CBD Oil (Cannabidiol Oil) Market Definitions, Classifications, Applications by 2024

The outbreak of COVID-19 and the interventions introduced by a variety of governments, such as social distancing and lockout, have contributed to a deterioration of the CBD Oil market. Since January 2020, the food service industry and other food industries

Market Overview

Global CBD Oil Market, according to MRFR, is poised to grow at a CAGR of 38.45% to reach USD 3.78 Billion till 2024. 

Market Dynamics

Growing research and development activities and financial financing from various private and government agencies for cannabinoid research. Both private and government agencies fund the discovery and manufacture of cannabinoids for medicinal uses. Cannabis has various medicinal properties that can cure diverse diseases. Which is expected to drive its performance over the assessment period. As a result of the increasing number of social media influencers endorsing the benefits of cannabis, marketing campaigns from industry participants, and growing application fields, cannabidiol has become the newest consumer trend. The demand for cannabidiol is also powered by growing food choices such as skincare, cosmetics, haircare, intimate lubricants, pharmaceuticals, gummies, tablets, flavored drinks, and other products.

The appetite for cannabis oil (CBD) for medical and health uses is high due to its healing properties, which is the key factor behind the growth of the industry. In addition, owing to regulatory approvals, rising product adoption and use is a major factor expected to fuel the demand for products infused with cannabis oil. Furthermore, the increasing knowledge of the therapeutic benefits of cannabis oil has influenced consumers, regardless of their cost, to buy products based on CBD. Increasing awareness of cannabidiol's medicinal advantages has inspired individuals to purchase goods dependent on CBD, regardless of their cost. Mainstream supermarkets are now focused on selling CBD-based goods, as these have a higher profit margin.

Segmental Analysis

By product, the market is segmented into marijuana and hemp. Hemp-derived CBD oil is the leading segment which is growing at the highest CAGR to cross USD 2.09 billion by the end of 2024. The varying levels of tetrahydrocannabinol (THC) in hemp and marijuana are responsible for the large market share of CBD oil obtained from hemp.

By function, pain management, neurological disorders, fibromyalgia, mood disorders, and diabetes are segmented into the industry. The cosmetic industry accounts for a substantial share with a 38.80 percent CAGR over the estimated period.

By distribution channel, the market segmented e-commerce websites, retail pharmacies, medical marijuana dispensaries, hospital pharmacies.

Regional Analysis

The Americas are dominating the global market for CBD oil when cannabis-based products are steadily consumed. The increasing legalization of medical cannabis in independent states of the U.S., the liberalization of federal legislation surrounding it, and a general growth in cannabidiol clearance for therapeutic, health, and personal use are some of the primary factors driving the creation of the area. Furthermore, Canada has approved the production and sale of both CBD and THC potent marijuana for medicinal purposes. Therefore, the availability of CBD-based products in the country also stimulates demand development in the sector.

France, Germany, Italy, the United Kingdom, Russia and the rest of Europe have been split into the European market for CBD crude. Europe has the second largest market share in the Western Europe region because of the increasing awareness of the medical uses of cannabis.

Asia-Pacific accounted for a market share of 9.16 percent as of 2018 and was forecast to display the highest CAGR over the estimated timeframe. Due to the establishment of hemp manufacturing plants, especially in China, the Asia Pacific market is expected to experience the fastest growth in the forecast period. China is the largest producer of hemp in Asia and cultivates almost half of the hemp supply in the world. Moreover, in emerging economies, players in end-use sectors such as personal care and cosmetics are aiming to improve their profitability and sales. Therefore, the attention of cannabidiol-based manufacturers in Asia-Pacific countries and the regulation of medicinal cannabis in those countries are some of the main factors driving the growth of demand.

The Middle East Africa is expected to see minimal growth due to stringent government regulations, adverse consequences associated with cannabis and the illegal use of marijuana.

Competitive Landscape

In the global market for CBD Oil, many players are competing. The global CBD oil market is heavily crowded due to the presence of a large number of local and international companies.

The prominent players are Aphria Inc. (Canada), Folium Biosciences (US), Freedom Leaf, Inc. (US), Green Roads of Florida, LLC (US), Charlotte's Web Holdings, Inc. (US), ENDOCA (Netherlands), CBD American Shaman (US), CV Sciences, Inc. (US), Medical Marijuana, Inc. (US), Canopy Growth Corporation (US), Aurora Cannabis (US), MedMen Enterprises Inc. (US), Curaleaf Holdings, Inc. (US), Kazmira LLC (US), HempLife Today (US), Pharmahemp (Slovenia), Whistler Medical Marijuana Corporation (Canada), Absolute Terps (US), NuLeaf Naturals (US), and Emblem Cannabis (Canada).