Global CBD Oil Market, By Source Type (Hemp, Marijuana), By Distribution Channel (B2B, B2C), By End-Use (Medical Treatment, Pharmaceuticals); Trend Analysis, Market Competition Scenario & Outlook, 2016-2026
- Published Date: September 2020
- Report ID: BWC20146
- Available Format: PDF
- Page: 173
Global CBD Oil Market size- Industry Trends & Outlook Report 2026
The Global CBD Oil Market size is expected to reach USD 28.67 billion by 2026 from USD 3.87 billion in 2019, at a CAGR of 33.12% during the projection period 2020-26. The increasing recognition of healing properties and health benefits of CBD oil drives the CBD oil market. Besides, growing acceptance and approvals from the states offer promising market prospects for CBD oil-infused medicines or food items, or cosmetic products. Marketing initiatives by industry players and social media influencers have turned the wave in favor of CBD oil consumption. Subsequently, the product range containing CBD oil is expanding to include skincare, intimate lubricants, hair-care, gummies, pills, and infused beverages besides pharmaceuticals and cosmetics. However, the complexity of regulations by major countries across the globe and high costs associated with its manufacture and trade retards market growth.
Global CBD Oil Market Overview
CBD Oil is extracted from hemp or marijuana found in the Cannabis Sativa plant. The moderate CBD oil consumption does not cause psychoactive effects but helps mitigate anxiety & depression, cancer symptoms, diabetic conditions, and reduce acne. CBD oil was a controlled substance earlier, and its trade, exchange, or manufacture was subject to many regulations in the US and other countries. However, over the last few years, CBD oil has received acceptance due to its safe consumption and several health benefits. It finds traction in various industrial applications such as food & beverages, personal care & cosmetics, and pharmaceuticals. The health and wellness retailers are increasingly allotting shelf space for CBD oil products due to its recognized health benefits and higher profit margins.
Global CBD Oil Market Outlook and Trends
Increasing State Approvals for Legitimate Use
As many as 33 states of the US have legalized the use of CBD oil for medical usage, and ten states have allowed its recreational use. Other countries such as Uruguay, Canada, and some others have legalized the use of marijuana. CBD oil is increasingly available and is consumed in the form of tinctures, infused edibles, topical and more by the consumers for treatment and recreational purposes. More and more government approved pharmacies, dispensaries and stores are stocking CBD oil-based products, including concentrates, lotions, oils, capsules, and edibles such as baked goods, gums, candies, coffee, chocolates, etc., driving the growth of the market.
Rising Awareness about Its Health Benefits
Multiple medical studies have shown that high efficacy of medicinal CBD oil derived from marijuana in various conditions of cancer, diabetes, acne, depression, and anxiety. CBD oil is beneficial for skin also because of its anti-inflammatory, anti-aging, and antioxidant properties. Due to increasing awareness about medicinal benefits and its properties, people are adopting CBD oil in various applications over the world, triggering its more demand.
Complexity of Guidelines & Regulations
Though CBD oil has been recognized for its various benefits, its consumption is still regulated and suspected, which impacts the market growth. Companies engaged in the production or trade of CBD oil need to comply with multiple tedious regulatory guidelines, discouraging market players. Medical practitioners also need to follow ambiguous guidelines in prescribing CBD oil-based medications. However, research and innovative product delivery solutions with quality cannabis plant harvests may help overcome this challenge.
Impact of COVID-19 in industry
The economies over the world have reported shrinkage in production, trade, and distribution activities due to restrictions on transport and production. CBD oil operations have also been affected due to supply chain and distribution constraints besides disruptions in production. However, as CBD oil offers healthcare benefits in various conditions and the variations offered by market players are likely to propel the market growth.
CBD Oil market is segmented on Source Type, Distribution Channel, and By End-user. Based on Source Type, the market is divided into Hemp and Marijuana segments. The marijuana segment fetched the largest revenue share in 2019 and, is expected to register the highest growth during the projection period due to its high adoption combined with its growing legalization. Marijuana-derived products include oils, tinctures, concentrates, and other topical solutions, which are increasingly recommended for wellness and medical purposes. In contrast, Hemp-derived marijuana finds its traction in nutraceuticals, pharmaceuticals, personal care & cosmetics, and food & beverages. The hemp segment is also anticipated to receive a boost due to its increasing demand from numerous skincare and cosmetic brands.
