It is estimated that the global CBD oil market will grow at a CAGR of 38.90% by 2030. In 2022, the market value was $9.86 billion, which will rise to $136.64 billion.
Cannabidiol (CBD) is hemp-derived. Hemp is part of the cannabis family and richer in CBD than cannabis plants. Many people mistake CBD for being the same as tetrahydrocannabinol (THC), another hemp-derived compound responsible for psychoactive effects. However, they are not the same.
CBD has proven to many users to be an effective remedy for anxiety, inflammation, pain, and seizures. But the lack of abundant scientific evidence keeps it in a grey area. With various cosmetics, food, and drug manufacturers implementing this compound into their products and increasing people recognizing its potential, the market is changing and growing fast; a perfect opportunity to seek CBD digital marketing services and boost your brand.
Now, let’s look at the latest developments to get a better idea about the possibility of expanding your CBD business.
Why are CBD-Infused Products Gaining Popularity?
In 2021, the cannabis sector contributed to approximately 50% of the market revenue. An increasing number of people use refined CBD-infused products, and many products are becoming legal. Perhaps one of the most significant reasons is that CBD does not intoxicate the user like THC.
Hemp-derived CBD oil has shown high effectiveness in reducing inflammation, unclogging pores, and hydrating the body. Hence, it has become part of the cosmetics industry in the past few years. Additionally, with more research and many states accepting it as a legal plant-derived compound, this industry is likely to boom soon.
A Regional Outlook
North America had the largest cannabidiol market share, $1276.7 million, in 2020. Countries like the US and Canada have reduced the strictness of their laws on CBD products since the 2018 Farm Bill.
CBD is available in different products, such as beauty products, food, and medicine. So, people from all walks of life are eventually using these new products and spending more as they continue to become popular among potential customers.
Apart from North America, we can shift our focus to the Asia-Pacific region. China, Japan, India, and a few other countries are slowly developing and expanding their markets for cannabidiol products. As it is becoming more legal and part of different products as a chief ingredient, it gives companies more opportunities to grow their business.
Thailand is an example of this opportunity. In 2019, it legalized cannabis for research and medical purposes, becoming the first Southeast Asian country to do so. People in this country use legal hemp to make different products like clothes and fabrics.
Market Opportunities and Drivers
Businesses will soon have more opportunities for R&D. With hemp-infused products becoming popular for personal care and its inclusion in the pharmaceutical industry, brands have the scope to use it as an essential ingredient. Also, different countries are likely to legalize CBD.
Cannabis products are becoming part of medicines and therapies and becoming increasingly popular. Also, as it is becoming recognized for positively impacting users, the FDA may soon realize its potential benefits and allow its use in different food and non-food products.
With the CBD industry seemingly growing exponentially by 2023 at a CAGR of 38.90%, businesses face the right time to implement professional CBD digital marketing services for branding and enhancing brand visibility, improving sales.