Cannabidiol Market, By Source Type (Hemp and Marijuana), By Product (Oil, Tinctures, Suppository, Transdermal patches, Vape Oil Isolates, Creams and Roll-on, Capsules, Tablet, Others), By Application (Medical, Personal Use, Pharmaceuticals, Wellness , Food & Beverages, Personal Care & Cosmetics, Nutraceuticals, Others), By Distribution Channel (Hospital Pharmacies, Online Stores, Retail Stores), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Jul 2024

Code : CMI4613

Pages :184

Formats :

Excel and PDF

Industry : Pharmaceutical

Market Challenges: Stringent regulatory guidelines for the usage of cannabidiol

The stringent regulatory guidelines imposed by governments around the world on the usage of cannabidiol can hamper the global cannabidiol market growth. Many countries have legalized the usage of cannabidiol derived from hemp for medical purposes but have placed strict limitations on the concentration of tetrahydrocannabinol (THC) present in such products. THC is the psychoactive compound present in cannabis that produces a high. Even trace amounts of THC present in cannabidiol products can result in psychoactive effects, which is a major concern from a regulatory standpoint. Countries are wary of allowing cannabidiol products in the market that may induce psychoactive effects due to THC contamination. This has led many governments to mandate cannabidiol products to contain less than 0.3% THC. Such stringent rules make it extremely difficult for manufacturers to produce cannabidiol extracts without any THC presence. Even sophisticated extraction methods fail to eliminate traces of THC completely. Thus, several cannabidiol products end up violating the regulatory limits and face bans. For instance, European Union banned the import of cannabidiol products containing any detectable THC levels. The U.S. FDA has also cracked down on cannabidiol products that made medical claims without proper clinical trials.

Market Opportunities: Potential growth of cannabidiol infused foods and beverages industry

Cannabidiol infused foods and beverages industry can offer growth opportunities for global cannabidiol market. As research continues to shine more light on Cannabidiol's wellness benefits and its distinction from marijuana, consumer demand for these alternative product formats is likely to rise substantially in the coming years. Cannabidiol is non-intoxicating and according to preliminary research, may help with anxiety, insomnia, and chronic pain when ingested. Offering Cannabidiol through foods and drinks could allow for a more discreet and convenient method of consumption versus pills or oils. This may help increase accessibility and market penetration, especially among younger demographics. Currently several food and beverage firms are experimenting with infusing cannabidiol into products like chocolate, baked goods, coffee, teas, and water. As these items hit mainstream grocery and convenience store shelves, and their efficacy and safety is proven over time, consumer familiarity and trust in Cannabidiol solutions will grow. The stigmas surrounding cannabis are lessening on a global scale through legalization efforts. According to the World Health Organization, around 60% of countries legalized Cannabis in some form by 2022, as compared to just 25% in 2010. As more places permit Cannabidiol use, multi-state and cross-border trade of these items will thrive.