CBD Oil Market distribution network consists of B2C and B2B segments wherein the B2C segment includes online pharmacies, retail, and hospital pharmacies while B2B includes wholesalers and distributors. In this market, the B2C segment dominates with its most immense contribution in revenues and, is expected to retain the same due to the higher adoption of CBD oil-infused medicines in hospital pharmacies.
Based on End-use, the market is divided into Medical Treatment and Pharmaceutical segments. The medical segment dominates the market with significant share and, is anticipated to maintain the same share due to its rising use in epilepsy, sleep disorders, chronic pain, anxiety, and symptoms of multiple sclerosis. The pharmaceutical segment is expected to witness the highest growth during the projection period because of its use in manufacturing CBD infused drugs or products for treating various conditions. For instance, GW Pharmaceuticals, Isodiol International Inc., and CannaHealth manufacture soft-gel capsules and tinctures using CBD oil for treating epilepsy and multiple sclerosis symptoms.
North America retained the significant market share in the year 2019 and, will continue the same in the forthcoming period because of increasing approvals for its use in Canada and the US as well as its wide acceptance in healthcare. Besides, the Farm bill in the US also supports the production of hemp-derived CBD oil. The Asia-Pacific market is also expected to notice substantial growth due to the establishments of a hemp manufacturing plant in China. China accounts for the significant production and exports of hemp-based CBD in the region, and growing legalization and usage of CBD oil is expected to fuel the demand further in these countries.
The major players in the market are Isodiol International Inc., ENDOCA, Medical Marijuana Inc., Cannoid LLC, NuLeaf Naturals LLC, Pharmahemp d.o.o. , Canopy Growth Corporation, Elixinol, Folium Biosciences, Aurora Cannabis, and others.
May 21, 2020: New report of Medical Marijuana shows that CBD usage rates are on the rise in the US. 86% of US citizens know about CBD, and 20% of them have used it at least once. It also reveals that CBD oil consumption supports balance and optimizes the functioning of the human body.
October 9, 2019: Isodiol International Inc announces its strategic relationship with Vitamin Shoppe, Inc. for the launch of the company’s Iso-Sport hemp-extracted Products.
Scope of the Report
Historical data – 2016-2018
Base Year – 2019
Forecast – 2020 – 2026
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, South Korea UAE, South Africa, Saudi Arabia.
By Source Type, By Distribution Channel, By End-use and By Region
Isodiol International Inc., ENDOCA, Medical Marijuana Inc., Cannoid LLC, NuLeaf Naturals LLC, Pharmahemp d.o.o., Canopy Growth Corporation, Elixinol, Folium Biosciences, Aurora Cannabis and others.
By Source Type
By Distribution Channel
Ø Medical Treatment
Ø North America
Ø Asia Pacific
Ø Latin America
Ø Middle East & Africa
The objective of the Study:
Ø To analyze and estimate the Global CBD Oil Market size, in terms of value.
Ø To examine the market segmentation carefully and estimate the market size, in terms of value, based on the region by segmenting the Global CBD Oil Market into five regions, namely, North America, Europe, Asia Pacific, Rest of the World and their leading countries.
Ø To outline, categorize, and project the Global CBD Oil Market based on the Source, End-user, Distribution Channel, and Region.
Ø To examine competitive developments in product form, source, and industry end-users within the Global CBD Oil Market.
Ø To highlight market dynamics such as drivers, restraints, opportunities, and challenges and their impact.
Ø To provide a detailed competitive landscape, including major players, their strategic profiles, and market shares.
Business Questions Answered by the Report
Ø How will the market drivers, restraints, and opportunities affect the market dynamics?
Ø What will be the market size in terms of value and volume and market statistics with a detailed classification?
Ø Which segment dominates the market or region, and which one will be the fastest-growing, and why?
Ø Who are the key players in the market, and what is their share?
Ø What is the strategy adopted by key players, and how does it affect the existing and new players?
Customization Scope for the Client
Client satisfaction is our first and last priority, and that is why BlueWeave Consulting offers customization as per the client’s specific needs. The following customization options are available for the report:
Ø Additional Company Information
Ø Detail Analysis of five additional companies
Ø Additional country analysis
Ø Detailed segment analysis
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