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The fastest growing industry in the world…..
Cannabis has become one of the most innovative and disruptive industries globally with rapid growth potential, and thanks to a more progressive legislative approach in Europe, investors are now plowing millions into the nascent cannabidiol (CBD) market.
According to CB Insights, in 2019, CBD startups even in Europe saw a record level of investment—34 innovative companies received a total of $128.5 million. Annualized activity suggests funding could continue to rise this year, approaching $150 million. “Regulatory relaxation has been the predominant driver of investment and gained momentum in 2019, as Luxembourg became the first European country to announce its intent to legalize cannabis for recreational use. Investors believe a ‘domino effect’ could follow, as seen previously in North America and Asia.
A recent report by the Centre for Medical Cannabis estimates that 8-11% of U.K. adults respectively—approximately 4-6 million people—have tried CBD. The market size is estimated at $390 million per year and expected to be just short of $1.3 billion in 2025. This would be equivalent to the entire U.K. herbal supplement market in 2016.
In the U.S. today, some of the most well-known cannabinoids are tetrahydrocannabinol (THC), cannabinol (CBN) and cannabidiol (CBD). CBD in particular has drawn the attention of several researchers, many of whom are studying its impact on epilepsy, neuropsychiatric disorders, cancer, anxiety, and other conditions.
Recently, the FDA approved the use of CBD to treat two types of epilepsy.
Legalized medical marijuana, now available in 33 states, is also helping supplant opioid treatment of chronic pain. In one medical marijuana study, 80% of users said the drug helped reduce chronic pain, and 50% of those had previously been treated with opioids. That has resulted in falling opioid prescriptions in states where marijuana is legalized.
Over 100 cannabinoids have been found within the plant, and as research continues, medical applications could become widespread.
Affecting industries as diverse as cosmetics, food and beverage and pharmaceuticals, the exploding CBD (cannabidiol) market has generated considerable headlines, providing fodder to umpteenth analysis and forecasts. The latest one, by leading cannabis researchers BDS Analytics and Arcview Market Research, projects that the collective market for CBD sales in the U.S. will surpass $20 billion by 2024.
Key Market Trends
Increase in demand for plant-based non-opioid medicine is believed to propel the growth of CBD hemp oil segment
- Plant-based medicine has witnessed significant growth over the past years. In addition, the need for minimally processed and chemical-free medicine has opened a lucrative opportunity for the growth of the market studied.
- CBD hemp oil, unlike other psychological drugs, does not affect the state of mind of a person, in addition, it provides therapeutic benefits like stress relief.
- Increasing the incidence of depression among the population is projected to positively impact market growth.
- The rise in acceptance of CBD hemp oil in treating diseases and the legalization of cannabinoid plant-related products in many countries is expected to boost the hemp-based CBD hemp oil market.
- Furthermore, preference towards preventive healthcare and a wide range of applications of CBD hemp oil are strengthening the market for CBD hemp oil.
North America Emerges as the Largest Market for CBD Hemp Oil
Due to factors such as the legalization of marijuana in many countries of the United States and raising awareness of the benefits of CBD Hemp oil, North America is expected to witness the largest share. Furthermore, the strong presence of companies in the United States and the availability of a wide range of products are benefiting the market demand in the region.
Asia-Pacific is expected to be the fastest-growing market for CBD hemp oil owing to the set up of new hemp manufacturing plants, mainly in China. China is one of the largest producers of hemp-related products and exports the majority of the products around the world. Furthermore, the focus of the companies on emerging countries and the legalization of medical use of these products is projected to boost the market growth in the Asia-Pacific region.
Competitive Landscape
The CBD Hemp Oil Market is highly fragmented and is witnessing the presence of local and international players operating in the market. The key market players include Aurora Cannabis, CV Science Inc., ENDOCA, Gaia Herbs, and ISODL.
