Insights and Analysis of the Market

The CBD market in the United States is expected to grow a lot from 2022 to 2029. Researchers think it will increase by about 28.6% each year and could reach a value of $13,655.70 million by 2029.

The main reasons for this growth are that more people want CBD for health and fitness, the government is becoming more accepting of it, and there are rules to make sure it’s safe. CBD comes from the cannabis plant, which is also where marijuana and hemp come from. It’s used for many things, including research.

CBD doesn’t make people high like marijuana does, and it’s considered safe. It has a lot of health benefits, like helping with diseases like Parkinson’s, Alzheimer’s, and multiple sclerosis. It also helps with stress, acne, and some cancer symptoms. That’s why it’s used in medicine a lot.

Pharmaceutical companies increasingly desire CBD from hemp due to its recognized health benefits, propelling its anticipated rapid growth. Simultaneously, the expanding legalization of marijuana and its derivatives for medical purposes in numerous states is expected to fuel the market growth for CBD sourced from marijuana as well.

In the U.S., there’s a detailed report about the CBD market. It talks about things like which companies are doing well, any new things happening, and how local companies are affecting the market. It also looks at new areas where companies can make money, changes in rules, approvals for new products, and how companies are using technology. If you want to know more about the market, you can ask for a summary from our team, and we can help you figure out how to make more money from it.

Breakdown of The Details In The Report

  • Forecast Period: The predictions are made for the years 2022 to 2029.
  • Base Year: The starting point for analysis is 2021.
  • Historic Years: The report looks back at data from 2020, and it can be adjusted to include data from as far back as 2014 to 2019.
  • Quantitative Units: The data is measured in revenue, and it’s reported in USD millions.
  • Segments Covered: The report segments the market based on different factors:
    • CBD Type: It categorizes CBD as either derived from Hemp or Marijuana.
    • Product Type: It looks at different CBD products like CBD Oil, CBD Concentrates, CBD Isolates, and others.
    • CBD Category: It distinguishes between full-spectrum and broad-spectrum CBD.
    • Nature: It considers whether the CBD is Organic or Inorganic.
    • Grade: It categorizes CBD based on its use, such as Food Grade or Therapeutic Grade.
    • Application: It examines where CBD is used, such as in Food, Beverages, Pharmaceuticals, Topicals, Tinctures, Dietary Supplements, and other areas.
  • Countries Covered: The report focuses specifically on the United States.
  • Market Players Covered: It includes information about various companies in the CBD market, such as Cresco Labs, EcoGen Biosciences, Canopy Growth Corporation, The Valens Company, Open Book Extracts, Groff North America Hemplex, Healthy Food Ingredients, KND Labs, Socati Corp., and Swayer Labs.

Market Definition 

The CBD market encompasses products derived from the cannabis plant, which is used for many purposes. Extracted from both hemp and marijuana plants, CBD is versatile and employed in research and development. It constitutes forty percent of the entire plant and is considered safe for humans, lacking harmful effects.

CBD offers several health benefits, including treating conditions like Parkinson’s disease, Alzheimer’s, and multiple sclerosis. It’s also effective against stress, and acne, and alleviates symptoms related to cancer. As a result, CBD is widely used in pharmaceutical applications.

Dynamics of the U.S. Cannabidiol (CBD) Market

The demand for CBD in the United States is driven by several factors:

  • Increasing Demand in Health and Fitness: CBD-based oils are sought after for their ability to alleviate delayed onset muscle soreness and exercise-induced muscle damage, which occur naturally after physical activity. These oils help reduce muscle pain, body aches, and inflammation. CBD also promotes better sleep and reduces anxiety, making it beneficial for muscle recovery and boosting confidence during physical activities like workouts or sports. As more people recognize these benefits, the use of CBD products is becoming widespread, leading to higher demand in the U.S. cannabidiol (CBD) market.
  • Government Approvals and Regulations: New policies sanctioned by the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) are backing the CBD industry. These policies help reduce production costs, enhance manufacturing infrastructure, and improve expertise in CBD production. As a result, there’s increased competition among U.S. CBD companies, which is anticipated to drive growth in the U.S. cannabidiol (CBD) market in the future.
  • Therapeutic Properties of CBD Oil: Clinical studies have demonstrated the effectiveness of CBD in treating various types of epilepsy. This progress has encouraged nations such as the United States to explore CBD-based therapeutics, leading to increased demand in the market. CBD oil is known for its therapeutic benefits, from addressing epilepsy to alleviating anxiety and stress. The growing demand for CBD-based products is expected to fuel the expansion of the U.S. cannabidiol (CBD) market.

