With a range of reports published in recent weeks looking to size the global CBD Oil Market, we summarise the key findings here in our latest Market Data Snapshot:
Global CBD Oil Market
- ResearchandMarkets recently suggested that the global market for cannabidiol (CBD) oil should grow from $967.2 million in 2020 to $5.3 billion by 2025, at compound annual growth rate (CAGR) of 40.4% for the period of 2020-2025.
- It is anticipated that the global CBD market will grow at a strong rate over the forecast period owing to the growing adoption of CBD-based products for a wide variety of consumer wellbeing and lifestyle applications as well as medical conditions.
- Hemp-derived products are currently the largest segment in the CBD oil products market, with ingredients used primarily in pharmaceutical, food, cosmetic and other industries.
- The cosmetic and food industry segments accounts for more than half of the market. However, the pharmaceutical industry segment is expected to expand significantly, with a higher CAGR from 2020-2025.
- Regionally, North America captured the largest share of the CBD oil market in 2019. However, Asia-Pacific is one of the fastest-growing regions.
- The global CBD oil market is being driven by growing funding for cannabinoid research, legalization of CBD in various regions and the rising occurrence of chronic diseases and related complications. However, the adverse effects associated with cannabis and stringent government policies may slow the growth of the market.
- The CBD oil market is a highly competitive market with the presence of many national, regional and local companies. Demand in the market calls for cost and product differentiation, continuous product development and upgrades to assure and sustain profitability. R&D activities and product launches are predominantly dominating business strategies to try and improve market position and brand image.
Key Market Projections
- The hemp-derived segment market for cannabidiol (CBD) oil should grow from $516.3 million in 2020 to $2.9 billion by 2025, at a CAGR of 41.5% for the period of 2020-2025.
- The marijuana-derived segment market for cannabidiol (CBD) oil should grow from $450.9 million in 2020 to $2.3 billion by 2025, at a CAGR of 39% for the period of 2020-2025.
North American Market Growth
- According to DBMR the North America CBD Oil Market is growing at a CAGR of 38.6% in the forecast period of 2020 to 2027and expected to reach USD 2.6 billion by 2027.
- Legalization of medical and recreational use of CBD oil is augmenting the market growth. In the U.S., CBD oil is regarded as a schedule I drug that has now been legalized in almost all the countries. As of November 2018, in thirty three U.S. states, along with the District of Columbia, Puerto Rico and Guam legally allowed marijuana for personal medical use. Due to the legalization of the CBD oil products, the market has expanded and the sale of the product has now increased through various distribution channels. This acts as a driver in the growth of CBD oil market.
- The major factor hindering the growth of the market is an unclear regulatory environment. The unclear regulatory environment for the usage of CBD oil products in different countries creates a scenario of confusion for consumers that can restrains the CBD oil market growth.
European Market Growth
- DBMR also estimates that the Europe CBD Oil Market is growing at a CAGR of 36.7% in the forecast period of 2020 to 2027 and is expected to reach USD 1,38 billion by 2027.
- Growing consumer acceptance of perceived health benefits are driving the CBD oil market growth.
- The growing trends for CBD foods and beverages have increased the demand of the CBD oil based products among the consumers, which in turn has widened the production of CBD oil based products among manufacturers.
Author: Matthew Driver, Senior Consultant
Market Analysis | Insight & Trends
Sources | DBMR, ResearchandMarkets