Cannabidiol Market Forecast (2019 – 2026) By Key Segment, Source Type (Hemp, Marijuana), Distribution Channel (B2B, B2C), End Use, and Region

The global cannabidiol market is anticipated to reach $ 24.0 billion by 2026 and grow at a CAGR of 27.4% from 2019 to 2026. Among all cannabinoids, cannabidiol oil is usually used for numerous medical purposes such as in treating anxiety and depression, relieving stress, preventing diabetes, mitigation of pain, alleviation of cancer symptoms, and acne reduction. The increase in implementation of CBD-based products for treating numerous health disorders is boosting the growth of market.

Drivers: Rising awareness about the healing benefits of cannabidiol to boost the market growth

Before few years researchers have stated that cannabidiol is safe for human consumption when taken in the prescribed amount. Since then, many countries have legally approved the use of cannabidiol for industrial uses such as in personal care and cosmetics, pharmaceuticals, and food & beverages. 

Growing awareness about the therapeutic benefits of cannabidiol is encouraging people to buy CBD based products, regardless of their price. Mainstream vendors are now concentrating on selling CBD based products, as these products have a higher profit margin. Some of these health and wellness retailers selling CBD based products are CVS Health, Rite Aid, and Walgreens Boots Alliance. CVS Health is planning to sell CBD topicals through its 800 stores, and Walgreens Boots Alliance is planning to sell CBD containing topicals in 1500 of its stores in the U.S.

Restrains: Higher costs of CBD-based products to restrict the market growth

The implementation of strict rules for usage of CBD products and their high cost are some of the chief factors limiting the growth of this market. Furthermore, the absence of legalization programs in numerous Asian and African countries is another important factor hindering the growth of the CBD market. 

Opportunities: Social media influencers to highlight the benefits of cannabis

Cannabidiol has turn out to be the newest consumer trend, which is an outcome of growing number of social media influencers encouraging the benefits of cannabis, marketing initiatives by the industry experts, and growing application areas. Additionally, increasing product choices such as cosmetics, intimate lubricants, infused beverages, skincare, haircare, pharmaceuticals, gummies, pills, and other products are also driving the growth of the cannabidiol market.

Additionally, rising acceptance and usage of the product among consumers due favorable government regulations is a chief factor expected to drive the demand for cannabidiol infused products.

Segment Analysis

The global cannabidiol market is segmented based on source, application, distribution channel, and region. Based on the source type, the market is classified into hemp and marijuana. Based on application, the market is divided into medical, personal use, pharmaceuticals, and wellness. Based on distribution channel, the market is bifurcated into B2B and B2C. B2C segment is further divided into hospital pharmacies, online as well as retail stores. Regionally, the market is evaluated across North America, Asia-Pacific, Europe, Middle East & Africa (MEA), and Latin America along with their prominent countries. 

Marijuana-derived CBD segment predicted to grab the major revenue share in the coming years

By source type, the marijuana-derived CBD segment was valued at $3.9 billion and was accounted for the largest revenue share in 2018. This was mainly because of the growth in acceptance of refined cannabidiol products and the rise in legalization of medical marijuana. Besides, the effectiveness of marijuana-derived CBD in treating neurological disorders like epilepsy and multiple sclerosis, cancer and cancer related symptoms such as nausea, vomiting and pain, also reducing blood pressure and preventing heart damage is one of the crucial factors for the segment’s large share. 

Marijuana-derived CBD products can be purchased from dispensaries as well as government-approved medical stores. These products contain tincture, capsules, concentrates, oils, and topical solutions such as lip balms, and lotions. It also consists of edibles such as coffees, baked goods, gums, chocolates, and candies. The increasing implementation of CBD-infused products derived from marijuana for medical and wellness uses is another main factor expected to propel the growth of this segment throughout the forecast period.

Hemp-derived CBD has been discovered useful in numerous application areas such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food & beverages. The anti-inflammatory, anti-aging, and antioxidant properties of CBD based products are also responsible for their growing demand all across the world. Several skincare and cosmetic brands have now started manufacturing hemp-derived CBD products. Hence, the aforesaid factors will be accountable for the fastest growth rate of this segment during the forecast period.

B2C segment to grow at a considerable growth rate during the forecast period 

The B2C segment accounted for the largest revenue share in 2018 and is anticipated to grow at a substantial growth rate over the forecast period. Easy availability of these products to the customers is one of the key factors propelling the growth of this segment. Furthermore, rise in acceptance of CBD oil and tinctures for personal and medical applications obtainable through retail stores, pharmacies, and online stores is predicted to accelerate the growth of this segment during the forecast period.

