NEWARK, Del – The global cannabidiol CBD oil market is anticipated to grow at an impressive compound annual growth rate (CAGR) of 31.50% annually over the projection period from 2021 to 2031. The global market was predicted to reach a valuation of US$ 284.2 million by the end of 2021 and is expected to bolster over the assessment period. The hemp and marijuana oil segment are predicted to exhibit prolific year-on-year growth of 35.90% in 2021, attributed to the surging sales of CBD-infused food and beverages paired with high demand for sleep and pain medication. The rising use of CBD oil in the sports industry is forecast to drive market sales through 2031.
Surging demand for CBD oil particularly in the production of medicines backed by its pain reduction properties is expected to facilitate growth within the CBD oil market over the past few years. From 2016 to 2020, the market exhibited exponential growth at 69.2% CAGR. CBD oil is anticipated to regulate the endocannabinoid system (ECS) activity and interacts with neurotransmitters.
This property makes it an ideal ingredient for anxiety and anti-depression drugs. According to FMI, the global CBD oil market is backed by favorable policies, the global CBD oils market will expand at 31.5% CAGR and surpass sales revenue of US$ 284.2 million in 2021.
In the year 2018, The World Anti-Doping Agency (WADA) removed cannabidiol (CBD) oil from its list of prohibited substances, however, all synthetic cannabinoids that mimic the effects of THC are prohibited. CBD oil entrepreneurs are concentrating on developing cannabidiol-based lotions, skincare, textile, and pet care products. Surging sales of a huge range of CBD-fortified products along with new product launches and expansion of the product pipeline will provide lucrative opportunities for market growth, especially in emerging economies.
- Recent research has shown that marijuana-derived CBD oil and hemp-derived CBD oil plants possess stress and anxiety-reducing properties. CBD oil when consumed in the form of a supplement offers therapeutic benefits for various neurological conditions and disorders such as depression, nerve-related pain sleep disorders, and inflammatory pain. This has fueled the adoption of CBD oil in the painkiller and anxiety treatment drug manufacturing industry.
- Various pharmaceutical companies are searching to integrate CBD oil into pain-relief medication and introduce various new products in the global market. Furthermore, softening cannabis law and rising awareness concerning the benefits of CBD oil have paved for legitimizing medicinal claims of CBD oil. Various celebrities are utilizing CBD oil and related products for treating their sleep disorders. Increasing endorsement by celebrity evangelists will propel the sales of CBD oil products in upcoming years.
- The legitimization of the use of CBD oil along with related products is anticipated to increase demand for CBD food and beverages in North America and Europe encouraging market players to introduce new and flavored products. According to the 2018 Agriculture Improvement Act U.S., companies are permitted to grow and sell hemp and hemp-based products that are sourced from Cannabis Sativa L and all of its derivatives. This law along with the removal of CBD from the Controlled Substances Act (CSA) will make a positive impact on the CBD oil market.
- There are various changes made in the federal law which have resulted in empowering manufacturers to experiment with various strains of hemp and marijuana in order to expand their product portfolio, subsequently boosting the demand for CBD oil and ingredient-based products in upcoming years.
- Rising traction of CBD products especially among the millennial population is expected to create incremental prospects for sales uptick of CBD oil across the globe. Increasing research towards developing modified CBD oil extracts will propel the market the growth. In addition to that regions like Europe and North America collectively account for more than 70% of the CBD oil market share, due to a strong network of online sales channels, a high degree of awareness regarding the various benefits of cannabidiol, and the introduction of retail products like CBD oil, CBD gummies, and CBD beverages in these regions.
Since the CBD oil market is still in a nascent stage, key market players are focusing on gaining maximum share by expanding their product portfolio with the help of new product launches. Furthermore, strategic partnership and collaboration are in the cards to enter potential markets of Asia and Africa.
More Insights into the CBD Oil Market
The U.S. is anticipated to dominate the global CBD oil market over the projection period. The growth of the North American region is attributed to the presence of favorable laws regarding the use of CBD products and the increasingly health-conscious population in the country.
(This information is primarily sourced from Future Market Insights Global and Consulting Pvt. Ltd. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).