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The Cannabidiol (CBD) Oil Market size is forecast to increase by USD 7.05 billion, at a CAGR of 28.26% between 2023 and 2028.
The rising interest in health and wellness, combined with a shift towards natural and holistic remedies, has driven the demand for CBD products in North America. Consumers are seeking alternatives to conventional pharmaceuticals, leading to increased interest in cannabidiol offerings. Aurora Cannabis Inc. is at the forefront, providing CBD Oil varieties like Purity Seeker, known for preventing acne, promoting wound healing, soothing rashes, enhancing hydration, and improving skin elasticity. The market is experiencing substantial growth, driven by the growing awareness of the benefits of cannabidiol and the shift towards natural remedies.
The market shows an accelerated CAGR during the forecast period.
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Integration of CBD into mainstream industries is notably driving the market. CBD oil is seamlessly integrated into a diverse array of wellness and lifestyle products, each designed to foster overall health and well-being. This encompassing trend includes cannabidiol-infused supplements, vitamins, and herbal remedies, strategically marketed for their potential to fortify immune function, elevate sleep quality, and enhance mood and energy levels. A noteworthy development is the emergence of cannabinoids in food and beverages as a novel product category.
Moreover, these CBD-infused edibles and beverages cater to consumers seeking alternative methods to seamlessly integrate CBD into their daily routines, often for relaxation or stress relief. Pet owners are increasingly turning to CBD oil to address common pet health concerns, including anxiety, pain, inflammation, and age-related ailments. CBD-infused pet products encompass treats, tinctures, and topical formulations, offering a holistic approach to pet well-being. Furthermore, the growing acceptance of CBD oil is evident in its integration into personal care and cosmetic products, further expanding its reach and applications. Hence, such factors are driving the market during the forecast period.
The advent of advanced cultivation processes is an emerging trend in the market. The incorporation of new procedures in cannabis cultivation has led to a higher growth rate for the global market. In addition, these processes have been extremely helpful in improving the quality and, at the same time, increasing the production levels of cannabis.
Moreover, cannabis is usually grown on a commercial scale in fully equipped laboratories with various facilities, such as sanitized chambers and a controlled environment. For instance, in November 2020, according to the Decree 883/2020 regulation, in Argentina, patients with a medical prescription to consume cannabis-based products can sign up at the Registry for the Cannabis Program and opt to cultivate their own cannabis. Furthermore, advanced techniques such as Screen of Green and Sea of Green have significantly improved the production levels of cannabis. Therefore, it is positively impacting the cannabidiol oil market. Hence, such factors are driving the market during the forecast period.
Naive new companies and a lack of investment in the cannabis and CBD oil industry is a major challenge hindering the market. The main challenge that the cannabis-based products and market face is the ease with which naive new companies can venture into this business without having much prior knowledge of the cannabis and Cannabidiol oil industry. Even though the market is currently growing across various regions of the world, a reasonable number of naive and unknowledgeable companies are foraying into the market without understanding the quality control, product differentiation, location advantage, and marketing strategies on which the market thrives.
For instance, since 2014, the volume growth of Cannabidiol oil-based products has been rising steadily in the US, which is the largest cannabis-based products market in the world. In addition, unhealthy price competition poses a huge challenge to the global market. Furthermore, a majority of the investment organizations in the US and Canada have declined to provide loans to companies in the global market. Therefore, it is negatively impacting the CBD oil market. Hence, such factors are hindering the market during the forecast period.
The medical advantages offered by marijuana-derived CBD oil segment in turn will increase the market. Consumers prefer full-spectrum CBD oil made from marijuana because it has a wide range of cannabinoids, terpenes, and other therapeutic components found in the cannabis plant. In addition, full-spectrum products are thought to have an "entourage effect," in which the synergistic interplay of numerous cannabis chemicals improves the overall therapeutic effects of Cannabidiol oil. Moreover, growing recognition of the possible medicinal advantages of cannabidiol oil derived from marijuana, including pain relief, anxiety reduction, and potential anti-inflammatory properties, is driving demand for Cannabidiol oil. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
The market is witnessing rapid growth driven by its therapeutic benefits in addressing chronic injury-related pain, inflammation, anxiety, and insomnia. Its positive impact on physical functions, cognitive functions, mood, pain perception, and memory has garnered significant attention. Derived from cannabis plants, CBD offers medically validated beneficial properties without the psychoactive effects associated with marijuana. The legal status of CBD has paved the way for its widespread adoption across various segments including personal care and cosmetic products. With a robust growth rate, segmentation, and involvement of major players, the CBD oil market is poised for continued expansion. In-depth expert analysis, along with insights into company-wise production and capacity, distributors, partners, price trend analysis, and supply chain, further enhance its market appeal.