In the B2C segment, hospital pharmacies conquered a major share of the market in 2018 due to increased usage of cannabidiol-infused medicines in hospital dispensaries. Furthermore, the validation of cannabidiol infused medicines for numerous heath issues has encouraged the demand for these products, which, in turn has backed the development of the hospital pharmacy segment.

Medical segment to dominate the market during the forecast period 

The medical segment grabbed a major share of the market in 2018 with a revenue share of over 40%, and is anticipated to grow with a healthy growth rate during the projected period. This is mainly because of the growing use of CBD for therapeutic treatments such as schizophrenia, sleep disorders, chronic pain, epilepsy, and symptoms of multiple sclerosis. Furthermore, people experiencing chronic pain are now opting for CBD-based products to cure related disorders due to which the market is projected to grow at an increased rate over the forecast period.

Pharmaceutical segment to witness highest growth rate over the forecast period

The pharmaceutical segment is predicted to observe the highest growth rate during the estimated period. Companies producing CBD infused medicines for treating numerous therapeutic treatments such as epilepsy and multiple sclerosis (MS) symptoms are anticipated to propel the growth of this segment. Besides, the use of cannabidiol for manufacturing softgel capsules and tinctures by various key players such as GW Pharmaceuticals plc; Charlotte's Web; Isodiol International Inc.; and CannaHealth is also fueling the growth of this segment.

North America to lead the market during the forecast period

North America seized the dominant market share in 2018 and is predicted to hold a top position in the market during the estimated period. The approval of government for the use of medical cannabis in states of the U.S. including Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Washington, Oregon, Vermont, and Washington D.C., the liberalism of government protocols about the same, and an overall surge in the acceptance of cannabidiol for wellness, pharmaceutical, and personal use are some of the main factors fueling the growth of the market in this region. Additionally, the implementation of the Farm Bill in the U.S., allowing hemp-derived CBD is also supporting the growth of the market in this region. Furthermore, Canada has legally approved the manufacturing and sale of both CBD and THC potent marijuana for medicinal applications. Hence, the availability of CBD based products in the country is also supporting the market growth.

Asia Pacific to grow at a fastest rate during the estimated period

The Asia Pacific market is expected to experience the fastest growth over the forecast period due to the setup of hemp manufacturing plants, specifically in China. China is the major hemp cultivator in Asia and cultivates approximately half of the world’s hemp production. The country also exports around 90% of its products to Germany, the UK, the Netherlands, the U.S., and Japan. Furthermore, companies operating in end-use industries such as personal care and cosmetics are concentrating on the emerging economies to expand their profitability and sales. Hence, the rising importance of cannabidiol based product manufacturers’ in Asia Pacific and the increasing legalization of cannabis for medical uses in these countries are some of the main factors boosting the market growth.

Key Players

Some of the companies functioning in the market are Isodiol International, Inc.; Medical Marijuana, Inc.; Cannoid, LLC; Elixinol; Folium Biosciences; ENDOCA; NuLeaf Naturals, LLC; and Pharmahemp d.o.o. Product launches, partnerships, and acquisitions are some of the key strategies adopted by these market players to increase their share.

Key Benefits for Stakeholders

• This study offers the analytical representation of the global cannabidiol market along with the recent trends and future estimations to portray the forthcoming investment pockets
• The overall market potential is determined to understand the lucrative trends to help stakeholders gain a stronger position in the market
• The report presents information related to key drivers, restraints, and opportunities with an exhaustive impact analysis
• The current market is quantitatively analyzed from 2019 to 2025 to highlight the financial competency of the industry
• Porter’s five forces analysis to demonstrate the potency of the buyers and suppliers of the market is also provided in the report

Key Segments

By Source Type 

• Marijuana 
• Hemp

By Distribution Channel 

• B2B
• B2C

  • Online
  • Hospital Pharmacies
  • Retail Stores

By End-Use 

•  Medical

  • Cancer
  • Chronic Pain
  • Mental Disorders
  • Others

• Personal Use
• Pharmaceuticals
• Wellness

  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

By Region

• North America

  • U.S.
  • Canada

• Europe

  • U.K.
  • Germany
  • Netherlands
  • Switzerland
  • Italy
  • France
  • Poland
  • Czech Republic
  • Croatia

• Asia Pacific

  • China
  • India
  • South Korea
  • Japan
  • New Zealand
  • Australia

• Latin America

  • Argentina
  • Brazil
  • Mexico
  • Colombia
  • Uruguay
  • Chile

• Middle East & Africa (MEA)

  • Israel
  • South Africa