GVR Report cover North America Hemp-derived Cannabidiol Market Size, Share & Trends Report

North America Hemp-derived Cannabidiol Market Size, Share & Trends Analysis Report By Product Type (Hemp-derived CBD Isolate, Hemp-derived CBD Distillate, Hemp-derived CBD Terpenes), By End-use, And Segment Forecasts, 2020 - 2027

  • Published Date: Nov, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-197-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 82

Report Overview

The North America hemp-derived cannabidiol market size was valued at USD 1.7 billion in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 27.7% from 2020 to 2027. The growing awareness and adoption of cannabidiol (CBD) for various health conditions are the key factors driving the growth. The liberalization of laws related to hemp is further increasing its adoption. Favorable government initiatives for cannabidiol and cannabidiol-derived products are one of the key factors driving the growth of the market. In 2018, the sanctioning of the U.S. Farm Bill (Agricultural Improvement Act) legalized hemp cultivation, which in turn, increased the demand for hemp-derived cannabidiol containing less than 0.3% tetrahydrocannabinol (THC) on a dry weight basis. The Mexican government permitted the cultivation, production, and consumption of medical cannabis containing less than 1% THC in 2017. This unique law passed by the government gave freedom to people to consume cannabidiol in daily life.

U.S. Hemp-derived CBD market size, by product type, 2016 - 2027 (USD Billion)

Cannabidiol has become the newest consumer trend due to the increasing number of people promoting the benefits of cannabidiol. Cannabidiol is highly used in personal and skincare industries apart from pharmaceutical and food and beverage industries. The adoption of cannabidiol-based skincare products is expected to significantly increase owing to the excellent restorative, antiaging, and anti-acne properties of cannabidiol. Many companies are incorporating CBD oils into their products to reduce inflammation and treat a wide range of skin conditions.

Consumer preference for plant-based ingredients is increasing, especially in dietary supplements and sports nutrition. Growing awareness about cannabidiol due to its health and wellness benefits is one of the key factors driving market growth. CBD nutraceuticals are gaining popularity as they offer multiple amino acids, making it a substantial protein supplement. The consumers are looking for more natural and effective supplements and medicines that can fulfill all their nutritional requirements, which is further supporting the adoption of these products.

The North American region is known to be the most progressive region concerning cannabis and cannabis-based products, including cannabidiol. The presence of a large number of CBD companies and relaxed laws regarding the utilization of CBD products is boosting the market growth. Although the consumption of cannabidiol is legal in much of the North American region, regulations differ from country to country. The Northern part of the continent is in complete favor of the consumption of CBD products.

However, the high prices of cannabidiol products are restraining market growth. The prices of cannabidiol are high and fluctuate from one company to another. Currently, countries that do not cultivate cannabis have to import it from other countries. Thus, the cost of import is added, making CBD products more expensive. Moreover, the limited supply of cannabidiol and overwhelming demand for it are further contributing to the high price of these products. Thus, these are some of the reasons obstructing the market growth of CBD products in the region.

Product Insights

Based on product type, hemp-derived distillate dominated the North America hemp-derived cannabidiol market with a share of 58.5% in 2019. The largest share is attributed to the factors, such as high consumption of CBD distillate due to its wellness and medical purposes. The positive government reforms regarding the legalization of hemp in many countries are increasing the adoption of hemp and hemp-derived distillate products.

Furthermore, the hemp-derived CBD terpenes segment is expected to expand at the fastest CAGR of 31.2% over the forecast period. Rising awareness and additional health benefits, such as the sleep-inducing effect, boosting entourage effect, among others provided by CBD terpenes, are expected to propel the demand for hemp-derived CBD terpenes over the forecast period.

End-use Insights

Based on end-use, personal care and cosmetics accounted for the highest revenue share of 31.7% in the market in 2019, owing to the growing application of the hemp-derived CBD in various personal care and cosmetic products. The rising use of such products in many personal remedies, such as mixing with oils added to coffee and the use of these products in producing edibles is making them consumer-friendly. Thus, increasing adoption and rising awareness of CBD products in the personal care and cosmetic segment is anticipated to fuel the North America hemp-derived CBD market in the coming years.

North America hemp-derived CBD market share, by end-use, 2019 (%)

Also, the food and beverage segment is expected to grow at the highest CAGR of 28.4% over the forecast period. The legalization of cannabidiol-infused food products coupled with increasing awareness regarding the health benefits of cannabidiol is some of the major factors driving the growth of this segment.

Regional Insights

The U.S. dominated the North America hemp-derived CBD market with a revenue share of 82.4% in 2019. Increasing awareness about the benefits of hemp-derived cannabidiol, growing consumer preference towards cannabidiol based products, supportive government reforms, the presence of key companies in hemp cultivation, and favorable climatic conditions are some of the key factors fueling the market growth in the country.

Mexico is expected to exhibit lucrative growth with a CAGR of 32.0% over the forecast period, owing to the rising usage of cannabidiol based products due to the presence of non-psychoactive ingredients. Furthermore, economic development supporting the utilization of cannabidiol based products and favorable government laws is boosting the demand for cannabidiol based products in the country.

Key Companies & Market Share Insights

The competition in the market is moderately high among existing players owing to the rise in demand for products and legal clearance to venture into the large-scale manufacturing of CBD based products. The rising demand in the market is likely to promote the entry of new companies in the future, fueled by increasing acceptance and awareness regarding CBD.

Furthermore, strategic expansions by companies in the form of mergers & acquisitions, among others are expected to boost the competition and propel the growth of the market. For instance, in 2019, Endoca announced a strategic partnership with Tough Mudder Inc.- a lifestyle, events, and media company that arranges obstacle sports events annually in countries such as the U.S., Canada, U.K, and Germany. Through this partnership, Tough Mudder would become Endoca’s CBD partner and sponsor for cannabidiol products. Some of the prominent players operating in the North America hemp-derived cannabidiol market are:

  • Elixinol

  • ENDOCA

  • HempMeds

  • Kazmira

  • CV Sciences, Inc.

  • Isodiol International, Inc.

  • CBD Life

  • CBD American Shaman

  • IRIE CBD

  • Bluebird Botanicals

  • True Blue

  • Groff North America Hemplex

North America Hemp-derived Cannabidiol Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 2.9 billion

Revenue forecast in 2027

USD 16.1 billion

Growth Rate

CAGR of 27.7% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Product type, end-use, country

Regional scope

North America

Country scope

U.S., Canada, Mexico

Key companies profiled

Elixinol; ENDOCA; HempMeds; Kazmira; CV Sciences, Inc.; Isodiol International, Inc.; CBD Life; CBD American Shaman; IRIE CBD; Bluebird Botanicals; True Blue; Groff North America Hemplex

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Segments
Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research, Inc. has segmented the North America hemp-derived cannabidiol market report based on product type, end-use, and country:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Hemp-derived CBD Distillate

    • Hemp-derived CBD Isolate

    • Hemp-derived CBD Terpenes

  • End-use Outlook (Revenue, USD Million, 2016 - 2027)

    • Personal care and cosmetics

    • Food and beverages

    • Nutraceuticals

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

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