A February report from Grand View Research, the “Cannabidiol Market Size, Share and Trends Analysis Report,” found that consumer demand for hemp-derived CBD is on the rise due to its wellness properties.
Those wellness properties include anti-aging, antioxidant and anti-inflammatory benefits that have spurred a rapid increase in use. Manufacturers have noticed. The report cites an increase in CBD products from companies in the pharmaceutical, nutraceutical, personal care and cosmetic, and food and beverage industries with an eye on health and wellness.
The report predicts that the global cannabidiol market size will reach $13.4 billion by 2028, expanding at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028.
Cannabidiol derived from hemp is anticipated to witness rapid growth owing to increasing demand from the pharmaceutical sector and rising awareness among consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to have a positive impact on the demand for cannabidiol in the pharmaceutical sector.
“Increasing awareness about the health benefits of cannabidiol, changing consumer opinion and attitude toward CBD products are some of the key factors driving the demand for these products,” the report found. “Furthermore, increasing demand for cannabidiol from various end-user industries such as food and beverage, personal care and cosmetics, and pharmaceuticals is expected to trigger market growth.”
Easing Regulatory Climate
Expected loosening of regulation, starting at the federal level and rippling down through lower jurisdictions, will also play a role. The rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products.
Numerous health and wellness retailers are offering CBD-based products, including Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health has decided to offer CBD topicals at its more than 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1,500 of its stores in the U.S.
Oils, tinctures, concentrate, capsules, topical solutions such as salves, lip balms, lotions and edibles such as baked goods, coffee, chocolates, gums, and candies are some of the CBD products which are in high demand.
The report found that hemp-derived CBD is expected to witness the fastest CAGR over the forecast period, owing to the increasing legalization of hemp in various countries. Increasing awareness of cannabidiol’s therapeutic benefits has influenced consumer willingness to buy cannabidiol products, regardless of their cost. As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products.