The Cannabidiol Market is estimated to be valued at US$ 7953.14 Mn in 2023 and is expected to exhibit a CAGR of 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview: Cannabidiol (CBD) is a major non-psychoactive constituent of cannabis or hemp. CBD provides various health benefits such as reducing anxiety, relieving pain, reducing acne and is used to treat epilepsy, cancer, multiple sclerosis and other ailments. Due to rising legalization of cannabis and increasing awareness about health benefits of CBD, the demand for CBD infused products is growing substantially. Market key trends: Rising legalization of cannabis is a major trend boosting the growth of cannabidiol market. Countries such as Canada have fully legalized cannabis for both medical and recreational uses. Several U.S. states have also legalized cannabis use for medical as well as recreational purposes. According to the National Conference of State Legislatures (NCSL), as of July 2021, 36 states, four territories, and the District of Columbia have legalized cannabis for medical use. This significant increase in legalization of cannabis is fueling the demand for CBD derived products, thereby driving the growth of cannabidiol market. Porter’s Analysis Threat of new entrants: The cannabis market has high entry barriers due to legal restrictions and licensing requirements in many regions. Strict regulations make it difficult for new companies to enter the market. Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and choice of established manufacturers. However, the specialized nature of cannabidiol products limits switching. Bargaining power of suppliers: Suppliers of raw materials such as hemp have significant influence due to their specialized extraction methods and technologies required. This gives them pricing power. Threat of new substitutes: Substitutes include other cannabis extracts, pharmaceutical drugs, and herbal supplements. However, cannabidiol is gaining popularity due to its perceived health benefits with limited competition from other product categories currently. Competitive rivalry: The market is dominated by large companies with global production and distribution networks. SWOT Analysis Strength: Growing awareness and acceptance of cannabidiol for various medical conditions is driving demand. Support from clinical research studies on its therapeutic benefits is also positive. Weakness: Regulations still restrict manufacturing, marketing, and sales in some regions. Product standardization and safety are other concerns hampering wider adoption. High costs of extraction and production also affect profitability. Opportunity: Potential expansion into new therapeutic areas and product formats. Favorable regulatory reforms in more countries will unlock untapped markets. Threats: Unclear long term effects may cast doubts. Intense competitive pressure from existing and new players. Dependence on agricultural raw material supply exposes to price volatility. Key Takeaways The Global Cannabidiol Market Size is expected to witness high growth, exhibiting CAGR of 47% over the forecast period, due to increasing legalization in major countries. The market size for 2023 is US$ 7953.14 Mn. North America currently dominates due to early legalization and is expected to retain its leading position. Asia Pacific is poised to be the fastest growing region owing to rising disposable incomes, increasing health awareness, and developing cannabis industries. Regional analysis: North America currently dominates the global cannabidiol market due to the early legalization of medical cannabis in countries like the US and Canada. Europe is another major market supported by increasing product approvals. However, Asia Pacific is anticipated to grow at the fastest pace owing to rising adoption in emerging nations like China, India, Australia, and South Korea. Developing cannabis cultivation and a growing young population contribute to the regional market expansion. Key players operating in the cannabidiol market are Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Maricann, Inc., Tilray, GW Pharmaceuticals, plc, ABcann Medicinals, Inc., Organigram Holding, Inc. Read more https://www.ukwebwire.com/cannabidiol-market-size-share-growth-outlook-2023/
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