Cannabidiol Oil Consumer Health Market

Market Overview

The global cannabidiol oil consumer health market size was valued at USD 22.3 billion in 2022. It is estimated to reach USD 208.9 billion by 2031, growing at a CAGR of 28.2% during the forecast period (2023–2031). Factors such as growing adoption of CBD-Based Products for treating various medical conditions and growing legalization of Cannabis-Based CBD, significantly drives the cannabidiol oil consumer health market demand by 2031.

Since scientific research has verified CBD's therapeutic qualities, CBD-based products are becoming increasingly well-known in the health and wellness industry. This is anticipated to fuel market expansion. The growing consumer acceptance of CBD products and the growing product offerings of industry participants are driving the market's rapid expansion. Products containing CBD are frequently used to treat a wide range of illnesses, including chronic pain, anxiety, depression, and sleep disturbances. Furthermore, the skincare and cosmetics sectors are seeing a rise in the use of CBD-infused products.

Consumer health cannabidiol (CBD) oil refers to using CBD oil-containing products for different health and wellness uses. CBD is a chemical produced by the hemp plant that, unlike THC, does not produce a high and is not considered addictive. Oils, tinctures, pills, and topical treatments are just a few ways CBD oil—sourced from the hemp plant—is used in consumer health goods. CBD oil supporters believe it offers many possible health advantages, including pain relief, anxiety and stress reduction, better sleep, and anti-inflammatory properties.

Market Dynamics

Cannabidiol Oil Consumer Health Market Drivers

Growing Adoption of CBD-Based Products for Treating Various Medical Conditions

CBD-based products are gaining wide recognition in the health and wellness sector as scientific studies have confirmed the therapeutic properties of CBD. Patients use it to treat various mental disorders, cancer, and arthritis. Pharmaceutical medications utilized in treating depression and anxiety can have several side effects, including headaches, sleeplessness, drowsiness, and sexual dysfunction. Certain drugs, like benzodiazepines, have an addictive quality and can result in substance misuse. On the other hand, CBD oil is a non-addictive, all-natural method of treating depression and anxiety.

In addition, CBD has proven effective in reducing the number of seizures. Cancer patients undergoing chemotherapy and radiation treatments often suffer nausea, vomiting, and post-cancer pain. These side effects can be decreased by regular intake of CBD oil. Currently, research is being conducted on various other medical benefits of CBD. If studies prove successful, CBD may be used for treating acne, type 1 diabetes, and various types of cancer. Thus, the abovementioned factor will boost demand in the global market.

Growing Number of Companies Producing Synthetic CBD for Pharmaceutical Applications

Synthetic CBD is produced from chemical compounds and is considered a replica of natural CBD. Many studies proclaim that the health benefits of synthetic CBD are in alignment with the health benefits produced by natural CBD. In addition, the amount of CBD produced via the chemical process is much higher than that of natural CBD. Moreover, the price of CBD produced through the chemical process is substantially lower than that of natural CBD. Due to these benefits, the use of synthetic CBD is increasing.

Moreover, companies are entering the synthetic CBD market shortly due to its growth potential. For instance, in 2019, FSD Pharma, a Canadian company, announced its strategy of creating synthetic cannabinoids for the U.S. market. This would help the company enter the U.S. synthetic CBD, or cannabinoids, market. Therefore, a growing number of research activities, rising strategic investments by companies, and increasing awareness regarding synthetic CBD are expected to contribute to the overall cannabidiol oil consumer health market growth during the forecast period.

Cannabidiol Oil Consumer Health Market Restraint

Strict Government Regulations About the Production and Distribution of CBD Products

In the last few years, cannabidiol has become immensely popular globally. It is used to treat various lifestyle diseases and medical conditions such as inflammation, pain, sleep disorders, epilepsy, schizophrenia, anorexia, symptoms of multiple sclerosis, and other conditions. In addition, there is a high demand for cannabidiol in cosmetic products like lotions, creams, and moisturizers, as well as in food items and beverages. Despite the high demand and increasing availability of cannabidiol, several uncertainties exist about its safety, quality, and legality.

Furthermore, cannabidiol producers have significant challenges in establishing a viable and entirely lawful distribution channel as a result of tight regulations. As different activities are permitted in different countries for processing, extraction, and cultivation of hemp, several manufacturers are forced to carry out operations in different countries. This also makes it difficult to determine the origin of the cannabidiol product and who is liable for the final quality of the product. Therefore, varying stringent regulations for cannabidiol in different countries are anticipated to hamper market growth.

Cannabidiol Oil Consumer Health Market Opportunities

Growing Legalization of Cannabis-Based CBD

Cannabidiol is extracted from hemp and marijuana found in the Cannabis sativa plant. These sources were considered to provide CBD with high THC content, which can be hazardous to the human body. Thus, most countries have regulated the cultivation and distribution of cannabidiol owing to their harmful effects on consumption. Cannabidiol has recently been approved in several nations for industrial uses, including food and drink, medicines, personal care and cosmetics, and food and drink. This is because it has been shown to be safe for human consumption when taken in the recommended dosage. As per federal law in the U.S., the production and distribution of hemp-based CBD have been legalized owing to its medicinal benefits. Growing marijuana has been legalized in most European countries, providing opportunities for start-ups dealing with marijuana-based products to explore the market.

Regional Analysis

Based on region, the global cannabidiol oil consumer health market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global cannabidiol oil consumer health market shareholder and is estimated to exhibit a CAGR of 24.2% over the forecast period. North America is known to be the most progressive region concerning cannabis and its products, including CBD. Its regulations on the use of CBD products are the most liberal, and it has the greatest concentration of CBD enterprises. The legality of cannabidiol (CBD) usage varies from nation to nation in North America. In addition, the continent's northern regions are quite open to the consumption of CBD products, cannabis, and hemp.

