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Cannabidiol or CBD is one of the primary cannabinoids present in cannabis sativa plants which is known for its therapeutic properties. CBD finds applications in various medical conditions such as epilepsy, anxiety, insomnia, arthritis pain, and other indications. It is extracted from hemp and marijuana plants and formulated into different delivery formats including tinctures, edibles, topicals, and vape oils. The key advantage of CBD over marijuana is that it does not induce psychoactive effects. Rising awareness about the medical benefits of CBD coupled with the legalization of hemp-derived CBD products is propelling the growth of the cannabidiol market.
The global cannabidiol market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing medical usage applications: One of the key growth drivers for the cannabidiol market is the increasing adoption of CBD in various medical applications such as pain management, anxiety disorders, epilepsy, arthritis, and insomnia. Legalization of medical cannabis in multiple countries and positive research findings demonstrating the therapeutic benefits of CBD for various indications have been favoring market growth. Opioid reduction is another area where CBD is showing promising results.
Rising awareness and acceptance: Widespread promotion activities by industry players and positive media coverage regarding CBD health benefits are generating more awareness and acceptance of cannabidiol products among consumers and healthcare professionals. Changing public perception about cannabis alongside its growing popularity as an effective alternative to traditional pharmaceutical medicines is creating new opportunities. Acceptance of hemp-based CBD products as a mainstream wellness ingredient is expected to be a key trend.
Segment Analysis
The global cannabidiol market is dominated by the medical segment which accounts for around 70% of the overall market. The legalization of medical cannabis in many countries has boosted the growth of this segment. Within the medical segment, cannabidiol used for treatment of epilepsy dominates due to strong efficacy results against rare types of childhood epilepsy. Though it is a new treatment option, it has gained popularity due to limited side effects compared to other anti-epileptic drugs.
PEST Analysis
Political: Regulatory reforms legalizing medical cannabis in many countries will support market growth. However, conflicting state level laws in the US pose challenges. Economic: Rising healthcare costs and preference for natural medications are driving demand for cannabidiol. The COVID-19 pandemic has further highlighted economic benefits of cannabidiol in treating conditions like anxiety and sleep disorders. Social: Increasing social acceptance of medical cannabis. Higher awareness about therapeutic benefits for conditions like chronic pain, epilepsy etc. Technological: Advancements in extraction technologies are improving cannabidiol yields. Research on new applications and delivery formats like TCH-infused topical products can expand market scope.
Key Takeaways
The global cannabidiol market is expected to witness high growth. The global Cannabidiol Market is estimated to be valued at US$ 323.23 Mn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
North America currently dominates due to early legalization of medical cannabis in countries like the US. Canada is another major regional market. However, Europe is expected to emerge as the fastest growing regional market due to increasing patient pool under government-sponsored medical cannabis access programs in countries like Germany and UK.
Key players operating in the cannabidiol market are ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Folium Biosciences, Elixinol, NuLeaf Naturals, LLC, Isodiol International, Inc.,Pharmahemp d.o.o. Focus on product differentiation through chemotypes and partnerships with healthcare providers and insurers are some key strategies adopted by leading players to gain share.
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- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
