CBD-Infused Confectionery Market Research Report—Global Forecast till 2028

CBD-Infused Confectionery Market Research Report: Information by Product Type (Hard Candies, Soft Confectioneries), by Category (Sugar-Based, Sugar-Free), by Distribution Channel (Store-Based, Non-Store-Based), and by Region (North America, Asia-Pacific, Europe, and the Rest of the World)—Forecast till 2028

ID: MRFR/F-B & N/9171-HCR | February 2023 | Region: Global | 90 Pages         

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CBD-Infused Confectionery Market

CBD-Infused Confectionery Market Size is anticipated to reach USD 10.42 Billion by 2030, registering a CAGR of 12.25% during 2021-2028.

Segmentation
By Product Type Hard Candies Soft Confectioneries
By Category Sugar-Based Sugar-Free
By Distribution Channel Store-Based Non-Store-Based
By Region North America Europe Asia-Pacific Rest of the World
Key Players
Companies Profiled   Cannabinoid Creations (US)    Aurora Cannabis (Canada)    Med CBDX (US)    Dixie (US)    Joy Organics (US)    Folium Biosciences (US)    CBD American Shaman (US)    CBDfx (US)    Diamond CBD (US)    Medix Wellness LTD (UK)
Drivers
Market Driving Forces   Legalization of Cannabinoid (CBD) in Several Countries Across the Globe    Increasing R& D on Cannabinoid
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CBD-Infused Confectionery Market Overview


CBD-infused confectionery market is projected to register a CAGR of 12.25% and reach a value of USD 10.42 billion by 2028. CBD or cannabidiol is derived from the herbal flowering plant family, Cannabis sativa. It includes hemp as well as marijuana. It is also found in marijuana but does not contain high amounts of tetrahydrocannabinol (THC), a principalpsychoactive constituent of cannabis. According to UK National Health Service, CBD can be used as a treatment for epilepsy. CBD-infused confectionery is a consumer product, and it provides health advantages such as relief from anxiety, inflation, and insomnia.CBD-infused confectionery has to be chewed and swallowed. Also, it can be consumed at any point of the day and is easy to carry.The legalization of CBD production in various countries across the globe is driving market growth. However, stringent government regulations due to the adverse effects of CBD are expected to restrain the global market growth during the review period.


COVID-19 Impact Analysis


A recent research study indicates the CBD industry can expect high consumption, particularly amongst regular users, which indicates how the market could fare over the next weeks and months to come. Moreover, 39% indicated they expected to use more CBD during the COVID-19 crisis in a study of CBD consumers. This is predominantly true amongst Millennials and Gen Z consumers, as 49% plan on using more CBD in the coming weeks and months.


In countries where CBD consumption is legalized, a sudden increase in demand and sales has been observed amidst the pandemic. Some countries and states in the US have also expanded CBD-infused confectionery sales and delivery services through online channels, taking social distancing norms under consideration. The CBD industry has seen a sudden spike in demand after CDC has announced self-quarantine. According to the Institute of Food Technologies (IFT), over 17% of the US spent legal cannabis edibles in 2020. The sales of CBD-infused products are expected to cross USD 3 billion by 2021.


Further more, it had been predicted that cannabis legalization would stimulate the economy through job creation and tax revenue during this pandemic.


Market Dynamics


The preference for preventive healthcare products is increasing among consumers, which is expected to boost the growth ofthe CBD-infused confectionery market. Moreover, with increasing awareness and product visibility, consumer demand for CBD-infused confectionery is rising. Product innovation in terms of formulations and innovative packaging are the major drivers of theCBD-infused confectionery market. Along with conventional confectionery, the demand for CBD-infused confectionery has been surging across the globe over the last few years.Furthermore, the increasing legalization of CBD among various parts of the globe has escalated the demand for CBD-infused confectionery and is expected to continue during the forecast period.


Drivers:



  • Legalization of Cannabinoid (CBD) in Several Countries Across the Globe


With the increasing awareness regarding the benefits of hemp-based CBD, its use has been legalized in various countries. The evidence for the legitimate medical use of cannabinoids is found in various indications such as nausea/vomiting related to chemotherapy, spasticity in multiple sclerosis, HIV/AIDS cachexia, and neuropathic pain. On 28 June 2018, the US Senate officially passed the Agriculture Improvement Act of 2018, known as the Farm Bill. The 2018 Farm Bill officially reclassified hemp for commercial use and removed hemp-derived CBD from the controlled substance list. It also gave the states and the federal government a shared regulatory authority for hemp production.