Opportunities in the U.S. CBD Market

  • Investments in New CBD-Based Products: There’s a growing interest in studying the effects of CBD on various health conditions, leading to increased investment in the development of new CBD products. This trend is expected to result in the creation of innovative products, which could drive demand in the future. Many companies are acquiring CBD oils in large quantities to manufacture CBD-infused products. Additionally, several health and wellness retailers like Rite Aid, CVS Health, and Walgreens Boots Alliance are now offering CBD-based products, expanding the market further.
  • Growing medical applications of CBD: CBD is becoming popular for helping with many health problems. It’s commonly used for easing arthritis and cancer pain and also works for pain on the skin. Some people use it instead of strong painkillers like opioids. CBD also helps with complicated movement issues like epilepsy and muscle stiffness. Scientists are studying it to help with memory problems, addiction to drugs like cannabis, tobacco, and opioids, and mental illnesses like schizophrenia, anxiety, PTSD, anorexia, ADHD, Parkinson’s disease, and Tourette’s syndrome. As they learn more, CBD could become a helpful treatment for even more health issues.

Challenges in the CBD U.S. Market

  • High Cost of CBD Products: Growing hemp takes a lot of time and effort, and extracting CBD from it is expensive. Special equipment and methods like ethanol or supercritical carbon dioxide extraction are needed, which adds to the cost. These factors make CBD products more expensive compared to others, which could limit their demand.
  • Counterfeit and Synthetic Products: Cheaper counterfeit and synthetic CBD products flood the market, offering alternatives to consumers. However, some of these products are not genuine and may even contain harmful substances. Despite warnings from the FDA, such products persist, impacting the demand for authentic CBD products.
  • Side Effects of CBD Oil: CBD supplements, especially those mixed with other herbs, may not be safe for everyone, particularly when combined with certain medications. Side effects vary, and what might be minor for some could be severe for others. Concerns about potential adverse effects may deter some consumers from using CBD products.
  • Marketing Restrictions: Regulations surrounding the approval and standardization of CBD products pose marketing challenges. Some regulations restrict the sale of CBD products internationally and hinder trade between countries. These barriers impede the growth of the U.S. CBD market.

The Impact of COVID-19 on the U.S. Cannabidiol (CBD) Market

The COVID-19 pandemic had significant impacts on manufacturing industries, including the CBD market, during 2020-2021. Workplaces closed down, supply chains were disrupted, and transportation faced restrictions. These disruptions led to limited supplies of raw materials, affecting the manufacturing and supply chain of CBD consumer health products in the U.S. Investors and manufacturers scaled back production and reevaluated investments due to the uncertainties caused by the pandemic, posing challenges to the growth of the U.S. Cannabidiol (CBD) market.

However, amidst the pandemic, research suggests that CBD may block SARS-CoV-2 infection at the early stages and lower the risk of infection in humans. This finding offers a potential benefit in the fight against COVID-19. Furthermore, government approvals and increasing acceptance of CBD products are expected to drive the production of CBD-infused products. The high demand for CBD for health and wellness purposes, attributed to its healing properties, remains a major factor fueling market growth despite the challenges posed by the pandemic.

A recent development in March 2022 involved Cresco Labs and Columbia Care Inc. forming a definitive arrangement agreement. This agreement stipulates that Cresco Labs will acquire all the issued and outstanding shares of Columbia Care. According to the terms of the agreement, shareholders of Columbia Care will receive 0.5579 of a subordinate voting share of Cresco Labs for each Columbia Care common share they hold. This acquisition marks a significant move in the cannabis industry and is expected to reshape the landscape of the market.

Scope of the U.S. Cannabidiol (CBD) Market

In the U.S., the CBD market is divided into different groups based on things like the type of CBD, the kind of product, what category the CBD falls into, how good it is, what it’s used for, and whether it’s organic or not. Looking at how each of these groups is growing helps us see which parts of the CBD industry are growing the most. This information gives us a good idea of what’s happening in the market and helps us make smart decisions about where to focus our efforts. By understanding these segments, we can figure out which areas of the market are the most important and plan accordingly. In the U.S., the CBD market is divided into different categories. 

CBD Type:

  • Hemp
  • Marijuana

Product Type:

  • CBD Oil
  • CBD Isolates
  • CBD Concentrates
  • Others

CBD Category:

  • Full-Spectrum
  • Broad Spectrum

Grade:

  • Food
  • Therapeutic

Application:

  • Tincture
  • Food
  • Pharmaceuticals
  • Dietary Supplements
  • Beverages
  • Topicals
  • Others

Nature:

  • Organic
  • Inorganic

These categories help us understand the different types of CBD products available in the market and how they’re used. From where CBD comes from to how it’s used, these segments give us a clearer picture of the CBD industry in the U.S.

Analysis of the Competitive Landscape and Market Share in the U.S. Cannabidiol (CBD) Market

In the U.S. CBD market, companies compete against each other. We look at various details about these competitors, like their background, how much money they make, their potential in the market, and how much they invest in research and development. Also, see what new things they’re doing to enter new markets or make better products. We check where they make their products and what strengths and weaknesses they have. Also look at their new product launches, what they’re testing, and if they have any patents. We see how many different products they offer and how much they dominate in different areas of CBD use. 

All this information helps us understand how these companies are doing in the U.S. CBD market. Some of the important companies in this market include Socati, Sawyer Labs, Groff North America Hemplex, Valens Company Inc., Canopy Growth Corporation, Cresco Labs, EcoGen Biosciences, Healthy Food Ingredients, KND Labs, and Open Book Extracts, among others.