Published Date: Feb 2020 | Report ID: GMI4541 | Authors: Sumant Ugalmugle, Rupali Swain



Report Format: PDF | Pages: 180 | Base Year: 2019

Industry Trends

Cannabidiol (CBD) Market size exceeded USD 2.8 billion in 2019 and is set to grow at around 52.7% CAGR between 2020 and 2026. Cannabidiol is a compound found in hemp plant which is being utilized due its therapeutic properties in humans. The growing trend among individuals to treat a variety of ailments such as anxiety, nausea, stress, chronic pain, neurological conditions and seizures are booming. This is due to the antibiotic and analgesic effects & properties present in cannabidiol.



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CBD was first discovered in 1940 by Roger Adams in the U.S. In the late 1990s, cannabis re-surfaced and enabled the emphasis on specific cannabinoids making it more important. Post many studies and research, CBD became a trending topic as it has therapeutic properties to treat a wide array of ailments.



Cannabidiol (CBD) Market Report Coverage Report Coverage Details Base Year: 2019 Market Size in 2019: USD 2,858.37 Million Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026 Forecast Period 2020 to 2026 CAGR: 52.7% 2026 Value Projection: USD 89,387.94 Million Pages: 180 Tables, Charts & Figures: 378 Geographies covered (18): U.S., Canada, France, Switzerland, United Kingdom, Netherlands, Italy, Australia, New Zealand, Japan, Thailand, Brazil, Mexico, Peru, Colombia, South Africa, Israel, Turkey Segments covered: Product, Application, Route of Administration, Source, Distribution Channel Companies covered (15): Isodiol, Medical Marijuana Inc., CV Sciences, Aurora Cannabis, Canopy Growth Corporation, NuLeaf Naturals, Tilray, Green Roads, GW Pharmaceuticals, Folium Biosciences, Medterra, Charlottes Web - CW Hemp Endoca, Elixinol and Gaia Herbs, LLC Growth Drivers: Growing medical applications of CBD

Increasing product adoption and utilization owing to government approvals

Changing regulatory landscape for approval of CBD globally

Increasing sales of CBD in retail stores Pitfalls & Challenges: Side effects associated with CBD oil

Duplicate & synthetic products available in the market

High cost of CBD products

Over complicated prescription process

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Increase in awareness regarding the potential benefits of CBD and increase in medical applications of cannabidiol will boost the adoption of CBD across the globe

The growing awareness and the acceptance of CBD products due to its potential health benefits will propel the CBD market growth positively. Post implementing the Agriculture Improvement Act of 2018, there has been an amplified demand for CBD-based products especially in countries such as the U.S., Canada, France, UK and Japan, among others. Few medical ailments treated with CBD include neurological conditions such as Parkinson’s disease, vomiting and nausea related to cancer chemotherapy, chronic pain conditions and other ailments.



As there are minimal studies available regarding the safety and efficacy of cannabidiol in humans and animals, major players in the market such as Tilray partnered with big pharmaceutical giants including Sandoz in 2018. Under this partnership, Sandoz will help in the sales of non-combustible and non-smokable medical cannabis products. This has created an ever-increasing demand for various forms of products such as CBD oils, capsules, isolates, creams and tinctures, thereby propelling the cannabidiol industry growth significantly.



Increasing adoption of tinctures for treating varied ailments will spur the market growth

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Based on product, the CBD market size is segmented into oil, tinctures, suppository, transdermal patches, isolates, tablet, capsules, vape oil, creams & roll-on and others. Tinctures segment witnessed a substantial growth over the historical period that was valued at USD 0.39 million in 2015 and USD 389 million in 2019.



The gradual increase in product approvals after the implementation of Farm Bill (2018) coupled with the increase in CBD product manufacturers has fostered the growth of the market. For instance, founded in 2014, Elixinol company had an annual revenue of $2 million in 2015, and reached to $4 million in 2016. Similarly, Aurora Cannabis had a revenue of $ 18 million in 2017 and reported $55 million in sales for the year 2018. Therefore, the aforementioned factors will aid in boosting the growth of the cannabidiol industry.



Increase in sports injuries and growing geriatric population will propel the joint pain & inflammation segment market growth

Joint pain & inflammation application accounted for around 10% of the market share in 2019 and is expected to witness a similar trend during the market forecast period. Joint pain & inflammation affects around 15 million individuals every year in the U.S. and mostly prominent in the geriatric population. According to the U.S. Department of Health & Human Services, from 2013-2015 about 54.4 million individuals were affected by some form of arthritis, gout, rheumatoid arthritis or lupus.



Additionally, sports injuries are on a rise and consuming painkillers (opioids) will only supress the pain to some extent, whereas cannabidiol oil has been proven to be useful in various sports injuries. Few of the sports injuries includes Achilles tendonitis, minor sprain/strain and muscle spasm. Also, the increasing opioids addiction can be curbed utilizing cannabidiol-based products, as CBD has proven to have non-psychoactive compounds.



