CBD Oil Market: Current Analysis and Forecast (2022-2028)
$3999 – $6999
Emphasis on Product Type (Hemp oil and Marijuana oil); Application (Pharmaceuticals, Cosmetics, Food & Beverages, and others); Distribution Channel (Direct and Indirect)); and Region/Country
Global CBD Oil Market is expected to grow at a significant rate of around 28.5% during the forecast period. Cannabidiol is a chemical compound that is obtained from marijuana and hemp plants and is commonly used for medical purposes. It offers a wide range of applications, such as managing pain, stress relief, anxiety, muscle disorder, Crohn’s disease, Parkinson’s disease, and other medical conditions. In addition to this, CBD oil is gaining attention across other industries, including cosmetics, food and beverages, pet care, and others which is boosting the growth of the market during the forecast period. The companies in the market are rapidly launching new products in the market, thus boosting the demand for CBD oil in the forthcoming years. For instance, in May 2022, Canopy Growth Corporation launched new flavors for their flavored cannabis-infused carbonated drinks: orange orbit and the Grape. The launch of these products has increased the company’s product portfolio to deliver innovative products in the market. Further in March 2022, Martha Stewart, in collaboration with Canopy Growth Corporation and Marquee Brands, released 15-flavor CBD Wellness Gummies Sampler. Thus, the rising investment by pharmaceutical companies is another factor driving the growth of the market during the forecast period.
ENDOCA; Cannoid, LLC; Medical Marijuana, Inc.; Folium Biosciences; Elixinol; NuLeaf Naturals, LLC; Isodiol International, Inc.; Canopy Growth Corporation; Aurora Cannabis Inc.; Tilary Inc.; and others are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst product type, hemp oil category to witness higher CAGR during the forecast period”
Based on type, the market is bifurcated into hemp oil and marijuana oil. The hemp oil segment is expected to grow with high CAGR rates which are mainly attributed to the less concentration of tetrahydrocannabinol and high concentration of CBD, making it a more lucrative opportunity for the manufacturers and an option with the least potential legal ramifications. The companies have adopted strategic alliances to launch new products in the global market. For instance, in 2019, Vitalibis in collaboration with Bruce Lee Beverage, LLC launched its new premium Signature AB900 full spectrum, terpene-rich hemp oil. The bottle contains about 900mg of naturally occurring cannabidiol (CBD) and other cannabinoids per bottle, as well as a proprietary blend of natural herbs and other ingredients inspired by Bruce Lee’s health and wellness practices.
“Amongst application, the cosmetic to hold a significant share in the market in 2020”
On the basis of application, the market is categorized into pharmaceuticals, food and beverages, cosmetics, and others. Among these, cosmetic to hold a significant share of the market in 2020. This is mainly due to the change in the perception of consumers towards the advantages of natural and organic ingredients. In the last few years, consumers have opted for greener products due to the presence of a toxic substance in synthetic personal care products. Moreover, the rise in literacy rates as well as social media platforms, have also enhanced awareness of CBD skin care products. For example, Sephora has recently started rolling out more cannabis-derived beauty and skincare products such as hemp seed facial oils and CBD body lotions.
“North America to hold a significant share in the market”
In 2020, North America held a significant share of the global CBD oil market. This is mainly attributed to the favorable government policies for cannabidiol. To date, 37 states and the District of Columbia have approved the legal use of medical cannabis, whereas 21 have legalized the recreational or adult use of cannabis. The U.S. is expected to dominate the market during the forecast period. According to the data from American Sleep Association, more than 50 million U.S. adults have sleep disorders. CBD oil regulates and interacts with neurotransmitters thus assisting in getting deep sleep and treating insomnia. Increasing cases of sleep disorders and rise in the number of research indicating the effectiveness of CBD in treating such ailments will boost the market growth in the U.S.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
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|2.1.||Research Process of the CBD Oil Market|
|2.2.||Research Methodology of the CBD Oil Market|
|5||IMPACT OF COVID-19 ON THE CBD OIL MARKET|
|6||CBD OIL MARKET REVENUE (USD BN), 2020-2028F|
|8.2.||Food and Beverages|
|10.1.3.||Rest of North America|
|10.2.6.||Rest of Europe|
|10.3.4.||Rest of Asia-Pacific|
|10.4.||Rest of World|
|12||CBD OIL MARKET OPPORTUNITIES|
|13||CBD OIL MARKET TRENDS|
|14.1.||Demand Side Analysis|
|14.2.||Supply Side Analysis|
|15||VALUE CHAIN ANALYSIS|
|16.1.1.||Porters Fiver Forces Analysis|
|17.4.||Canopy Growth Corporation|
Research Methodology for the CBD Oil Market Analysis (2022-2028)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global CBD oil market were the three major steps undertaken to create and analyze the adoption of CBD oils in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global CBD oil market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the CBD oil market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the CBD oil market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as product type, application, and distribution channel. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the CBD oil market. Further, we conducted factor analysis using dependent and independent variables such as various product type, application, and distribution channels of CBD oils. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the CBD oil market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global CBD oil market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the CBD oil market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global CBD oil market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global CBD oil market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of product type, application, and distribution channel in the global CBD oil market.
The main objective of the Global CBD Oil Market Study
The current & future market trends of the global CBD oil market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the CBD oil market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of product type, application, and distribution channel
- Define and analysis of the regulatory framework for the CBD oil
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the CBD oil market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
- Company profiles of the CBD oil market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry