The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028 to reach USD 8.9 billion.
Cannabidiol (CBD) is the most abundant non-psychoactive cannabinoid found in the cannabis plant. This naturally occurring chemical compound is an extract from industrial hemp plants. It is believed that CBD has therapeutic effects on people suffering from inflammation, pain, cancer, and various other medical conditions.
The product is gaining popularity due to its wide range of applications in pharmaceuticals, health and wellness products, and agricultural products. In addition, its anti-inflammatory and antispasmodic properties are gaining popularity in the treatment of chronic pain and anxiety.
Some companies are focusing their efforts on the development of more effective drugs that target the endocannabinoid system used by the human body to regulate several body functions such as pain sensation, mood regulation, appetite, memory, and immunity.
The global market for cannabidiol is largely driven by the growth of the nutraceutical market and increasing consumer awareness regarding the use of natural ingredients in food products. The increasing demand for hemp-based cannabidiol products as food supplements and cosmetics is expected to drive market growth in the near future.
The North American region is expected to dominate the global cannabidiol market throughout the forecast period followed by Europe. The vast opportunities in the North American market are attributed to the high product awareness and changing attitudes of consumers regarding cannabis consumption for medicinal purposes.
Globally, Canada is one of the most lucrative markets for cannabis-based products including cannabidiol. This region has been a major focus of companies due to growing acceptance of the use of cannabis for medical purposes.
Moreover, with the introduction of legalization laws in some regions, it has become easier for companies to conduct clinical trials and research on cannabidiol to develop new products.