Rapid adoption of tinctures, oils, sprays, capsules as well as recently approved drugs will boost the market growth

Based on route of administration, the market is segmented into oral, topical, inhalation, transdermal patches, rectal and sublingual. Oral emerged as the largest segment in terms of route of administration and was valued at USD 1,508.1 million in 2019. This is due to the increased adoption of oral CBD products such as oils, sprays, tinctures, capsules and tablets.



Additionally, novel FDA approved drug launches such as Epidiolex (GW Pharmaceuticals) for treating Lennox-Gastaut syndrome and Dravet syndrome will further propel the cannabidiol market growth. Thus, all these factors will positively contribute to segmental growth in the upcoming years.



Potential applications of hemp derived CBD products is expected to drive the product adoption

Hemp market segment held the largest share in 2019 as hemp derived products does not consist of any psychoactive compounds as marijuana. Also, various countries such as U.S., Canada, China, Uruguay, France, Australia, Spain and Russia support the cultivation of hemp, that would further create profitable opportunities in the CBD industry.



The efficacy of cannabidiol is not yet concluded, thus continuous research and studies must be conducted for testing its effectiveness. Therefore, it is now legal to grow hemp for research purposes in around 47 countries, of which few countries are India, Chile, Ukraine, Hungary, Czech Republic, Portugal, Egypt, Romania, Russia and others. Hence, owing to the need for research studies, hemp segment is anticipated to witness a substantial growth.



Rapidly growing sales in online stores is boosting the adoption of CBD products

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Based on distribution channel, the market is segmented into online and offline. Offline is further segmented into hospital pharmacies and retail stores. Online segment witnessed a significant growth over the historical period, wherein, the revenue of 2016 was 2.3 million. Online segment offers various advantages over offline such as cheap prices, more variety, easy returns, convenience and privacy for discreet purchases. Thus, owing to these advantages, customers are largely attracted towards online selling platforms, thereby boosting the market growth in the upcoming years.



Presence of key players and rapidly growing adoption of CBD products in the U.S. will boost the cannabidiol market growth

North America cannabidiol industry is expected to grow with a higher growth rate throughout the market forecast period and is projected to exceed USD 54 billion by 2026. Presence of major players and the increase in adoption of cannabidiol products is driving the market growth. Key market leaders operating in the North American market include CBD American Shaman, Isodiol, Aurora Cannabis, CV Sciences, Tilray and Green Roads among others.



Also, with the changing regulatory scenarios and increase in awareness regarding the potential benefits of cannabidiol-based products, the market is expected to witness an exponential growth during the analysis period. Further, according to the Parkinson's Foundation, around one million individuals will be suffering from Parkinson’s disease in the U.S. by 2020, which will be a key factor for augmenting the industry growth.



In addition, Canada is expected to be the fastest growing country in the North American region as the sales of cannabidiol products have increased in the country owing to the legalization and sale of both cannabidiol and THC effective marijuana for medical purposes. This is expected to augment the cannabidiol market demand in Canada during the study period.



Execution of strategies such as partnerships and collaborations by major industry players will boost the market growth

Some of the prominent players operating in the CBD market share include Isodiol, Medical Marijuana Inc., CV Sciences, Aurora Cannabis, Canopy Growth Corporation, NuLeaf Naturals, Tilray, Green Roads, GW Pharmaceuticals, Folium Biosciences, Medterra, Charlotte's Web - CW Hemp, Endoca, Elixinol and Gaia Herbs, LLC. Development and launch of advanced products for better outcomes and rigorous marketing are few competitive strategies adopted by market players.



Recent industry developments:

In October 2019, Isodiol announced that it has entered into a strategic partnership with Vitamin Shoppe for the commercial release of Iso-Sport Products. This partnership was aimed at expanding its cannabidiol hemp extract product portfolio for meeting the increasing customer demand.



In November 2019, CV Sciences announced a new partnership with Southeastern Grocers to launch cannabidiol oil Plus brand that includes topical as well as dietary products. The aim for the partnership was to increase availability and distribution of company’s best-selling PlusCBD oil products.



The cannabidiol market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 , for the following segments:



By Product

Oils

Tinctures

Suppositories

Transdermal Patches

Isolates

Tablets

Capsules

Vape oils

Creams and Roll-on

Others

By Application

Anxiety/stress

Sleep/insomnia

Chronic Pain

Migraine

Skin Care

Seizures

Joint pain & inflammation

Neurological conditions

Others

By Route of Administration

Oral

Topical

Inhalation

Transdermal Patches

Rectal

Sublingual

By Source

Marijuana

Hemp

By Distribution Channel

Online

Offline Hospital Pharmacies Retail Stores



The above information is provided for the following regions and countries:

North America U.S. Canada

Europe France Switzerland United Kingdom Netherlands Italy Others

Asia Pacific Australia New Zealand Japan Thailand Others

Latin America Brazil Mexico Peru Colombia Others

Middle East & Africa South Africa Israel Turkey Others





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