The global market for
ingredients could grow to nearly $6 billion per year by 2031, according to a new report from market data company InsightAce Analytic. The company’s latest research shows that the market size for CBD ingredients including cannabidiol extracts and isolates in 2021 totaled $2.03 billion.The report projects that the CBD ingredient market will grow at a compound annual growth rate of 11.78 percent over the next decade, reaching a total global market value of $5.89 billion in 2031.
The new report notes that the growth of the CBD ingredient market over the next decade will likely be fueled by the use of cannabis derivatives in manufactured consumer goods and the increasing use of CBD in pharmaceuticals. The therapeutic and restorative properties of CBD are also adding to the growth of the market as consumers seek products delivering the reported health benefits of the compound for the treatment of conditions including depression, anxiety, stress, diabetes, pain, cancer and acne.
“The market is likely to rise over the projected period of 2023-2031 because of the rising use of CBD-based products to treat various medical illnesses, food and drinks, and skin care,”
in a release about the report.Although CBD is derived from cannabis, the company noted that the compound by itself doesn’t produce the “high” commonly associated with marijuana. Most of the CBD produced around the world is derived from varieties of hemp with only trace amounts of THC, the cannabinoid largely responsible for the psychoactive effects of marijuana.
“In humans, CBD exhibits no psychotropic or habit-forming properties,” the report notes, citing the World Health Organization for the information. “At the right moment, there are no signs that consuming pure CBD harms the general public’s health.”
CBD Market Growth Faces Some Challenges
Despite the rosy outlook for the global CBD ingredient market, the report notes that some challenges may impede the growth of the industry, including the regulatory environment in countries around the world. Market growth in the United States could also be hindered by the failure of the Food and Drug Administration to approve CBD for use in foods and beverages, despite the legalization of hemp and cannabidiol with the 2018 Farm Bill.
“Some of the most significant challenges that will have an effect on the CBD ingredient market are the stringent laws and regulations, as well as the complicated approval process of the FDA,” the company wrote. “In addition, misunderstandings and false views exist among customers, and these tend to shift over time. The legality of CBD and the fact that it varies from country to country will be detrimental to the CBD market as a whole.”
The most significant share of the global CBD ingredient market was claimed by North America, where the liberalization of laws regulating cannabis has led to growing interest and investment in the production of hemp and marijuana and products made from the crops. As the demographic base of CBD consumers continues to widen, the use of the ingredient in foods, cosmetics and pharmaceuticals has become commonplace, the report notes.
The growing acceptance of CBD and cannabidiol products was highlighted this fall when Major League Baseball announced that Colorado-based Charlotte’s Web had been named the official CBD of the league. The deal marked the first time a major professional sports league had signed a sponsorship agreement with a CBD company.
“It’s always great to be first, but it’s more important to get it right,” MLB executive vice president of sponsorship sales Bill Morningstar
about the sponsorship deal. “That was really what drove this, is making sure that we did the education, and we understood exactly what the product stood for and what the company stands for. Being first is really a nice byproduct of it, but getting it right was critical, and we feel really confident that we took the steps, the time, to get everything in line.”The InsightAce Analytic report noted that the global CBD market has dozens of key players around the world, particularly noting the contributions of DSM, Vantage Hemp, Eurofins, EndoPure, Folium Biosciences, Colombian Golden, Averix Bio, LLC, KND Labs, Jordan Process, GVB Biopharma, Healthcann, Mile High Labs, KLERSUN, Sanobiotec, Caesar & Loretz GmbH, Recipharm, Brains Bioceutical, Purisys, Bedrocan, BIOVECTRA Inc., Biosyyd, UAB, Kinetochem and Veranova.
The report, titled “Global CBD Ingredient Market By Source(Natural (Marijuana Based, Hemp Based), Synthetic), By Applications (Food and Beverages, Personal Care and Cosmetics, Nutraceuticals, Pharmaceutical (API), Single Servings))- Market Outlook and Industry Analysis 2030,” was published by InsightAce Analytic on December 14. A
is available as a free download.