CBD Gummies Market Size, Share & Trends Report

CBD Gummies Market Size, Share & Trends Analysis Report By Concentration (High, Low/Concentrated), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jan, 2020
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-853-4
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Report Overview

The global CBD gummies market size was valued at USD 998.2 million in 2018 and is expected to register a CAGR of 31.9% from 2019 to 2025. A rise in the legalization of cannabis for medical and recreational purposes is a major factor supporting the demand for Cannabidiol (CBD) gummies. No traces of Tetrahydrocannabinol (THC) content in the product is expected to further drive the demand among consumers interested in the consumption of the product for medical purposes.

Canada CBD gummies market size

CBD gummies are non-psychotropic, which means that the gummies won’t give highness to consumers as they don’t contain THC. The increasing use of cannabis for the treatment of neurological disorders, psychiatric disorders, and cancer along with pain control is anticipated to drive the demand for CBD gummies. The diverse application of cannabis is expected to result in significant growth opportunities for the market in the forthcoming years.

Growing consumer interest in cannabis edibles and concentrated and CBD-infused products is projected to support market growth. Cannabis consumers are looking for alternatives to smoking cannabis, which is projected to drive the demand for gummies, tincture, and chocolates among other edibles. As per 4A’s, 36% of the CBD consumers use edibles.

CBD Gummies are expected to replace other consumables, such as chocolates, cookies, brownies, and confectionaries that are considered to be unhealthy. Also, as per FONA International, CBD gummies were the third most popular food-related Google search in 2018. The demand for CBD gummies is majorly driven by millennials. Convenience in terms of carrying and consuming the product is anticipated to bode well for the demand. The absence of THC in the product is also expected to support the demand.

Consumption of CBD gummies to relieve anxiety, depression, pain, inflammation, and to induce sleep is expected to drive the growth of the market. The longer-lasting effect of the edibles over smoking is also estimated to drive the demand. Three-fourths of the participants associate consumption of CBD with at least one health benefit. Around 56% associate it with pain relief, 47% with anti-anxiety, 34% for sleep-aid, 30% for epilepsy, and 22% for socialization.

Concentration Insights

By concentration, the CBD gummies market is bifurcated into high and low/concentrated products. The demand for high CBD gummies is estimated to witness strong growth over the forecasted period. Patients of epilepsy, sleep disorders, schizophrenia, and glaucoma are the major consumers of high concentrated CBD gummies, with more than 20mg CBD content per gummy. Growing awareness among consumers regarding the advantages of marijuana edibles for the treatment of sleep disorders is anticipated to fuel the segment growth in the near future.

Low/concentrated CBD gummies were estimated to be the largest segment in 2018. First-time buyers prefer low content gummies ranging from 1 mg to 20 mg of CBD per gummy. Uncertainty and side effects such as tiredness, diarrhea, and changes in appetite and weight with the consumption of high CBD is anticipated to drive the demand for low concentration products. Low price is also projected to drive the demand among consumers buying the CBD gummies for general health purposes, socialization, and first-timers. Growing popularity among millennials is anticipated to further drive the demand in the near future.

Distribution Channel Insights

By distribution channel, the market is segmented into online and offline. Regular consumers of CBD gummies prefer online purchasing, owing to the ease of convenience. Also, the key players operating in the market are focusing on a direct-to-consumer sales strategy to increases transparency and trust and to gain a greater consumer base. This factor is projected to positively influence the segment growth in the forthcoming years.

Global CBD gummies market share

Consumers are more inclined toward offline stores, such as smoke and head shops, health stores, pharmacies, and cannabis dispensaries where cannabis sales are legal. Consumers prefer offline stores to purchase authentic and quality products. Retail pharmacies provide CBD products with a specific prescription. The key manufacturers are focusing on retail pharmacies as the preferred distribution channel owing to the easy availability of products for the consumers.

Regional Insights

North America is estimated to be the fastest and largest market for CBD Gummies. The legalization of cannabis usage for medical and recreational purposes is a major factor driving the regional demand. Canada legalized the use of cannabis for recreational and medical purposes in 2018. According to the National Conference of State Legislatures, a total of 33 U.S. states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands approve publicly available medical cannabis programs, resulting in the increased launch of new products in the region. Also, 13 U.S. states allow the use of low THC and high CBD products for medical purposes, resulting in increased demand for CBD gummies.

The market players focus on introducing new products and expanding their product portfolio. For instance, in 2018, CV Sciences, Inc., supplier and manufacturer of hemp-derived phytocannabinoids, announced the launch of PlusCBD Oil Gummies at the Natural Product Expo East 2018. Gummies are offered in two flavors - Cherry Mango and Citrus Punch - each containing 5 mg of CBD. These products are gluten-free, vegan-friendly, and non-GMO.

Europe is also estimated to witness significant growth over the forecasted period, owing to the rise in cannabis consumers. As per the Cannabis Trade Association, the number of CBD users in the U.K. increased from 125,000 in 2016 to 250,000 in 2017. In Europe, the U.K. is estimated to be the fastest-growing market owing to growing product demand. New companies are entering the market to cater to the rising demand for CBD infused edibles. For instance, in 2019, Pollen, a new CBD brand, was launched in the U.K. It offers luxury products such as CBD gummies, drink drops, and sparkling drinks. Its gummies are available in three flavors, namely, Cacao, Lemon, and Orange; Turmeric, Cayenne, and Grapefruit; and Honey and cherry.

Rising demand from Australia and Uruguay owing to the legalization of cannabis for medical and recreational purposes, and consumers’ willingness to try new CBD infused edibles, is expected to positively influence the growth of the rest of the world segment.

Key Companies & Market Share Insights

Key market players are CV Sciences; Dixie Brands Inc.; Reliva CBD Wellness; Sunday Scaries; Green Roads CBD; Medix CBD; Hemp Bombs; Pure Kana; Diamond CBD and Premium Jane. The market is highly fragmented in nature, as a large number of manufacturers actively engage in product launches and mergers and acquisitions to gain greater market share.

The market players engage in vertical integration and partnerships with players from various industries. For instance, in 2019, Plus Products Inc., a California-based edibles company, entered into a partnership with mattress startup company Casper to introduce melatonin- and CBD-infused sleep gummies. The company also partnered up with American artist and philanthropist John Legend for promoting the products. In 2019, Plus Products Inc. expanded its product offering in the Nevada Adult-Use market by signing a partnership agreement with TapRoot, a vertically integrated cannabis company operating with cultivation and manufacturing facilities in Las Vegas, Nevada.

CBD Gummies Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 1.61 billion

Revenue forecast in 2025

USD 6.95 billion

Growth Rate

CAGR of 31.9% from 2019 to 2025

Base year for estimation

2018

Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2019 to 2025

Report coverage

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

Segments covered

Concentration, distribution channel

Regional scope

North America; Europe; Rest of the World

Country scope

U.S.; Canada; U.K.; Germany; Netherlands; France; Australia; Other Countries

Key companies profiled

CV Sciences; Dixie Brands Inc.; Reliva CBD Wellness; Sunday Scaries; Green Roads CBD; Medix CBD; Hemp Bombs; Pure Kana; Diamond CBD; Premium Jane

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the CBD gummies market on the basis of concentration and distribution channels.

  • Concentration Outlook (Revenue, USD Million, 2015 - 2025)

    • High

    • Low/Concentrated

  • Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

      • Netherlands

      • France

    • Rest of the World (RoW)

      • Australia

      • Other Countries

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