The market for
products is expected to climb to nearly $60 billion per year by 2030, according to market data from global research company Market Research Future released this week. The analysis of sales data and market forces projects that the total CBD market will increase by about 18 percent annually, growing from an estimated $9.1 billion in 2021 to $59.3 billion over the next eight years.The market report notes that the dramatic growth in the CBD (cannabidiol) market will be fueled by growing consumer interest in the perceived benefits of the cannabinoid.
“The primary factor influencing the market is the increased demand for CBD for health and wellness reasons because of its therapeutic characteristics. A significant element anticipated to increase the manufacture of CBD-infused goods is the increased acceptability and utilization of products due to regulatory approvals,”
on the market data. “Customers look for nutrient-rich, innovative, and healthy packaged foods to achieve their exercise objectives and stay away from problems like inflammation and discomfort.”The report notes that the primary source of CBD is hemp, which was legalized in the United States with the 2018 Farm Bill. Hemp is also an important crop in other countries around the world, including nations in North America, Europe and the Asia-Pacific region. However, consumer acceptance of CBD products is not consistent around the globe.
“Consumers in Western economies are increasingly embracing CBD-based products, but this is not the case in developing economies, particularly in Asia and the Middle East,” the report notes. “The misconception that the product produces psychoactive effects as a result of its popularity among customers for recreational uses hinders its performance on the market. The features, services, and offerings that are advantageous in numerous ways are not generally known to the consumers.”
CBD Market Growth Tempered By Pandemic
The projected growth in the CBD market would likely be even more dramatic had it not been for the worldwide COVID-19 pandemic. Shutdowns in nations that produce raw materials such as China and India caused a significant disturbance in the worldwide market, while the production of cannabidiol-based goods was severely harmed by supply chain challenges in the United States.
The market analysis notes that CBD has become a popular ingredient in a range of packaged goods including health and beauty products, cosmetics and pet supplies. Pharmaceutical applications are also being explored. In 2018, the U.S. Food and Drug Administration announced it had given its seal of approval to Epidiolex as a treatment for severe forms of pediatric epilepsy, making it the
by the regulatory agency.The report also includes a list of the CBD industry’s biggest players, including Canopy Growth Corporation, Aphria Inc. and Medical Marijuana Inc. Joseph Dowling, CEO of CV Sciences, another company cited in the report, said that consumer interest in alternative health and wellness is high, “so it is no surprise that the report indicates huge growth potential for the industry.”
“With the pandemic behind us, market headwinds calming and brand contraction, consumer attitudes toward cannabis are steadily improving,” Dowling wrote in an email. “Although the federal government is taking its time to move the needle, we are encouraged by the DEA’s recent announcement to significantly increase research investment and the Biden administration’s recent pardon of all prior federal offenses of simple possession of marijuana.”
The growing popularity of CBD and its potential for market growth was illustrated last week when
that the league had signed a sponsorship and marketing agreement with Colorado CBD products manufacturer Charlotte’s Web, making the company’s products the first “Official CBD of Major League Baseball.” The agreement is the first such sponsorship program approved by any of the major professional sports leagues.“We applaud MLB for being the first-mover in professional sports CBD and are thrilled to welcome their league as a respected strategic partner,” Jacques Tortoroli, CEO of Charlotte’s Web,
. “Bridging our industry-leading brands with science, innovation, and education, this pioneering partnership validates Charlotte’s Web’s core business principle and founding mission to open access to safe, quality and consistent CBD through our proprietary hemp genetics and industry-forging vision.”