Cannabidiol (CBD) Market size is set to grow by USD 44.56 billion from 2024-2028, Legalization and regulatory changes with respect to cannabidiol to boost the market growth, Technavio

NEW YORK, Aug. 7, 2024 /PRNewswire/ -- The global cannabidiol (CBD) market  size is estimated to grow by USD 44.56 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 23.59%  during the forecast period.  Legalization and regulatory changes with respect to cannabidiol is driving market growth, with a trend towards growth in e-commerce industry. However, high cost of cannabidiol products  poses a challenge. Key market players include Aurora Cannabis Inc., Cannabis Science Inc., Cannoid LLC, Canopy Growth Corp., Charlottes Web Holdings Inc., Cronos Group Inc., Elixinol, Endoca BV, Folium Biosciences, Isodiol International Inc., Medical Marijuana Inc., MediPharm Labs Inc., Medterra CBD, NuLeaf Naturals LLC, PharmaHemp d.o.o., Tikun Olam, and Tilray Brands Inc..

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Key Market Trends Fueling Growth

The global cannabidiol (CBD) market is experiencing significant growth due to the increasing adoption of online shopping. Millennials, who prefer convenience, security, and time efficiency, are driving the trend towards online retailing. Major e-commerce platforms, such as Alibaba Group Holding Ltd. (Alibaba) and Amazon.com Inc. (Amazon), are capitalizing on this trend by offering discounts and detailed product descriptions. Omnichannel retailing has become popular, with online channels complementing traditional retail stores. Secured transactions and cash-on-delivery options ensure customer confidence in purchasing cannabis-infused products online. This growth in online retailing is encouraging CBD manufacturers to focus on the internet-savvy customer segment and explore new online retail formats. The online mode of business offers vendors cost savings compared to physical stores, contributing to the expansion of the global CBD market. 

The CBD industry is experiencing significant growth, with cannabidiol (CBD) becoming increasingly popular in various sectors. Hospital and retail pharmacies are stocking CBD-based products for medical applications, particularly for those suffering from seizures, inflammation, and stress relief. Bulk CBD oil is in high demand for pharmaceutical sector use. Hemp production facilities are expanding to meet the growing need for this non-psychoactive cannabinoid. The ECDD has approved CBD for epilepsy treatment. In the cosmetics industry, CBD is used in skincare products and beauty care for its nutrient-rich benefits. Fitness enthusiasts use CBD as a dietary supplement for wellness goals. Food and beverages, including THC-free CBD tinctures and edibles, are also gaining traction. British Cannabis and marijuana companies are investing in CBD production, while the use of CBD in cosmetics, food, and dietary supplements continues to trend. 

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Market Challenges

• The CBD market is currently experiencing price fluctuations due to the newness of the product and the high demand for it. The legalization of hemp production in 2018 and the lengthy and costly extraction process using specialized machinery, such as CO2, contribute to the high cost of CBD oil. Additionally, third-party lab analysis is required for every product sold, increasing production costs and ultimately, the final price for consumers. These factors may pose challenges for the growth of the CBD market in the forecast period.
• The CBD market, featuring non-psychoactive compound Cannabidiol derived from cannabis and hemp, has experienced significant growth. However, challenges persist. THC, the psychoactive component in marijuana, can cause regulatory hurdles. The European Commission's European Medicines Agency (EMA) classifies CBD as a novel food, requiring stringent approval processes for CBD-based products in food, beverages, and cosmetics. Despite these challenges, opportunities abound. Pharmaceutical sector players like Echo Pharmaceuticals are developing CBD-based medications for medical applications, such as epilepsy. Fitness-oriented citizens seek CBD for stress relief, leading to demand for CBD-infused tinctures, oils, concentrates, topical solutions, capsules, and even body lotions, lip balms, gums, chocolates, candies, and coffee. B2B wholesalers and e-commerce platforms cater to this growing market, offering a diverse range of Hemp-based products, including edibles, topicals, and beverages. Immunomodulatory attributes of CBD attract consumers, expanding its reach beyond traditional markets.

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Segment Overview 

This cannabidiol (cbd) market report extensively covers market segmentation by

1. Source 
• 1.1 Marijuana
• 1.2 Hemp
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Marijuana-  The CBD market is experiencing significant growth due to increasing consumer interest in cannabidiol products. Companies are investing in research and development to create innovative CBD solutions, such as edibles, oils, and topicals. Retailers are expanding their offerings to meet consumer demand, and distribution channels are broadening to include online sales and brick-and-mortar stores. The market is expected to continue growing as more people discover the potential benefits of CBD. Businesses are capitalizing on this trend by offering high-quality, reliable CBD products to meet the needs of a burgeoning customer base.

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Learn and explore more about Technavio's in-depth research reports

The global Legal Cannabis Market is experiencing significant growth, driven by increasing legalization and acceptance of cannabis for medicinal and recreational use. Key players are focusing on strategic partnerships and product innovations to capture market share. Segmentation includes product type, application, and geography, with North America leading due to favorable regulations. The market is also expanding in Europe and APAC. The rising demand for cannabis-based products in pharmaceuticals and wellness is propelling market growth, making it a lucrative industry for investment and development.

Research Analysis

The CBD market, also known as Cannabidiol market, is a rapidly growing industry derived from the cannabis plant. CBD is a non-psychoactive compound, contrasting the psychoactive effects of THC (Tetrahydrocannabinol). Hemp, a type of cannabis plant, is the primary source of CBD. The ECDD (European Commission on Human and Animal Health) has approved CBD as a therapeutic substance for epilepsy. CBD-based products have gained popularity for their potential health benefits, including stress relief, anxiety reduction, and pain management. Beauty care products, food & beverages, and e-commerce platforms are among the sectors capitalizing on CBD's potential. Marijuana and hemp are the primary sources of CBD, with hemp-based products gaining traction due to their lower THC content. Edibles, topicals, beverages, and cosmetics are common CBD product categories. CBD has shown promise in medical applications, such as seizure control, inflammation reduction, and food supplementation.

Market Research Overview

The CBD market, also known as the Cannabidiol market, is a rapidly growing industry derived from the cannabis plant. CBD is a non-psychoactive compound, contrasting the psychoactive THC (Tetrahydrocannabinol). Hemp, a type of cannabis plant, is the primary source of CBD. The ECDD (European Commission on Drugs and Health Products) has approved CBD as a therapeutic substance for epilepsy. CBD-based products have expanded beyond medical applications to include beauty care, stress relief, and fitness-oriented citizens. These products include tinctures, oils, concentrates, topical solutions, capsules, and a variety of edibles such as body lotions, lip balms, succulents, coffee, gums, chocolates, baked goods, and candies. The immunomodulatory attributes of CBD have attracted the attention of the pharmaceutical sector, with companies like Echo Pharmaceuticals and Arvisol exploring its potential. The market includes B2B sales to wholesalers, hospital and retail pharmacies, and bulk CBD oil sales to hemp production facilities. The CBD industry caters to various sectors, including health and wellness, cosmetics, and fitness goals, offering a wide range of nutrients and benefits, such as anxiety and pain relief, seizure control, and inflammation reduction. The market is expanding through e-commerce platforms, making CBD-based products accessible to a broader audience.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Source
• Marijuana
• Hemp
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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