The CBD hemp oil market is expected to register exponential CAGR during the forecast period. The CBD hemp oil is obtained from the hemp seeds which undergoes manufacturing procedures that are initiated with the cleaning of the seeds and crushing to extract the oil. The legal authorization has imposed a limitation of THC content up to 10 ppm in foodstuffs. The limitations have varied according to the different countries. The CBD hemp oil does not affect the state of mind, however provides therapeutic benefits to the individual. CBD hemp oil is used as a medication for patients who are diagnosed with diabetes, chronic illness, or to improve their immune system.
CBD hemp oil is primarily utilized for its therapeutic benefits and stress relief, however, the healing properties of the CBD hemp oil are found to be effective for the regulation of the state of mind. Several psychological treatments include CBD hemp oil as it is used in depression treatment. The increasing incidences of neurological disorders are also stimulating the overall growth of CBD hemp oil market value. However, the side effects of CBD hemp oil are hindering market growth, which are liver problems, infections, breathing problems, and rashes.
COVID 19 Analysis:
The COVID widespread has interrupted several industrial sectors across the world and interrupted the operations and consumer behaviors in every industry. Due to prolonged lockdown, the retail stores were closed and caused a shortage in supply of raw materials. The transportation blockages and lockdown in countries like China and India have led to a shortage in raw materials. Such factors have greatly impacted the supply chain of CBD health products.
However, the increasing incidences of chronic illness and the increasing demand for medications for depression and nerve disorders have propelled the market players to increase their investments, launch innovative products, and increase their distribution networks. Such factors have helped the CBD hemp oil market to sustain the hindrances. The increasing demand in the pharmaceutical sector has stimulated the overall growth of the CBD hemp oil industry which is expected to support the growth post-pandemic.
The increasing demand for omega 3 fatty acid supplements, immunity boosters, and other fatty acid supplements are stimulating the CBD hemp oil market growth. The hemp seed contains nearly 49% of edible oil which is composed of omega 3 fatty acids like linoleic acid and stearidonic acid. Such oils are intensively utilized in supplements.
The veganism and increasing preferences towards plant-based medicines are impacting the CBD hemp oil market growth. The medications obtained from CBD hemp oil are generally minimally processed and are chemical-free medicines; such factors have attracted a huge population who are primarily allergic to chemicals.
The increasing acceptance of CBD hemp oil in pharmaceutical companies is presenting lucrative opportunities for the overall growth of the industry. Additionally, the varied applications of the oil are also stimulating the CBD hemp oil market demand. The polymerizing properties of hemp oil make it suitable for oil paints, hardeners in putty, and pigment binders in oil paints.
Cannabidiol is increasingly utilized in pharmaceutical companies. Especially, the depression and stress management pills manufactured with CBD hemp oil are found to be the effective solution as they lack psychoactive properties. On the other hand, as CBD hemp oil is applied in varied medical areas and offers effective solutions for several ailments, the demand for the CBD hemp oil market is expecting steady growth.
The legalization issues and strict restrictions for the usage of cannabidiol in some countries are hindering the overall growth of the CBD hemp oil market growth. The FDA permits an extremely low concentration of the psychoactive compound of THC which cannot be more than 0.3 % on a dry weight basis. According to FDA, CBD is not considered as a toxic substance like THC; however, they don’t rate CBD as a toxic less substance either.
The potential side effects of CBD-related products are liver toxicity, drug interactions, and drowsiness are considered as primary restraining factors in the industry. On the other hand, the rising costs of CBD products are also hindering the growth of the CBD hemp oil industry.
The safety profile of CBD products is not proven yet. There is not much information about the safety profile when the drugs are administrated for a long time, the side effects are not confirmed by the authorities. Such factors are primary challenges of the industry.
The prevalence of unauthorized drugs in the market that has not gotten FDA approval, is hindering the growth of the CBD hemp oil market growth. The CBD hemp oil drugs for serious diseases like Alzheimer’s disease, cancer, and so many other diseases are illegally sold in the market, while the FDA authorities have sent warning letters to such companies. Such practices are presenting major challenges for the CBD hemp oil market growth.
Cumulative Growth Analysis:
The CBD hemp oil market growth is expected to witness a steady growth rate in the forecast period, as the demand for plant-based pain relief medications are increasing in recent times. The increasing demand for mood-related neurological disorders such as Bipolar disorder, Substance-induced disorder, major depression is preferring CBD hemp oil products to treat such diseases. The pharmaceutical companies are intensively using the CBD in various other medications used for chronic pain, cancer-related treatments, diabetic-related treatments, immunity boosters, and so on. The changing attitude of the public and relaxing legal issues over CBD products are increasing the CBD hemp oil market growth.
The increasing digital marketing and varied medical applications of CBD hemp oil are considered major growth stimulating factors. The increasing awareness among the people to maintain proper health and increasing trend of diet supplements are also stimulating the CBD Hemp oil market growth in recent years.
Value Chain Analysis:
The CBD element that is derived from the marijuana plant doesn’t possess high toxicity such as THC, which affects the state of mind of the individual administrating it. The CBD products are comparatively safer as they soothe and calm the mind and are known to be effective in treating mood-related disorders. The advancing technologies in farming the hemp plant are stimulating the CBD hemp oil market growth. The hemp plants are intensively grown in smart farming methods which utilize AI and big data to check the quality of soil and to keep track of the inventory and enhance the workflow. Such factors have increased the overall production of hemp plants.
The business-to-business segment is also projecting a market share of 58.9% in the year 2020. The bulk and wholesales of CBD hemp oil are stimulated with the increasing market expansion and expanding customer pool.
On the other hand, several pharmaceutical companies are purchasing CBD hemp oil to manufacture products that have infused state of CBD hemp oil in them. Moreover, the increased utilization of CBD in skin care treatments and products as CBD has a significant anti-inflammatory effect on sebocytes, they are well known for treating acne. Such factors are also stimulating the overall growth of the CBD hemp oil industry.
Based on Source type:
Based on Distribution channel:
Based on End-user:
Based on Personal Use:
Several countries have forbidden the usage of CBD products for recreational purposes. However, countries such as Canada, Georgia, Mexico, South Africa, and 19 other states have approved the usage of CBD for recreational purposes. The United States of America has legalized the medical use of cannabis under medical supervision. Several drugs were approved by FDA when they are used as per the intended usage and under medical professionals’ guidance. Countries like Chile, Colombia have prohibited the cultivation and usage of drugs for personal usage.
Presently, North America is witnessing steady growth owing to the wide range of availability of various products that have CBD in the infused state. On the other hand, China has considered the largest producer of CBD hemp plants and exports quality products to foreign countries. The emerging companies that have to support the legalization of the drugs are stimulating the overall growth of the CBD hemp oil industry in recent years.
In the year 2021, the US-based market player has unveiled product marketing with the emerging advanced technology that supports the natural healing of chronic conditions from pharmaceutical-grade cannabidiol. This endeavor has helped several brands to collaborate with CBD goods and offered cannabis-infused drinks.
In the year 2021, One of the leading market players has introduced the cannabis extractor which produces solventless cannabis concentrate to the market. The company has been awarded the patent for the invention by the US patent and trademark office.
The recent FDA approval for the drug called Epidiolex for treating seizures, especially the seizures caused by Gastaut syndrome are not declared as a risk-free drug, however, when administered with intended usage, the drug can be effective in treating the condition. The risks are managed by the health care professionals.
This report has covered:
|Market Size||2027: Significant Value|
|CAGR||2020-2027: Substantial CAGR|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Source Type, Distribution Channel, Personal Use and End-user|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ENDOCA, Medical Marijuana, Inc., Folium Biosciences, Elixinol, NuLeaf Naturals, LLC, Isodiol International, Inc., Freedom Leaf, Inc. (US), Green Roads of Florida, LLC (US), Charlotte's Web Holdings, Inc. (US), CBD American Shaman (US), CV Sciences, Inc. (US), Medical Marijuana, Inc. (US), Canopy Growth Corporation (US), Aurora Cannabis (US), MedMen Enterprises Inc. (US)|
|Key Market Opportunities||The increasing acceptance of CBD hemp oil in pharmaceutical companies|
|Key Market Drivers||