U.S. Cannabinoids Market Size, Share & Trends Report

U.S. Cannabinoids Market Size, Share & Trends Analysis Report By Product (Cannabidiol (CBD), Tetrahydrocannabinol (THC), Cannabinol (CBN), Cannabidiolic Acid (CBDa)), And Segment Forecasts, 2020 - 2027

  • Published Date: Dec, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-255-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 69

Report Overview

The U.S. cannabinoids market size was valued at USD 2.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 20.4% from 2020 to 2027. Increasing number of consumers opting for isolated cannabinoid products and rising awareness pertaining to cannabinoid products are the key factors driving the market. The use of cannabinoids for various purposes has gained momentum in the U.S. Favourable government regulations have proved to be beneficial for the increase in the number of players entering the market. Moreover, the increase in demand for major as well as minor cannabinoids and affirmative researches carried on for claiming their health benefits has helped in increasing the awareness regarding cannabinoid use. However, the higher cost of cannabinoid products and their extraction processes are likely to hinder the growth of the market in the U.S.

U.S. cannabinoids market size, by product, 2016 - 2027 (USD Million)

The rise in the number of medical practitioners prescribing cannabinoids for various health issues is increasing the demand for these products, which in turn, is contributing to market growth. For instance, according to a survey of dermatologists conducted in the U.S., in 2018, around 91% of the total 531 respondents were affirmative for prescribing cannabidiol (CBD) based products to their patients. In addition, around 55.0% of patients asked about CBD based products to the dermatologists. Moreover, government earnings through taxation are viewed as an opportunity for countries to earn higher revenues.

The sanctioning of Farm Bill 2018 has created numerous growth opportunities in the market owing to the advent of the legalization of CBD and THC in some states of the country. This legalization is enabling companies to expand their operations in the U.S., which is positively impacting the market growth in the country. For instance, in 2018, the use of CBD-particularly derived from hemp and contains less than 0.3% THC on dry weight basis-was legalized post the sanctioning of Farm Bill (Agricultural Improvement Act) in the U.S. Moreover, increasing acceptance and adoption of CBD-based treatments over antibiotics is anticipated to propel the market during the forecast period.

Increasing number of consumers opting for isolated cannabinoid products is further driving the growth of the market. Cannabinoid products are used for the treatment of health conditions such as cancer, arthritis, etc. In addition, the rising number of medical practitioners prescribing cannabinoids for health issues has helped in increasing the demand and thereby increasing the number of consumers opting for cannabinoid treatment.

Growing awareness among consumers regarding health benefits offered by cannabinoids coupled with the increasing visibility of these products from different brands online as well as the offline channel is further aiding the growth of the market. For instance, in 2019, a survey conducted by the American Society of Anaesthesiologists demonstrated that around 75.0% of Americans were interested in using cannabinoid compounds for pain management.

Product Insights

Based on product, the CBD segment dominated the U.S. cannabinoids market and accounted for the largest revenue share of 69.1% in 2019. This high share is attributable to the increasing number of consumers opting for isolated cannabinoid products and rising awareness pertaining to cannabinoid products for health and wellness purposes in the U.S. The legalization of cannabis-based products has provided a remarkable opportunity for the end-user industries to expand. The growing number of research activities, increasing awareness regarding synthetic CBD, and rising strategic investments by companies are expected to contribute to the overall growth during the forecast period.

Furthermore, the demand for THC products has increased in recent years owing to significant factors such as legalization of these products in various states of the country, increasing awareness regarding health benefits of THC, a higher number of strategic investments by companies, and positive results of clinical studies with respect to THC.

U.S. cannabinoids market share, by product, 2019 (%)

On the other hand, CBDa products are anticipated to witness the fastest growth over the forecast period owing to potential health benefits and higher efficiency in managing health conditions. The rise in the number of players entering the market coupled with increasing awareness regarding health benefits offered by CBDa such as relieving pain, reducing inflammation, and lowering serotonin levels is further anticipated to fuel the growth of the product segment during the forecast period.

For instance, in 2019, GreenWay Herbal Products LLC, a U.S. based company announced the launch of their cannabinoid product range which contains CBDa-CBD formula. Such initiatives will help in increasing awareness regarding the potential benefits of the compound and thereby increase the demand in the coming years.

Key Companies & Market Share Insights

There is moderate competition amongst the existing players as the machinery and extraction processes are quite expensive and this poses a high entry barrier. However, the existing players are keen on diversifying their product portfolio into other cannabinoids which makes the market dynamic. For instance, In June 2019, the company purchased a 400,000 sq. ft. pharmaceutical facility in Colorado. This fully functional facility is expected to help in the production of finished products for its private-label customers. It would further help in creating an environment for R&D in accordance with the growing CBD industry.

Moreover, the research funding for the industry also plays an important role in promoting startups to launch novel and innovative products in the market. The growth of the market is expected to favor the entry of several new players in the future, with rising awareness regarding the health benefits of minor cannabinoids such as CBG, CBDa, CBC, and CBN in the U.S. Some of the prominent players in the U.S. cannabinoids market include:

  • Mile High Labs International

  • Global Cannabinoids

  • GenCanna

  • CBD, Inc. Group

  • SparkCBD

  • Rhozo Sciences

  • Maricann, Inc.

U.S. Cannabinoids Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 4.5 billion

Revenue forecast in 2027

USD 16.4 billion

Growth Rate

CAGR of 20.4% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Product

Country scope

U.S.

Key companies profiled

Mile High Labs International; Rhizo Sciences; Global Cannabinoids; SPARKCBD; CBD Inc Group; GenCanna; Maricann Group Inc.

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Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research, Inc. has segmented the U.S. cannabinoids market report on the basis of product:

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

    • Cannabidiol (CBD)

    • Tetrahydrocannabinol (THC)

    • Cannabinol (CBN)

    • Cannabidiolic acid (CBDa)

    • Other Cannabinoids (CBG and CBC)

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