More governments and companies are looking at CBD for its acceptance as an ingredient for food, supplements and personal care products which raises a demand that could reach $4.09 billion by 2030.
That’s according to the analytics firm Frost & Sullivan which released an analysis on Wednesday looking at the expansion of the CBD market and its growth potential in the upcoming years. The report projected that the global market for CBD will have a compound annual growth rate of 9.5 per cent from 2021-2030.
It found that research supporting benefits will also inflate demand for CBD ingredients.
While several properties and benefits of using CBD are apparent, scientific evidence is missing to demonstrate them effectively, the firm says.
In order to take advantage of the expanding CBD industry market participants including businesses and goverments should focus on the effects of multi-cannabinoid formulations for medicine, look at the personal care market more, invest in extraction facilities and develop standards to build trust.
“In the medium to long term, CBD and other cannabinoids and terpenoids will find acceptance as part of daily consumer products,” Frost & Sullivan analyst Matias Guarnera said.
“Additionally, with the resolution of regulatory issues in the days ahead, CBD will become a common ingredient in F&B, dietary supplements, and personal care products.”
Increasing awareness of mental health problems and accepting cannabinoids and the endocannabinoid system as part of the human body will shape a different future for the health and wellness industry, Guarnera added.
“Similarly, the convergence of the classic pharmaceutical and food industries with hemp companies will define the unfolding of this industry.”
Frost & Sullivan is a business consultatory that helps companies, governments and investors grow by providing insight into analytics.