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The Cannabidiol market size is projected to increase by USD 23,023.51 million and the market size is estimated to grow at a CAGR of 16.28% between 2022 and 2027. Several factors play a crucial role in the market's growth, such as instrumental in driving the market's growth, including changes in legalization and regulations regarding cannabidiol, health and wellness trends, and the increasing popularity of cannabidiol oil. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
Trends - The E-commerce industry's growth is a significant trend in the market. With increasing internet and smartphone usage, online shopping is becoming popular, especially among millennials. Platforms like Alibaba and Amazon offer convenience, security, and discounts, driving demand in the cannabidiol market. Vendors are targeting tech-savvy customers, expanding their reach. For instance, HempStreet launched new cannabis-based products on their Indian e-commerce site. Online sales also help vendors reduce operating costs and overheads.
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The legalization and regulatory changes with respect to cannabidiol are driving market growth. Manufacturing, distribution, and sales of cannabidiol products are being driven by the government's recognition of the potential therapeutic uses of cannabidiol and the adoption of benevolent rules. For example, in the US, the Farm Bill which was passed in 2018 legalized the cultivation of hemp which is the main source of cannabidiol. This allowed the commercialization of cannabidiol products and cannabidiol-infused products from oils and capsules to edibles and cosmetic products all over the country. This has resulted in consumers receiving increased access to cannabidiol products. Other countries like Germany, Switzerland, and Australia also allow the selling of cannabidiol products under specific conditions. This also permits vendors to ensure quality products and consumer safety by adhering to regional regulations and rules. Additionally, it has also resulted in the development of new markets and employment opportunities. All these factors will drive the growth of the cannabidiol market during the forecast period.
The high cost of cannabidiol products is challenging market growth. Prices may fluctuate, which especially impacts patients authorized to use medical cannabis in countries like Canada. Fluctuating prices are due to legislation which has caused the demand and price of cannabis products to increase. Like any product that has only hit the market recently and is experiencing high demand, cannabidiol products are experiencing price inflation.
Additionally, processes such as extraction and refinement of cannabidiol require special machinery and also take a long time, which further increases the price of cannabidiol oil. For instance, one of the commonly used extraction methods is CO2 extraction which is expensive. Moreover, to ensure compliance regarding potency among other regulatory mandates, vendors conduct a third-party lab analysis on every product sold. They are then issued a certificate of analysis that shows the amount of cannabinoid content in the product. Hence such factors will hamper market growth during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the largest markets are US and Canada due to the government legalization of medical cannabis and the presence of several vendors. North America is a highly matured market for cannabis products due to a trend toward the legalization of cannabis products in various countries and the growing popularity of cannabidiol products.
Moreover, Canadian vendors are legally permitted to export cannabidiol products to the US. In the US which is one of the largest markets for medical cannabis, around 33 states have approved the use of cannabis for medical applications. Patients that are prescribed medical cannabis are issued a medical cannabis card, which serves as an identification card. It enables them to use the product on a doctor's recommendation.
The COVID-19 outbreak had a positive impact on the regional cannabidiol market. Cannabis dispensaries witnessed increasing sales and a rising number of new customers. For instance, during the week of March 17, 2020, US dispensaries witnessed a 30% sales increase. Moreover, there was also an increase in the amount that each customer spent on one visit, and the number of deliveries, resulting in growth of the CBD market. Additionally, after vaccination drives, there were reduced supply chain disruptions and manufacturing delays for cannabidiol manufacturers in 2021-2022. Hence such factors are expected to boost the growth of the regional market during the forecast period.
In the global cannabidiol market, the online distribution channel has emerged as a major driver of revenue in 2022. It offers easy access to a wide range of cannabidiol products, backed by the popularity of online shopping and e-commerce platforms. Consumers benefit from competitive pricing, detailed information, and user reviews. Online channels also provide companies an opportunity to expand their consumer base and enter new markets, contributing to segment growth during the forecast period.
While online distribution is on the rise, the offline channel remains significant in the cannabidiol market. It offers personalized experiences, product visibility, and immediate purchases, enhancing customer trust and satisfaction. Educated professionals provide advice on product selection, ensuring the safety and legality of cannabidiol products. Such factors will drive the growth of the offline distribution channel during the forecast period.
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The marijuana segment is expected to witness significant market share growth during the forecast period. Marijuana can be consumed through various methods, such as smoking it in joints, pipes, or blunts, or using more potent forms like hashish. However, medical usage is restricted in many countries, with limited circumstances allowing its use. Efforts by governments to legalize medical cannabis are anticipated to drive further growth in the CBD market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The cannabidiol market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cannabidiol Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.28% |
Market growth 2023-2027 |
USD 23023.51 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.72 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 51% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Cannoid LLC, Canopy Growth Corp., Charlottes Web Holdings Inc., Cronos Group Inc., Elixinol, Endoca BV, Folium Biosciences, Isodiol International Inc., Medical Marijuana Inc., Medterra CBD, NuLeaf Naturals LLC, PharmaHemp d.o.o., Tikun Olam, Tilray Brands Inc., VIVO Cannabis Inc., Aurora Cannabis Inc., and Cannabis Science Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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