CBD Oil Market: Current Analysis and Forecast (2022-2028)

Global CBD Oil Market is expected to grow at a significant rate of around 28.5% during the forecast period. Cannabidiol is a chemical compound that is obtained from marijuana and hemp plants and is commonly used for medical purposes. It offers a wide range of applications, such as managing pain, stress relief, anxiety, muscle disorder, Crohn's disease, Parkinson's disease, and other medical conditions. In addition to this, CBD oil is gaining attention across other industries, including cosmetics, food and beverages, pet care, and others which is boosting the growth of the market during the forecast period. The companies in the market are rapidly launching new products in the market, thus boosting the demand for CBD oil in the forthcoming years. For instance, in May 2022, Canopy Growth Corporation launched new flavors for their flavored cannabis-infused carbonated drinks: orange orbit and the Grape. The launch of these products has increased the company's product portfolio to deliver innovative products in the market. Further in March 2022, Martha Stewart, in collaboration with Canopy Growth Corporation and Marquee Brands, released 15-flavor CBD Wellness Gummies Sampler. Thus, the rising investment by pharmaceutical companies is another factor driving the growth of the market during the forecast period.

ENDOCA; Cannoid, LLC; Medical Marijuana, Inc.; Folium Biosciences; Elixinol; NuLeaf Naturals, LLC; Isodiol International, Inc.; Canopy Growth Corporation; Aurora Cannabis Inc.; Tilary Inc.; and others are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report:

"Amongst product type, hemp oil category to witness higher CAGR during the forecast period"

Based on type, the market is bifurcated into hemp oil and marijuana oil. The hemp oil segment is expected to grow with high CAGR rates which are mainly attributed to the less concentration of tetrahydrocannabinol and high concentration of CBD, making it a more lucrative opportunity for the manufacturers and an option with the least potential legal ramifications. The companies have adopted strategic alliances to launch new products in the global market. For instance, in 2019, Vitalibis in collaboration with Bruce Lee Beverage, LLC launched its new premium Signature AB900 full spectrum, terpene-rich hemp oil. The bottle contains about 900mg of naturally occurring cannabidiol (CBD) and other cannabinoids per bottle, as well as a proprietary blend of natural herbs and other ingredients inspired by Bruce Lee's health and wellness practices.

"Amongst application, the cosmetic to hold a significant share in the market in 2020"

On the basis of application, the market is categorized into pharmaceuticals, food and beverages, cosmetics, and others. Among these, cosmetic to hold a significant share of the market in 2020. This is mainly due to the change in the perception of consumers towards the advantages of natural and organic ingredients. In the last few years, consumers have opted for greener products due to the presence of a toxic substance in synthetic personal care products. Moreover, the rise in literacy rates as well as social media platforms, have also enhanced awareness of CBD skin care products. For example, Sephora has recently started rolling out more cannabis-derived beauty and skincare products such as hemp seed facial oils and CBD body lotions.

"North America to hold a significant share in the market"

In 2020, North America held a significant share of the global CBD oil market. This is mainly attributed to the favorable government policies for cannabidiol. To date, 37 states and the District of Columbia have approved the legal use of medical cannabis, whereas 21 have legalized the recreational or adult use of cannabis. The U.S. is expected to dominate the market during the forecast period. According to the data from American Sleep Association, more than 50 million U.S. adults have sleep disorders. CBD oil regulates and interacts with neurotransmitters thus assisting in getting deep sleep and treating insomnia. Increasing cases of sleep disorders and rise in the number of research indicating the effectiveness of CBD in treating such ailments will boost the market growth in the U.S.

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Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

The study comprehensively covers the market across different segments.

Deep dive regional level analysis of the industry.

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