The Global CBD Hemp Oil Market is currently valued at USD 6.8 billion in the year 2022 and is expected to register a CAGR of 15.8% over the forecast period, 2023-2030.
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CBD is one of the many cannabinoids found in cannabis plants. This has been a traditional remedy for many years. CBD oil is obtained from the plants by crushing the seeds or plants.
The growing interest in the potential health benefits of cannabidiol has led to increased investment in research and development to understand its effects better and develop new products. The market is expected to grow with the increasing legalization of hemp-based products. Companies are developing a variety of cannabidiol products, including edibles, topicals, and beverages, to meet the demand from consumers. The rise of e-commerce has allowed companies to reach a wider audience and increase sales through online channels.
Cannabidiol oil, or CBD oil derived from cannabis, is a popular natural remedy for many ailments. CBD oil benefits include pain relief and relaxation without any mind-altering effects. People make CBD oil by extracting it from the cannabis plant and diluting it with a carrier oil like coconut oil or hemp seed oil.
Segmentation:
By Product
By Application
Geography
The value is provided (in USD million) for the above segments.
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Drivers:
Growing Incidence of Psychological Disorders
CBD oil may help ease symptoms of anxiety, neurological disorders, heart health issues, and certain types of pain, among other health conditions. Moreover, a recent article published by NCBI in July 2023, reported that a clinical trial conducted in a hospital in Germany among 220 patients, reported that 64.2% of candidates reported that CBD is useful in treating depression, anxiety, sleep disorders, and even problematic cannabis use, as well as in reducing the positive symptoms of schizophrenia. Thus, such instances are contributing to the growth of the studied market over the forecast period.
Furthermore, the growing prevalence of psychological disorders is driving the growth of the studied market. For instance, an article published in June 2023, titled, “The risk of all-cause mortality associated with anxiety: a retrospective cohort study using ‘The Health Improvement Network’ database” reported that a retrospective cohort study using the ‘The Health Improvement Network’ database (a UK primary care dataset) between 1st January 2005 to 1st January 2018 was conducted among 32,000 suffering with anxiety. Thus, such instances report a high number of mental disorders that may increase the demand for CBD oil, thereby driving the growth of the studied market.
Rise in Acceptance of CBD Oil-Based Products
The increasing acceptance and use of CBD products due to government approvals is expected to boost production and sales, thereby supporting market growth. CBD effectively treats conditions, such as anxiety, seizures, and pain. The demand for CBD for health and wellness is the primary factor driving the market growth.
Moreover, the strategic initiatives like product launches, approvals, and partnerships adopted by key players are fueling market growth. For instance, in September 2021, Aurora Cannabis Inc. launched Bidiol, the medical cannabis oil in Uruguay that is wholly produced domestically. The CBD oil is available in 3% and 10% concentrations and comes in 10mL and 30mL bottles, available in pharmacies across the country. The increasing product launches are estimated to propel market growth.
Restraints:
Stringent Regulatory Policies for Marketing
Compound extracted from cannabis, CBD is currently deemed a Schedule I controlled substance by both the FDA and the DEA pursuant to the 1970 CSA, which means that it has no currently accepted medical use, a lack of accepted safety for use under medical supervision, and a high potential for abuse. As a result of this, there are quite stringent regulations for the use of CBD oil, that may slow down the growth of the studied market over the forecast period.
The impact of COVID-19 was profound on the studied market owing to the disruption in the supply chain of pharmaceuticals and other essential medical products, impacting the cannabidiol (CBD) oil market. The COVID-19 pandemic impacted the mental health of people due to the isolation caused by restrictions. For instance, according to WHO, an enormous 25% increase in the global prevalence of anxiety and sadness was seen in the first year of the COVID-19 pandemic owing to factors such as lockdown, social isolation, loneliness, fear of infection, suffering, and death. As a result of increased stress and depression caused by the pandemic, the market is estimated to grow during the forecast period. The market gained traction as the restrictions were lifted globally. In the current scenario, to various advantages offered by CBD oil may boost the growth of the studied market.
Segmental Analysis:
Marijuana-Based Segment is Expected to Witness Significant Growth Over the Forecast Period
Hash oil or cannabis oil is an oleoresin obtained by the extraction of cannabis or hashish. It is a cannabis concentrate containing many of its resins and terpenes – in particular, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoids. Hash oil is usually consumed by smoking, vaporizing, or eating. The benefits offered by the Marihuana segment are expected to drive the growth of the studied segment.
Neurological Pain Segment is Expected to Hold a Significant Share in the Cannabidiol (CBD) Oil Market Over the Forecast Period
Neurological pain is a type of pain that is frequently persistent, and it typically results from a chronic, progressive nerve illness, an injury, or an infection. CBD oil is used in the treatment and management of neurological pain. According to a review study published in February 2022, about 3% - 17% of the general population suffers from neuropathic pain, and neuropathy can contribute to chronic pain and be a component of mixed pain syndromes. Hence, the high burden of neuropathic pain is expected to boost the segment’s growth during the forecast period.
Furthermore, according to a research study about the safety of medical cannabis in neuropathic chronic pain management, published in October 2021 by MDPI, cannabis was found to be effective in chronic neuropathic pain management. Therefore, owing to the vast potential of CBD oil products in neurological pain treatment and the high prevalence of neurological pain, the segment is expected to hold a significant market share over the forecast period.
North American Region is Expected to Witness Significant Growth Over the Forecast Period
The North American region is expected to hold a significant share of the studied market owing to the increasing acceptance of cannabis-based products in the treatment of psychological disorders and the increasing expansion activities of the companies in the region.
The strategic initiatives adopted by key players, like product launches, innovation in products, approvals, and partnerships, are fueling market growth. For instance, in January 2021, Pure Extracts Technologies signed an agreement for the purchase of 220 kilograms of high-potency cannabis dried flower from a large Canadian licensed producer and 1,000 kgs of high-potency CBD biomass from a top Western Canadian cultivator to scale up production of both its Tetrahydrocannabinol (THC) and CBD extracts. Further, several cannabis-based products are approved and regulated in the United States and Canada, which is expected to play a significant role in the growth of the cannabidiol (CBD) oil market over the forecast period.
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Competitive Landscape:
The global cannabidiol (CBD) oil market is consolidated in nature due to the presence of a few companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international as well as local companies that hold market shares and are well known. Some key players are:
Recent Developments
Q1. How big is the CBD Oil Market?
The Global CBD Hemp Oil Market is currently valued at USD 6.8 billion in the year 2022 and is expected to register a CAGR of 15.8% over the forecast period.
Q2. What is the Growth Rate of the CBD Oil Market?
CBD Oil Market is expected to register a CAGR of 15.8% over the forecast period.
Q3. What segments are covered in the CBD Oil Market?
By Product, By Application & Geography are the segments covered in the CBD Oil Market.
Q4. Which are the major companies in the CBD Oil Market?
Medical Marijuana, Inc., ConnOils LLC, NuLeaf Naturals, LLC & Canopy Growth Corporation are some of the major companies in the CBD Oil Market
Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
Forecast Model
