Cannabidiol (CBD) Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The cannabidiol (CBD) oil market is expected to register a CAGR of 16.5% during the forecast period.

The impact of COVID-19 was profound on the studied market owing to the disruption in the supply chain of pharmaceuticals and other essential medical products, impacting the cannabidiol (CBD) oil market. The COVID-19 pandemic impacted the mental health of people due to the isolation caused by restrictions. For instance, according to WHO, an enormous 25% increase in the global prevalence of anxiety and sadness was seen in the first year of the COVID-19 pandemic owing to the factors such as lockdown, social isolation, loneliness, fear of infection, suffering, and death. As a result of increased stress and depression caused by the pandemic, the market is estimated to grow during the forecast period. The market gained traction as the restrictions were lifted globally.

According to a research study about cannabidiol's effectiveness for young people with treatment-resistant anxiety published in August 2022 in EurekAlert, the severity of the symptoms and impairment brought on by persistent anxiety may be reduced to half by using cannabidiol. The study also reported that after receiving cannabidiol treatment for 12 weeks, young people with treatment-resistant anxiety experienced an average 42.6% decrease in anxiety severity and impairment. The advantages of cannabidiol in reducing anxiety symptoms are estimated to boost the demand for cannabidiol oil-based products, which is expected to boost the market growth.

Also, according to WHO, depression affected about 280 million people around the world, and an estimated 3.8% of the world's population suffered from depression, with 5.0% of adults and 5.7% of persons over 60 years being affected as of 2021. Hence, due to the high burden of these disorders, the CBD oil market is expected to grow over the forecast period.

Additionally, the strategic initiatives like product launches, approvals, and partnerships adopted by key players are fueling market growth. For instance, in September 2021, Aurora Cannabis Inc. launched Bidiol, the medical cannabis oil in Uruguay that is wholly produced domestically. The CBD oil is available in 3% and 10% concentrations and comes in 10mL and 30mL bottles, available in pharmacies across the country. The increasing product launches are estimated to propel market growth.

Moreover, the research and development activities in the area are further expected to increase the acceptance of CBD oil-based products. For instance, according to a study from Michigan University published in June 2021, out of 878 patients with fibromyalgia, 72% of patients reported using CBD to manage their pain, and CBD helped decrease their pain compared to other drug therapies. Thus, the widespread use of CBD oil-based products, along with changing consumer opinion, has increased the adoption of CBD products, thereby propelling the market growth.

Therefore, due to the above-mentioned factors, the cannabidiol (CBD) oil market is expected to grow during the forecast period of the study. However, stringent regulatory policies and side effects, and perceptions of people on the use of CBD oil are expected to restrain the growth of the studied market.

CBD Oil Market Trends

Neurological Pain Segment is Expected to Hold a Significant Share in the Cannabidiol (CBD) Oil Market Over the Forecast Period

Neurological pain is a type of pain that is frequently persistent, and it typically results from a chronic, progressive nerve illness, an injury, or an infection. CBD oil is used in the treatment and management of neurological pain.

According to a review study published in February 2022, about 3% - 17% of the general population suffers from neuropathic pain, and neuropathy can contribute to chronic pain and be a component of mixed pain syndromes. Hence, the high burden of neuropathic pain is expected to boost the segment’s growth during the forecast period.

Furthermore, according to a research study about the safety of medical cannabis in neuropathic chronic pain management, published in October 2021 by MDPI, cannabis was found to be effective in chronic neuropathic pain management. Therefore, owing to the vast potential of CBD oil products in neurological pain treatment and the high prevalence of neurological pain, the segment is expected to hold a significant market share over the forecast period.

North America Region is Expected to Hold a Significant Share in the Cannabidiol (CBD) Oil Market Over the Forecast Period

The North American region is expected to hold a significant share of the studied market owing to the increasing acceptance of cannabis-based products in the treatment of psychological disorders and the increasing expansion activities of the companies in the region.

The strategic initiatives adopted by key players, like product launches, innovation in products, approvals, and partnerships, are fueling market growth. For instance, in January 2021, Pure Extracts Technologies signed an agreement for the purchase of 220 kilograms of high-potency cannabis dried flower from a large Canadian licensed producer and 1,000 kgs of high-potency CBD biomass from a top Western Canadian cultivator to scale up production of both its Tetrahydrocannabinol (THC) and CBD extracts. Further, several cannabis-based products are approved and regulated in the United States and Canada, which is expected to play a significant role in the growth of the cannabidiol (CBD) oil market over the forecast period.

Furthermore, in March 2021, Advanced Pain and Rehab Specialists, in collaboration with Hemp synergistic, conducted a phase I clinical trial to assess the efficacy of Hemp Oil (CBD) for treating pain, anxiety, insomnia, and reduction of opioid use. Also, in June 2021, the Valens Company Inc. completed the acquisition of Green Roads and its manufacturing subsidiary. With this acquisition, Valens Company is expected to have one of the largest presence in the cannabinoid market. The rising company activities in the region are expected to boost market growth over the forecast period as these initiatives are expected to increase product availability in the region.

Therefore, due to the above-mentioned factors, the North American region is expected to hold a significant market share in the cannabidiol (CBD) oil market over the forecast period.

CBD Oil Market Competitor Analysis

The global cannabidiol (CBD) oil market is consolidated in nature due to the presence of a few companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international as well as local companies which hold market shares and are well known. Some key players are Medical Marijuana, Inc., ConnOils LLC, NuLeaf Naturals, LLC, Canopy Growth Corporation, CBD American Shaman, Elixinol, IRIE CBD, Hempstrol, Gaia Herbs, Aurora Cannabis, CV Sciences Inc., ENDOCA and Gaia Herbs.

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• The market estimate (ME) sheet in Excel format
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