The CBD market is expected to reach over US$56.2 billion in global sales revenue by 2028, according to a new financial report by Global Market Insights Inc.
On Wednesday, the Delaware-based analytics firm released a new 209-page-long report looking into the potential economic gains of the cannabidiol industry and found that the increasing awareness of CBD-based products as an alternative to traditional pharmaceutical drugs is propelling the cannabidiol (CBD) market demand.
In 2021, CBD global sales were around US$12.8 billion and it’s estimated to have a compound annual growth rate of around 22 per cent in 2022-2028. The oral segment of the CBD market also accounted for 52 per cent of revenue share in 2021.
Graph via Global Market Insights
CBD creams and roll-ons are anticipated to see a compound annual growth rate of 21 per cent by 2028 attributed to the growing application in the cosmetic industry.
In North America, CBD’s market value reached US$7.7 billion and the market value in Europe is set to reach US$15.4 billion by 2028.
Other major findings of the report include that the rising occurrence of anxiety disorders is also increasing the demand for CBD. The sleep and insomnia CBD market segment was found to surpass US$1.1 billion in 2021.
The hemp market segment is also set to reach US$40.5 billion by 2028 and the Asia Pacific market is anticipated to progress 24 per cent compound annual growth rate.
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Read more: Global cannabis sales will top $35B this year: BDSA
Graph via Global Market Insights
The report mentions that some key players in the industry are focusing on various strategies such as acquisitions, business expansion and novel product launches to consolidate their market presence. The report also identified key industry players that are expected to drive the CBD industry worldwide.
Edmonton-based Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB) carries CBD products via its medical branch Aurora Medical under the brands Medleaf, CanniMed and Aurora. In the company’s second-quarter financial reports it was shown that Aurora’s large majority of sales come from its medical branch. Compared to a year ago, revenue from medical sales was up 18 per cent in Q2 and recreational went down 48 per cent.
Company stock went up by 3.33 per cent mid-week to $4.65 on the Toronto Stock Exchange.
Canopy Growth Corporation (TSX: WEED) (NASDAQ:CGC) sells CBD products in the United States under the First & Free Martha Stewart CBD brand that carries gummies, oils, softgels and CBD wellness topicals.
Canopy has also entered into the health and wellness markets through its BioSteel sports drinks and its This Works skin and sleep solutions. The company’s CBD vape, Whisl, has been available in more than 3,000 Circle K stores in the U.S. since October last year.
Company stock went up by 4.32 per cent on Wednesday to $8.93 in the TSE.
Read more: CBD relieves menstruation symptoms: Canopy-sponsored clinical trial
Read more: Martha Stewart and Canopy Growth release CBD dog treats — but are they safe?
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) medical branch has nearly 20 per cent of the German market share with its dried flower, extracts and Dronabinol products. In October last year, the company was selected by Luxemburg to supply cannabis for its medical program but by November the supply had been depleted.
In February, Tilray consolidated its legacy in-house and Aphria therapeutic cannabis divisions into Tilray Medical. Its medical cannabis products are some of the first to be available in Malta.
This month, the company’s subsidiary Manitoba Harvest, announced an exclusive partnership with Whole Foods Market to launch the brand’s Hemp+ Matcha and Supergreens powders to be sold at the grocery store locations.
Tilray’s stock went up 3 per cent mid-week to $6.21 on the NASDAQ exchange.
Read more: Tilray chosen as supplier of medical pot in Luxembourg
Other companies such as multistate cannabis operator Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced this week it will bring its CBD and cannabis products to the Caribbean via an agreement with a hemp products distributor.
Other cannabis operators that are also recognized as key market players in the CBD industry include Cronos Group Inc. (TSX: CRON), CV Sciences, Inc. (OTCQB:CVSI) and Medterra.
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