The Effect that COVID-19 Will Have on the Market for CBD-Infused Products
A significant number of economies all over the world have been hit hard by the COVID-19 pandemic. More than one hundred countries have been impacted by the pandemic. Lockdowns, whether partial or complete, have been announced by governments all over the world as a measure to control the spread of this disease and to avoid the associated consequences. These lockdowns will have a significant impact on many different industries. Despite this, the cannabis industry is on the verge of a major breakthrough right now. As a result of its positive effects on COVID-19 respiratory effects, state and local governments are gradually coming around to the idea that medicinal cannabis has value and benefits. As a result, it is anticipated that this factor will increase demand for products containing CBD.
In addition, as a result of the pandemic, products that contain CBD have emerged as an appealing choice for individuals who have been forced to spend more time inside their homes. These products can be used both as a form of entertainment and to alleviate stress and anxiety. As a direct consequence of this, sales of CBD-infused products are skyrocketing, which is ultimately driving the expansion of the market for CBD-infused products. In addition, the legalisation of cannabis for recreational use in a number of countries, the rising demand for wellness drinks containing CBD, the rising disposable income of consumers, and the general improvement in living standards are a few of the factors that are responsible for the high growth of this market over the course of the forecast period.
The demand for products containing CBD is being driven by both the growing demand for cannabis and the increasing acceptance of its legal status.
Over the course of the past two decades, there has been significant movement toward the legalisation and regulation of cannabis across the globe, both for therapeutic and recreational purposes. Because of the proliferation of products containing cannabidiol (CBD), the demand for cannabis has significantly increased in recent years. On the other hand, regulations regarding cannabidiol (CBD) products ought to be put in place and adhered to in order to make CBD-related products more consumer-friendly.
In addition, cannabis is the illegal substance that is grown, traded, and used in the world at a greater rate than any other substance. As a result of legislative actions, ballot measures, and public opinion polls, cannabis use in general, for both recreational and medicinal purposes, is gaining a growing amount of acceptance across the United States. [Cannabis is used for] both recreational and medicinal purposes. In addition, the results of a recent survey conducted by Quinnipiac University found that 54% of American voters surveyed are in favour of legalising cannabis without imposing any additional restrictions. In comparison, 81 percent of people polled were in favour of making medical marijuana available through legal channels. The demand will gradually increase as legalisation gains ground in more and more countries around the world, which will speed up the expansion of the CBD-infused products industry as a whole.
Key Players
Some of the major players from CBD-infused products market are Canopy Growth Corporation, Aurora Cannabis Inc., Docklight Brands, Inc., Maricann Inc., Tilray, Inc., GW Pharmaceuticals plc, VIVO Cannabis Inc., Cresco Labs, Inc., Tauriga Sciences, Inc., MariMed Inc., CV Sciences, Inc., Puration, Inc., Kona Gold Solutions Inc., Bhang Inc., DT Brands & Co (N.I.) Ltd., Forest Coffee Trading Co., L8 Life, Inc., Honeydrop Beverages Inc., and Elixinol Global Limited.
Scope of the Report:
Global CBD-infused Products Market, by Source
- Hemp
- Marijuana
Below graph provides a comparative analysis of the value contribution for each of the segment for the years 2022 and 2028:
In 2021, the hemp sector will hold the majority of market share for CBD-infused products.
When it comes to CBD-infused products, it is anticipated that the hemp sector will account for the largest share of the market in 2021. Its lower THC concentrations, which decrease or eliminate its psychoactive effects and increase hemp-derived products for a variety of medical applications, are the primary reason for this market segment's disproportionately large share of the overall market. Additionally, the fact that CBD extracted from hemp possesses anti-inflammatory, anti-aging, antioxidant, and highly effective properties is a significant contributor to the large share of this market that it holds.
Global CBD-infused Products Market, by Type
- Edibles
- Oil & Extracts
- Personal Care Products
- Smoke & Vape Products
- Supplements
Below graph provides a comparative analysis of the value contribution for each of the segment for the years 2022 and 2028:
During the period covered by this forecast, it is anticipated that the CBD edibles segment will experience the highest CAGR growth.
When broken down by product category, it is anticipated that the CBD edibles sector will hold the largest share of the market for CBD-infused products in 2021. The large share of this market can be attributed to a number of factors, the most important of which are the increasing acceptance of cannabis for recreational use, the growing demand for food infused with cannabis components such as THC and CBD, the rising use of CBD in a variety of different industries, including the confectionery and bakery industries, and the fact that cannabis consumers are looking for alternatives to smoking the drug. Additionally, the growing application of CBD edibles in the treatment of psychiatric disorders, neurological disorders, and cancer, in addition to the control of pain, is anticipated to drive demand for CBD edibles. On the other hand, over the course of the forecast period, it is anticipated to experience the most rapid CAGR growth. The ever-increasing social acceptance of CBD-infused edibles is the primary factor driving the swift expansion of this market segment.
CBD-infused Products Market, by Distribution Channel
- Offline Store
- Online Stores
Below graph provides a comparative analysis of the value contribution for each of the segment for the years 2022 and 2028:
In 2021, the market for CBD-infused products will be led by the segment comprised of offline stores.
In 2021, the segment that is comprised of offline stores is anticipated to account for the largest share of the market for CBD-infused products. The perception of being able to buy authentic, high-quality products is the primary factor that contributes to this segment's large share of the market. On the other hand, during the period of the forecast, it is anticipated that the online store segment will grow at the highest CAGR. The ease of convenience and rapid penetration of CBD-infused products on e-commerce platforms are primarily to blame for the rapid growth of this sector, which has been expanding at a rapid rate.
Global CBD-infused Products Market, By Geography
Based on geography, the CBD-infused Products Market is segmented into following:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East and Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA
Below graph provides a comparative analysis of the value contribution for each of the segment for the years 2020 and 2028:
It is anticipated that North America will be the regional market with the highest rate of growth.
In 2021, it is anticipated that the region of North America will account for the largest share of the market for CBD-infused products. This will be followed by the regions of Europe, Latin America, the Middle East and Africa, and Asia-Pacific. It is primarily due to the ease of accessibility, technological advancements in CBD-infused products production and processing, a large base of CBD consumers, shifting attitudes toward CBD consumption for both medical and recreational purposes, growing awareness regarding various medical benefits of CBD among users, and increasing investments from leading players that this region holds a large share of the global market. It is anticipated that the United States will continue to hold a dominant position in the North American market through the year 2028. This is primarily attributable to the growing R&D expenditures on CBD as well as the rising consumer spending on products infused with CBD. Despite this, it is anticipated that over the course of the forecast period, its growth will be the most rapid.
