CBD Market reports point to a promising future in the cannabidiol industry. Information is from GlobeNewswire
The size of the global cannabidiol market is expected to expand at a substantial compound annual growth rate (CAGR) during the forecast period, as CBD is quite famous for treating many illnesses such as anxiety, chronic pain, and neurological disorders, sleep disorders, stress, and nausea.
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Cannabidiol offers a wide range of therapeutic benefits to the user. Several governments worldwide have already made the use of Cannabidiol legal in their countries because of its many uses that can help create new drugs, leading to medical advances.
Some of the trends that will stimulate the growth of the global CBD market through 2027, identified by the Graphical Research survey, are listed below:
Cannabidiol oil will witness an increase in demand in North America
The North American cannabidiol market is expected to exceed US$61.2 billion in size by 2027. Based on the product, this market is divided into oil, dyes, transdermal patches, suppositories, tablets, capsules, spray oil, isolates, creams, roll-ons, and many others. Out of these, the CBD oil segment is expected to grow rapidly during the forecast period 2021-2027.
In fact, this segment dominated the market in 2019 and will continue to do so in the future. CBD oil is known to have several benefits for its users, especially for pain-related illnesses. Cases of mental illness in North America are increasing every year. Mental health institutions are increasingly demanding CBD oil, as it is well known for treating various mental illnesses, such as depression and anxiety, positively influencing the demand for the substance.
Chronic pain patients are the biggest consumers of CBD
There are several applications of Cbd for anxiety, chronic stress, depression, skincare, seizures, joint pain, and inflammation, among others. Out of these, CBD will have the greatest application in the chronic pain segment until 2027, reaching a valuation of US$20.6 billion in 2027 in North America, according to current market trends. CBD has several beneficial properties for chronic pain relief and is a better alternative compared to opioids.
CBD causes minimal side effects with use and contains no toxic elements. This has resulted in increased demand for CBD-derived drugs and products as a better alternative to conventional drugs, increasing the US market size.
Offline Cannabidiol distribution gains prominence in North America
There are two main distribution channels established to sell Cannabidiol in North America: online and offline. Offline distribution channels are divided into pharmacies and retail stores. The offline distribution channel in the region is expected to gain momentum through 2027 and expand at a CAGR of 32.6%.
One of the main reasons for this is that offline channels are more reliable than their online counterparts. Customers prefer offline channels to buy their drugs, as they not only increase confidence in their purchases, but they can also personally inspect the product before purchasing it. Another important reason is that it is much easier for retailers to monitor Cannabidiol products.
Favorable government regulations to promote the Asia-Pacific cannabidiol market
According to market reports, the Asia-Pacific CBD market is projected to be worth more than $1.9 billion by 2027. CBD was not on the list of legal products in several countries in the region. But today, that landscape has changed drastically as countries such as Japan, Australia, and New Zealand have made favorable changes to their laws to make the use of CBD-based products legal among their populations.
The regulatory bodies of these countries have inspected the benefits of CBD-derived products in the human body and have given their approval in this regard. For example, Australian authorities approved the use of a CBD-based product, Sativex, in 2017 to treat spasticity caused by multiple sclerosis. This drug has already gained the approval of more than 28 countries, which indicates positive changes in the regulatory framework of these nations. All of these factors will positively impact demand for Cannabidiol in the Asia Pacific.
CBD dyes will witness an increase in demand in Asia-Pacific
Among the different CBD-derived products such as oils, creams, and dyes, the segment is expected to gain traction and grow at an incredible 36% CAGR by 2027 in the Asia Pacific. This segment had the second largest regional market share in 2020, with a valuation of over $18.5 million. One of the main reasons for this is that this product has a longer shelf life than its alternatives. It has a wide range of applications, including the treatment of anxiety, nausea, inflammation, and pain.
These dyes are made with Cannabidiol taken from hemp plant varieties and contain 60% to 70% alcohol content, which increases the demand for them among end-users.
Creams and roll-ons will be in greater demand in Europe
The total European CBD market is estimated to exceed $25.8 billion by 2027. Oils, tablets, creams and roll-ons, capsules, spray oil and many other products use CBD oil as the main ingredient. Of these, the creams and roll-ons segment will witness robust growth over the timeline above as there is a growing emphasis among consumers on the use of skincare products containing Cannabidiol.
This ingredient is known to have many benefits for the skin and also to help improve its quality. A large percentage of Europe's population is increasing their spending on various cosmetic and skincare products each year. When talking about the medicinal benefits of CBD, it was proven that this product has anti-inflammatory properties, which are essential in all skin and makeup products. All of this will benefit companies in the market in Europe.
Prevalence of mental disorders will stimulate CBD consumption in Europe
Anxiety, chronic stress, depression, migraines, skincare, inflammation, and many other concerns can be treated using CBD-based products. But it is the anxiety and stress segment that will attract the greatest demand for this product in the coming years. This segment captured 22% of Europe's total market share in 2020 and is expected to grow further in the future.
The population of Europe is experiencing a worrying increase in mental disorders such as anxiety and stress, sleep disorders, and depression. This has led to an increasing number of healthcare institutions adopting CBD-based drugs to treat these conditions. According to the World Health Organization, almost 4.3% of the regional population was a victim of depression. All these aspects will promote market development.