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Cannabidiol or CBD is a non-psychoactive compound found in the cannabis plant that is increasingly finding applications in food, beverage, pharmaceutical and wellness industry due to its several therapeutic benefits. CBD is extracted from hemp plants and has numerous health advantages such as reducing seizures in epilepsy patients, managing chronic pain, anxiety relief and promoting cardiovascular and neurological health. The growing awareness and demand for natural health remedies is accelerating the adoption of CBD products globally.
The global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the Cannabidiol market is the legalization of hemp-derived CBD products. In late 2018, the U.S. government passed the Hemp Farming Act, which removed hemp from the federal list of controlled substances and allowed for widespread cultivation and production of hemp-derived CBD products. Many other countries are also legalizing cultivation and use of low-THC hemp plants from which CBD can be derived. Another key trend is the increased incorporation of CBD into various consumer products such as foods, beverages, lotions, and cosmetics. CBD infused edibles and beverages are becoming very popular as they provide a convenient way for incorporating CBD into daily diet. The growing acceptance and demand for CBD has prompted many mainstream retailers to offer a wide range of CBD infused products, fueling growth of this market.
Portal’s Analysis
Threat of new entrants: The threat of new entrants is low in the cannabidiol market as it requires high R&D investments and regulatory approvals to manufacture and sell cannabidiol products.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established manufacturers supplying cannabidiol products. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the availability of substitutes. However, suppliers hold some power due to proprietary production processes.
Threat of new substitutes: The threat of new substitutes is moderate as there are alternative treatment options available. However, cannabidiol offers distinct benefits for certain medical conditions.
Competitive rivalry: The competitive rivalry in the cannabidiol market is high among the top players due to their global presence and wide product portfolios.
Key Takeaways
The global cannabidiol market is expected to witness high growth. The global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2024-2030.
North America currently dominates the market owing to the growing adoption of cannabidiol-infused products for medical and recreation purposes in the region. Factors such as legalization of medical cannabis in various countries and rising awareness about the therapeutic benefits of cannabidiol are fueling the market in the region. Asia Pacific is likely to grow at the fastest pace during the forecast period. Increasing patient pool of medical conditions such as epilepsy, neurological disorders, and cancer along with rising disposable income in developing countries are expected to drive the regional market. Countries such as China, India, Japan, and South Korea are projected to offer immense growth opportunities for cannabidiol manufacturers in the coming years.
Key players operating in the cannabidiol market are CV Sciences, Canopy Growth Corporation, Aurora Cannabis, MEDICAL MARIJUANA, INC., and GW Pharmaceuticals. CV Sciences offers a range of hemp-derived cannabidiol oil products under the brand name PlusCBD Oil in the US. Canopy Growth Corporation produces and sells both medical and recreational cannabis products in Canada under various brands such as Tweed and Spectrum Therapeutics.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
