Cannabidiol Market Overview
Cannabidiol Market size is estimated to reach $93.4 billion by 2027, growing at a CAGR of 21.3% during the forecast period 2022-2027. Cannabidiol can be delineated as an active compound or phytocannabinoid derived from the flower and leaves of the cannabis Sativa plant. The cultivations of marijuana plants occur across the globe for medicinal purposes. Cannabidiol holds wide-ranging applications in the food and beverage industry, nutraceutical production, and treatment of several medical conditions such as neurogenerative disorder, diabetes, insomnia, stress, bone abnormalities, and many others. In addition to that, cannabidiol can help drug addicts to lower their cravings. As compared to hemp seeds oil which is fabricated from seeds only, CBD is a safer and more appropriate option. Also, Cannabidiol comes in a diversity of forms which include capsules, liquid, aerosol sprays. The cannabidiol market outlook is fairly fascinating as the demand for the product is enlarging year after year. Likewise, proliferating research and developmental activities, expanding drug distribution channel’s network, augmenting attentiveness among people regarding health benefits of cannabidiol, and heightening incidences of cancer, diabetes, neurological complications, stress, and bone abnormalities are factors set to drive the growth of the Cannabidiol Market for the period 2022-2027.
The report: “Cannabidiol Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Cannabidiol Market.
- Geographically, the North America Cannabidiol Market accounted for the highest revenue share in 2021. The growth is owing to high health cognizance among residents compared to other parts of the world, lenient government policies regarding cannabis production for medical purposes, and the full-fledged pharmaceutical industry. Furthermore, Asia-Pacific is poised to dominate the market over the period 2022-2027.
- Augmenting chronic applications and growing adoption of cannabidiol as health awareness among people is ascending and these factors said to be preeminent drivers driving the growth of the Cannabidiol Market. Crippled production and processing activities owing to pandemic restrictions and the exorbitant cost of cannabidiol are said to reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Cannabidiol Market report.
Cannabidiol Market Segment Analysis-By Application
The Cannabidiol Market based on the applications can be further segmented into medical treatments (insomnia, diabetes, cancer, neurological problems, bone abnormalities, migraine, and others), food and beverages, nutraceutical, personal care products, and others. The medical treatments segment held the largest share in 2021. The growth is owing to ascending production of cannabidiol capsules, oils, and sprays as the demand for the product is sky-rocketing. Similarly, the medical treatments and nutraceutical segment is estimated to be the fastest-growing with a CAGR of 22.5% over the forecast period 2022-2027. This growth is owing to rising incidences of health problems like neurogenerative disorders, diabetes, cancer, joint dysfunctions, and many more. Sedentary habits, poor ingestions, and spiraling old-age population are the factors behind the unprecedented surge of such complications. In addition to that, a rising number of prevention-oriented individuals are making more demand for nutraceuticals to ensure proper nutrition intake. As a result, the demand for CBD in the said segments is escalating.
Cannabidiol Market Segment Analysis-By Distribution Channel
The Cannabidiol Market based on distribution channels can be further segmented into offline (Retail pharmacies, hospital pharmacies, and others) and online. The offline segment held the largest share in 2021. The growth is owing to the across-the-board presence of retail pharmacies and hospitals. Institutions like hospitals are so well equipped that they offer a one-stop solution to patients; whereas, retail pharmacies offer convenient solutions to both chronic and acute problems as generally no prior prescription from a medical practitioner is required while making a purchase. Derisory infrastructure in squalid areas makes it hard for online pharmacies to offer their services; therefore, buying from offline platforms is the only option that people have. Furthermore, the offline segment is estimated to be the fastest-growing with a CAGR of 22.8% over the forecast period 2022-2027. Unlike, online platforms, in retail or hospital pharmacies it is easy to explain health problems to doctors or pharmacists. On another hand, buying from online pharmacies may be easy but it requires proper understanding about “what type of medicine you are looking for? whereas, in an offline purchase, if the patient might give a little clue, the medical practitioner suggests the best possible solution according to their knowledge, which is comparatively easy.
Cannabidiol Market Segment Analysis-By Geography
The Cannabidiol Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 40% of the overall market in 2021. The growth in this segment is owing to the factors such as heavy investment in research and development activities compared to any other continent on planet earth. Besides, high health cognizance among people, presence of world-class healthcare infrastructure, leading pharmaceutical companies, and high disposable income of people which allows them to pay a high price for cannabidiol are the factors providing growth opportunities. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to rising chronic pain incidences as the geriatric population in Japan and China is augmenting steadily. Besides, sky-rocketing pharmaceutical industry as India is a leading generic drug manufacturer whereas China is the leading API manufacturer in the world.
Cannabidiol Market Drivers
Proliferating chronic conditions are anticipated to boost market demand.
Intensifying chronic stress prevalence has heightened the occurrence of various neurodegenerative disorders such as Parkinson’s and Alzheimer’s in both developing and developed countries. A WHO report claimed that over 55 million people across the globe were living with dementia last year. Moreover, according to a report by Alzheimer’s Association, in 2021 more than 6 million American geriatrics were inflicted with dementia. Cancer is the 2nd biggest reason behind deaths on planet earth; whereas, from 10.5 percent in 2021, it is anticipated that around 12-13 percent of the world population will suffer from diabetes by 2045.
Rising demand for Cannabidiol from cosmetics is expected to boost market demand.
The expanding demand for cannabis-based cosmetic products as people especially youngsters is becoming more look-oriented. Today body dysmorphic disorder is one of the biggest reasons behind growing stress and anxiety among teenagers. According to a WHO report, around 1 in 7 adolescents aged above 10 years have mental problems because of stress and depression. The growing obsession of youngsters regarding their looks is indeed a blessing in disguise for the growth of the aforementioned market as it is augmenting the demand for personal care products.
Cannabidiol Market Challenges
Extortionate price and hampered production because of the COVID-19 are Anticipated to hamper the market growth.
The price of cannabidiol is a bit on the dear side as just one gram of it can up to $60. Therefore, the expensive nature of the product can pose a challenge to the growth of the aforementioned market. Moreover, the production and processing activities have taken a huge hit after a year-long lockdown. Also, with growing mutations in virus structure, governments worldwide are reconsidering certain constraints to control the virus spread which can lead to a big mismatch between demand and supply chain.
Cannabidiol Market Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Cannabidiol market top 10 companies include:
- Elixinol LLC
- Cannoid LLC
- Dixie Brands
- On December 21, 2021, New York, United States-based multinational pharma and biopharmaceutical company “Pfizer” announced that the company will soon acquire California, United States-based Arena Pharmaceutical (a company known for its cannabis-based therapeutics). Pfizer agreed to pay $6.7 billion ($100 per share) to bring the acquisition to a close. The transaction will enhance Pfizer’s expertise in the cannabis-based treatment of bowel disease.
- On November 29, 2021, Alberta, Canada-based cannabis company “High Tide” announced that it has acquired Colorado, United States-based well-known cannabis firm “NuLeaf Naturals.” A payment of $31 million was paid by High Tide to buy 80 percent of the ownership interest. The transaction has further strengthened the retail business of High Tide.
- On March 18, 2021, Australia-based cannabis company Elixinol (a firm known for its CBD hemp oil) announced the successful acquisition of Hamburg, Germany-based vitamin and supplement company “CannaCare Health.” Payment of a total of 9 million euros (3 million cash and 6 million shares) was made by Elixinol to bring the acquisition to a close.