CBD Market Forecast, Trend Analysis & Competition Tracking - Global Market Insights 2019 to 2029

CBD’s Therapeutic Benefits to Topple the Global Medicinal Market

A recent study by Fact.MR states that the global CBD market is expected to grow with a CAGR in double digits over the forecast period. With the legalization of medical and recreational usage of cannabis and its derivatives in over 50 countries, several Cannabis manufacturers are eyeing to leverage the increasing consumer demand to capture its sales and market share around the globe. THC and CBD are the two components which have grappled the attention of the modern consumer and are in demand in various consumer verticals with respect to their psychoactive properties. CBD’s demand has shot up in the market due to its therapeutic properties and diminutive psychoactive effects.

CBD is reported to be effective in the treatment of Crohn's disease, epilepsy, glaucoma, and nausea, among others, which fuels the growth of the cannabis-derivatives market. The principal amount of the CBD comes from either of the two sources, Hemp or Marijuana. The flowers of these plants are processed using various operations like extraction and distillation to give an extract with different cannabinoids. CBD is the second major cannabinoid derived from the extraction, trailing only to THC. The global CBD market is thriving in the lower North American region, as it legal in Canada for both, medical and recreational purposes. Though cannabis is illegal at the federal level in the U.S.A., 30 states have legalized the usage of cannabis for medicinal purposes and 11 for recreational purposes. With anticipated growth in legalization in other countries and an increase in the geriatric population, the demand for CBD during the forecast period of 2019 to 2029 is expected to inflate.

The two key international markets for CBD are North America and Europe, where Canada is the major supplier of CBD products. The market volume of CBD in North America doubled in 2018 over 2017. Taking into consideration the market trends, there lies a keen interest for CBD manufacturers to gain a mature understanding of the markets, to prepare their strategies in order to maintain sustainable growth.

The Global CBD Market to Gain Impetus with a Plethora of Medicinal Applications

The global CBD market is witnessing great exposure and experiencing a surge within the global medicinal industry. The market is relatively new, as the first decriminalization for the possession of cannabis was granted in 1988 in Paraguay. The major companies in the market were set up between 2001 and 2008, where Canada was the frontrunner in legalizing medical cannabis.

After witnessing low sales during the first few years, due to social psyche about cannabis, the CBD market has witnessed enormous growth in the last five years. Increasing global healthcare spending and government policies are the factors, which have shaped the framework of the industry. Although the significant cross-section of the worldwide population is yet to be under the regulatory ambit, which lead to slow growth of the industry, several countries are now making usage of cannabis legal for medical purposes which will fuel the growth of CBD market.

The growth in recreational usage of Cannabis in North America shows that consumers tend to use CBD not only for medical reasons but also for relief purposes. This is anticipated to impact the future of the CBD market as the companies prepare themselves for the surge in demand for cannabis as it gets approved in untapped markets. Moreover, the development of online distribution platforms has made the availability of CBD products easy, leading to an increase in sales of the companies. CBD, as a pain-relieving agent, is increasingly occupying a decent share within the pharmaceutical shops across the legalized countries. CBD shopping through online mediums is progressively gaining momentum due to offering benefits, including convenience and swift deliveries. As a result, several companies have started their brand shopping portals, delivering several segments of CBD derivatives such as dried flowers, oils and vapes along with CBD infused edibles and medicines. These initiatives will prove rewarding for the global CBD market during the forecast period.

CBD Heavyweights Are Deploying Expansion and Acquisition Strategies for Further Growth

To take the global CBD market to newer heights, several CBD majors have considered collaborating with Cannabis icons like Snoop Dogg, as well as to partner with beverage brands like Constellation, to create CBD infused beverages to attract potential customers. Companies like Canopy Growth, Aurora, and Tilray are expanding their cultivation to match the gap between the demand and supply of CBD. The brands have entered different verticals of the market, like vapes, oils, edibles, tinctures, topicals, soft-gels, pre-rolls, etc. to offer the consumer a luxury of choice. The companies are also making agreements with retail stores and pharmacies for the exclusive distribution of their products.

Companies have signed agreements with organizations like ‘Canada's Smartest Kitchen' to develop premium chocolates, cakes, confectionary and ice cream infused with CBD, attracting dessert-loving customers. These CBD-infused products provide the customers with a choice of enjoying their favorite food with the added benefits of cannabis. Cannabis companies are investing a significant amount into research and development of new products to attract potential customers. These products are developed, keeping in mind the young generation, which is curious about the benefits of cannabis and its derivatives. A significant section of the youth has knowledge about the psychoactive effects of cannabis yet is unaware of the therapeutic benefits from CBD.

Patient Care: A Service Adding Value to the CBD Market

Major companies in the CBD market seek to penetrate the medical cannabis market by employing patient care services for their potential customers. Companies like Canopy Growth, Tilray, and Hexo Corp have gained a network of patients by providing them with services like regular check-ups and a steady supply of CBD. This program not only benefits the customers but also the company as it incites customer loyalty. The sale of medical cannabis has never gone below 45% in the past, thus making patient care services an effective channel to endorse the products. Patient care service presents the company with data of usage patterns of customers, providing them actionable insights into the demand across the different verticals of the cannabis-derivatives, thus helping them plan their production activity accordingly.