CBD demand for medical and wellness purposes is high due to its healing properties, which is the key factor driving the growth of the market

The global cannabidiol market was valued at USD 4.6 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 22.2% from 2019 to 2025. The demand for cannabidiol (CBD) for medical and wellness purposes is high due to its healing properties, which is the key factor driving the growth of the market. Moreover, growing product adoption and utilization owing to government approvals is a major factor anticipated to drive the demand for cannabidiol infused products.

Out of all cannabinoids, cannabidiol is most commonly used for medical purposes due to the absence of psychoactive effects. CBD oil is used in several medical applications such as treatment of anxiety and depression, stress relief, diabetes prevention, mitigation of pain, alleviation of cancer symptoms, and acne reduction. The global CBD market is anticipated to grow at a lucrative rate over the forecast period owing to the growing adoption of CBD-based products for treating various medical conditions.

Cannabidiol is one of the main cannabinoids extracted from the hemp or from marijuana, which is primarily found in the Cannabis Sativa plant. In the past couple of years, the use of cannabidiol is legal in several countries across the globe for industrial applications such as personal care and cosmetics, pharmaceuticals, and food and beverages as it was found to be safe for human consumption when consumed in the prescribed proportion.

Cannabidiol has become the latest consumer trend, which is a result of the increasing number of social media influencers promoting the benefits of cannabis, marketing initiatives by the industry participants, and growing application areas. Subsequently increasing product options such as skincare, cosmetics, haircare, intimate lubricants, pharmaceuticals, gummies, pills, infused beverages, and other products are also driving the market for cannabidiol.

Increasing awareness about the therapeutic benefits of cannabidiol has influenced people to buy CBD based products, irrespective of their cost. Mainstream retailers are now focusing on selling CBD-based products, as these have a higher profit margin. Various health and wellness retailers such as CVS Health, Rite Aid, and Walgreens Boots Alliance have decided to sell CBD-based products. Moreover, CVS Health is planning to sell CBD topicals through its 800 stores, and Walgreens Boots Alliance is planning to sell CBD containing topicals in 1500 of its stores in the U.S.

On the other hand, the presence of stringent regulations and the high cost of CBD products are some of the major factors restraining the growth of the market for cannabidiol. Moreover, the absence of legalization programs in several Asian and African countries is another key factor impeding the growth of the CBD market.

The medical segment dominated the market in 2018, with a revenue share of 44.5%, and is expected to grow at a lucrative growth rate over the forecast period. The large share has attributed to factors such as rising use of CBD for medical conditions such as epilepsy, schizophrenia, chronic pain, sleep disorders, and symptoms of multiple sclerosis. Moreover, people suffering from chronic pain are now opting for CBD-based products to manage associated conditions, which is expected to fuel market growth over the forecast period.

The pharmaceutical segment is anticipated to witness the highest growth rate over the forecast period. Companies manufacturing CBD infused pharmaceuticals for treating various medical conditions such as epilepsy and multiple sclerosis (MS) symptoms are anticipated to boost the growth of this segment. Furthermore, major players such as Charlotte’s Web; GW Pharmaceuticals plc; Isodiol International Inc.; and CannaHealth, are using cannabidiol for manufacturing soft gel capsules and tinctures are also influencing the growth of this segment.

References

Cannabidiol Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Distribution Channel (B2B, B2C), By End Use, By Region, And Segment Forecasts, 2019 – 2025

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