CBD Ingredient Market Size, Share & Trends Analysis Report By Source( Natural (Marijuana-Based, Hemp Based), Synthetic), By Application(Food and Beverages, Personal Care and Cosmetics, Nutraceuticals, Pharmaceutical (API), Single Servings), By Region, And Segment Forecasts, 2024-2032

Segmentation Analysis

By Source Analysis

Manufacturers are using a lot of marijuana to make CBD since the market is accepting more and more creative and sophisticated goods. Marijuana’s accessibility, particularly in North America and Europe, has contributed to its commercial dominance over goods made from hemp. In addition, business rivalry has increased as legalisation and acceptance in new nations have grown.

By Application Analysis ,Pharmaceuticals are the Major Consumers of CBD owing to its Health Benefiting Offerings- One area that is always focused on inventions, research, and creation of novel and potent pharmaceuticals is the pharmaceutical industry. Because of its many benefits, including its neuroprotective and pain-relieving qualities, manufacturers have discovered the enormous relevance of CBD in the creation of their products. In 2018, the IQVIA Institute for Human Data Science estimated that the pharmaceutical sector was worth USD 1.2 trillion worldwide. At a 4-5% CAGR, it was further projected to reach USD 1.5 trillion by 2023. In the upcoming years, there will undoubtedly be a big demand for cannabidiol and related products due to the sector’s quick growth.

Competitive Landscape

The market for CBD ingredients is fiercely competitive, featuring a wide array of participants that span from well-established pharmaceutical and nutraceutical firms to up-and-coming startups. Key players in this sector consist of Charlotte’s Web, CV Sciences, Inc., Medical Marijuana, Inc., Isodiol International Inc., and Aurora Cannabis. These entities are dedicated to broadening their range of products, improving their distribution channels, and pursuing strategic partnerships and acquisitions to bolster their standing in the market. Emphasizing innovation in product development, quality control, and adherence to regulations is crucial for gaining a competitive advantage in this industry.

Some of the CBD Ingredient Market Players are:

• DSM
• Vantage Hemp
• Eurofins
• EndoPure
• Folium Biosciences
• Colombian Golden
• Averix Bio, LLC
• KND Labs
• Jordan Process
• GVB Biopharma
• Healthcann
• Mile High Labs
• KLERSUN
• Sanobiotec
• Caesar & Loretz GmbH
• Recipharm
• Brains Bioceutical
• Purisys
• Bedrocan
• BIOVECTRA Inc.
• Biosyyd, UAB
• Kinetochem
• Veranova
• Charlotte’s Web
• CV Sciences, Inc.
• Medical Marijuana, Inc.
• Isodiol International Inc.
• Aurora Cannabis

Recent Developments

In January 2024, Canopy Growth Corporation, a global leader in the cannabis industry, has recently unveiled a slew of new products for both recreational and medicinal use. These include Tweed’s new oils and softgels containing trace amounts of cannabinoids; 7ACRES’ and Spectrum Therapeutics’ medically exclusive pre-rolls; and Tweed’s large format flower.

In June 2023, Isodiol International Inc. is pleased to announce that SalesBird, LLC, a reputable sales distribution company headquartered in the United States with offices worldwide, has been appointed a non-exclusive distributor. Isodiol will be able to fortify its internal sales operations, expand its market penetration to traditional brick-and-mortar and “big box” stores, and thrive in the cutthroat world of online sales with the support of this strategic relationship.

Regional Analysis

In 2022, North America dominated the cannabidiol market share. The United States and Canada have both relaxed their regulations on cannabidiol products, leading to a surge in public approval. Consumer demographics are constantly changing, and the utilization of CBD by a wide range of industries, such as food, pharmaceuticals, and cosmetics, has become widespread. The growing interest from different age groups and genders is expected to boost their spending on products.

A large portion of the market is occupied by Asia Pacific, where nations like China, Japan, and India provide a burgeoning market environment for these kinds of goods. The growing legalisation and approval of cannabidiol for usage in various products presents prospective business prospects for a number of producers. For example, Thailand was the first nation in Southeast Asia to legalise cannabis in 2019 for both medical and scientific uses. It also made the use of hemp for clothing and other textile manufacture permissible. One of the main reasons propelling the market growth is the manufacturers’ capitalisation on consumer awareness and product marketing.

Market Dynamics

Drivers

Key factors fueling the CBD ingredient market consist of the rising consumer knowledge regarding the health advantages of CBD, the approval and decriminalization of cannabis and CBD items in different areas, and the widening application of CBD in pharmaceuticals, nutraceuticals, and personal care items. The growing embrace of natural and plant-derived products is also aiding in market expansion. Additionally, progressions in extraction and formulation technologies are improving the standard and effectiveness of CBD products, stimulating consumer interest.

Restraints

Difficulties in the CBD ingredient market arise from strict regulatory demands and differing legal statuses of CBD products in various regions, potentially impeding market expansion. The expensive nature of CBD products and the absence of consistent dosing and labeling standards may present obstacles for both consumers and manufacturers. Furthermore, the existence of subpar and counterfeit products in the market could undermine consumer confidence and impede market growth.

Challenges

Significant obstacles in the CBD ingredient market involve maneuvering through intricate regulatory environments, guaranteeing the quality and uniformity of products, and tackling consumer apprehensions regarding safety and effectiveness. Conducting thorough research and clinical trials to validate the health benefits of CBD products can pose a challenge as well. Moreover, the presence of competition from synthetic cannabinoids and alternative natural health ingredients may influence market expansion.

Key Industry Insights & Findings from the Report:

• The global CBD market is poised for significant expansion due to several factors, including the introduction of new products, an uptick in R&D efforts, and different strategic decisions made by prominent manufacturers in the industry.
• The growing relevance of health and fitness among customers is fueling the rapid expansion of the CBD market.
• North America dominated the market and accounted for a revenue share of global revenue in 2023.
• Costs associated with extracting and refining CBD are high because of the time and specialized equipment needed. The sum of these considerations makes CBD products somewhat expensive compared to competing products, which is likely to limit their demand in the market.

Segments Covered in the CBD Ingredient Market Report

By Source

• Natural
• Marijuana Based
• Hemp Based
• Synthetic

By Application

• Food and Beverages
• Personal Care and Cosmetics
• Nutraceuticals
• Pharmaceutical (API)
• Single Servings

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa