CBD has shown promising market growth in the coming years. This blog highlights vital market insight on CBD, the rising use of CBD in medical applications and pet care is increasing the industry landscape, the presence of synthetic products may slow down the market growth, and large-scale awareness concerning CBD oil has led to stable demand in the CBD market, increasing the development of chronic pain will increase the demand for CBD products, oral administration of CBD has shown promising effects in boosting its market statistics.
CBD, also known as cannabidiol, is a chemical compound derived from the cannabis plant, specifically the hemp plant since it has high amounts of CBD. It is often mistaken for tetrahydrocannabinol (THC) which is responsible for psychoactive effects. CBD's popularity is due to its various benefits, such as alleviating anxiety and stress, reducing pain and inflammation, and improving sleep. The CBD industry is growing since it is utilized in the food, medical, and cosmetics industry, and more individuals are aware of its benefits. More manufacturers are making new products infused with CBD oil to draw the consumers' attention towards them. Most companies want to provide their consumers with CBD oil-infused products to help them elevate their daily life.
Key Market Insights
In 2020, the global CBD market size ranged at USD 2,770.8 million. As it is known, the COVID -19 pandemic hit the global economy so hard. All types of markets were affected, and the CBD market was not left behind, affecting its demand worldwide. Based on the analysis, the global market growth decreased by 29.42 percent in that year compared to its development in 2017-2019. However, market players stated that the demand for CBD grew sluggishly during this period since there was an increase in the need for vitamins and supplements since retail shop owners began various distribution methods, including home deliveries.
The Rising Use of CBD in Medical Applications and Pet Care Is Increasing the Industry Landscape
CBD-infused products are being embraced in the beauty, health, and pet industries. The main reason most people are embracing these products is their change in belief concerning the product (they realize that even though it is extracted from the cannabis plant, it does not produce the high effect) and that there are various ways these products are consumed. Since CBD is federally legal in most countries, it has increased interest in several forms, such as capsules, vapes, tinctures, edibles, face masks, salves, balms, and medicines. These products; popularity is growing since it has many benefits such as healing properties and soothing pets. Also, the Centre for food safety ensures that every company that sells CBD-infused products has undergone the proper production process, testing protocol, and processing methods. It also provides that they are transparent towards their consumers. Due to this initiative by the government, an increase in CBD consumers was noticed hence its demand growing.
The Presence of Synthetic Products May Slow Down the Market Growth
CBD-infused products have grown in popularity in recent years since they deal with various medical conditions like insomnia, Parkinson's disease, Alzheimer’s disease, and anxiety. Due to its benefits, many illegal manufacturers are producing synthetic products with no CBD but other cannabinoids that yield the same effects as that CBD. However, these products have adverse effects on individuals. Illegal products are more inexpensive than the original ones and claim that they have a large amount of CBD that can help treat various medical conditions.
In the U.S. alone, around 68 patients have died. The FDA warned people about it because of mislabeling various synthetic marijuana products. The FDA also sent warning letters to companies that never met their standards after testing them and finding that they did not have any CBD.
Large-Scale Awareness Concerning CBD Oil Has Led to Stable Demand in the CBD Market
The CBD market has various products such as; tinctures, oils, isolates, capsules, tablets, rolls, and inhalers. CBD oil specifically accounted for more than USD 3.1 billion in revenue in 2021.CBD oil is known for various health benefits, such as pain relief and treating sleep disorders. Since most individuals adopt a sedentary lifestyle, it has increased chronic pain globally. Because of such statistics, the CBD market is expected to grow in the coming years due to its ability to treat such types of pain.
Increasing The Growth of Chronic Pain Will Increase the Demand for CBD Products
Pamplona et al. (2018) stated that the CBD market is known for treating various health conditions like stress, anxiety, sleep disorders, skin care conditions, pain, and others. In terms of the chronic pain region, it is expected to go over USD 18.7 billion by 2028. The demand for CBD products has increased due to their ability to treat various medical conditions. CBD helps deal with chronic pain by acting on different biological processes in the body.
According to Henshaw et al. (2021), CBD is a powerful, inflammatory, anti-oxidant, and anti-fungal agent. Hence, it can also treat anxiety-related symptoms experienced mainly by individuals suffering from chronic pain. Hence the increasing demand for CBD for chronic pain has increased its market statistics.
Oral Administration of CBD Has Shown Promising Effects in Boosting Its Market Statistics
Spindle et al. (2021) noted that CBD is administered in various ways, such as topically, sublingually, orally, and through inhalation. Oral administration of CBD in recent years has accounted for around 52.2 percent of the market share in 2021.
In June 2020, the FDA approved the use of Epidolex, which is a pure CBD oral solution for treating patients who have seizures. Pastino et al. (2020) commented that the drug was used in treating patients who suffered epilepsy due to attacks. Since most suppliers and consumers prefer oral administration of CBD, it is expected to grow immensely in the following years.
Other factors that will lead to an increase in CBD industry growth are:
Availability of high-quality products
Supportive rules and laws for CBD products
CBD products are also offered by offline channels such as hospital pharmacies and retail stores.
The global cannabidiol market was valued at around 12.8 billion U.S. dollars in 2021. In the forecast period of 2022-2028, it is expected to be at 21.7percnet CAGR. The demand for CBD oil is affecting the market since it offers various treatments such as pain relief, cancer treatment, and arthritis; that's why it was valued at around 3 Billion in 2021. The CBD industry is unstoppable and is valued at several billion since it attracts many consumers. However, CBD companies are still facing various hurdles, such as the presence of synthetic products in the market and not having a standard payment way for them to operate on regular channels. Development such as being approved by the FDA will show that the CBD market grows immensely too.
Henshaw, F. R., Dewsbury, L. S., Lim, C. K., & Steiner, G. Z. (2021). The effects of cannabinoids on pro-and anti-inflammatory cytokines: a systematic review of in vivo studies. Cannabis and Cannabinoid Research, 6(3), 177-195.
Pamplona, F. A., Da Silva, L. R., & Coan, A. C. (2018). The potential clinical benefits of CBD-rich cannabis extracts over purified CBD in treatment-resistant epilepsy are observational data meta-analysis. Frontiers in neurology, 759.
Pastino, G., & Shuster, D. (2022). Chronic Cannabis Users: A New Special Population to Consider for Drug Development. Current Reviews in Clinical and Experimental Pharmacology Formerly Current Clinical Pharmacology, 17(1), 4-7.
Spindle, T. R., Cone, E. J., Goffi, E., Weerts, E. M., Mitchell, J. M., Wicker, R. E., ... & Vandrey, R. (2020). Pharmacodynamic effects of vaporized and oral cannabidiol (CBD) and vaporized CBD-dominant cannabis in infrequent cannabis users. Drug and alcohol dependence, 211, 107937.
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