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According to new data from Straits Research released on August 23, 2022, the CBD market is expected to explode over the next eight years. This shows tremendous growth from previous figures. The global hemp-derived CBD oil market was valued in 2021 at 1306.07 million USD. The new data points to the market hitting 6536.64 million USD by 2030. The forecast period of 2022 to 2030 would see a compound annual growth rate (CAGR) of 22.30 percent. It is interesting to note that North America leads the market, which was valued at 334.24 million USD in 2019. It had a CAGR of 18.5 percent.
This information scales down a report published in May 2022 on the projected growth of the cannabidiol (CBD) market. This study, conducted by Grand View Research, Inc., expected the global cannabidiol market to balloon to 22.05 billion USD by 2030. The projection factored in growth between 2022 and 2030 at 16.8 percent (CAGR). Aside from the different growth rates determined by the two research companies, one fact remains – the global CBD market will experience a sizable growth spurt within the next few years regardless. The data has determined what some of the influencing factors are.
The report from Grand View Research says there are two key reasons why the CBD market is experiencing so much attention and growth. They say that the number one factor is education. Researchers say that consumer opinion on CBD products has shifted partly due to increased awareness of the health benefits of using hemp-derived oil products. Another factor is the new attitude towards CBD products. Essentially, if someone has experienced success using cannabidiol as a treatment for a condition of some kind, their attitude toward the product changes. Plus, there is more understanding that THC is not present.
Hemp-derived CBD oils have become part of many treatment plans in the medical sector for individuals suffering from a variety of conditions. It has successfully treated pain relief, arthritis, joint pain, skin, neuropathic conditions, and various other medical applications related to anxiety, stress, and epilepsy. CBD is not just a product that treats health concerns. It also appears in other uses such as supplements, personal care products, textiles, and other industries.
How CBD Has Become More Mainstream
The legalization of cannabis, hemp, and CBD in several parts of the world recently has attracted attention from e-commerce platforms in North America and Europe. With so many people turning to the internet for their shopping needs, the interest and popularity of hemp-derived CBD oil from such sources as SensiSeeds has been credited with creating an increase in demand. This was further compounded during the pandemic when brick-and-mortar storefronts closed or had reduced hours. Consumers who were self-isolating or social distancing themselves from others turned to the internet for entertainment and shopping for products for the home and pantry.
In the report from Straits Research, data collected from the first quarter of 2020 saw hemp-derived CBD oil producers’ revenue jump between 60 and 80 percent. That was a comparison to the same period in 2019. Other factors the research company used for measuring included the length of lockdowns across the nation, the impact on the cultivation of hemp, human resources availability, and supply chain impact. According to Straits Research, the first quarter of 2020 had high revenue figures because of a growing supply through e-commerce platforms and emergency product stockpiling.
The research also shows there were additional factors that made revenue figures jump in the first quarter of 2020. They include a severe drop in retail prices and stock values of both CBD and CBD-based products. There was also a period during that timeframe when there was a belief that consuming CBD-based products offered protection against the COVID-19 virus. This is not true, but the early misconception saw a lot of people purchasing CBD products as a potential remedy for the coronavirus.
The report from Grand View Research adds that the largest revenue share in 2021 was from the B2B (business-to-business) distribution channel. According to the research company, this increased demand and more businesses choosing to use cannabidiol as a raw material. They also confirm that CBD products saw a jump in demand from various sectors including health and wellness, cosmetics, food and additives, and pharmaceutical. The need for bulk procurement of CBD raw materials will contribute to market growth.
Finally, the Grand View Research report also points out that the largest revenue share in 2021 came from the medical end-use segment. This was from the increased use of cannabis derivatives for various medical conditions. The company also confirms that the largest revenue share globally in 2021 came from North America and that trend should continue to at least 2030. Plus, the growth trend in North America is partly responsible for the legalization movement spreading to other countries in the world. The expectation is that CBD will be legal in many more places within the next few years.
There are many reasons why the growth rate of CBD and CBD-based products is expected to increase to such a massive market share by the year 2030. Part of it is related to the growing popularity of cannabidiol in recent years. Part of it is related to the acceptance and legalization of the product. Probably the largest contributor to the growth rate is the various uses of hemp-derived CBD oil. It is used in cosmetics, textiles, and supplements, and it has been successful in the health and wellness sector, where CBD has been used to treat various health conditions. Considered a natural alternative, many people who suffer from pain-related conditions or anxiety and stress have found relief through treatment with CBD. This will continue to propel the growth of this product well into the future.