According to a new report by Grand View Research, the global CBD (cannabidiol) market is expected to grow at a CAGR of 24.9 percent from 2016 to 2021. The report also states that the global market is expected to reach USD 844.1 Million by 2021. North America holds the largest market share in the global market, accounting for more than half of the market share. North America dominates the global market due to increasing prevalence of various health issues in the region, such as chronic pain and arthritis.
CBD, or cannabidiol, is one of the more interesting medical cannabis strains, and has been gaining a lot of support in the United States. Its popularity has been growing rapidly due to its versatility and potential health benefits. CBD has been used as a supplement for a long time, but now it’s showing up in a variety of products and industries.
Brightfield releases new CBI report The Brightfield Group, an analyst firm specializing in cannabis and CBD consumer data, announces the release of its latest report analyzing the CBD market in 2020 and forecasts for 2021. Here are some key facts from the report:
- CBD cannabis sales in the US are expected to reach $5.3 billion in 2021, a 15 percent increase from 2020 ($4.6 billion).
- By 2026, CBD sales in the U.S. will reach $16 billion, driven by accelerated growth in sales via ingestion.
- Beverages and chewy candy are expected to grow the fastest in 2021, with growth in value of 71% and 44%, respectively.
- Dyes will retain the largest market share with 18% of retail sales in 2021.
- Online sales will exceed $2 billion by 2021, accounting for 38% of the total CBD market in the US.
The report also covers the impact of the coronavirus pandemic on the CBD market in the US, the FDA’s position on CBD regulation in 2021, and various other information about this growing market. Brightfield Group forecasts the hemp-based CBD market to grow at a compound annual growth rate (CAGR) of 25% between 2021 and 2026, driven by the following factors:
- New clients
- Retail expansion through new channels
- FDA regulations accelerate growth rate of ingestibles
- New players will bring innovations to the market
Price and equity changes
According to Hemp Benchmarks’ summary data, Brightfield Group’s report notes that the overall valuation price of CBD cannabis biomass dropped 82% between April 2019 and May 2020, moving from $38 per pound to just $7 per pound. While the coronavirus pandemic undoubtedly played a role in this, it’s worth asking if the newly formed CBD industry in the US in 2019 played a role in the price per pound over this period. It’s a hot market that has been growing beautifully and faster than expected, thanks to the federal government taking cannabis off the I-substance list in 2018. The cannabis market will be highly competitive in 2019, and if there is a global pandemic in a year, cannabis prices could be below average.
- The 30 ml tinctures increased by an average of 33%, increasing the CBD content from 450 to 600 milligrams. The price was reduced from $25 to $20.
- For the 120 ml tinctures, the CBD content increased by 33% on average, from 1,800 to 2,400 milligrams. The price was reduced from $70 to $60.
Innovation
Like the cannabis industry, the CBD market is ahead of the curve in terms of innovation and is constantly coming up with new ways to satisfy customers. However, CBD brands are not limited to fancy flavors and new designs: Companies are focusing on functional ingredients that make a difference to consumers. In 2021, as in 2020, immunity will be central to the CBD. Ingredients such as elderberry, echinacea, vitamin C and zinc are popular with consumers. Smaller cannabinoids like CBG and CBN are still relevant in 2021, as they allow us to enjoy the entourage effect that full-spectrum cannabis products offer.
Top CBD companies in Q4
In terms of market share, here are the top CBD companies in the last quarter of 2020:
- Charlotte’s Web (3.6%)
- Medterra (1.7%)
- cbd® (1,6%)
- CBDfx (1.5%)
- CBD Distillery (1.2%)
The report lists 20 companies that produce CBD, including the following: CBD American Shaman, Bluebird Botanicals, Garden of Life, Ananda Hemp and Martha Stewart CBD.
Distribution channels
Online sales of CBD are expected to reach $2.02 billion by 2021, accounting for 38% of the total market. That’s down slightly from the 42% expected by 2020, but it’s a good sign that people are shopping in stores in person again. Contactless payment options are still available in many places, which could increase this number. By 2021, e-commerce will dominate the distribution market, followed by pharmacies, then CBD retailers, natural food stores, pet stores, etc.
