Out of all cannabinoids, cannabidiol (CBD) is gaining in wide usage for therapeutic reasons because of its lack of psychoactive effects. Due to the increasing adoption of CBD-based products to treat ailments, the global cannabidiol market is anticipated to grow at a lucrative rate over the next several years.
According to a February report from Grand View Research, the global CBD 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.
Increasing awareness of CBD’s therapeutic benefits has persuaded buyers to choose CBD products, with less regard for their cost. As these products have a greater profit margins, commercial retailers have noticed.
Healthy Retail Demand
Numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health decided to offer CBD topicals at all of its 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1,500 of its stores in the U.S.
The “Cannabidiol Market Size, Share & Trends Analysis Report” cites the healing properties of CBD as driving high demand for CBD for health and wellness purposes. That 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.
The hemp segment dominated the market and accounted for the largest revenue share of 59.6% in 2020, according to the Grand View study. The increasing acceptance of refined CBD products combined with the increasing legalization of marijuana and marijuana-derived products for various medical applications is driving the growth of this segment. In addition, the high effectiveness of CBD extracted from marijuana is a key factor for the large share of the market.
CBD 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.
CBD products like oils, tinctures, concentrate, capsules, topical solutions such as salves, lip balms, lotions, and edibles such as baked goods, coffee, chocolates, gums, and candies are all in high demand.
Demand is growing for topical CBD products that appeal to aging and physical labor demographics. The use of hemp-derived CBD is increasing rapidly owing to its anti-inflammatory, anti-aging and antioxidant properties. Various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages are developing CBD-derived products for health and wellness purposes.
Retailers would be wise to not overlook the growing CBD Oil extract market. Recent data from several sources indicate that it is the increasing preferences of oil and tinctures extracted from cannabis which is primarily driving the market growth rate.
CBD oil is used in many medical applications such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief and inflammation.
Acceptance of CBD to ease pain and discomfort is on track to become commonplace for more American consumers. All of this could mean that topicals and oils will take their places in millions of medicine cabinets around the nation, serving an aging population as well as a growing labor force of the service and manual labor sectors