cbd oil market

A Breakdown of the CBD Oil Market: Its Strengths, Limitations, and the Future

CBD or cannabidiol is a compound drawn from the cannabis plant. But unlike marijuana, it does not have stimulating effects due to its low THC content. As such, it is legal – a factor that allowed the global CBD oil market to hit the billion-dollar mark back in 2017. Even more fascinating is the fact that the market is expected to be worth more than $ 2.5 billion by 2025.

What are some of the drivers behind this market’s success?

Health and industrial benefits

CBD oil boasts a variety of nutritious/healthy elements, including amino acids, Vitamin B, terpenes, as well as phytocannabinoids such as CBN, CBCV, CBD, and many others. It also has therapeutic properties that make it great for relieving stress and depression. What’s more, CBD-related products have numerous benefits, including anti-inflammatory properties, as well as assisting in the treatment of neurological health issues, sleeping disorders, among others.

Aside from being infused in a broad variety of herbal supplements, CBD is now featured in many products like sex lubes, pain creams, beverages, vape pens,  candies suppositories, and tampons just to highlight a few. Virtually all these products are available for sale in boutiques across the United States. The CBD oil market also leverages online shopping, a trend that is being adopted by consumers all over the world to acquire their desired products without the limitations of geographical boundaries.

Extensive distribution chain

The CBD oil market distribution channel is broken down into several segments, including retail pharmacies, online pharmacies, and hospital pharmacies. Nonetheless, the hospital pharmacy segment appears to be enjoying a considerable portion of the market, mainly due to the growing number of hospital facilities with pharmacies. The online pharmacies follow suit thanks to the skyrocketing online shopping trend.

What are the market challenges?

Despite the popularity of CBD-related products, the market‘s full potential is yet to be realized. In the US, for instance, the FDA maintains that CBD is an illegal food additive. Lack of a go-ahead/approval from this body has derailed the market’s progress as well as discouraging investment in the CBD industry.

Who are the market players?

The Americas, particularly North America, appears to have a significant interest in CBD oil, with brands (both big and small) trying to get a share of this booming industry as fast as possible. Leading players in this market include Medical Marijuana, Folium Biosciences, NuLeaf Naturals, and CBD American Shaman in the US; Canopy Growth Corporation, Aphria Inc., Isodiolk, and Aurora Cannabis in Canada; and  Australian-based Elixinol, among many others. Most of these companies are currently geared towards strategic partnerships and acquisitions in an attempt to boost and reinforce their market presence across the globe. In a nutshell, the CBD market, in general, is powered by the rising demand for CBD products due to their health benefits. North America enjoys market dominance since most of the players in this space are located in the US, where there’s a high demand for their CBD products. With rapid technological advancement, increased competition in the market, and the enactment of favorable laws and approvals, the future of the CBD oil market seems undeniably bright.