Cannabidiol Market Mastery: Charting the Course of CBD Market Expansion
Posted by Roger on January 9th, 2024
Cannabidiol or CBD oil is derived from hemp plants and is used to provide relief from anxiety, pain and inflammation. CBD oil is available in various forms including tinctures, capsules, topical creams and edibles. It is a non-psychotropic extract of cannabis plant that provides medical benefits without causing psychoactive effects. The benefits of CBD oil in treating neurological disorders, cancer symptoms, reducing acne, anxiety and depression have boosted its demand globally.
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 Opportunity:
The passage of the U.S. Farm Bill in 2018 has led to the legalization of hemp-derived CBD products and opened new opportunities for market growth. Regulatory changes allowing farming of hemp and production of hemp extracts containing less than 0.3% THC have provided impetus to cannabidiol product manufacturers. Growing consumer acceptance and availability of CBD infused wellness products has boosted the market potential. The key opportunity for cannabidiol market lies in wide acceptance and legalization across various countries which is expected to drive the commercial production of high quality CBD extracts for treating anxiety, chronic pain and other health conditions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the cannabidiol market as it requires large capital investments for R&D, marketing, and distribution channels. However, the growing legalization of cannabis is attracting new players.
Bargaining power of buyers: The bargaining power of buyers is moderate in this market as buyers have many alternatives available. However, growing awareness about the medical benefits of cannabidiol products is increasing customer loyalty.
Bargaining power of suppliers: The bargaining power of suppliers is high in this industry as raw material suppliers like hemp farmers can control prices. Supplier concentration is also increasing over time.
Threat of new substitutes: The threat of substitutes is moderate as alternative treatment options are available but cannabidiol offers relief from a wide range of medical conditions without major side effects.
Competitive rivalry: The competitive rivalry is high owing to the presence of numerous competitors with differing product offerings, branding, and marketing strategies in both domestic and global markets.
SWOT Analysis
Strength: High demand for cannabidiol products driven by its therapeutic benefits for conditions like chronic pain, anxiety, and epilepsy. Growing legalization of cannabis in many countries is boosting market opportunities.
Weakness: Lack of standardized regulations and guidelines regarding quality and dosage. Social stigma and legal restrictions in some regions regarding cannabis-based products.
Opportunity: Large untapped growth potential in emerging Asia Pacific and Latin American markets. Rising popularity of cannabidiol infused foods, beverages, and other consumer products segments.
Threats: Stringent regulations on cultivation, production, and marketing of cannabis products by regulatory bodies in many nations. Health concerns regarding the long-term effects of cannabidiol consumption.
Key Takeaways
The global cannabidiol market is expected to witness high growth over the forecast period of 2023 to 2030 supported by growing awareness about health benefits, changing consumer attitudes, and regulatory approvals. The market size for 2024 is projected to reach 3.23 million.
Regional analysis: North America dominates the global cannabidiol market currently due to strong demand from countries like the U.S. and Canada where medical use of cannabis is legal. The Asia Pacific region is expected to be the fastest growing regional market in the coming years led by countries like China, India, South Korea where regulations are getting favorable.
Key players operating in the cannabidiol market are CV Sciences, Charlotte’s Web, Elixinol, Endoca, NuLeaf Naturals, Garden of Life. These players are focused on new product launches, increasing production capacities, and expanding global distribution networks to strengthen their market shares.
