ResearchAndMarkets.com recently added its report on the U.S. cannabinoids market size, share and trends based on product and segment forecasts from 2022-2030 to its offering.
The U.S. cannabinoids market size is expected to reach $60.4 billion by 2030 and is expected to expand at a CAGR of 16.2%.
Growing awareness regarding the health benefits provided by cannabinoids and the rising number of new players in the market, leading to expansion in the availability of products, are fueling the growth.
In addition, increasing acceptance and adoption of cannabis and cannabinoid-based treatments among consumers and medical professionals over the antibiotics treatment is further anticipated to boost the market growth in the forthcoming years.
Furthermore, changing perception and attitude toward cannabis products is further bolstering revenue growth. For instance, a 2020 article published in Cannabis products and research conducted by IRI and BDSA signified changing perceptions of consumers toward cannabis.
The consumers were classified into three categories, namely consumers, acceptors and rejectors. As per the research, around 33% of the population were acceptors and 36% were current consumers. In addition, mainstream acceptance increased by 10% in the past two years. Such instances signify the growing potential of the market soon.
In 2021, based on product, the cannabidiol (CBD) segment dominated the market with a revenue share of 27.2%. This growth is attributed to various factors, such as the rising consumption of CBD-based products in sports nutrition, health and wellness, cosmetics, and other fields. Furthermore, companies are trying to diversify their product portfolio into various forms for catering to a larger and growing consumer pool. It will help in improving the product visibility and penetration to newer customer segments.
In addition, players are constantly undertaking strategic initiatives, such as partnerships, collaborations, product launches and much more to expand their revenue share and presence. For instance, in 2020, Marijuana Company of America, Inc. announced its mutual strategic investment and collaboration with Cannabis Global, Inc. This will help the company in gaining a foothold in the growing CBD market. In addition, this collaboration is also aimed at expanding the presence of both companies by leveraging the favorable resources of both companies.
The pandemic of COVID-19 has drastically impacted the overall cannabis industry, thereby impacting the U.S. market for cannabinoids. Supply chain disruption was one of the key factors that hampered the market during the pandemic.
For instance, according to an article published in 2021 in Supply and Demand Chain Executive, disruption in the manufacturing, production and distribution of cannabis and cannabinoid-based products led to shortages during the peak months of the pandemic. It also led to incurring additional costs for specialized transportation and/or distribution, thereby hampering the growth.
Other key factors that created obstacles during the pandemic include nationwide lockdown, panic buying of products and price fluctuation. However, since the situation is heading toward normalcy, the adoption and demand for cannabinoid products are anticipated to increase.