The pharmaceuticals segment is estimated to witness significant growth during the forecast period. CBD oil is mainly used in the treatment of medical conditions as recommended by doctors. In addition, cannabidiol in a prescription form is used to treat seizure disorders (epilepsy). Furthermore, 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.
The pharmaceuticals segment was the largest segment and was valued at USD 519.07 million in 2018.
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Moreover, CBD may assist in alleviating chronic pain by influencing endocannabinoid receptor function, decreasing inflammation, and interacting with neurotransmitters. In addition, cannabidiol oil helps to reduce post-traumatic stress disorder (PTSD) symptoms. CBD oil also helps to alleviate Amyotrophic lateral sclerosis (ALS) symptoms. Furthermore, those with ALS, like those suffering from PTSD, can benefit from the entourage effect caused by the combination of THC and CBD. In addition, healthcare providers play a critical role in recommending and prescribing cannabidiol oil for medical use. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecasting period.
North America is estimated to contribute 60% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The legalization of hemp-derived cannabidiol at the federal level in the United States, with the passage of the 2018 Farm Bill, offered regulatory clarity and opened up opportunities for businesses to enter the market. In addition, this regulatory framework has allowed for the legal production, sale, and distribution of products in many states, fostering regional markets.
Moreover, in Canada, the legalization of recreational cannabis in 2018 has created opportunities for the legal sale of cannabidiol products. In addition, the country's well-established regulatory framework for cannabis and cannabis-derived products has supported the regional market. Furthermore, 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 market in North America 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Amazon.com Inc, CBD American Shaman LLC, CV Sciences Inc., Dr Reddys Laboratories Ltd., Elixinol, Endoca BV, Green Roads Inc., Happie Hemp Pvt. Ltd., Hemp Horizons Private Limited, HempStreet Medicare Private Limited, Isodiol International Inc., Kimar LLC, LOreal SA, Medical Marijuana Inc., NeoMen, PepsiCo Inc., The Cure Brand, AMP Medical LLC, Gaia Botanics, High Tide Inc., and USA Medical
The market analysis and report of 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 research report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth, driven by the increasing recognition of its medically validated beneficial properties. CBD, derived from cannabis plants, is the second most abundant active component and a non-psychoactive compound. With therapeutic benefits such as anxiety and pain management, CBD's market value is on the rise. Legalization and regulatory changes, evolving legal frameworks, and the transition from specialized stores to mainstream retail outlets contribute to its dynamic growth. Innovations, product diversification, and the exploration of new source types, including hemp, pharmaceuticals, and consumer awareness, further propel the market via B2C segment and B2B segment
However, challenges related to quality control, labeling, and competition among manufacturers persist. The market landscape involves major players, including Kelvion in the industrial air cooler range, while advancements in research and development drive this industry's progress. The market's end-use spans clinical trials, the pharmaceutical industry, and consumer segments through B2B and B2C channels, including hospital pharmacies and retail pharmacies. Its expansive geographical coverage, with notable players like Abercrombie & Fitch, Walgreens Boots Alliance, CVS Health, and Rite Aid, underscores its global impact and evolving role in various sectors, from cosmetics to medicinal applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.26% |
Market Growth 2024-2028 |
USD 7.05 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
26.98 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 60% |
Key countries |
US, Canada, UK, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Aurora Cannabis Inc., BIOTA Biosciences LLC, Cantourage GmbH, CBD American Shaman LLC, CV Sciences Inc., Dr Reddys Laboratories Ltd., Elixinol, Endoca BV, Green Roads Inc., Happie Hemp Pvt. Ltd., Hemp Horizons Private Limited, HempStreet Medicare Private Limited, Isodiol International Inc., Kimar LLC, LOreal SA, Medical Marijuana Inc., NeoMen, PepsiCo Inc., The Cure Brand, AMP Medical LLC, Gaia Botanics, High Tide Inc., and USA Medical |
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, 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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