Global Cannabidiol (CBD) Market Size Expected to Reach $55 Billion In 2028

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Jun 02, 2021, 08:30 ET

PALM BEACH, Fla., June 2, 2021 /PRNewswire/ -- Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the global cannabidiol market is anticipated to grow at a lucrative rate over the forecast period. Increasing awareness of cannabidiol's therapeutic benefits has influenced a buyer to buy cannabidiol products, regardless of their cost. As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products. Numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health decides to offer CBD topicals all over its 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1500 of its stores in the U.S. Report from Fortune Business Insights said that the global cannabidiol (CBD) market size was USD 2,770.8 million in 2020. They also stated that the market is projected to grow from USD 3,675.1 million in 2021 to USD 55,791.3 million in 2028 at a CAGR of 47.49% between 2021 and 2028. The substantial rise in CAGR is attributed to the market's demand and growth, coupled with the market functioning returning to pre-pandemic levels once the pandemic is over. Active Companies active today in the cannabis related markets include: Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), Rapid Therapeutic Science Laboratories, Inc. (OTCPK: RTSL), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), Sundial Growers Inc. (NASDAQ: SNDL), KushCo Holdings, Inc. (OTCQX: KSHB).

Fortune Business Insights added: "Cannabidiol is extracted from cannabis or hemp, but more specifically from hemp due to its naturally high CBD content. The product is often mistaken for its psychoactive counterpart tetrahydrocannabinol (THC) extracted from the same plant. It has several benefits in treating anxiety, helping prevent seizures, inflammation, and reducing pain. The market is evolving faster due to its increasing utilization in the cosmetics, food, and pharmaceuticals industry. The market exhibits immense growth potential as consumers are becoming aware about the benefits possessed by the product. The manufacturers are focusing on formulating new product offerings infused with CBD oil to provide the consumers with easy access."

Rapid Therapeutic Science Laboratories, Inc. (OTCPK: RTSL) Breaking News: Rapid Therapeutic Prepares to file Investigational New Drug Application for its CBD Metered Dose Inhaler with FDA - Rapid Therapeutic Science Laboratories (the "Company" or "RTSL"), a SEC fully-reporting, growth-oriented aerosol manufacturing company focused on delivery of non-psychoactive cannabinoid compounds, announced today it has executed two (2) contracts to conduct Phase 1 human clinical trials of its flagship metered dose inhaler (MDI) containing Cannabidiol (CBD). RTSL entered into these two contracts in preparation for filing an Investigational New Drug Application (IND) with the U.S. Food and Drug Administration (FDA). Filing is anticipated in the next 30 days. An IND is a request for the FDA's authorization to administer an investigational drug to humans and is the first step towards designing and conducting clinical trials in the U.S.

RTSL engaged Dr. Charles Powell, MD who is the Chief Medical Officer (CMO) and founder of a primary care group in North Texas with over 90,000 patients from which volunteers will be solicited for the planned studies. Dr. Powell is responsible for oversight of the studies on behalf of RTSL. Dr. Powell in conjunction with Dr. Haresh Boghara, MD of Epic Medical Research, who has been engaged as RTSL's primary medical investigator, will launch five clinical studies to assess RTSL's MDI containing CBD for dosage, efficacy and safety. The planned studies will initially focus on therapeutic benefits of CBD relating to depression, anxiety, insomnia, ADHD and arthritis/chronic pain. Of importance, the studies will measure blood serum levels (pharmacokinetics) to support clinical observations. RTSL will need to file and obtain approval of the IND by the FDA to begin the planned studies.

Dr. Powell stated, "Based upon my observation from our clinical experience with this product, we think these studies will translate into concrete data that will ultimately result in Phase 2 and 3 studies which will hopefully lead to a fully approved FDA product."

RTSL previously announced it was in discussions with Dr. Powell and Accent Clinical Research Professionals, LLC for eight clinical studies. These discussions fell through when the previously proposed lead investigator could not participate due to undisclosed personal reasons not having to do with the proposed testing.

RTSL's CEO, Donal R. Schmidt, Jr. stated, "We made the decision to file an IND based upon a number of things. Most importantly, we believe we are the first company to develop and manufacture an MDI containing pure pharmaceutical grade CBD isolate that has a good chance of ultimately being approved by the FDA for use in humans."

Mr. Schmidt continued "We believe our product is non-toxic, stable, unadulterated, and does not cause airway reactivity. We reached this conclusion after two years of work culminating this past month with Dr. Duane Drinkwine's breakthrough discovery of a new proprietary method of manufacturing pharmaceutical grade CDB isolate that we believe can be safely delivered to the pulmonary tract without irritation. We will be releasing specific details of this discovery in the next month or two."

While the application process is pending with the FDA, RTSL plans to utilize its existing lab equipment to continue to develop and manufacture non-MDI aerosol products for sale to the growing hemp product market. CONTINUED… Read the full Press Release and more for RTSL at: https://www.financialnewsmedia.com/news-rtsl

In other active company news in the cannabis markets this week:

Sundial Growers Inc. (NASDAQ: SNDL) recently reported its financial and operational results for the first quarter ended March 31, 2021. All financial information in this press release is reported in millions of Canadian dollars and represents results from continuing operations, unless otherwise indicated.

Earnings from operations of $1.7 million compared to a loss from operations of $32.7 million in the prior quarter; Net loss of $134.4 million as a result of $130.0 million of non-cash amounts reflecting the impact of share price volatility on accounting valuation of derivative warrants; Achieved first quarter of positive adjusted EBIDTA in Sundial's history, at $3.3 million compared to an adjusted EBIDTA loss of $5.6 million in the prior quarter; $969.5 million unrestricted cash, marketable securities and long-term investments on hand at March 31, 2021and $1.08 billion at May 7, 2021 with no outstanding debt; Investment balance of $96.0 million at March 31, 2021 in cannabis-related loans and marketable securities generated income of $15.7 million for the quarter; Gross cannabis revenue was $11.7 million, a decrease of 30% from the prior quarter; and Subsequent to the quarter end, announced an agreement to acquire Inner Spirit Holdings and Spiritleaf retail cannabis network.

Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY) announced that the Company will webcast its fireside chats from the following investor conferences during June. On Tuesday, June 8, 2021, the Company will participate in the Stifel Cross Sector Insight Conference. The fireside chat will begin at 4:00 PM ET. Please refer to the Investors section of the Company's website at www.tilray.com under "Events and Presentations" for webcast information.

KushCo Holdings, Inc. (OTCQX:KSHB) and Greenlane Holdings, Inc. (NASDAQ:GNLN) recently announced the expiration of the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act") in connection with the previously announced proposed merger (the "Transaction"). The Transaction is expected to close in the third quarter of 2021, subject to the satisfaction or waiver of all remaining conditions in the agreement, including the receipt of all necessary approvals.

"We welcome this latest development in the formation of the combined company and look forward to continued progress on the remaining steps required to complete the Transaction," said Nick Kovacevich, KushCo's Co-founder, Chairman, and Chief Executive Officer. "We are excited to begin our work together and to begin realizing the potential opportunities and proposed synergies provided by this transformational combination to accelerate and execute on the significant market opportunities in our evolving industry."

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) recently announced its financial results for the fourth quarter and Fiscal Year 2021 ended March 31, 2021. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

"During Fiscal 2021, Canopy Growth transformed into a CPG-modelled organization, reinforcing a foundation for sustained growth and long-term success. By leveraging consumer insights and innovation to deliver best-in-class products, Canopy Growth is positioned to achieve our goal of unleashing the power of cannabis to improve lives," said David Klein, CEO, Canopy Growth. "We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022."

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