Global cannabidiol market is estimated to witness growth, due to growing acceptance and expanded medical applications
Global Cannabidiol Market is estimated to be valued at USD 8.12 Bn in 2024, exhibiting a CAGR of 16.3% over the forecast period (2024-2031). The market growth is driven by growing acceptance of CBD products and their expanded therapeutic applications across various medical ailments like anxiety, depression and chronic pain. Furthermore, increasing investments in CBD product commercialization by prominent players can also drive the market growth.
Market Dynamics:
Global cannabidiol market growth is primarily driven by growing awareness about therapeutic benefits of CBD and changing regulations regarding legalization of cannabis-derived products. CBD is known to be helpful in treatment of severe diseases like epilepsy & cancer along with management of anxiety and depression. Thus, there has been huge demand for CBD from pharmaceutical industries, thus, creating growth opportunities for cannabidiol market players. Recent legalization of industrial CBD in various countries can boost product commercialization. High manufacturing costs and expensive clinical trials can hamper the market growth. Extensive research focusing on effective delivery mechanisms and therapeutic efficacy can help overcome these barriers.
Major Drivers:
Wide range of medical applications
The wide range of potential medical applications of cannabidiol or CBD is a major factor driving significant growth in the global CBD market. CBD is showing promise in treating a variety of health conditions such as anxiety, depression, pain, acne and neurological disorders like epilepsy. This has led to increasing scientific research on CBD and its therapeutic benefits. Several clinical trials over the past few years have demonstrated CBD's effectiveness in reducing seizure frequency and intensity for patients with Lennox-Gastaut syndrome or Dravet syndrome, two rare and severe forms of epilepsy. For example, a randomized clinical trial published in 2020 in the New England Journal of Medicine found that CBD medication reduced monthly motor seizures in patients with Lennox-Gastaut syndrome by over 50% on average compared to a placebo. With few approved treatment options for these patient populations currently available, CBD provides an alternative that can help control seizures without major side effects. The positive results from such clinical trials have accelerated CBD's adoption for epilepsy treatment.
Growing legalization of cannabis for medical use can drive the market growth
Global cannabidiol market growth is driven by growing legalization of cannabis for medical use across various countries. Many governments are legalizing the use of cannabis-derived products like CBD for treating medical conditions such as chronic pain, anxiety, epilepsy and others. For instance, Canada legalized recreational use of cannabis in 2018 while 26 U.S. states along with Washington D.C. have legalized medical cannabis. Countries like Germany, Italy, Australia and many Latin American nations have also legalized medical cannabis. As more countries adopt regulatory frameworks for legal cannabis production and sales, it leads to increased research and development of CBD-based therapies by major pharmaceutical companies. This boosts adoption of cannabidiol products in the healthcare sector.
Wide range of therapeutic benefits boosts CBD adoption
Wide range of therapeutic benefits associated with cannabidiol can also drive the market growth. CBD is known to provide relief from conditions like chronic pain, anxiety, depression, acne and insomnia with minimal side effects. Recent research also indicates potential therapeutic benefits of CBD in treatment of cancer, Alzheimer's disease, Parkinson's disease and schizophrenia. The non-psychoactive nature of CBD makes it safe for users who does not want intoxicating effects of tetrahydrocannabinol (THC). This diverse therapeutic profile of CBD makes it appealing to a wider consumer base. As awareness about benefits of cannabidiol increases, it drives more people to adopt CBD-infused products for general wellness and specific health conditions.
Public perception issues can pose challenges
Global cannabidiol market growth can be hampered by general public perception regarding cannabis and cannabis derived products. Despite legal progress, recreational cannabis continues to face stigma in certain parts of the world. This leads to public perception issues for CBD too by association. Some consumers are still hesitant to use cannabidiol due to concerns over psychoactive effects and legal risks. Many patients are also unclear about appropriate dosage guidelines and efficacy of CBD products. Widespread education is still needed regarding safe use and benefits of CBD to address prevailing misconceptions in the minds of potential consumers. Overcoming residual social stigma is a long term challenge that can hamper faster adoption of CBD worldwide.
