North America Cannabidiol (CBD) Market – Industry Trends and Forecast to 2029

North America Cannabidiol (CBD) Market Analysis and Insights

North America cannabidiol (CBD) market is expected to gain market growth in the forecast period of 2022 to 2029. Data Bridge Market Research analyses that the market is growing with a CAGR of 28.7% in the forecast period of 2022 to 2029. Technological advancements in cannabidiol (CBD) drug treatments, rise in the healthcare sector are another factors drive growth of the North America cannabidiol (CBD) market in the forecast period.

However, side effects associated with CBD oil and counterfeit and synthetic products available in the market will restraining the market growth. Adoption of strategic alliances like partnerships and acquisitions by key market players act as an opportunity for the growth of North America cannabidiol (CBD) market.

Cannabidiol (CBD) Market Definition

Cannabidiol (CBD) is a chemical compound that is found in the cannabis sativa plant, and is extracted from hemp or cannabis, generally from hemp due to its naturally high cannabidiol (CBD) content. It has several benefits in treating anxiety and seizures and reducing pain. Due to its healing properties, the demand for CBD for health and wellness purposes is high, which is the major factor driving the market. Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the North America market is anticipated to grow at a lucrative rate over the forecast period. Cannabidiol oil is increasingly being used to make skincare products to treat acne and wrinkles. Sephora, for example, had recently introduced cannabidiol or CBD skincare line to its stores. Similarly, Ulta Beauty is intending to launch a cannabidiol-based product line. Several new companies are also entering the market for cannabidiol-infused cosmetic products.

Furthermore, the government of different countries as well as major players in the cannabinoid market are investing in research and development activities. The CBD is said to be an effective treatment for various neurological diseases including epilepsy in several clinical trials.

Market Dynamics                                        

Drivers

• Increasing demand for CBD in health & fitness

Rising awareness among consumers regarding health and fitness will help CBD market to witness rapid growth. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to have a positive impact on the demand for cannabidiol in this sector.

Moreover, CBD products are used to relieve various problems such as anxiety/ stress, sleep/insomnia, chronic pain, migraine, skin care, seizures, joint pain & inflammation, neurological conditions, and many others. The chronic pain treatment has gained much popularity due to additional benefits offered by CBD when used. There has been increasing demand for cannabidiol (CBD) products over recent years owing to its widespread medical applications and pain relief treatment. CBD helps in reducing chronic pain by acting on variety of biological process in the body. In addition, CBD possesses antioxidant, anti-inflammatory and analgesic properties. Therefore, CBD products reduces the anxiety that is experienced by the people suffering from the chronic pain. Thus, the increasing demand for CBD in the treatment of chronic pain is augmenting the market to grow. This also help people to maintain their health and fitness routines, while staying away from pain that may occur during fitness activities.

• Improving government approvals and regulations for CBD products

There are strict government regulations and CBD based products required strict approvals before they were marketed and supplied in the local as well international market, which limited the growth of the market. However, with time these restrictions have been eased up and there has been increasing acceptance of refined CBD products combined with the increasing legalization of marijuana and marijuana-derived products for various applications. This will drive the growth and demand in the market.

Moreover, there is the presence of major manufacturers of CBD products across the globe which has further induced the government and other regulatory bodies such as Food and Drug Administration (F.D.A.) in the U.S., European Union in Europe, etc. to ease up the restrictions for CBD and CBD based products.

Restraint

• High cost of CBD products

CBD is a popular and a holistic choice for people struggling with pain, inflammation, and sleep problems. Since CBD is a new product with less research and development and has lately been regulated and approved, therefore, the price of CBD are subject to fluctuations. The production of hemp became legal in 2018, which affected the price of CBD products. As a result, various CBD products witnessed some price inflation.

Moreover, many farmers are transitioning towards growing and selling hemp used to make CBD products, but despite the increased popularity of this product, it presents its own agricultural challenges. Firstly, switching over to a new crop results in new expenses. The most efficient way to harvest hemp is using a combine harvester. However, farmers who have previously grown crops that don’t require combines, such as strawberries, can’t afford to purchase a combine right away. Therefore, they need to hire people to help harvest the hemp, which drives up overall product prices as the raw material becomes costly.

Additionally, hemp requires more time and labor to grow and farmers need to inspect their crop closely as it grows. Furthermore, once it is harvested, extracting the cannabidiol is a difficult and expensive process. The processors and extractors of CBD need to use either ethanol or supercritical carbon dioxide (CO2 extraction). The extraction and refinement process requires special machinery and takes a long time, which drives up the CBD cost. Thus, all these factors add up to the costs of CBD products making them much more costly than other products, which is likely to restrain the market’s demand.

Opportunity

• Increasing investments in development of new CBD based products

With the increasing trend of providing innovative and refined products in the market, manufacturers are spending large amounts in research and development for the production of new CBD based products. Oils, tinctures, concentrate, capsules, topical solutions such as slaves, 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 increasing demand has increased the number of trials to study the impact of CBD on certain health conditions, which is expected to develop new products in turn providing opportunity for the rise in the demand in the forthcoming years. Furthermore, many companies procure CBD oils in bulk and manufacture CBD-infused products. In addition, numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance.

Moreover, with the ease in regulations and post the approval of cannabis products, the companies are investing huge amounts in the product development and upgrading the raw material production, which will also help them to cut down on costs while meeting the surging demand in the market. The new product development and increasing research and development activities along with various strategic decisions taken by key manufacturers in the market will offer lucrative opportunity for the growth of the North America CBD market.

Challenge

• Side effects associated with CBD oil

Cannabidiol is well-known for its ability to cure a variety of illnesses, including anxiety, seizures, neurological problems, cancer-related nausea, chronic pain, and more. However, being useful for a variety of medical illnesses, various studies and research conducted by numerous organizations have shown that CBD-based medicines can have negative effects as well.

Some of the side effects that are commonly experienced by consumers include dry mouth, drowsiness, low blood pressure, and lightheadedness. CBD is also known to raise the level of Coumadin (a blood thinner) in the body, which can interact with other drugs and cause negative side effects. These factors might impede future adoption of CBD for therapeutic purposes.

Moreover, another cause for concern is the unreliability of the purity and dosage of CBD in products such as CBD oil. High concentration of CBD oil can also have harmful effects on the consumers’ health. In some cases, excessive use of CBD oil may also increase liver enzymes, which is a marker of liver inflammation. Cytochrome P450 (CYP450) is an enzyme which body uses to break down some drugs. CBD oil can block CYP450. That means that taking CBD oil with these drugs could make them have a stronger effect than one needs or make them not work at all.

Further, dietary supplements that contain CBD and a blend of herbal ingredients may not be safe for everyone, as many herbs have the potential to interact with commonly prescribed medications. All these side effects may vary from person to person as minor side effects for some may prove to be serious for others. This may pose as a challenge for the increasing demand of CBD products in the North America CBD market.

Post COVID-19 Impact on North America cannabidiol (CBD) market

COVID-19 has resulted in a substantial upsurge in demand for medical supplies from both healthcare professionals and the general public for precautionary measures. Manufacturers of these items have an opportunity to take advantage of the increased demand for medical supplies by ensuring a steady supply of personal protective equipment on the market. COVID-19 is anticipated to have a big impact on the North America cannabidiol (CBD) market.

North America cannabidiol (CBD) market Scope and Market Size

North America cannabidiol (CBD) market is segmented on the basis source, grade, application, product type, nature. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the Difference in your target markets.

BY SOURCE

• HEMP
• MARIJUANA

On the basis of source, the North America cannabidiol (CBD) market is segmented into hemp and marijuana.

BY PRODUCT TYPE

• CBD OIL
• CBD ISOLATES
• CBD CONCENTRATES
• OTHERS

On the basis of product type, the North America cannabidiol (CBD) market is segmented into CBD oil, CBD concentrates, CBD isolates and others

BY NATURE

• ORGANIC
• INORGANIC

On the basis of nature, the North America cannabidiol (CBD) market is segmented into organic and inorganic.

BY GRADE

• FOOD GRADE
• THERAPEUTIC GRADE

On the basis of grade, the North America cannabidiol (CBD) market is segmented into food grade and therapeutics grade.

BY APPLICATION

• Tincture
•  Food
•  Beverages
• Pharmaceutical
• Topicals
• Dietary supplements
• Others

On the basis of application, the North America cannabidiol (CBD) market is segmented into tincture, food, beverages, pharmaceutical, topicals, dietary supplements and others.

North America cannabidiol (CBD) market Country Level Analysis

The cannabidiol (CBD) market is analyzed and market size information is provided by source, grade, application, product type & nature.

The countries covered in the cannabidiol (CBD) market report are U.S., Canada and Mexico.

In 2022, U.S. is dominating due to the presence of key market players along the largest consumer market with high GDP. U.S is expected to grow due to rise in technological advancement in drug treatments.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of sales channels are considered while providing forecast analysis of the country data.

Cannabidiol (CBD) market also provides you with detailed market analysis for every country growth in healthcare industry. Moreover, it provides detailed information regarding healthcare services and treatments, impact of regulatory scenarios, and trending parameters regarding cannabidiol (CBD) market.

Competitive Landscape and North America cannabidiol (CBD) market Share Analysis

North America cannabidiol (CBD) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breath, application dominance, technology lifeline curve. The above data points provided are only related to the company’s focus related to cannabidiol (CBD) products.

The major companies which are dealing in the cannabidiol (CBD) market are CV Sciences, Inc., VIVO Cannabis Inc., Gaia Herbs Hemp, Phoena Holdings Inc., Medical Marijuana, Inc., The Cronos Group, CHARLOTTE’S WEB, HEXO Corp., Aurora Cannabis, Canopy Growth Corporation, Jazz Pharmaceuticals, Inc., Tilray, Curaleaf, KAZMIRA, Freedom Leaf, Inc., Koi CBD, Groff North America Hemplex, Joy Organics, Elixinol Wellness Limited, Isodiol International Inc., Healthy Food Ingredients, LLC, NuLeaf Naturals, LLC, Diamond CBD, Medterra CBD, ENDOCA, Green Roads among others.

Strategic alliances like mergers, acquisitions and agreement by the key market players are further expected to accelerate the growth of cannabidiol (CBD) products.

For instance,

• In May, 2022, Canopy Growth Corporation and Lemurian, Inc., a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, announced that they have entered into definitive agreements providing Canopy Growth, by way of a wholly-owned subsidiary, the right to acquire, upon federal permissibility of THC in the U.S. or earlier at Canopy Growth’s election, up to 100% of the outstanding capital stock of Jetty.This has helped the company to expand their business in market.

SKU-68910