The global Cannabidiol Market is estimated to be valued at US$ 7953.14 Mn in 2023 and is expected to exhibit a CAGR of 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cannabidiol or CBD is one of the many naturally occurring chemical compounds in the Cannabis plant. It is a major component found in hemp and is gaining popularity due to its claimed therapeutic and medicinal properties. CBD is known to relieve anxiety and stress, reduce seizure activity, alleviate cancer-related symptoms, and relieve pain without any psychoactive properties. It is commonly available in various forms such as tinctures, vaporizers, topicals, edibles, and more for applications in areas like pain management, sleep disorders, skin care, and treatment of neurological disorders. The growing demand for natural remedies and legalization of hemp-derived CBD in many countries are fueling the growth of this market.
Market key trends:
Increasing legalization of cannabis-based products: Due to increasing legalization of medical marijuana and hemp-derived CBD products, the market is experiencing a major boost. As of 2022, over 38 countries have legalized medical marijuana while 18 countries have completely legalized the use of marijuana. The U.S. Farm Bill of 2018 has also removed hemp from the list of controlled substances, giving a boost to the legal hemp-derived CBD market.
Growing use in wellness products: Apart from medical use, CBD is increasingly being used in various wellness products for conditions like anxiety, depression, insomnia, chronic pain, and skin care. The growing preference for plant-based natural products is driving its demand in applications like food & beverages, personal care and beauty products. Promising research on therapeutic benefits: Ongoing research on CBD is providing promising results for conditions like epilepsy, schizophrenia, multiple sclerosis, etc. This is increasing acceptance among consumers and healthcare professionals.
Porter’s Analysis
Threat of new entrants: The threat of new entrants remains moderate due to rising demand for cannabidiol products, high research and development costs and ongoing government regulations.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of various substitutes like hemp-derived CBD products and rising awareness among consumers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the easy availability of raw materials and limited degree of differentiation between cannabidiol products.
Threat of new substitutes: Threat from new substitutes remains high due to advancement in extraction technologies and development of synthetic cannabidiol.
Competitive rivalry: The competitive rivalry among existing players is high because of established brand names and legalization of cannabis in multiple regions.
Key Takeaways
The Global Cannabidiol Market Size is expected to witness high growth, exhibiting CAGR of 47% over the forecast period, due to increasing adoption for medical applications and legalization of cannabis in various regions.
The market size for 2023 is US$ 7953.14 Mn. North America dominated the global cannabidiol market in 2023 and is expected to maintain its lead over the forecast period. This can be attributed to the expanding cannabis industry and increasing legalization initiatives across major countries in the region.
Key players operating in the cannabidiol market are Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Maricann, Inc., Tilray, GW Pharmaceuticals, plc, ABcann Medicinals, Inc., Organigram Holding, Inc., Tikun Olam, The Cronos Group, ENDOCA, Isodiol International, Inc., MEDICAL MARIJUANA, INC., Cannoid, LLC, Elixinol, Folium Biosciences, NuLeaf Naturals, LLC, and Pharmahemp d.o.o.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
