The global cannabidiol (CBD) industry size was USD 2,770.8 million in 2020. The global COVID-19 pandemic outbreak has had an unprecedented and staggering impact on the global economy. This has negatively affected the demand for cannabidiol across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 26.42% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 3,675.1 million in 2021 to USD 55,791.3 million in 2028 at a CAGR of 47.49% between 2021 and 2028. The substantial rise in CAGR is attributed to the market’s demand and growth, coupled with the market functioning returning to pre-pandemic levels once the pandemic is over.
Cannabidiol is extracted from cannabis or hemp, but more specifically from hemp due to its naturally high CBD content lafoxmedia. The product is often mistaken for its psychoactive counterpart tetrahydrocannabinol (THC) extracted from the same plant. It has several benefits in treating anxiety, helping prevent seizures, inflammation, and reducing pain. The market is evolving faster due to its increasing utilization in the cosmetics, food, and pharmaceuticals industry. The market exhibits immense growth potential as consumers are becoming aware about the benefits possessed by the product.
The manufacturers are focusing on formulating new product offerings infused with CBD oil to provide the consumers with easy access. For instance, in February 2020, Colgate acquired Hello Product, LLC to launch a brand collection of CBD oral care. The company aims to provide consumers a range of highly effective, naturally-friendly products that will elevate their everyday life. Such factors are expected to fuel the demand for the product in the upcoming years.
In-Store Closure Due to COVID-19 Negatively Affected Sales of CBD Products
The COVID-19 outbreak and measures imposed by several governments such as social distancing and lockdown have resulted in the aggravation of the market. The food services sector and other businesses such as the bakery, beverage servings, and dairy have observed a huge decline in their revenue generation since January 2020. The lockdown has impacted several table services worldwide, and the operators are concerned about the cash flow and weathering the storm. According to the International Facility Management Association (IMFA), 84% of in-store operations were affected due to the pandemic, of which food services represented a significant share in 2020.