New York, United States – CBD (cannabinoid) is extracted from cannabis hemp plant leaves, flowers, and stems using two extraction methods, i.e., by removing the CBD and turning it into an isolate and using full-spectrum CBD. Today, hemp-derived CBD oil is used in a range of applications, especially in the medical sector, for pain relief and treating arthritis, joint pain, neuropathic conditions, skin conditions, and other medical conditions. Apart from this, it is used in personal care, supplements, textile, and other industries.
After CBD, Cannabis, and hemp, being legalized in more and more regions are grabbing attention from e-commerce platforms in North America and Europe. Global trend leaning toward shopping for food products, nutritional products, cosmetic products, and pharmaceuticals on e-commerce websites and platforms is one of the significant factors for providing an impetus to the demand for hemp-derived CBD Oil. The Closedown of offline stores against the backdrop of COVID-19 has turned regular offline consumers towards online stores, aiding the increasing demand for hemp-derived CBD Oil on e-commerce platforms. According to our analysis, e-commerce websites across Asia-Pacific and North America have experienced 25% more traffic and a substantial rise in demand for cosmetic and nutritional products with hemp-derived CBD Oil. Hemp-derived CBD oil sales through e-commerce bring forth a number of opportunities for manufacturers to enhance their revenues and, subsequently, profit margins.
Impact of COVID-19
As per our analysis, in the first quarter of 2020, the revenues of the hemp-derived CBD Oil manufacturers experienced a 60% to 80% increase in the revenue compared to the first quarter of 2019. We also studied factors such as tenures of national lockdowns, impact on hemp cultivation, impact on the supply chain, and availability of human resources. The first quarter of 2020 reported the most significant revenue, due to emergency stockpiling and growing supply through e-commerce platforms. A sharp decline in the prices and stocks of CBD and CBD-based products, including hemp-derived CBD Oil, also resulted in increased sales in the first quarter. Moreover, misconceptions in the market, such as CBD, help in the treatment of COVID-19, and consumption of CBD-based products such as oil reduces the chances of contracting COVID-19, began doing rounds. There are few shops in the U.S and the EU that are still operational amid the pandemic.
It is projected that the market will experience a downward trend in the second quarter due to the factors, such as shut down of businesses in a few parts of the world, lack of human resources in the cultivation, extraction, and production of hemp-derived CBD Oil, and a regulatory watch to avoid sales of the CBD based products (which also impacted the hemp-derived CBD Oil) for the wrong indications. The market is expected to gradually recover in quarter 3 and quarter 4, with the CBD hemp cultivation, extraction, and production becoming functional, considering the impact of the COVID-19 pandemic slows down. The market is expected to fully recover within the next two to three years (mid-2022 to 2023). With this, the global hemp-derived CBD Oil market was valued at USD 873.20 million in 2019 and is projected to grow with a CAGR of 22.3% to reach USD 3,348.32 by 2026.
- The global hemp-derived CBD Oil market size was valued at USD 873.20 million in 2019 and is expected to grow at a CAGR of 22.3% during the forecast period, 2020–2026
- Hemp-derived CBD Oil aid patients in the treatment of neurological diseases, such as multiple sclerosis and others.
- Hemp-derived CBD Oil also helps in getting better sleep and reduces anxiety, depression, chronic pain, and inflammation.
- North America dominated the global hemp-derived CBD Oil market in 2019, valued at USD 334.24 million, growing at a CAGR of 18.5%.
- The organic segment is growing at the fastest CAGR of 24.9% over the forecast period. Whereas, the inorganic segment registered the highest revenue, accounting for USD 473.57 million in 2019.
- The online pharmacies segment, on the other hand, accounted for the largest market share of 62.1% in 2019.
Major companies operating in the hemp-derived CBD oil market are
- FOLIUM BIOSCIENCES
- CHARLOTTE’S WEB
- Bluebird Botanicals
- CBD American Shaman
- Aurora Cannabis
- Medix CBD ConnOils
- Pharmaceutical and personal care
- Food and beverages
By Distribution Channel
- Retail pharmacies
- Online pharmacies
- North America
- Central, South America, and the Caribbean
- The Middle East and Africa
(This information is primarily sourced from Straits Research. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).