CBD, also known as cannabidiol, is one of the most popular forms of alternative medicine. It became a trend immediately when it was introduced to pop culture but has the market grown with it?
Don’t worry, with this guide you can find out! From market leaders to trends, you can determine if this industry is one you want to give your money to.
Now, are you ready to get started? Here’s an in-depth look at the CBD market growth:
Key CBD Market Leaders
North America continues to dominate the global market with a stronghold of over 40%, but they have some competition on their hands. After all, Europe isn’t far behind. With a little over 31% of the market share, Europe is expected to surpass North America in geographic demand for CBD in the next three years.
Behind Europe sits Latin America. They hold about 20% of the global market while the Asia Pacific and the Middle East, and Africa have about 10% market demand.
CBD Market Growth
Now it’s time to look at how the market has evolved. Whether it’s how the market leaders handled the pandemic or what’s beyond 2023, you’ll get an insider’s take on the overall market growth.
So make sure you take notes!
At the Height of COVID-19
The COVID-19 pandemic caused unusual lockdowns to happen all around the world. In response, companies started shutting down daily operations of retail shops and changing the way consumers interact with products to adhere to government policies. In doing so, sales dropped dramatically.
Only to make matters worse, the market experienced supply shortages due to transportation shutdowns of manufacturing countries like India and China. Additionally, the supply of other raw materials was limited at the time, making manufacturing and distribution of CBD more difficult.
It’s estimated that the market declined about 5% during the pandemic. Now, the main reason for its decline may just surprise you.
Many people believe supply shortages are to blame for why CBD decreased in revenue. However, the market started to decrease because the prices were too steep.
Many people couldn’t afford to purchase while being laid off and having to for pay rent, food, and other necessities. Thus, CBD ranked low on a person’s needs this year.
We all know how 2023 went, but what about five years from now. What will the market look like then?
Thankfully we have a few projections to estimate what the market will look like. After Covid, the market is predicted to fluctuate before it starts to grow between 20 to 23% in the next five years. Whereas Hemp-derived CBD is estimated to grow at a steady 23%, increasing the demand and raising awareness about alternative medicine.
Companies that invest in their products and launch new innovative ideas are likely to increase their revenue and boost their customer base during this period. But they’re not alone; the Asia Pacific market is predicted to grow the fastest since it commenced.
With new government support, low supply costs, and unique manufacturing, the new market growth will increase the competition between North America and Europe. With all three competing against one another, it will create a market frenzy over the best low-cost and the highest quality CBD.
It’s time to highlight the biggest trends in the CBD market. Whether it be a distribution method or a consumer group, these trends are what made it so popular.
Typically, there are two types of distribution methods, in-store and online. Before covid, in-store distribution, whether it be a pharmacy or a retail store, was the requested method. Customers liked that they could examine their product before buying and believed it was the safest way to purchase CBD.
However, after the pandemic, online shopping saw a surge in orders. People could no longer trust stores to be safe. Since online distribution is known for its ease and efficiency, more and more consumers started using online sites to purchase.
It’s estimated that even after the pandemic, more than ⅓ of consumers will continue to purchase through online distribution. In fact, online purchases will continue to stay popular even though in-store shopping can be selected. That’s because, since the pandemic, trust in-store health and safety has dwindled, making it easier to select contact-free services.
Will it always be that way? Whose to tell. One thing for sure online shopping makes purchasing convenient.
CBD can be turned into oils, tinctures, creams, tablets, and many more products. However, out of all products, CBD oil has become the most popular. In fact, this product conquered the market in 2019 and continues to do so.
It’s even estimated that CBD oil will be one of the fastest-selling products from 2023 to 2027. That’s because CBD oil is known to calm anxiety, depression, chronic pain, and many more illnesses.
It’s also one of the most versatile products on the market. Which allows you to stretch your dollar just far enough to make this a cult favorite.
After all, not only can it be digested, but you can add a few drops to your favorite lotion. That way, you can put it directly on the skin and feel relief in minutes.
However, you may be asking yourself, CBD Approved? Technically no.
There’s not enough research out there for it to be. However, many doctors consider it safe and effective to use for aches and pains.
Chronic Pain Patients
There are several uses for like anxiety, depression, seizures, and chronic pain. However, out of all those uses, CBD is most frequently purchased for chronic pain. Chronic pain patients are one of the industry’s most returning customers.
Since CBD has many beneficial qualities that can relieve chronic pain, it’s a better and more natural alternative when compared to opioids. Therefore, many patients choose over-the-counter medication or in addition to prescription drugs.
Patients like that CBD has little to no side effects and does not contain any toxic chemicals. In fact, its natural remedies have increased the demand for alternative medicine. So much so that in order to appeal to more chronic pain patients, more establishments have launched medicines, thereby increasing the market size of CBD.
Chronic pain patients have become such a big demographic for the market as a whole that not only are there specialized products but a whole category of wellness tips and care lines dedicated to chronic pain patients. Over the past few years, the CBD market has realized how important chronic pain patients are to their success and targets most of their products for that certain demographic.
In 2023, the industry is worth 3.5 billion dollars. However, by 2028, it’s expected to expand to an annual growth rate of 21%, which is worth about 13 billion dollars.
Projections estimated these earnings to increase because consumer’s attitudes toward CBD will change. There’ll likely be less speculation about and more evidence about what it does and what it doesn’t. That way, more people are inclined to purchase it.
Plus, increased awareness will keep consumers informed about the product and how trends are changing or evolving. Not to mention, there’s likely to be a demand from various other industries like food and beverages, cosmetics, and personal care items, to use CBD in their own products. So not only are customers purchasing an amount of product but also businesses will also want to as well.
All of these factors can increase the market and help make it profitable. It’s just a matter of time, so make sure you invest in some stock!
The CBD market has gone through a lot of growth over the past year. Through the pandemic, it struggled to make revenue with a record decline in sales. However, projections have the market rising high in competition, sales, and ranking in a record-high market value.
The industry is still young, and it has a lot to learn. More countries still have to develop laws and regulations for manufacturing and distribution. Once that’s accomplished, you’ll see the market grow exponentially. The competition will not only rise, but products will have to be high-quality to sell well.
Now, do you want to help the CBD market grow? There’s no time like the present. So what are you waiting for? Get involved today!
For more information about the industry, visit our website. We look forward to helping you learn about market growth.