market expansion and access to new geographic markets as more nations and regions move toward legalization and regulation. The medical industry may see growth as a result of CBD's potential for further research and use in pharmaceutical applications for a range of illnesses. Innovative product options and expanded market reach can result from strategic alliances and collaborations between CBD companies and well-known players in the food, beverage, and cosmetics industries. Additionally, the emergence of e-commerce platforms gives CBD businesses the chance to expand their online reach and boost revenue.

Numerous regulatory agencies keep an eye on the CBD business globally. In the U.S., The Food and Drug Administration (FDA) oversees the safety and effectiveness of CBD products, particularly those that make health claims. Within the European Union, CBD products used for medical purposes are approved and regulated by the European Medicines Agency (EMA). In Canada, CBD products are regulated by Health Canada to guarantee that safety, efficacy, and quality requirements are met. The Therapeutic Goods Administration (TGA) in Australia oversees CBD products to make sure they meet all applicable safety and quality requirements.

Impact of COVID-19

The global market for cannabidiol (CBD) has been greatly influenced by the COVID-19 pandemic. On the one hand, production and delivery were delayed as a result of supply chain interruptions and lockdowns, which briefly reduced the demand for and availability of CBD products. The brick-and-mortar sales channels were impacted by the forced closure or reduction of many retail locations. The pandemic also caused delays in clinical trial approvals and regulatory approvals for new CBD products, which hindered the market's expansion.

However, the pandemic also sped up the growth of e-commerce, since many customers bought CBD products through online retailers. A portion of the losses resulting from physical store closures were lessened by this change. Owing to the pandemic's heightened emphasis on health and wellness, there has been a rise in interest in CBD products due to their possible health advantages, including immune system support and stress relief. Therefore, the CBD market has proven resilient and adaptable despite the early difficulties, and a rebound and expansion were witnessed in the post-pandemic phase.

Segmentation

The global cannabidiol market is segmented based on product type, source type, application, and distribution channel. The product type segment is further sub-segmented into topicals, oil & tinctures, edibles, capsules & softgels, vape items, and others. Lord Jones is well-known for its premium CBD edibles, and Charlotte's Web is well-known for its premium CBD oils and tinctures.

By source type, the market is further bifurcated into CBD from hemp, and CBD from marijuana. One of the top suppliers of CBD products made from hemp that are renowned for their potency and purity is Elixinol. However, Aurora Cannabis uses its vast experience in cannabis production to provide a selection of CBD products generated from marijuana.

By application, the market is segmented into nutraceuticals, medical, and personal use. Pioneers in the field of medicinal CBD, GW Pharmaceuticals is best known for their product Epidiolex, which treats epilepsy. With a range of formulations for daily wellness, Green Roads is a well-known brand of CBD products for personal use.

By distribution channel, the market is further bifurcated into hospital pharmacy, retail pharmacy, online, and others. Popular online retailer PureKana ships nationwide and has a large selection of CBD products. Because CV Sciences uses retail pharmacies to distribute its goods, a large number of people can purchase items under the PlusCBD Oil brand.

Regional Analysis

In 2023, North America held a 47.7% market share, dominating the cannabidiol industry. The legalization of cannabis in numerous U.S. and Canadian states has led to a substantial market share in North America. Notable businesses in this area include Canopy Growth Corporation, based in Canada, and Charlotte's Web, based in Colorado.

Another significant market is Europe, where CBD products are becoming more and more accepted and approved by regulators. The Dutch business Bedrocan is a major provider of pharmaceutical-grade cannabis, and the British company GW Pharmaceuticals is well-known for its medical CBD products.

With rising awareness and changing regulations, Asia Pacific is an emerging market. Hempstrol, an Indian firm, is gaining popularity with its line of CBD wellness products, and Australian company Elixinol is growing its presence in this area.

The demand for CBD is rising throughout Latin America as a result of shifting laws and rising public awareness. Notable players in the market include the Brazilian company VerdeMed, which specializes in medical cannabis, and the Colombian company Khiron Life Sciences.

Although the CBD industry in the Middle East and Africa is still in its infancy, there is room for expansion as laws change. Lesotho-based African Cannabis is leading the way in the continent's cannabis market, and Israeli startup Tikun Olam is making significant progress in the field of medicinal cannabis research and development.

Competitive Analysis

The key players in the global cannabidiol market are ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Folium Europe B.V., Canopy Growth Corporation, Elixinol, NuLeaf Naturals LLC, Isodiol International Inc., PharmaHemp, The Cronos Group, and Aurora Cannabis Inc., among others.

In 2023, Medical Marijuana Inc.'s Kannaway division successfully acquired KZ1, a network marketing company based in Japan. The USD 5 Million acquisition will increase Kannaway's sales team in Japan by about 1,450 people. With the addition of KZ1's well-liked cognitive function-supporting product "Focus", containing nootropics, adds to the company's current line of CBD. The acquisition fits with the company's plan to grow through acquisitions and broaden its international product offering of premium hemp and wellness goods.

Similarly in 2021, Canopy Growth Corporation finalised the acquisition of The Supreme Cannabis Company. Canopy's position as the industry leader in cannabis for recreational use in Canada is strengthened by this acquisition.

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The global cannabidiol market is segmented as follows:

By Product Type (Revenue: USD Billion, 2019 – 2031)
●    Topicals
●    Oils & Tinctures
●    Edibles
●    Capsules & Softgels
●    Vape Items
●    Others

By Source Type (Revenue: USD Billion, 2019 – 2031)
●    CBD from Hemp
●    CBD from Marijuana

By Application (Revenue: USD Billion, 2019 – 2031)
●    Nutraceuticals
●    Medical
●    Personal Use

By Distribution Channel (Revenue: USD Billion, 2019 – 2031)
●    Retail Pharmacy
●    Hospital Pharmacy
●    Online
●    Others

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o Australia
o Japan
o Thailand
o South Korea
o Rest of Asia Pacific

● Latin America
o Brazil
o Uruguay
o Rest of Latin America

● Africa
o South Africa
o Rest of Africa