Hemp-derived products have surged in popularity in the past several years, with the widespread expectation that they’ll continue to do so in the years to come. These products provide its users with cannabidiol’s health benefits without any psychoactive effect. Because of this, their presence in the market is growing exponentially in a short amount of time. Additionally, the high level of competition throughout the global market is due to companies’ focus on expanding their consumer base, increasing their product offerings, and entering new markets.
Because of cannabidiol’s (CBD’s) speculative healing qualities, its demand for health purposes is high— one of the most significant factors driving the market growth. On top of this, the de-stigmatization and growing acceptance propelled by government approvals legally is also a significant factor that is expected to increase CBD-infused products.
Among all the existing cannabinoids on the market, CBD is the most widely used for its therapeutic properties devoid of any psychoactive effects. Its use in medical applications is growing— helping to alleviate anxiety, depression, stress, pain, inflammation, and other ailments. Due to this new holistic use of CBD products in treating various ailments, the global CBD market is expected to expand at a lucrative rate in the years to come.
Grand View Research reported that in 2020, the global CBD market was valued at USD 2.8 billion— with the expectation to grow at a compound annual growth rate (CAGR) of 21.2% between the years 2021 to 2028.
"The hemp segment dominated the market and accounted for the largest revenue share of 59.6% in 2020. The increasing acceptance of refined CBD products combined with the increasing legalization of marijuana and marijuana-derived products for various medical applications is driving the growth of this segment. In addition, the high effectiveness of cannabidiol extracted from marijuana is a key factor for the large share of the market."
Active companies in these markets include: CAN B CORP. (OTCQB: CANB), Tilray Inc. (NASDAQ: TLRY), Sundial Growers Inc. (NASDAQ: SNDL), Agrify Corporation (NASDAQ: AGFY), MariMed, Inc. (OTCQX: MRMD).
Grand View Research continued to report:
"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 salves, 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.
Furthermore, the use of hemp-derived CBD is increasing rapidly owing to its anti-inflammatory, anti-aging, and antioxidant properties.
Various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages are developing CBD-derived products for health and wellness purposes. Therefore, the above-mentioned factors would be responsible for this segment's fastest growth rate over the forecast period."