TechNavio reports that the CBD oil market is expected to grow in the coming years, with an estimation of a $3.97 billion market value from 2021 to 2026. TechNavio also projects the market to progress at a CAGR of 26.43%, where 38% of the market’s growth will originate from North America during the forecast period.
The U.S. and Canada are the key markets for CBD oil in North America. Market growth in this region will be faster than the growth of the market in the European, MEA and APAC regions. The growing awareness of the health benefits of CBD oil products and the increasing number of states legalizing the use of marijuana products in the U.S. will facilitate the CBD oil market growth in North America over the forecast period.
The CBD oil market share growth in the marijuana-derived CBD oil segment will be significant for revenue generation. Marijuana-derived CBD oil products are only sold to consumers with a doctor’s prescription as CBD oils are psychoactive and can cause nausea and dizziness. Marijuana-derived CBD oil products usually contain 3-15% THC. Factors such as the increasing number of countries that are legalizing marijuana and the rising number of organized retailing outlets offering CBD oil-based products are estimated to drive the growth of this segment during the forecast period.
Millennial Population Drives Growth
- The key factor driving growth in the CBD oil market is the growing millennial population in key cannabis markets.
- The usage of cannabis products, especially for recreational purposes, is quite popular among millennials. Also, the increased use of cannabis products among millennials is attributed to the fact that they are relatively more enthusiastic about trying out new variants when compared with older generations.
- In July 2019, millennials (aged 23-38 years in 2019) numbered 72.1 million in the U.S. The U.S. comprises the largest legal cannabis market in the world due to its liberal laws on marijuana.
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