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The CBD oil market size is estimated to grow by USD 5.36 billion accelerating at a CAGR of 27.63% between 2022 and 2027. The market's expansion hinges on the burgeoning consumption of cannabis among millennials in developed nations, the seamless integration of CBD into mainstream sectors, and the continual rise in new product introductions. Millennials' increasing interest in cannabis, driven by shifting cultural attitudes and awareness of its potential benefits, has propelled the market forward. CBD's incorporation into various industries such as wellness, beauty, and food and beverage has significantly broadened its consumer base. Moreover, the constant stream of innovative products entering the market, from edibles to infused beverages, reflects ongoing market dynamism and consumer demand. These factors collectively contribute to the market's growth trajectory, fostering a robust environment for cannabis and CBD-related businesses to thrive and innovate.
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This report extensively covers market segmentation by end-user (medical, personal use, pharmaceutical, and wellness), product (marijuana-derived CBD oil and hemp-derived CBD oil), and geography (North America, South America, Europe, APAC, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is driven by several key factors such as the legalization of CBD in various regions and the growing acceptance of cannabis for its health and beauty benefits. Rising consumer attitudes towards holistic wellness have led to an increased demand for products containing cannabidiol, including tinctures, oils, capsules, and vaping devices. However, challenges persist, including regulatory processes and approvals for CBD products, alongside the need for consumer-facing openness and ensuring testing methodologies align with industry standards. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing millennial population in key cannabis markets is notably driving the market growth. The consumption of cannabis products, particularly for recreational purposes, is quite popular among millennials. Also, the increased use of cannabis products among millennials is attributed to the fact that they are relatively more enthusiastic about trying out new variants when compared with older generations
Moreover, millennials are increasingly becoming aware of the authenticity and benefits of cannabis-based products, such as CBD oil. The interest in cannabis-based products is mainly driven by the expanding multicultural groups of consumers and the awareness regarding the health benefits. Thus, the growing popularity of CBD oil among millennials is likely to fuel the growth of the global cannabidiol oil market during the forecast period.
The growth in the e-commerce industry is an emerging trend in market growth. The rising penetration of the internet and smartphones is making online shopping convenient and increasing its adoption among people. Millennials mostly prefer shopping online because of convenience, security, and time efficiency. The online platforms offer various discounts and provide detailed descriptions of the features of products on their online portals. Furthermore, secured transactions and cash-on-delivery (COD) options drive the sales of cannabis-infused edible products through online distribution channels. Hence, the growth in the online retailing market will contribute to the growth of the global cannabidiol oil market.
Moreover, this trend is encouraging manufacturers to focus on the internet-savvy customer segment and explore the new online retail format. For instance, in July 2021, HempStreet, an Indian e-commerce site, expanded its product range on the platform by launching about 30 new cannabis-based products, such as CBD oil and hemp protein powder. The online mode of business will help companies save on operating costs and overheads compared with the physical/offline stores. Thus, such factors will have a positive impact on the growth of the global cannabidiol oil market during the forecast period.
The adverse effects of CBD oil products are major challenges impeding market growth. Legalizing cannabis in any country poses a great threat to its citizens as its over-consumption can lead to various respiratory problems and several health issues. Therefore, the easy availability of marijuana and other related products, such as cannabidiol oil, exposes the masses to the use, misuse, and abuse of the substances, which affects their lives in vast numbers.
Moreover, legalizing marijuana and cannabis products can further lead to the passive consumption of marijuana by older people, which can prove to be extremely harmful to their health. For example, there are thousands of illegal cannabis dealers in countries like Spain, China, India, the UK, the US, and Canada who provide cannabis to millions of consumers, which, in turn, adversely affects the public's health. In this scenario, if cannabis-based products such as cannabidiol oil are completely legalized in these nations, the consumption rates will grow, and public health will be compromised. Therefore, the several adverse effects related to cannabidiol oil products are expected to hamper the growth of the global cannabidiol oil market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
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.
Isodiol International Inc. - The company offers beverages, candies, capsules, coffee, oral spray, tinctures, tropical, and kits and bundles using CBD. The key offerings of the company include CBD oil such as RapidCBD hemp oil.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market growth and forecasting 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. In market research report, 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 market is characterized by a myriad of factors influencing its growth and segmentation. Related complications associated with conventional medications have led to an increased interest in CBD products, further fueled by the legalization of CBD in various regions, which serves as one of the key market drivers. Products containing cannabidiol are widely sought after for their variety of uses, ranging from tinctures and oils to body lotions, capsules, and even vaping devices and transdermal patches. These offerings cater to diverse needs, including personal care items, reflecting changing consumer attitudes towards holistic health and beauty solutions. Regulatory bodies like the Center for Food Safety (CFS) play a crucial role in ensuring the quality and safety of CBD-based products, contributing to approvals for CBD products in medical treatments and medications. This extends to a broader spectrum encompassing consumer goods and various food and non-food applications.
