CBD or cannabidiol is a naturally occurring chemical from cannabis found in both marijuana and the non-psychoactive hemp plant. It has maintained a consistent pace of growth even during the pandemic. According to a Grand View Research analysis, the size of the worldwide cannabidiol market was estimated at $2.8 billion in 2020 and is projected to increase at a compound annual growth rate of 21.2 percent from 2021 to 2028.
In 2019–2026, the cannabidiol (CBD) market is anticipated to increase from USD 1,453.81 million in 2018 to USD 17,345.80 million by 2026, at a CAGR of 36.3 percent. The market has grown due to the introduction of different medicinal cannabis products, the growing use of cannabidiol (CBD) in medical applications, and significant R&D expenditures by the pharmaceutical industry.
The surveys claim that consumers purchase cannabidiol products regardless of price due to growing knowledge of CBD’s therapeutic effects. Commercial retailers, including health and wellness merchants like Rite Aid, CVS Health, and Walgreens Boots Alliance, concentrate on selling CBD products as these have a higher profit margin.
Approval Of EPIDIOLEX
Being the first cannabis Sativa plant-derived medication to receive FDA clearance and validate some of the cannabidiol’s therapeutic advantages, the approval of EPIDIOLEX cannabidiol has become a historical statement. Significant changes in the worldwide marijuana market’s economic, political, and legal landscape are also anticipated to impact approval. Additionally, it is anticipated that the Drug Enforcement Administration (DEA) will soon reschedule and modify the chemical classification for cannabidiol.
Domination In The Market
With a market share of 59.90%, the therapeutic grade category dominates the industry. It aids in the treatment of neuropsychiatric diseases because of its health advantages. Additionally, CBD may be used to treat other chronic conditions, which will probably increase demand for the drug. Since CBD does not include any dangerous toxins or synthetic compounds, it is safe to consume. Additionally, medications containing cannabidiol (CBD) can potentially treat chronic diseases.
CBD To Become Much More Extensive And More Diverse
Two years following the federal legalization of cannabinoids derived from hemp, CBD sales in US reached a staggering $4.6 billion in 2020. Two significant projections predict that the U.S. market will reach $15 billion to more than $20 billion by 2025 and 2024, respectively. Reports predicted that the boom would pick up more speed in the future. Currently, CBD businesses offer a vast selection of goods. However, this diversity will grow when more businesses release goods that hyper-concentrate on each of the over 100 minor cannabinoids present in hemp plants. Cannabinol (CBN), cannabigerol (CBG), and other chemicals will focus on formulations for particular situations.
CBD Products And Brands
There are numerous ways to consume CBD, including sublingual tinctures, oral administration, topical use, and inhalation, to mention a few. The majority of CBD-based goods sold in the U.S. are CBD topical products. MarQaha has recently experienced the most extensive sales growth among CBD brands. The business sells a range of CBD and cannabis products, including drinks, tinctures, and edibles. The most popular brand among Americans is Care By Design, which sells CBD extracted from marijuana. The business sells CBD topicals, drops, soft gels, and vape pens.
CBD For Pets
There are various CBD products, including dietary supplements, cosmetics, foods, and beverages. Although it is not the substance’s most popular application, CBD occasionally appears in the form of pet supplies. The most popular CBD pet product categories in the U.S. in 2019 were treats and chews. In that year, many pet owners in the U.S. started purchasing such CBD products for their animal companions.
CBD Vitamins And Dietary Supplements
Among all cannabidiol (CBD) products sold worldwide, CBD vitamins and dietary supplements (VDS) had the highest market penetration, with a four percent CBD product penetration of the entire vitamin and dietary supplement market in 2019. CBD will represent more than 20% of this market segment by 2027.
Five geographical areas—North America, Europe, Asia Pacific, South America, the Middle East, and Africa—are used to analyze the market. According to a report In 2018, the North American region dominated the market with a 42.50 percent share. It is because CBD products made from marijuana are widely available. Additionally, consumers’ shifting tastes toward consuming edibles and vaping goods are boosting the growth of the regional industry. Additionally, cannabidiol (CBD)-based product research and launch investments are growing, driving regional growth. Due to the increasing traditional use of cannabidiol products in various food items in India, China, and Nepal, the Asia Pacific region is expected to increase.
Additionally, by partnering with local businesses and expanding their presence in the region, prominent players are opening up new chances for the cannabidiol (CBD) market in the Asia Pacific region.
New Techniques To Increase The Sale
Businesses implement product innovations, mergers and acquisitions, current developments, joint ventures, collaborations, and partnerships. It helps them maintain their presence in the worldwide cannabidiol (CBD) market. For instance, the hempSMART Full Spectrum Pet Drops are made by the Marijuana Company of America (MCOA). It is a specially formulated product with naturally occurring CBD derived from hemp seed oil, full-spectrum hemp extract, fractionated coconut oil, and a rich bacon flavor.
Big-Box Retail Access
A variety of topicals and ingestibles in different product categories and uses will be available from big-box retailers. The market might increase significantly due to this new distribution, which would also be advantageous to several supply chain participants, such as hemp growers and the labs that extract, distill, crystallize, and isolate CBD from plants. A specific advantage will be encouraging more reputable labs to participate in the CBD market, as many facilities are now reluctant to veer from their core specialties. As retail demand rises, raw material costs will also sharply rise.
- The market gets divided into food grade and therapeutic grade segments based on the product. The therapeutics market is expected to hold the most significant market share throughout the projection period. It is anticipated to grow at a CAGR of 27.4% during the projection period to reach USD 9.30 billion. The therapeutic grade currently dominates the market because of its health advantages in treating neuropsychiatric diseases. Other chronic diseases that CBD may be able to treat will also increase demand for the drug.
- The market gets divided into applications based on application, fibromyalgia, neurogenerative conditions, diabetes, energy drinks, protein bars, and others. The fibromyalgia market will have the most significant market share. It is anticipated to grow at a CAGR of 28.3% during the projection period to reach USD 4.24 billion in 2026. Fibromyalgia is the category leader due to the rising prevalence of physiological disorders among people, particularly young folks. The endocannabinoid system and CBD oil collaborate to reduce the symptoms of several illnesses. It is a possible method for treating fibromyalgia that is said to be able to lessen pain since it lowers inflammation. Anxiety and sleeplessness symptoms may also lessen.
- The Asia Pacific (APAC) market might grow at a CAGR of 29.5 percent from 2017 to 2026, reaching USD 3.10 billion. The Asia Pacific cannabidiol products market is likely to increase due to the expanding traditional use of cannabidiol products in various culinary items in India, China, and Nepal. The market for cannabidiol products is set to grow more rapidly in the Asia Pacific over the projected period due to the rising number of collaborations and partnerships between businesses that are active in the market to produce new products in the category.
- The leading companies in the industry are Canopy Growth Corporation (Canada), Isodiol International (Canada), Medical Marijuana (U.S.), Aurora Cannabis (Canada), CBD American Shaman (US), General Cannabis Corp. (U.S.), Cannabis Sativa, Inc. (U.S.), and Insys Therapeutics, Inc. (U.S.).
Also Read: Complete Guide To Start A CBD Business
Final Thoughts On CBD Sales In US
The CBD market is a kind of unstoppable juggernaut, and the market is already worth several billion dollars and will only expand as more consumers express their preferences. The ability to promote via conventional channels, use standard payment processing, and acquire funding are just a few challenges that CBD entrepreneurs still have to overcome. The key developments that will remove these obstacles are the FDA’s classification of CBD as a dietary supplement, the industry’s unrestricted access to financial services, and an intelligent regulatory framework that improves product quality and safety globally. Soon, lawmakers will officially recognize CBD, removing any remaining obstacles to innovation, safety, and finally, the normalization of the sector. When that takes place, exponential growth will continue to increase.