According to Frost & Sullivan’s recent analysis, Global CBD Ingredients Growth Opportunities, the global trend in legalizing CBD and scientific research supporting its benefits to human health will inflate demand for CBD ingredients. The global market for CBD is expected to reach $4.09 billion by 2030 from $1.80 billion in 2021, registering impressive expansion at a compound annual growth rate (CAGR) of 9.5%.
“In the medium to long term, CBD and other cannabinoids and terpenoids will find acceptance as part of daily consumer products,” said Matias Guarnera, chemicals, materials and nutrition analyst at Frost & Sullivan. “Additionally, with the resolution of regulatory issues in the days ahead, CBD will become a common ingredient in F&B, dietary supplements and personal care products.”
To take advantage of the expanding CBD industry, market participants should:
- Study the combined effect of different cannabinoids to formulate specialized remedies for patients and personalized formulations for various users.
- Target the personal care space because of the higher acceptance of CBD and less stringent regulatory requirements.
- Invest in versatile facilities that allow the extraction of different compounds from various sources, reducing the risks of focusing on hemp and cannabinoids.
- Develop a customized standard to which every company must comply. This effort requires the investment and support of stakeholders to build a trustworthy entity.
“Increasing awareness of mental health problems and accepting cannabinoids and the endocannabinoid system as part of the human body will shape a different future for the health and wellness industry,” said Guarnera. “Similarly, the convergence of the classic pharmaceutical and food industries with hemp companies will define the unfolding of this industry.”
Global CBD Ingredients Growth Opportunities is the latest addition to Frost & Sullivan’s chemicals, materials and nutrition research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.