Due to the increasing adoption of cannabidiol-based products to treat ailments, the global cannabidiol (CBD) market is anticipated to grow at a lucrative rate over the next several years, according to the “Cannabidiol Market Size, Share & Trends Analysis Report” from Grand View Research published earlier this year.
The report estimated that the global cannabidiol market size was valued at $2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028.
Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief and inflammation.
Due to its healing properties, the demand for cannabidiol for health and wellness purposes is high, which is the major factor driving the market growth. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products.
“Increasing awareness of cannabidiol’s therapeutic benefits has influenced a buyer to buy cannabidiol products, regardless of their cost,” the Grand View report states. “As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products. Numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health and Walgreens Boots Alliance.”
CVS Health, according to the report, decided to offer CBD topicals at its 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1,500 of its stores in the U.S.
“The pharmaceuticals segment dominated the cannabidiol (CBD) market and accounted for the highest revenue share of 42.8% in 2020,” the report found. “The segment is anticipated to grow at a lucrative rate over the forecast period. The large share has been attributed to factors such as the increasing number of ongoing trials to study the impact of CBD on certain health conditions is anticipated to drive the demand in the forthcoming years.”
Most of the products researched for the “Cannabidiol Market Size, Share & Trends Analysis Report” are depicted to be in the growth phase of the market. Grand View Research found that companies acquire CBD oils in bulk and manufacture CBD-infused products. Those products are used by a large consumer base as a pain and stress management alternative.
These factors will drive market growth for CBD-based pharmaceutical and wellness products over the next several years and lead the CBD category.