The global cannabidiol (CBD) market is experiencing a significant surge, with its value expected to skyrocket from USD 6.4 billion in 2022 to an estimated USD 22.05 billion by 2030.
This growth, representing a compound annual growth rate (CAGR) of 16.2%, is driven by increasing interest in the potential health benefits of CBD, leading to greater investment in research and development.
The Rising Popularity of CBD Products
CBD, a non-psychoactive compound found in the hemp plant, is gaining recognition for its potential health benefits, such as reducing anxiety and pain.
The increasing legalization and normalization of cannabis and hemp-based products have led to a high demand for CBD.
Companies are developing a variety of CBD products, including edibles, topicals, and beverages, to meet this demand.
The rise of e-commerce has further fueled the CBD market growth, allowing companies to reach a wider audience and increase sales through online channels.
Commercial retailers are now focusing on selling cannabis-based items, which have a higher profit margin. Many health and wellness stores, such as Walgreens Boots Alliance, CVS Health, and Rite Aid, now offer CBD-based products.
The Impact of COVID-19 on the CBD Market
The COVID-19 pandemic-induced nationwide lockdowns impacted daily operations and altered consumer behavior across many industries.
The CBD market faced a shortage in supply due to nationwide shutdowns of transportation and manufacturing in major raw material-producing countries like China and India.
However, the increasing acceptance and use of CBD products due to government approvals are expected to boost production and sales, thereby supporting market growth.
CBD in Health and Wellness
CBD is growing in popularity as an ingredient in skincare products for treating acne and wrinkles.
For example, Sephora recently added a line of CBD skincare products to its stores, and Ulta Beauty plans to launch its line of CBD-based products.
Many new companies are also entering the market for CBD-infused cosmetic products.
Companies, such as Echo Pharmaceuticals, have created products like Arvisol, an oral tablet containing pure cannabinoids for treating conditions like epilepsy and schizophrenia.
Moreover, companies in the global market are launching various products and services to maintain a competitive edge.
The Future of the CBD Market
The B2B sector dominated the market and accounted for a revenue share of 54.7% in 2022.
The segment will have substantial growth over the forecast period owing to a rise in the number of wholesalers offering CBD oil and the growing demand for CBD oil as a raw material.
This market is expected to grow further at the fastest rate during the forecast period on account of the rising product demand from the pharmaceutical industry and growing consumer awareness about its health benefits.
