The global market for cannabidiol (CBD), a compound found in cannabis plants, has shown impressive growth, jumping from $6.82 billion in 2022 to $9.4 billion in 2023.
This represents a yearly growth of 37.8%. Projections indicate that by 2027, the market could be worth a staggering $31.85 billion.
For the uninitiated, CBD is popularly utilised in various products.
It has a range of health benefits, from easing anxiety and treating epilepsy to addressing more specific conditions like Parkinson’s disease. CBD isn’t just for medicine, though.
It’s also found in everyday products like coffee, skincare items and even pet treats.
Within the diverse CBD market, there are various types of products, including oils, creams, tablets, and more.
For instance, CBD oil is obtained from the cannabis plant and usually mixed with oils like coconut or hemp seed oil.
These products serve multiple purposes: from personal and medical uses to pharmaceutical and wellness applications.
They are also readily available across different platforms like hospital pharmacies, online shops, and retail stores.
In 2022, North America stood out as the major player in the CBD market.
However, eyes are now turning towards the Asia-Pacific region, which is predicted to see the most rapid growth in the near future.
What’s propelling this boom in the CBD sector? One major factor is the growing global acceptance of CBD products, often due to government endorsements.
For instance, Australia gave a nod to a significant number of medicinal cannabis products in early 2022.
Additionally, companies are relentlessly innovating to make their mark.
Take the Netherlands-based Cibdol, which introduced a novel CBD Oil 2.0 range in late 2021.
This product aims to address modern-day concerns, from appetite regulation to sleep management.
Furthermore, significant mergers and acquisitions are shaping the landscape.
An example is the acquisition of Balanced Health Botanicals by Canada’s Village Farms International Inc. for $75 million in August 2021.
This move solidified Village Farms’ position in the US CBD retail market.
With the backing of government approvals and continuous product innovation, the CBD market’s trajectory looks promising, with significant growth anticipated in the coming years.