With Legalization Propounding its use, the Global CBD Market Will Offer a Plethora of Therapeutic Benefits, Reveals FACT.MR’s study
Published : 04 Oct 2019 Industry: Food & Beverage
A new study by Fact.MR reveals that the global CBD market is likely to grow by over 40% in 2019 from 2018. The global CBD market is anticipated to have a positive growth in the forecast period owing to the growing awareness about therapeutic benefits of CBD, decrease in the social stigma against the cannabis and countries taking initiation towards legalization of some of the varieties of cannabis derivatives like CBD.
In the last 30 years, around 50 countries have legalized some form of cannabis by virtue of its potency against various illnesses like Crohn's disease, epilepsy, glaucoma, and nausea. The increase in the geriatric population across the globe has bolstered the requirement of medical cannabis for pain-relieving purposes. All of this has rapidly changed the consumer mind-set regarding cannabis and its derivatives. The consumer now regards cannabis as a therapeutic instead of a psychotropic ingredient. These changes have led to many companies getting attracted to growing cannabis and selling for both medical and recreational purposes. The companies are adopting CBD into various end-user products like Vapes, edibles, and beverages. CBD used in non-conventional products had a market share of around 45% in 2018, says the report.
The CBD Market is Establishing Inroads with Ingenious Offerings Within the Pharmaceutical Industry
According to the report, more than 50% of the U.S. population is living in states where some form of cannabis is statutory. Countries like Canada and Uruguay have incorporated cannabis. Many countries across the globe are steadily accepting medical cannabis, making CBD a new buzzing market phenomenon. Consumers are spoilt for choice with companies providing CBD in various forms like tinctures and edibles. The significant business of cannabis is currently based in North America, which accounts for 2/3rd of the global cannabis market. Europe is showcasing a great premise for the market with sales doubling over the year 2018.
The major companies in the fray are taking intelligent decisions to capture the maximum share of the market. Companies have signed partnerships and agreements with celebrities like Snoop Dogg, Seth Rogan, and Evan Goldberg to promote their products. Various cannabis companies partnered with brands like Constellation and Canada’s Greatest Kitchen to innovate cannabis-infused products like alcoholic beverages and chocolates. The larger companies in the market have aggressively acquired petite companies to increase their production capacity. Some of the companies have a business in over 20 countries displaying the potential of Global CBD Market.
Branding and Online Trade Channels are all Set to Disrupt the Global CBD market
Fact.MR states that CBD manufacturers are not only trying to innovate several deliverable forms of CBD but also creating a brand legacy of their own. The study reveals that the sales of manufacturers with popular brands are much higher than those of the smaller manufacturers. The manufacturers understand that the consumer likes to be loyal to a brand giving consistent performance. To ensure this, CBD manufacturers are investing in research, which leads to the achievement of higher quality control across the brand.
The manufacturers are taking control of the entire supply chain from cultivation to delivery of cannabis to increase the profit margin from the sales. Companies have opened online trade channels for their brands, making it convenient for the consumer to acquire products in a swift and secure experience. The companies have also made inroads in the Food and Beverages market with products like CBD infused chocolates and alcoholic beverages. The F&B sector counts for approximately 33% of the market share of CBD industries, thus showing increased demand for CBD infused products in the market.
Medical Services to be a New and Innovative Way of Providing Customer Care in the CBD Market
Fact.MR’s study also opines that leading companies like Canopy growth and Hexo have introduced pharmaceutical care services for their customers. In this service, they collect the medical record of the customers and provide them with advice from appointed medical professionals. This advice helps the customer to maintain good health, and the company gains from converted sales and customer loyalty. Companies are spending a significant amount on these services to leverage the data into actionable insights for the company. This data provides the company with customer details and consumption patterns, which is employed in modifying the company’s strategies to foray into different verticals of the market.