Cannabidiol Market Size, Share & Trends Analysis Report By Source (Hemp, Marijuana), By Application, By Distribution Channel, By Region, And Segment Forecasts, 2019 - 2025

Industry insights

The global cannabidiol market size was estimated at USD 1.34 billion in 2018 and is expected to expand at a CAGR of 32.6% over the forecast period. Increasing awareness regarding health benefits pertaining to cannabidiol consumption is projected to foster the growth. High demand for cannabidiol in pharmaceutical formulations owing to its healing properties is anticipated to bode well for the market in near future.

Growing hemp production along with rising demand for cannabidiol rich hemp biomass is projected to bolster the market growth. Increasing adoption of refined cannabidiol (CBD) products coupled with growing legalization of medical marijuana is expected to drive the product demand in extended run.

CBD skin care products include moisturizers and creams, cleansers, serums, oils, and sunscreens. Anti-aging properties and effectiveness for all skin types, including sensitive and acne-prone skin, is anticipated to drive the demand for cannabidiol in skin care and cosmetic products.

CBD is extracted from hemp and marijuana present in the cannabis plant and possesses both therapeutic and medicinal properties without giving consumers the experience of high THC content. It is beneficial for medical conditions such as inflammation, pain, sleep disorders, epilepsy, schizophrenia, anorexia, and symptoms of multiple sclerosis among others.

CBD infused products such as cannabis oil, beauty and skincare products, beverages, gummies, capsules, and dog treats are highly preferred and are anticipated to drive the demand in the forthcoming years. Cannabidiol can be delivered into the body in several ways such as ingesting, vaping, smoking, and through the skin.

Cannabidiol is extensively used for manufacturing personal care products and medical drugs in the states where cannabis is legal. Legalization of cannabis-based products has provided significant expansion opportunities to the end user industries. U.S. has deregulated the use of the product in medical applications in a majority of the states such as Alabama, Georgia, and Indiana among others.

Source Insights

Hemp-derived CBD finds application in several sectors including pharmaceuticals, cosmetics, nutraceuticals, and food and beverage. Demand for CBD-infused cosmetics and personal care products is ascending rapidly owing to the anti-inflammatory, anti-seborrheic, and antioxidant properties of CBD.

Numerous beauty brands such as The Body Shop and MGC Derma are now involved in the production of personal care and cosmetics products infused with hemp-derived CBD. In addition, hemp derived CBD in pet foods is another emerging market. CBD has similar effects on pets as on humans. Hemp-based cannabidiol oil is being used as a source for pet food products due to its wide range of health benefits such as reduced pain and inflammation and improved heart health.

Marijuana-derived CBD is mainly used in medical applications on account of its health benefits. In states where cannabis has been legalized, marijuana-based CBD can be used in any form including gummies, vape pens, and flower. In most states, CBD derived from marijuana can be accessed legally with a prescription; however, the standards vary for different states depending upon the condition to be treated using CBD along with the amount of THC in the products.

CBD products, especially vaping and smoking products, are becoming increasingly popular in European markets. U.K. has approved the licensed use of Sativex, a marijuana-based medicine, for the treatment of spasms and shakes related to multiple sclerosis.

Application Insights

Cannabidiol contributes to improving the health of an individual by interacting with the endocannabinoid system of the body. Moreover, cannabidiol infused skin care products prefer natural healing process and are used for reducing inflammation. Cannabidiol is used in several beauty products such as beauty creams, lip balms, face masks, and serums among other products.

Rising utilization in beauty products such as lip balms and serums is also likely to trigger growth of the CBD market. Cannabidiol is extracted from hemp and marijuana present in the cannabis plant and possesses both therapeutic and medicinal properties without giving consumers the experience of high THC content.

It is beneficial for medical conditions such as inflammation, pain, sleep disorders, epilepsy, schizophrenia, anorexia, and symptoms of multiple sclerosis among others. This rapidly progressing transformation of cannabidiol from herbal preparations to prescription drugs is anticipated to boost the CBD market growth.

In June 2018, the U.S. Food and Drug Administration (FDA) approved the first cannabis-infused anti-epileptic drug called Epidiolex by GW Pharmaceuticals. Although Epidiolex does not contain psychoactive THC, its legalization across the globe is a problematic procedure owing to the presence of stringent regulations on cannabis-infused products.

Distribution Channel Insights

As cannabidiol is a controlled drug, these pharmacies can import cannabidiol-infused medications in bulk quantity from wholesalers with an authorized import license. High consumption of CBD-infused medicines in hospital pharmacies owing to the legalization of medicinal cannabis in North America and Europe is anticipated to boost the CBD market growth.

Retail pharmacies provide cannabidiol-infused personal care products, food items, and medicines with a specific prescription. The key manufacturers of these products are focusing on retail pharmacies as the preferred distribution channel owing to the easy availability of products for the consumers.

Different varieties of cannabidiol-infused products are available via online stores for consumers to select according to their requirement. A few online sites such as Pure CBD Vapors, CBD Outlet Online, The CBD Store, Discover CBD, and Healthy Hemp Oil provide multiple cannabidiol-infused branded products, cannabidiol in edible and wax forms among others, and useful information regarding dosage.

Online stores are preferred owing to changing buying pattern of consumers and a rising standard of living. Mass market retail channel carries distribution of cannabidiol infused products through supermarkets and hypermarkets.

Regional Insights

CBD derived from hemp is legalized at the federal level in U.S. The 2018 Farm Bill legalized the production of hemp-derived cannabidiol under certain regulations. The 2014 Farm Bill allowed pilot programs to be carried out for research purposes. Amendments to the bill defined hemp as a derivative of the cannabis plant with THC content equal to or less than 0.3%.

Additionally, the bill allows the transport of hemp-derived products across the states without any restrictions for personal or commercial purposes. However, cannabinoids derived from hemp will be considered legal only when their production is in compliance with the federal and state regulations.

Mexico is the second-largest market for medical marijuana after Brazil. The Mexican law permits the sale of cannabidiol products as supplements with THC content below 1%. In 2018, the country allowed the import and distribution of CBD products to retailers and pharmacies across the country. The Mexican government has approved Manna Health to sell, buy, lease, supply, import or export of any products related to health and wellness. Moreover, CBD Life is the sole provider of CBD-infused edibles such as gummies, energy drinks, and a line of infused teas in the country.

Cannabidiol Market Share Insights

Key companies are adopting new strategies such as mergers and acquisitions with the aim to surge the production capacities, which will help the companies to expand their presence in the market worldwide.

Companies like Medical Marijuana, Inc. along with its subsidiaries Phyto Animal Health and HempMeds have collaborated with Mr. Checkout to increase its distribution capacity and market presence worldwide. Market players are focused on achieving higher participation in value chain to gain competitive edge. Prominent players such as Endoca, Canopy Growth Corporation, Pharmahemp d.o.o., and Elixinol among others have high degree of integration throughout the value chain.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global cannabidiol market on the basis of source, application, distribution channel, and region:

• Source Outlook (Revenue, USD Million, 2014 - 2025)

  • Hemp

  • Marijuana

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Personal Care & Cosmetics

  • Pharmaceutical

  • Food & Beverages

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

  • Hospital Pharmacies

  • Retail Pharmacies

  • Online Stores

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa