Monday, July 22, 2024

Global analysis projects CAGR of 47.49% 2021-2028 for CBD market

CBD growth will boost from US$3.6bn in 2021 to US$56bn in 2028. A report from business analyst Fortune Business Insights predicts a compound annual growth rate of 47.49% over the period.

The report notes that the covid pandemic has had a negative impact on the CBD sector. It has continued to grow, but at a slower rate than in previous years: Fortune’s analysis puts the global market growth at 26.42% for 2020 – lower than during 2017-2019.

“The substantial rise in CAGR is attributed to the market’s demand and growth, coupled with the market functioning returning to pre-pandemic levels once the pandemic is over,” says Fortune’s report.

Fortune's infographic

Analysts note increasing use of CBD by the cosmetics, food and pharmaceuticals industries: “The market exhibits immense growth potential as consumers are becoming aware about the benefits possessed by the product.”

Fortune says that the two driving factors for CBD growth are increasing government approvals for CBD products, allowing manufacturers to incorporate it into food and other products, and the recognition of the benefits of cannabis and its by-products by the global pharmaceuticals industry. The report says: “Thus, the governments in several regions and countries are approving its utility in medicines and other medical therapies, which is expected to expand and increase the sales and distribution of these proucts during the forecast period.”

Fortune notes restraining factors too, connected to customer perception and awareness: “The CBD-based products are gaining wide popularity among consumers in developed economies such as the US, Canada, UK, Russia, and others but not in the developing economies, especially in Asia and the Middle East. The myth associated with the product delivering psychoactive effects due to its popularity among consumers for recreational purposes hampers its market performance. The consumers are not well aware of its benefits, functions, and offerings that are beneficial in several ways. However, the manufacturers are constantly working on creating consumer awareness and developing informative packaging to clear the consumer’s intention towards the product. Thus, the efforts to reinforce the marketing activity will offer growth opportunities for the global cannabidiol market.”

Different parts of the world are developing as markets for CBD products at very different rates. The report notes that CBD companies based in countries which are early adopters of the products are at an advantage in the global market.

“The global market is highly regulated by various government bodies across the world. The companies operating in the countries that have received the approval status for cannabis products well earlier than other countries dominate the industry. The product’s better know-how, raw material production, extensive research and development for launching various product categories, and a stronghold on the supply chain are a few of the advantages aiding these companies to gain a competitive edge in the market. This is further helping the companies to expand their presence in other countries.”

The full market research report offers a detailed analysis of the market, Fortune says, and focuses on key aspects –leading companies, product types, leading distribution channels – plus market trends and key industry developments.

Cannabidiol (CBD) Market Size, Share & COVID-19 Impact Analysis, By Source (Marijuana and Hemp), Application (Food & Beverages, Pharmaceuticals, Pet Care, Cosmetics, and Others), and Regional Forecast, 2021-2028: Fortune Business Insights – CBD

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