The market share growth by the medical segment will be significant during the forecast period. Cannabidiol oil is widely used in the treatment of various medical conditions as recommended by doctors. It is taken by patients orally through inhalation or as marijuana-infused edibles or is applied topically.
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The medical segment was valued at USD 271.02 million in 2017 and continued to grow until 2021. CBD in a prescription form is used to treat seizure disorders (epilepsy). CBD is also used to treat anxiety, pain, dystonia, Parkinson's disease, Crohn's disease, and a variety of other illnesses. Cannabidiol oil helps in reducing inflammation and pain. It may assist in alleviating chronic pain by influencing endocannabinoid receptor function, decreasing inflammation, and interacting with neurotransmitters. Cannabidiol oil help to reduce post-traumatic stress disorder (PTSD) symptoms. Cannabidiol oil also helps to alleviate Amyotrophic lateral sclerosis (ALS) symptoms. Those with ALS, like those suffering from PTSD, can benefit from the entourage effect caused by the combination of THC and CBD. Thus, such widespread application of cannabidiol oil in medicine will augment the growth of the global cannabidiol (CBD) oil market through the medical segment during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US has emerged as the leading country in the region for cannabidiol oil products, followed by Canada. As of 2020, the use of CBD oil was legal in Canada; however, in the US, only 98.61% population is allowed to use CBD oil. North America has a significant concentration of leading cannabidiol oil product companies. A majority of the hemp producers and manufacturers in the region are based in Canada. Some of the major companies operating in the region are CV Sciences Inc. (CV Sciences), Gaia Botanics, Medical Marijuana Inc. (Medical Marijuana), Isodiol International Inc. (Isodol), Elixinol Global Ltd. (Elixinol), and NuLeaf Naturals LLC (NuLeaf), are operating in the cannabidiol (CBD) oil market in North America. Factors such as the growing awareness of the health benefits of cannabidiol oil products and the increasing number of states legalizing the use of marijuana products in the US are expected to drive the growth of the cannabidiol (CBD) oil market in North America during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is experiencing substantial growth, fueled by several key market drivers. One significant factor is the increasing prevalence of chronic diseases and related complications, leading consumers to seek alternative treatments like CBD-based products. The legalization of CBD in many regions has also played a crucial role in expanding the market, allowing for a wider range of products containing cannabidiol. Cannabidiol oil finds applications not only in human health but also in pets, showcasing its versatility across health and beauty sectors. Consumer attitudes have shifted positively towards CBD, recognizing its variety of uses in oils, body lotions, vaping devices, transdermal patches, and other personal care items. Organizations like the Center for Food Safety (CFS) ensure health safety assurance through rigorous testing methodologies and consumer-facing openness.
Moreover, government measures, including approvals for CBD products and regulatory processes, further contribute to the market's growth. The global CBD business encompasses both pharmaceutical and consumer goods segments, with various food and non-food applications. As the market continues to evolve, cannabidiol oil is increasingly integrated into skincare products targeting acne, wrinkles, and more, available through major retailers like Sephora and Ulta Beauty, particularly prominent in markets like Germany. Overall, CBD oil's versatility, efficacy, and growing acceptance underscore its substantial presence in the CBD industry, catering to diverse consumer needs with Food Grade and Therapeutic Grade products available in solid and liquid forms, including innovative routes of administration like aerosol sprays and inhaled sub-segments.
Furthermore, the market is witnessing rapid growth, driven by various factors such as manufacturing processes and innovative processing techniques that enhance the quality and efficacy of CBD products. These products are increasingly being recognized as alternative medications due to their potential health benefits, including the presence of cannabidiol acids known for their therapeutic properties. The pharmaceutical business has shown a keen interest in CBD, exploring its applications in medical therapies and incorporating it into conventional medications. This trend has been further supported by governments' moves towards the legalization of Marijuana and the growing acceptance of CBD-based treatments.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.63% |
Market growth 2023-2027 |
USD 5.36 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
26.41 |
Regional analysis |
North America, South America, Europe, APAC, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, Germany, France, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., BIOTA Biosciences LLC, CannazALL, Cannoid LLC, Canopy Growth Corp., CBD American Shaman LLC, CV Sciences Inc., Elixinol, Endoca BV, Folium Biosciences, Gaia Botanics, Green Roads Inc., Happie Hemp Pvt. Ltd., Isodiol International Inc., Kazmira LLC, Medical Marijuana Inc., NuLeaf Naturals LLC, PharmaHemp d.o.o., Silver Shadow Ventures LLC, and Tilray Brands Inc. |
Market dynamics |
Parent market analysis, market research and growth, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market trends and analysis, market growth analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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