A recent report by The Insight Partners valued the CBD gummies market at $2.13 B in 2021 and projects it will reach $12.18 B by 2028. The research study, “CBD Gummies Market Forecast to 2028 – COVID-19 Impact and Global Analysis By Category and Distribution Channel,” said the market is expected to grow at a CAGR of 28.3% from 2021 to 2028.
Europe is projected to grow at the fastest CAGR in the global CBD gummies market over the forecast period. The European Union (EU) has legalized CBD products with not more than 0.2% THC content, and EU Member States regard CBD as a novel product for food, beverages, and nutraceuticals. These factors are favoring the market growth of CBD gummies across Europe.
Moreover, CBD gummies are gaining traction across Europe as they have anti-inflammatory, neuroprotective, and analgesic effects. Furthermore, various CBD gummies brands are available across multiple retail channels in Europe. This factor is also expected to drive the regional market over the forecast period.
The leading players in the CBD gummies market are developing organic, non-GMO, gluten-free and vegan CBD gummies that are expected to cater to the rising demand for organic and clean-label products over the forecast period.
Manufacturers of CBD gummies are launching innovative products that are healthier and cater to the emerging market trends such as organic, plant-based, gluten-free, and sugar-free. Moreover, companies are focusing on lowering the THC content in CBD gummies. Thus, product innovation and new product development strategies are projected to provide lucrative growth opportunities to the manufacturers in the CBD gummies market over the forecast period.
Based on category, the CBD gummies market is segmented into sugar-free and conventional. The conventional segment held a larger market share in 2020, and the sugar-free segment is projected to grow at a faster CAGR over the forecast period.
Conventional CBD gummies are widely available across different retail channels such as supermarkets and hypermarkets, e-commerce platforms, pharmacies, and drug stores. However, as the concerns related to obesity, heart diseases, and diabetes are growing, people are preferring low-sugar and low-calorie products. Therefore, CBD gummies manufacturers are also including sugar-free CBD gummies in their product portfolio to cater to the changing customer preferences in the market.
Sugar-free CBD gummies are guilt-free edibles that do not increase body weight. Therefore, they are gaining huge traction among calorie-conscious consumers. This factor is further anticipated to boost the CBG gummies market growth in the coming years.
Based on distribution channel, the market is segmented into specialty stores, online retail and others. The specialty stores segment held the largest share in the global CBD gummies market. The online retail segment is projected to register the fastest growth over the forecast period. Online retail stores offer a wide variety of products with heavy discounts. Also, consumers can conveniently buy desirable products remotely.
Additionally, home delivery services attract a large group of customers to shop through e-commerce platforms. Online retail channels registered significant growth even during the COVID-19 pandemic as they offered home delivery services. These factors are projected to boost the segment’s growth over the coming years.
Impact of COVID-19
Many sectors faced unprecedented challenges due to the COVID-19 pandemic and government restrictions. The food and beverages sector also faced a decline in profits due to the shutdown of manufacturing units, operational difficulties, supply chain disruptions, and labor and raw materials shortages.
This factor also had a negative impact on the growth of the CBD gummies market. However, people consumed CBD-infused products for handling pandemic-related stress, insomnia, and anxiety. The increasing incidence of depression among the population during lockdown is projected to positively impact the market growth.
Sleep problems are considered a core symptom of depression. As a result, consumption of CBD products, including gummies, has surged. Moreover, due to the rise in vaccination rates and relaxation of restrictions imposed by the governments, the CBD gummies market is expected to recover from the losses.
As the manufacturers are permitted to operate with full capacity, the production of CBD gummies is projected to increase significantly over the coming years.