The global cannabidiol market size is expected to reach USD 39.99 billion by 2027, exhibiting an excellent CAGR of 46.4% during the forecast period. The introduction of CBD infused food products are expected to facilitate the growth of the market, states Fortune Business Insights, in a report, titled “Cannabidiol (CBD) Market Size, Share & COVID-19 Impact Analysis, By Source (Marijuana and Hemp), Application (Food & Beverages, Pharmaceuticals, Pet Care, Cosmetics, and Others), and Regional Forecast, 2020-2027.” The market size stood at USD 2.19 billion in 2019.
The coronavirus emergency has resulted in financial jeopardy for trade and businesses around the world. The authorities of several countries have initiated lockdown to avert the increase of this infectious disease. Such strategies have caused disturbances in the production and supply chain. But, with time and resolution, we will be able to combat this stern time and get back to normality. Our well-revised reports will help companies to receive in-depth information about the present scenario of every market so that you can adopt the necessary strategies accordingly.
FDA Approvals for CBD Products to Improve Market Prospects
The eminent players in the market are making consistent efforts to launch novel products to cater to the demand for CBD among consumers. The growing utilization of Cannabidiol in medicines and consumer products will consequently create opportunities for the market in the forthcoming years. The approval grants from the FDA for various food and other CBD products can further incite the healthy growth of the market. The growing focus of manufacturers towards the incorporation of CBD in a variety of food products will bolster the healthy growth of the market.
Moreover, the growing cognizance about the benefits of CBD infused products among consumers will spur lucrative opportunities for the market in the near future. According to the Harvard Health Institute 2018, it is commonly utilized to address the health issues associated with human life such as insomnia, anxiety, and others. The inflated demand for these products owing to its extraordinary health benefits will boost the development of the market.
COVID-19 to Critically Affect Market Sales
The restriction imposed by governments to curb the spread of the virus has resulted in the disruption of the supply chain of products. The declined food falls in stores will subsequently hamper the growth of the market. According to the International Facility Management Association (IMFA), 84% of in-store operations got affected due to the pandemic, of which, food services represent a significant share in 2020. The massive loss encountered by food businesses and restaurants will not bode well for the market during the pandemic. However, new strategies to ease operations and increase cash flow amid COVID-19 will gradually improve the market growth in the near future.
Increasing Application of CBD to Promote Growth in Europe
The market in North America will witness a rapid growth in the forthcoming years owing to the legalization of cannabidiol products in the US and Canada. The emergence of new companies in the CBD business will aid the speedy expansion of the market in North America. The market in Europe is likely to rise tremendously during the forecast period. The growth in the region is attributed to the increasing application of Cannabidiol in food, pharma, and cosmetics. The surging demand for these products, including vapes, edibles, and others will increase the market in the forthcoming years. The increasing shift from tobacco-based products to CBD products will foster the healthy growth of the market in the region. Asia Pacific is expected to exhibit a significant growth rate due to the petitions for the legalization and approvals of cannabidiols in products. The potential for a lucrative CBD industry will impel major companies to invest, which, in turn, will promote growth in Asia Pacific.
April 2019: Folium Biosciences, one of the world’s largest PCR Hemp Oil, CBD wholesalers announced the launch of nine active cosmeceutical and lifestyle products infused with CBD in the U.S. to meet the demand for skincare products.
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