CBD Gummies Market Overview & Potential Growth Opportunities 2025Posted by Nicky Arora on January 20th, 2021 The global CBD gummies market size is expected to reach USD 6.94 billion by 2025, exhibiting a 31.9% CAGR over the forecast period, according to a new report by Grand View Research, Inc. The market is highly fragmented in nature owing to the presence of small and medium scale companies. The majority of the companies are based out of Canada owing to the legalization of cannabis in the country for medical and recreational purposes. The growth is driven by the growing trend of cannabis legalization across the globe. Different governments are legalizing marijuana to eradicate the black market and to boost the tax revenue from legal sales of marijuana products.
Growing consumer interest in cannabis edibles is expected to support market growth. As per 4A’s, 36% of the Cannabidiol (CBD) consumers used edibles. Three-fourths of the participants associate consumption of CBD with at least one health benefit. Around 56% associate it with pain relief, 47% for anti-anxiety, 34% for sleep-aid, 30% for epilepsy, and 22% for socialization. The market players focus on consumer trends for planning their business strategies. For instance, in 2019, Plus Products Inc., a California-based edibles company, entered into a partnership with mattress startup company Casper to introduce melatonin- and CBD-infused sleep gummies. The company also partnered with American artist and philanthropist John Legend for promoting the products.
The players operating in the CBD gummies market are expanding their reach through business partnerships. For instance, in 2019, Plus Products Inc. expanded its product offering in the Nevada Adult-Use market by signing a partnership agreement with TapRoot, a vertically integrated cannabis company operating with cultivation and manufacturing facilities in Las Vegas, Nevada.
CBD gummies manufacturers are coming up with new ways to create brand value and distribution channels. For instance, in 2018, the first cannabis dispensary in a hotel was established in The Standard Hotel for an LA-based cannabis company, Lord Jones. The hotel stocks the minibar with cannabidiol gummies in its Los Angeles, New York, and Miami Beach locations.
To gain market share, the companies are focusing on merger and acquisition strategies. For instance, in 2019, Tilray acquired alcoholic cocktail gummy maker, Smith & Sinclair, to create a line of CBD edibles. The product will be distributed in the U.S. and Canada. This acquisition offers the company an opportunity to diversify the product portfolio, differentiate itself from others, and gain market share.
The companies are also entering into partnerships with distributors. For instance, in 2019, CV Sciences, Inc. expanded its distribution partnership with more than 400 Kroger stores in five new states - Georgia, Montana, Texas, Utah, and Virginia. This partnership will help the company sell its product in 22 states and 1,350 stores across many of Kroger’s retail banners, including Kroger, Dillons, Fry’s, Fred Meyer, King Sooper, Mariano’s, Pick ‘n Save, QFC, and Smiths. The company also partnered up with Southeastern Grocers, Inc. to distribute the products in Florida and South Carolina. Tilray, Inc., in 2019, acquired all of the issued and outstanding securities of 420 Investments Ltd. (FOUR20), an adult-use cannabis retail operator headquartered in Calgary, Alberta.
The market is competitive in nature due to the rising number of new entrants. For instance, in 2019, Pollen - a new CBD brand - was launched in the U.K., offering luxury products such as CBD gummies, drink drops, and sparkling drinks. Their CBD gummies are available in three flavors, namely, Cacao, lemon, and orange; Turmeric, cayenne, and grapefruit; and Honey and cherry. Companies are also launching new products to gain greater market share. For instance, in 2018, CV Sciences, Inc., supplier and manufacturer of hemp-derived phytocannabinoids, announced the launch of PlusCBD Oil Gummies at the Natural Product Expo East 2018. These CBD gummies are available in two flavors - Cherry Mango and Citrus Punch - each containing 5 mg of CBD. They are also gluten-free, vegan-friendly, and non-GMO.
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CBD Gummies Market Report Highlights
CBD Gummies Market Segmentation
Grand View Research has segmented the global CBD gummies market on the basis of concentration, distribution channel, and region:
CBD Gummies Concentration Outlook (Revenue, USD Million, 2015 - 2025)
CBD Gummies Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
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