With the passage of the 2018 Farm Bill, the Agricultural Marketing Service (AMS) has been designated as the leading United States Department of Agriculture (USDA) agency to administer the new USDA Hemp Production Program. Under the new law, hemp will be managed by the Department of Agriculture as a crop rather than by the Justice Department as an illegal substance.


The production of CBD is also legal in many European countries, but there are certain restrictions associated with the use of the product. For instance, in 2013, Czech Republic legalized medical cannabis. However, it was limited to 180 grams of dry matter per month. In Europe, cannabis laws vary from country to country. As per the EU law, CBD products cannot contain more than 0.2% tetrahydrocannabinol (THC).Considering the current scenario, it can be concluded that the legalization of CBD production and its products in various countries across the globe is expected to boost the growth of the global CBD-infused confectionery market during the review period.


Restraint:



  • Stringent government policies regarding CBD


Despite the medical advantages of cannabis, they exhibit harmful effects on human health. As per studies, heavy dosage or long-term use of cannabis can lead to addiction, altered brain development, diminished life satisfaction, and cognitive impairment. It is also found that the effects are adverse in individuals who begin using cannabis-based products as adolescents. Due to these reasons, CBD remains in a dispute of legality in various regions, and stringent regulations regarding the use have been imposed in many countries. There are many regulations on the clinical research of cannabinoids. Scientists must follow the regulations and take approvals from different agents to perform cannabinoid research. The scientists must submit an investigational new drug (IND) application to the Food and Drug Administration agency to initiate it. The investigator further needs to contact the National Institute on Drug Abuse (NIDA) to get an organizational letter of authorization (LOA), which describes the characteristics of the cannabis product (e.g., quality, strains, strength, toxicology, and pharmacology).


Opportunities:



  • Increasing R& D on Cannabinoid


There are many private and government organizations supporting the R&D of cannabinoids for medical purposes. Cannabis offers numerous medicinal properties aid to cure various diseases. According to the National Institute of Drug Abuse, May 2018 publication, in 2017, the National Institute of Health (NIH) supported 330 projects and spent USD 140 million on cannabinoid R&D. During this, USD 36 million was spent on 70 projects to examine the therapeutic properties of cannabinoids and USD 15 million on 26 projects centered on cannabinoids (CBD). In 2016, the NIH spent USD 21 million on studying the therapeutic features of cannabinoids. Singapore, known for the world's most stringent drug laws, is also funding research projects on medical treatments containing synthetically derived compounds of the cannabis plant. In 2017, the government-run National Research Foundation introduced a program to research the therapeutic potential of cannabinoids. The growingR&D in favor of cannabinoids is expected to increase the demand for CBD and CBD-derived products, increasing production to meet the high demand. Thus, the increasing R&D for CBD is also expected to create immense growth opportunities for the players operating in the global CBD-infused confectionery market during the forecast period.


Segment Overview


By Product Type


Based on product type, the global CBD-infused confectionery market has been divided into hard candies and soft confectioneries. The soft confectioneries segment accounted for a larger market share in 2020. The segment includes chewing gums, gummies, jellies, pastilles, and others. Soft confectioneries are gaining popularity among consumers due to the product availability in various flavors, colors, and shapes.Chewing gums act as a controlled release drug delivery system by releasing active substances in a controlled manner over an extended period, resulting in a prolonged therapeutic effect.


By Category


Based on category, the global CBD-infused confectionery market has been divided into sugar-based and sugar-free. The sugar-based segment accounted for a larger market share in 2020. CBD-infused confectionery made from sugar syrups as a base isreferred to as sugar-based CBD-infused confectionery. The segment is witnessing several challenges in its growth owing to the lowering demand for sugar-based products, including CBD-infused confectionery, among the global populace. Rising health awareness and increasing prevalence of diabetes and other cardiovascular diseases are propelling consumers to shift to sugar-free variants of CBD-infused confectionery. Owing to this, sugar-based CBD-infused confectionery products are witnessing a decline in their sales.


By Distribution Channel


Based on distribution channel, the global CBD-infused confectionery market has been segmented into store-based and non-store-based. The store-based segment accounted for a larger market share in 2020.Supermarkets and hypermarkets are expected to be the largest sub-segment as these channels account for the maximum sale of CBD-infused confectionery. Key manufacturers of CBD-infused confectionery emphasize promotional activities at different brick and mortar stores to increase awareness among consumers regarding the product, resulting in the growth of the segment. Consumers prefer store-based channels as they provide a one-stop shopping experience.