For instance, CBD is completely legal in the U.S. and Canada. They are the global leaders in the cannabis industry. However, the lower regions of the continent, such as Central America and the Caribbean, have a different perspective on CBD products. They have extremely stringent laws related to hemp. Irrespective of its non-psychoactive effects, hemp has been considered in the same category as marijuana. Therefore, the utilization of hemp and cannabis-derived products remains illegal in the majority of the lower regions of the North American continent.

Europe is expected to exhibit a CAGR of 21.07% over the forecast period. Due to increasingly favorable policies, rising awareness about CBD benefits, and increasing consumption of CBD-infused products, the market is expected to grow during the forecast period. These CBD-infused foods require marketing authorization before they can be marketed. This can be a major setback for companies dealing primarily with CBD-infused products. It may also affect market growth, as several small players cannot afford marketing authorization costs. Hemp is integral in several industries, including high-protein food and beverages, composites, and graphene substitutes. Although adhering to the guidelines was not mandatory, several states have amended their laws according to the declarations. Therefore, this decision can lead to a major shift in legislation for member countries, and market growth will depend on further amendments made in favor of CBD-infused products and companies.

Additionally, the increased health consciousness brought about by the pandemic has led to augmented sales of CBD-infused products. Therefore, increased consumption, rising awareness and positive attitude about CBD products, strategic investments by major companies in Europe, and increased online services offered by European companies during the pandemic are expected to propel the market substantially during the forecast period.

In the Asia-Pacific region, CBD regulations vary significantly between countries. These laws strongly depend on people's traditional, cultural, and religious beliefs. For instance, cannabis plays a major role in Afghanistan's predominant culture. Despite using cannabis in the form of hashish, its cultivation and use as cannabis or derivatives, such as CBD, are strictly prohibited. In many other countries of the region, CBD remains illegal, primarily because the countries do not differentiate between hemp and marijuana. However, this creates a problem for people intending to use CBD as a medicine. The emphasis on the health advantages of CBD has the potential to contribute to the legalization of this substance within the region. Countries where CBD is available for sale are China, Japan, Australia, New Zealand, South Korea, and India.

Latin America holds strict regulations regarding cannabis and its derivatives, primarily due to the drug trafficking history of the region. However, there are initiatives undertaken by many countries for the legalization of CBD products due to the non-psychoactive nature of the compound. For instance, Chile, Argentina, Colombia, Peru, Mexico, and Brazil have legalized CBD for medical purposes. Other countries in the region provide access to the cultivation of cannabis at home and for personal consumption, with certain restrictions. Uruguay, Mexico, Brazil, Colombia, and Chile have allowed homegrown plants to grow within certain limits for medical or recreational purposes.

In the Middle East and Africa, CBD regulations are quiet. The production, distribution, and consumption of cannabis, including CBD, is illegal in this region. The penalty for possession or consumption can be as severe as the death penalty in some Middle Eastern countries. For instance, possession of CBD oil in Saudi Arabia is considered an offense and an act of drug trafficking, accounting for the death penalty. In addition, the UAE has strict laws for possessing CBD, even in small proportions. For instance, skincare products and e-cigarettes containing CBD are considered criminal offenses, and the person is penalized for at least four years in jail. Therefore, due to highly stringent regulations in the Middle East, the CBD market has yet to witness significant growth.

Segmental Analysis

The global cannabidiol oil consumer health market is bifurcated based on product type and distribution channel.

Based on product type, the global cannabidiol oil consumer health market is bifurcated into CBD oil, CBD isolate, and synthetic CBD.

The CBD oil segment dominates the global market and is projected to exhibit a CAGR of 20.76% over the forecast period. Full-spectrum CBD oil contains CBD and other compounds such as terpenes, flavonoids, and omega acids. It also contains other minor cannabinoids. Full-spectrum oils generally contain about 80% or more CBD and are preferred by consumers who require other additional benefits along with CBD. Hence, full-spectrum CBD oil is sometimes preferred by consumers over CBD isolates.

Many companies exploit the lucrative growth opportunities of full-spectrum CBD oil and its products. The company witnessed a substantial increase in sales of CBD oil and other products, and due to increasing demand, the company has expanded its distribution network to more than 4,500 retail stores across the country. Such initiatives highlight the rising demand for full-spectrum CBD oil. Therefore, the market is anticipated to experience significant growth during the forecast period due to the rising demand for full-spectrum CBD oil and the increasing number of enterprises choosing to produce, process, and extract it.

Based on distribution channels, the global cannabidiol oil consumer health market is divided into business-to-consumer (B2C) and business-to-business (B2B).

The B2C segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 5.97% over the forecast period. The possibility of supplying CBD products through various channels, such as online, offline, and specialized delivery, has increased. Similarly, after the legalization of CBD products in various countries, the avenues for supplying these products significantly increased, expanding the consumer pool. For instance, the most common method of supply for CBD products once cannabis was approved for medical use was through pharmacies or medical dispensaries. Later, CBD oil transformed from a niche product to a consumer-based product owing to the advent of the Farm Bill in 2018 and favorable reforms about CBD and its imports in various geographies. This paved the way for online portals to distribute products in various countries.

Recent Developments

• May 2023: The FDA authorizes the first CBD-based medicine to treat chronic pain. Epidiolex is a medication that is a refined version of CBD produced from the cannabis plant.
• February 2023: The European Commission authorized the sale of CBD-based drugs to treat two uncommon types of epilepsy. This is a huge step forward for the CBD sector and will likely stimulate demand for CBD products throughout Europe.