Cannabidiol (CBD) oil is a product which has gained prominence since the legalization of marijuana in some nations. The oil contains CBD, a compound found in marijuana and hemp plants. Emphasis on health and wellness coupled with increasing inclination towards natural ingredients is likely to bode well for the CBD oil market.

The global CBD oil market is set to touch a value of USD 1,527.4 million by 2023 owing to the legalization of marijuana in some nations. The 2018 Farm Bill was passed in the U.S. which allowed farmers to grow hemp as a cash crop and retain benefits not previously available. In addition, legalization of marijuana in Canada and the Czech Republic can foster growth of the market. The market is expected to expand at 36.36% CAGR from 2018 to 2023 (forecast period).

Increasing prevalence of chronic diseases such as cancer offer scope for the market. The variants of CBD can either be ingested orally in the form of chocolates or edible. This can positively impact the market in the long run. Rising investments in research and development (R&D) to study the potential of CBD in foods, personal care items, and others can augur well for the CBD oil market growth.

Asian countries offer ample ambit for the CBD oil market to expand owing to the large population and their inclination for natural medicines. Although marijuana still remains a legal issue in several countries, some are changing their stance to explore its medical potential. Japan has given the go-ahead to farmers in their provinces to grow a plant with a low-concentration level of tetrahydracannabinol (THC). Investments by well-known celebrities such as Peter Thiel can lead to further inflow of capital in the market.

Products in the CBD oil market include hemp-derived and marijuana-derived CBD oil. Marijuana-derived CBD oil had the dominant position in the market in 2017 but it can lose its position to its counterpart. The hemp-derived oil segment can generate significant revenue for the market owing to its low concentration of THC. In addition, its use in treating sleep disorders and depression can bolster the segment growth till 2023.

Applications of CBD oil include pain relief, neurological disorders, mood disorders, fibromyalgia, diabetes, and others. Neurological disorders are expected to be the biggest application owing to the capability of the oil to reduce anxiety levels. Fibromyalgia is the second-biggest application with the oil being able to lower inflammation levels and keep pain levels at bay.

Distribution channels in the market include e-commerce websites, hospital pharmacies, retail pharmacies, and medical marijuana dispensaries. E-commerce websites can accumulate significant demand owing to easy access to applications and availability of smartphones for all users. Retail pharmacies are expected to generate immense windfall for the CBD oil market owing to its proliferation in all cities. Legalization of marijuana is a factor which can drive the segment's growth.

Geographic segmentation of the CBD oil market comprises Americas, Europe, Asia Pacific (APAC), and Rest-of-the-World (RoW).

The Americas had dominated the market owing to legalization of cannabis and investments by various firms to cultivate it as a cash crop. Medical benefits of marijuana are likely to drive the CBD oil market demand in the region. In addition, growing number of Internet users, prevalence of chronic diseases, and availability at smoke shops signify the potential of the region.

The Europe market is expected to expand owing to clinical benefits of CBD and its effects in alleviating pain of neurological disorders, fibromyalgia, and cancer. Legalization of cannabis in Germany and the Czech Republic is projected to boost the sales of CBD oil market. In addition, demand for natural remedies for illnesses can offer growth opportunities for the market.

The APAC CBD oil market is expected to boom owing to the huge patient pool coupled with demand for the product to treat epileptic seizures. On the other hand, the RoW region can experience a modest growth rate owing to strict policies regarding usage of marijuana.

Key players in the CBD oil market include Medical Marijuana Inc. (U.S.), Aurora Cannabis (Canada), Isodiol International Inc. (Canada), CBD American Shaman (U.S.), Bluebird Botanicals Ltd. (U.S.), Canopy Growth Corporation (Canada), ENDOCA (The Netherlands), CV Sciences Inc. (U.S.), IrieCBD (U.S.), and Elixinol Global Limited (Australia).

More about this report >>