Stringent regulatory barriers in several markets
Regulatory barriers can also hamper the global cannabidiol market growth. While regulations are evolving for medical cannabis, recreational cannabis continues to face strict restrictions in majority of countries worldwide. Different states and nations have adopted varied rules regarding legal use of CBD which leads to compliance issues for businesses operating across borders. Manufacturers of CBD products also have to adhere to changing definitions of 'legal hemp' and permitted THC levels. Resolving complex regulatory landscape across multiple jurisdictions has remained a difficult task, hindering larger investments in R&D and marketing of advanced CBD solutions.
Growing wellness trend creates new opportunities
Growing global wellness trend focused on preventive healthcare can offer lucrative opportunities for cannabidiol market players. With rising consciousness about healthy lifestyles, consumers are increasingly adopting supplements and alternative remedies to boost their overall well-being. Cannabidiol fits well within this paradigm as a natural wellness product with relaxant and anti-inflammatory properties. New segments like CBD-infused foods, beverages and beauty products cater well to millennial customers. This widening scope of application beyond traditional pharma offers opportunities to penetrate untapped wellness categories. CBD companies can maximize these opportunities through tailored brand campaigns showcasing CBD as a safe wellness enhancer.
Expanding into new geographic territories
Tapping emerging international markets that are opening up to legal cannabis can offer growth opportunities. While North America and Western Europe currently dominate the CBD sector, other regions like Latin America, Asia Pacific and Africa are important new frontiers. Countries relaxing drug laws and states in these regions permitting regulated cannabis industries can offer opportunities.With positive global momentum for cannabis reform, cannabidiol companies operating internationally have room to leverage cross border prospects through well-crafted geographic expansion strategies.
Link - https://www.coherentmarketinsights.com/market-insight/cannabidiol-market-4613
Key Developments
- In January 2023, Medical Marijuana, Inc.'s, cannabis product research and development company, its subsidiary HempMedsBrasil introduced two new full-spectrum cannabidiol products in Brazil, available in concentrations ranging from 3,000-6,000 mg and sizes of 30 mL and 60 mL
- In October 2022, Medical Marijuana, Inc., cannabis product research and development company announced a collaboration between its subsidiary HempMeds Mexico, the Autonomous University of Barcelona in Spain, and the Meritorious Autonomous University of Puebla in Mexico to study the therapeutic benefits of cannabidiol in treating Parkinson’s disease
- In October 2022, High Tide, Inc., The Company focuses on the manufacturing and distribution of smoking accessories launched multi-cannabinoid products through its subsidiary NuLeaf Naturals in Ontario, Canada. Offerings include Full Spectrum Hemp Multi cannabinoid oil and plant-based softgels containing delta-9 tetrahydrocannabinol, cannabichromene, Cannabidiol, cannabigerol, and cannabinol.
- In September 2022, Kannaway, another subsidiary of Medical Marijuana, Inc., expanded its partnership with Complete Hemp Technologies (CHT) in Europe.
- In January 2022, Elixinol, a company operates in the hemp industry, innovating, marketing and selling hemp derived nutraceuticals, cosmetic and food products. launched two new cannabidiol products focused on promoting sleep: Sleep Rapid Rest Liposome and Sleep Gummies. The Sleep Rapid Rest Liposome features a blend of CBN, cannabidiol, chamomile, and lemon balm, while the Sleep Gummies contain 2mg of CBN and 15mg of cannabidiol.
Key Players: ENDOCA, Cannoid LLC, Medical Marijuana Inc., Folium Biosciences, Elixinol, NuLeaf Naturals LLC, Isodiol International Inc., Pharmahemp d.o.o., Aurora Cannabis Inc., CV Sciences, Medterra CBD, Canopy Growth Corporation, Aphria, Inc., GW Pharmaceuticals Plc, Organigram Holding Inc.
