Market Size of Cannabidiol (CBD) Oil Industry
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 16.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
CBD Hemp Oil Market Analysis
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.
