The hospital pharmacies sub-segment accounted for the significant revenue share in 2020, owing to the increase in the number of companies establishing exclusive collaborations with retail pharmacies to increase their visibility and create an independent entity for customers to purchase CBD products. Furthermore, the CBD market is expected to present significant opportunities for market participants, owing to a surge in stockpiling events by pharmacies, exclusive collaborations of companies with retail pharmacies, and an increase in the number of patients opting for CBD treatment.
Products in the market provide users the health benefit of cannabidiol without intoxication. Hence, they are gaining traction within a short time. Moreover, competition in the global market is high because companies are focused on increasing their product offerings, entering new markets, and gaining new consumers.
However, the COVID-19 pandemic has caused unprecedented lockdowns all around the world, collapsing daily operations and changing consumer behaviors in nearly every industry. As the response to COVID-19 ramps up, retail stores have shut down. The market started experiencing a shortage in supply due to the nationwide shutdown of transportation and manufacturing in major raw material manufacturing countries, such as China and India. In addition, due to supply chain disruptions in the U.S., the supply of other raw materials has been limited, which is disrupting the manufacturing, and in turn, the supply chain of CBD consumer health products.
As the response to COVID-19 ramps up, retail stores have shut down, thereby impacting the sales of CBD products. Disruptions in the supply chain have led to limitations on the supply of other raw materials, hampering growth.
Cannabidiol derived from hemp is anticipated to witness rapid growth owing to increasing demand from the pharmaceutical sector and rising awareness among consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to have a positive impact on the demand for cannabidiol in the pharmaceutical sector. Oils, tinctures, concentrate, capsules, topical solutions such as slaves, lip balms, lotions, and edibles such as baked goods, coffee, chocolates, gums, and candies are some of the CBD products which are in high demand.
On the other hand, the existence of strict regulations and the high cost of cannabidiol products are some of the major factors limiting the growth of the market. In addition, the absence of legalization initiatives in many Asian and African countries is another main factor impeding the market growth.
The pharmaceuticals segment dominated the Cannabidiol (CBD) market and accounted for the highest revenue share of 42.8% in 2020. The segment is anticipated to grow at a lucrative rate over the forecast period. The large share has been attributed to factors such as the increasing number of ongoing trials to study the impact of CBD on certain health conditions is anticipated to drive the demand in the forthcoming years. Furthermore, many companies acquire CBD oils in bulk and manufacture CBD-infused products. These products are used by a large consumer base as a pain and stress management alternative. Thus, most of these products are depicted to be in the growth phase of the market.
Based on Regional Presence
Global CBD Oil Market Segmentation
[165+ Pages Research Report] This report provides a detailed analysis of the CBD oil market by type (THC dominant, CBD dominant, Marijuana based, Hemp based), by application (Food and Beverage, Personal Care/Cosmetics, Pharma and Nutraceuticals, Industrial Application) and geography (North America, South America, Europe, APAC, and MEA). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors, including Joy Organics, CBD American Shaman, CV Sciences, Inc., Gaia Herbs, Curaleaf, Diamond CBD, Medical Marijuana, Inc., Emblem CANNABIS Aphira, ConnOils, LLC, Nu Leaf Naturals, LLC, Folium Biosciences, ENDOCA, Irie CBD, PureKana, Canopy Growth, Isodiol International Inc., Elixinol Global Limited, Aurora Cannabis, Kazmira, etc.
Utilization of CBD Oil in Pharmaceutical Industry
Based on Application
Side Effects of CBD inhibiting the Market Growth
Pune, India, May 27, 2021 (GLOBE NEWSWIRE) — Proficient Market Research has published a new research report titled “Global CBD Oil Market – By Type (THC Dominant, CBD Dominant, Marijuana Based and Hemp Based), Product Type (Original and Blended), Product Category (Unflavoured and Flavoured), Application (Food and Beverages, Personal Care/Cosmetics, Pharma and Nutraceuticals and Industrial Application), Distribution Channel (Direct and Indirect) – Growth, Future Prospects, Post COVID-19 Scenario 2021 – 2028”
Manufacturers are producing products that are better in use on the social platform with engaging product offerings for a better usage trend. The initiative of considering medical cannabis as a socially accepted medicine for pain relief and other problems is sourced in such social clubs also known as cannabis clubs.
Though it allows institutes of foreign origin to initiate medical cannabis program and projects a scope of development to the markets where it is yet form its hold. Institutes follow a routine method in conducting research over the benefits and characteristic of CBD and marking the properties in use for medical conditions.
Demand for procedure in elderly population is affecting the socioeconomic environment surrounding medical care. Moreover, healthcare services for the elderly are government-subsidized. It is still not something clearly observed in every middle economy or developing country but effects a large number of population in response to provide aid.
Research about the balance of pros and cons of CBD is ongoing near every production and consumption cluster, and debates about their usage is being carried out in all of the regions wherever there are significant number of potential prospective consumers. Overall CBD has a large addressable market, of which a large part is untouched.
Medical cannabis is not limited to certain conventional products such as oil spray, dried form, tinctures and tea, the main move is to create a consumer friendly approach in considering cannabis as a drug. Many facilities are open to rediscover it as a medicine in a more prosperous way by engaging consumers to social clubs.
Affirmation of the therapeutic value of cannabis by the WHO, and the U.S. National Academies of Sciences, helps challenging un-supportive views, and encourages governments, research scholars, health-care providers, and consumers to consider its potential. Medical community across the globe recognized its potential value and legalization, thereby burgeoning demand for the medical cannabis.
CBD is commonly used to relieve anxiety and it helps the insomnia patients in falling asleep and staying asleep. Certain CBD manufacturers have been scrutinized by the government who claim that CBD is a cure for cancer.