CANNABIDIOL CONSUMER HEALTH MARKET ANALYSIS

Market Challenges And Opportunities

Global Cannabidiol (CBD) Consumer Health Market Drivers:

Increasing demand for CBD Nutraceuticals

• CBD is already being used by several nutraceutical companies in many supplements & functional foods, and these products are available in various packaging forms. For instance, For instance, in April 2019, MGC Pharmaceuticals—an Australian biopharmaceutical company—launched its nutraceutical-based products, CBD hemp powder, BCAA CBD capsules, water-soluble CBD solution, and CBD herbal V-pen, in China. The company is now expected to expand its operations to Thailand, Vietnam, Japan, and South Korea.
• Moreover, in May 2022, Medical Marijuana, Inc., the first-ever publicly traded cannabis company in the United States that launched the world’s first-ever cannabis-derived nutraceutical products, brands, and supply chain, announced that it has launched its first pharmaceutical subsidiary, HM Pharma, in Brazil. This in turn is driving the growth of the global cannabidiol (CBD) consumer health market over the forecast period.

Growing adoption of CBD topicals across the world

• Growing popularity of CBD-based products owing to increasing awareness about its benefits is expected to impel adoption of these products during the forecast period. In addition, CBD is increasingly used in dermatology & analgesics industries, pharmaceutical and food & beverage industries. CBD-based skin care products are known to boost skin hydration, which is leading to increased adoption of such products among individuals with skin-related conditions, including dryness, psoriasis, and eczema. Easy access to various CBD-based topical products, such as ointments, lotions & creams, roll-ons, sprays, and transdermal CBD patches through online sales channels as well as availability of application-specific product lines are among the key factors expected to drive sales of these products during the forecast period.
• Moreover, For instance, in July 2020, according to the article published in National Center for Biotechnology Information, CBD is widely touted as an effective therapeutic for myriad health conditions. In many U.S. states, individuals can obtain a medical CBD license for well over a dozen indications, though to date, only 1 CBD product (Epidiolex, GW Pharmaceuticals) is approved by the U.S. Food and Drug Administration (FDA), this product is approved for the treatment of rare pediatric seizure disorders.

Global Cannabidiol (CBD) Consumer Health Market Opportunities:

• The market for CBD consumer health is projected to grow significantly as a result of the increasing legalisation of cannabis for medical use in many different regions. Cannabis for medical use is now permitted in nations like Canada, Germany, the United States, and Italy. Additionally, Portugal and France have legalised medical marijuana. The market for CBD consumer health is anticipated to increase as a result of this cause.
• The rapid global acceptance of CBD products and the resulting increase in consumer demand for CBD compounds are both factors in the growth of the CBD consumer health market. The number of customers using CBD as a natural substitute for medications has significantly increased as a result of this. 

Global Cannabidiol (CBD) Consumer Health Market Restraints:

• High price of CBD products: CBD products are expensive as they are often made using high-quality organic ingredients—full spectrum CBD oil costs around USD 0.05/mg. As CBD is still a growing market, CBD oils are more expensive in comparison to non-CBD products. Thus, CBD-infused products with higher CBD oil concentration are costlier. For instance, premium quality CBD oil tinctures cost USD 0.09/mg to USD 0.17/mg on average, with USD 0.05/mg to USD 0.08/mg on low end. Premium luxury oils cost around USD 0.20/mg. CBD capsules, on average, cost around USD 0.09/mg to USD 0.13/mg. CBD topicals cost around USD 0.07/mg to USD 0.10/mg on the low end and between USD 0.24/mg and USD 0.36/mg on the high end. Hence, CBD prices are significantly higher.   
• Presence of counterfeit products: The recent surge in demand for CBD has resulted in wide availability of the products across retail pharmacies, retail stores, ecommerce sties, departmental stores, and other retail outlets. However, majority of these products do not provide desired effect to the consumers owing to various factors such as source of extract, false labeling, manufacturing process involved, and varying concentration of CBD & other cannabinoids. One of the key reasons for this is ambiguity of regulations pertaining to cannabis extracts, mainly the CBD. In the U.S., the 2018 Farm Bill has legalized hemp-derived products on a federal level; however, absence of proper regulatory framework has created lot of challenges for the consumers to acquire quality products from the large number of options available in the market. From a consumer’s point of view, it is impossible for to identify whether the CBD used in the products is legit or counterfeit or is adulterated with THC & other cannabinoids.