GVR Report cover Cannabidiol Market Size, Share & Trends Report

Cannabidiol Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Distribution Channel (B2B, B2C), By End-use (Medical, Personal Use), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-3-68038-122-1
  • Number of Pages: 132
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Healthcare

Report Overview

The global cannabidiol market size was valued at USD 5.18 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.8% from 2022 to 2030. Cannabidiol is a chemical compound that is found in the cannabis sativa plant, and is extracted from hemp or cannabis, generally from hemp due to its naturally high cannabidiol (CBD) content. It has several benefits in treating anxiety and seizures and reducing pain. Due to its healing properties, the demand for CBD for health and wellness purposes is high, which is the major factor driving the market. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost the production of CBD-infused products.

U.S. CBD market size, by sale type, 2020 - 2030 (USD Billion)

Cannabidiol oil is increasingly being used to make skincare products to treat acne and wrinkles. Sephora, for example, had recently introduced cannabidiol or CBD skincare line to its stores. Similarly, Ulta Beauty is intending to launch a cannabidiol-based product line. Several new companies are also entering the market for cannabidiol-infused cosmetic products. For instance, in 2019, Aphria, a producer and distributor of medicinal and recreational cannabis-based in Canada, introduced its Cannabidiol-based cosmetics line in Germany. 

However, the COVID-19 pandemic has caused unprecedented lockdowns all around the world, collapsing daily operations and changing consumer behaviors in nearly every industry. As the response to COVID-19 ramps up, retail stores have shut down. The market started witnessing a shortage in supply due to the nationwide shutdown of transportation and manufacturing in major raw material manufacturing countries, such as China and India. In addition, due to supply chain disruptions in the U.S., the supply of other raw materials has been limited, which is disrupting the manufacturing, and in turn, the supply chain of CBD consumer health products. 

Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the global market is anticipated to grow at a lucrative rate over the forecast period.

Furthermore, the government of different countries as well as major players in the cannabinoid market are investing in research and development activities. The CBD is said to be an effective treatment for various neurological diseases including epilepsy in several clinical trials. Players like Echo Pharmaceuticals developed a product called Arvisol, which is an oral tablet containing pure cannabinoids, for treatment including epilepsy and schizophrenia. Zynerba Pharmaceutical, for instance, developed a cannabinoid-based gel named Zygel, designed for treating Fragile X syndrome, encephalopathies, and adult seizures.

Increasing awareness regarding cannabidiol's therapeutic benefits has influenced buyers to buy cannabidiol products, regardless of their cost. As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products. Numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health decides to offer CBD topicals all over its 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1500 of its stores in the U.S.

On the other hand, the existence of strict regulations and the high cost of cannabidiol products are some of the major factors limiting the growth of the market. In addition, the absence of legalization initiatives in many Asian and African countries is another main factor impeding market growth. Additionally, due to the increased adoption for a wide range of medical conditions, cannabidiol-based products have gained traction in recent years. This has opened the door for illegal manufacturers to create synthetic medicines that do not include cannabidiol but do contain chemical compounds that have similar benefits to cannabidiol but are also harmful to the body. These unauthorized products are less expensive than the originals and claim to have a higher concentration of Cannabidiol, which may be used to treat a variety of health issues. For instance, as of February 2020, around 68 people died due to the consumption of synthetic cannabis in the U.S. with more than 2800 patients hospitalized due to vaping, e-cigarette, and use-associated lung injury. This is restricting the demand for the market.

Source Type Insights

The marijuana segment dominated the market and accounted for a revenue share of over 50.0% in 2021. The increasing acceptance of refined CBD products and the increasing legalization of marijuana and marijuana-derived products for various medical applications are driving the segment. In addition, the high effectiveness of cannabidiol extracted from marijuana is a key factor fueling the segment growth.

Cannabidiol derived from hemp is anticipated to witness rapid growth owing to the increasing demand from the pharmaceutical sector and rising awareness among consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to have a positive impact on the demand for cannabidiol in the pharmaceutical sector. Oils, tinctures, concentrate, capsules, topical solutions such as slaves, lip balms, lotions, and edibles such as baked goods, coffee, chocolates, gums, and candies are some of the CBD products that are in high demand.

Furthermore, the use of hemp-derived CBD is increasing rapidly owing to its anti-inflammatory, anti-aging, and antioxidant properties. Various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages are developing CBD-derived products for health and wellness purposes. Therefore, the above-mentioned factors would be responsible for the significant growth of the segment over the forecast period.

Sales Type Insights

The Business to Business (B2B) segment dominated the market and accounted for a revenue share of over 50.0% in 2021. The segment is expected to expand at a lucrative rate over the forecast period. This can be attributed to an increase in the number of bulk or wholesale CBD oil providers and an increase in the demand for CBD oil as a raw material. Similarly, after the legalization of CBD products in various countries, the avenues for supplying these products significantly increased due to the expanding consumer pool.

In the B2C segment, the hospital pharmacies sub-segment is expected to witness lucrative growth over the forecast period owing to the increase in the number of companies establishing exclusive collaborations with retail pharmacies to increase their visibility and create an independent entity for customers to purchase CBD products. Furthermore, the CBD market is expected to present significant opportunities for market participants owing to a surge in stockpiling events by pharmacies, exclusive collaborations of companies with retail pharmacies, and an increase in the number of patients opting for CBD treatment.