Global CBD-Infused Confectionery Market Share, by Region, 2020 (%)CBD-Infused Confectionery Market Share, by Region 2020Source: MRFR Analysis


Regional Analysis


The global CBD-infused confectionery market has been divided into regions like North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the largest market share of 58.75% in 2020. Asia-Pacific is expected to register the highest growth rate from 2021 to 2028.


North America Market


North America accounted for the largest market share in the global CBD-infused confectionery market in 2020 and is expected to continue during the forecast period. Consumers in the region are keen to try CBD products due to favorable clinical research to treat various diseases and potential health benefits. According to MRFR analysis,the CBD-infusedconfectionery market is one of the fastest-growing segments of the overall CBD market. The CBD-infused confectionery products are attractive because of theirlooks.They also taste better compared to CBD oil or CBD supplements.


Asia-Pacific Market


Asia-Pacific is anticipated to be a lucrative region for manufacturers of CBD-infused confectionery. It is anticipated to grow at the highest rate during the forecast period. China, Australia, and New Zealand are the major cultivators of hemp, contributing to the CBD-infused confectionery market in Asia-Pacific. According to the US Ministry of Hemp, China accounted for nearly 70% of the world's hemp cultivation. China accounted for the largest market share of the Asia-Pacific CBD-infused confectionery market in 2020, while the market in India is projected to register the highest CAGR during the review period.


Competitive Landscape


The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Folium Biosciences (US), Aurora Cannabis (Canada), CBDfx (US), and Medix Wellness LTD (UK) dominate the global market due to brand reputation, financial stability, product differentiation, and strong distribution network. The players focus on lowering their environmental footprint and investing in R&D along with strategic growth initiatives such as product launches, product approvals, and expansions to strengthen their market position and capture a large customer base.


Prominent players in the global CBD-infused confectionery market include Cannabinoid Creations (US), Aurora Cannabis (Canada), Med CBDX (US), Dixie (US), Joy Organics (US), Folium Biosciences (US), CBD American Shaman (US), CBDfx (US), Diamond CBD (US), and Medix Wellness LTD (UK).


Scope of the Report


Global CBD-Infused Confectionery Market, by Product Type



  • Hard Candies

  • Soft Confectioneries


Global CBD-Infused Confectionery Market, by Category



  • Sugar-Based

  • Sugar-Free


Global CBD-Infused Confectionery Market, by Distribution Channel




  • Store-Based

    • Non-Store-Based




Global CBD-Infused Confectionery Market, by Region




  • North America

    • US

    • Canada

    • Mexico




  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe




  • Asia-Pacific

    • China

    • India

    • Japan

    • Australia and New Zealand

    • Rest of Asia-Pacific




  • Rest of the World

    • South America

    • Middle East

    • Africa




Intended Audience



  • CBD-Infused ConfectioneryProducers

  • CBD- infused Food Manufacturers

  • CBD Oil Manufacturers

  • Confectionery Manufacturers

  • Raw Material Suppliers

  • Retailers, Wholesalers, and Distributors

  • Governments, Associations, and Industrial Bodies

  • Investors and Trade Experts



Report Scope:

Report Attribute/Metric Details
  Market Size    USD 10.42 Billion
  CAGR   12.25% (2021-2028)
  Base Year   2020
  Forecast Period   2021-2028
  Historical Data   2019
  Forecast Units    Value (USD Billion)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Product Type, By Category, By Distribution Channel, and By Region
  Geographies Covered    North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Cannabinoid Creations (US), Aurora Cannabis (Canada), Med CBDX (US), Dixie (US), Joy Organics (US), Folium Biosciences (US), CBD American Shaman (US), CBDfx (US), Diamond CBD (US), Medix Wellness LTD (UK)
  Key Market Opportunities   Increasing R&D on Cannabinoid
  Key Market Drivers   Legalization of Cannabinoid (CBD) in Several Countries Across the Globe


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Frequently Asked Questions (FAQ) :

Cannabinoid Creations (US), Aurora Cannabis (Canada), Med CBDX (US), Dixie (US), Joy Organics (US), Folium Biosciences (US), CBD American Shaman (US), CBDfx (US), Diamond CBD (US), Medix Wellness LTD (UK)

CBD-Infused Confectionery Industry Size is Expected to 10.42 Billion By 2028

CBD-Infused Confectionery Market Share is anticipated to grow at a 12.25% CAGR during the forecast period of 2021–2028

North America will be dominant in the CBD-Infused Confectionery Market