July 19, 2024

The Global Cannabidiol Market is driven by Rise in acceptance of medical cannabis

Cannabidiol or CBD is one of the primary chemical compounds found in the cannabis plant. CBD products are increasingly being used as an alternative medical treatment to manage various health conditions such as chronic pain, epilepsy, arthritis, anxiety, insomnia, cancer, and other ailments. CBD provides therapeutic benefits without any psychoactive effects making it a safe alternative for medical use. The growing acceptance of medical cannabis and legalization of recreational cannabis in various regions is fueling the growth of the CBD market. Cannabis products such as oils, edibles, topicals, etc. containing CBD enable patients to manage chronic health conditions effectively with minimal side effects.

The global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The rising demand for CBD products from the cosmetic and personal care industry is expected to drive the market growth over the forecast period. CBD anti-aging products are being used as it helps in maintaining healthy skin by reducing inflammation and slowing down the skin aging process. In addition, CBD infused lip balms, lotions, and face creams are used for hydrating and nourishing the skin. Major companies are launching new CBD infused skincare and personal care products to capitalize on increasing consumer spending on natural beauty and wellness products. For instance, Cannuka launched hydrating body creams and soothing balms infused with CBD for skin nourishment. The introduction of innovative CBD product offerings catering to changing consumer preferences will support the market expansion in the coming years. However, lack of regulatory standards remains a key challenge for the industry.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cannabidiol market is moderate as it requires a significant investment to develop CBD products and has regulations around new players entering. However, an increasing number of new players are entering the market regularly.

Bargaining power of buyers: The bargaining power of the buyers in the cannabidiol market is moderate. Buyers demand new and innovative products at competitive prices.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are many suppliers in the market providing raw materials and products.

Threat of new substitutes: The threat of new substitutes is low as CBD is unique in its applications and there are limited substitutes.

Competitive rivalry: The competitive rivalry in the market is high as the market is growing and attracting many new players regularly.

Key Takeaways
The global cannabidiol market is expected to witness high growth. The global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.

Regional analysis: North America dominated the market in 2023 and is expected to maintain its dominance over the forecast period. Increasing legalization of cannabis for both medical and recreational use is driving market growth in the region. Europe is expected to witness the fastest growth over the forecast period due to increasing awareness and acceptance of CBD products.

Key players: Key players operating in the cannabidiol market are ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Folium Biosciences, Elixinol, NuLeaf Naturals, LLC, Isodiol International, Inc. and Pharmahemp d.o.o. Players are focusing on expanding their product portfolios and entering new markets to gain market share. Partnerships and acquisition activities among players have also increased in recent years.

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  1. Source: Coherent Market Insights, Public sources, Desk research

2.      We have leveraged AI tools to mine information and compile it