End-use Insights

In B2B end use, the pharmaceuticals sub-segment dominated the market and accounted for a revenue share of over 70.0% in 2021. The segment is anticipated to grow at a lucrative rate over the forecast period. The increasing number of ongoing trials to study the impact of CBD on certain health conditions is anticipated to drive the product demand in the forthcoming years. Furthermore, many companies acquire CBD oils in bulk and manufacture CBD-infused products. These products are used by a large consumer base as a pain and stress management alternative. Thus, most of these products are depicted to be in the growth phase of the market.

The pharmaceuticals segment is projected to witness the fastest growth over the forecast period. This rapidly progressing transformation of cannabidiol from herbal preparations to prescription drugs is anticipated to boost the growth of the market. Furthermore, growing awareness regarding the medical benefits of cannabidiol, including its healing properties, is anticipated to drive the product demand in the pharmaceutical industry.

Regional Insights

In 2021, North America dominated the market with a revenue share of over 85.0% and will continue to retain its leading position in the market. The presence of a large number of health-conscious people in the region, growing acceptance of CBD-based products, the presence of major manufacturers, and approval of the U.S. Farm Bill in 2020 are some of the major factors driving the regional market. North America is known to be the most progressive region for cannabis and its products, including cannabidiol. It has the highest number of CBD companies and lenient laws regarding the utilization of CBD products.

Global CBD market share, by B2B end use, 2021 (%)

In addition, regions like Europe and Asia Pacific are anticipated to witness significant growth over the forecast period owing to the setup of hemp-producing plants, especially in China. China is the largest hemp cultivator in Asia, producing nearly half of the world’s hemp. The country exports around 90% of its products to the U.S., Germany, the U.K., the Netherlands, and Japan and has started cultivating hemp in three provinces for cannabidiol extraction purposes. The newfound government policies supporting the industry, lowest cannabidiol production costs, and unique large-scale manufacturing infrastructure and expertise are expected to create fierce competition for the U.S., Canadian, and European Union hemp companies with low-cost CBD supply.

Key Companies & Market Share Insights

Products in the market provide users with the health benefits of cannabidiol (CBD) without intoxication. Hence, they are gaining traction within a short time. Moreover, competition in the global market is high because companies are focused on increasing their product offerings, entering new markets, and gaining new consumers. The market is fragmented due to the presence of a large number of players. Various companies are launching innovative products and expanding their presence in different geographies to sustain their position in the market. Moreover, companies are entering into multiple partnerships for increasing their distribution networks and expanding their consumer base.

In January 2021, Nano Hydrate has introduced product marketing services that use innovative technologies to promote natural treatment through pharmaceutical-grade cannabidiol branding services. It wanted to build a collaborative program that would allow them to bring existing brands to the niche CBD product market while also extending the cannabis industry's possibilities for cannabis-infused beverages. The competition in the market is expected to intensify over the forecast period as the adoption of CBD-infused products is increasing worldwide. Some prominent players in the global cannabidiol market include:

  • ENDOCA

  • Cannoid, LLC

  • Medical Marijuana, Inc.

  • Folium Biosciences

  • Elixinol

  • NuLeaf Naturals, LLC

  • Isodiol International, Inc.

  • Pharmahemp d.o.o. 

Cannabidiol Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 6.36 billion

Revenue forecast in 2030

USD 22.05 billion

Growth rate

CAGR of 16.8% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Source type, sales type, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country Scope

U.S.; Canada; U.K.; Germany; Netherlands; Switzerland; Italy; France; Poland; Czech Republic; Croatia; China; Japan; India; South Korea; New Zealand; Australia; Brazil; Argentina; Mexico; Colombia; Uruguay; Chile; South Africa; Israel

Key Companies Profiled

ENDOCA; Cannoid, LLC; Medical Marijuana, Inc.; Folium Biosciences; Elixinol; NuLeaf Naturals, LLC; Isodiol International, Inc.; Pharmahemp d.o.o.

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Free report customization (equivalent to up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cannabidiol market report based on source type, sales type, end-use, and region:

  • Source Type Outlook (Revenue, USD Million, 2017 - 2030)

    • Hemp

    • Marijuana

  • Sales Type Outlook (Revenue, USD Million, 2017 - 2030)

    • B2B

      • By End-use

        • Pharmaceuticals

        • Wellness

          • Food & Beverages

          • Personal Care & Cosmetics

          • Nutraceuticals

          • Others

    • B2C

      • By Sales Channel

        • Hospital Pharmacies

        • Online

        • Retail Stores

      • By End-use

        • Medical

          • Chronic Pain

          • Mental Disorders

          • Cancer

          • Others

        • Personal Use

  • End-use Outlook (Revenue, USD Million, 2017 - 2030)

    • Medical

      • Chronic Pain

      • Mental Disorders

      • Cancer

      • Others

    • Personal Use

    • Pharmaceuticals

    • Wellness

      • Food & Beverages

      • Personal Care & Cosmetics

      • Nutraceuticals

      • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)
    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Netherlands

      • Switzerland

      • Italy

      • France

      • Poland

      • Czech Republic

      • Croatia

    • Asia Pacific

      • China

      • India

      • South Korea

      • Japan

      • New Zealand

      • Australia

    • Latin America

      • Argentina

      • Brazil

      • Mexico

      • Colombia

      • Uruguay

      • Chile

    • Middle East & Africa (MEA)

      • Israel

      • South Africa

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