The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the rising popularity of CBD oil and rising number of countries decriminalizing and legalizing CBD products.
By Geographical Landscape
The publisher has been monitoring the CBD market and it is poised to grow by $29.91 billion during 2021-2025, progressing at a CAGR of 26.93% during the forecast period. The report on the CBD market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.
CBD fits perfectly into this shift. As more people around the world are realizing the ‘work hard’ mantra often leads to burnout rather than success and fortune, consumers are more willing to focus on self-care and mental wellness.
Now, thanks to CBD, a whole new take on wellbeing is emerging, creating a market not only for health providers but also for wellness brands.
Lately, we’ve seen a huge amount of public and media attention on the commercial potential of a certain five-fingered plant. Mary Jane, cabbage, blaze, aunt mary, pot, ganja: you can take your pick of the 100+ other names identified by the US Drug Enforcement Administration.
While the last decade was all about CrossFit, HIIT, and Bikram Yoga, a new generation of wellness-oriented self-care centers could very well dominate the future market with the simple premise to chill.
CBD’s huge growth on social media
CBD’s stellar ascent is reminiscent of the success activated charcoal has seen in recent years, when the fine black powder suddenly became ubiquitous and started to pop up in everything from face cleansers, toothpaste, ice cream, and nutritional supplements.
In this environment, any brand with the potential to develop CBD products should pay close attention. As this versatile substance moves further into the mainstream, there will be plenty of lucrative opportunities to jump on the bandwagon.
Preliminary clinical research has shown that CBD:
What does CBD do, exactly?
Fast forward to 2019, and the new focus on wellness asks us to unwind, slow down and gain some headspace. What better fit for this era than CBD, a substance that redefines outdated concepts about cannabis and helps users to become more balanced?
What is particularly exciting about CBD is its flexibility: it’s a product that easily finds application in multiple industries at once. Its numerous wellness benefits appeal to health businesses, as well as to food & beverage producers and beauty brands.
While eyes have been focused on the North American CBD market following the 2018 Farm Bill, many players are now looking for their next big opportunity in other parts of the world like Europe, Asia, and Latin America. As with any new market expansion, companies will need to be grounded in the unique consumer demographics, product preferences, competitive landscape, and regulatory environments of each region in order to identify the best opportunity to succeed.
SOAR analysis is a strategic planning technique which helps organizations focus on their current strengths and opportunities and create a vision of future aspirations and the result s they will bring. In contrast to SWOT analysis , the SOAR model uses appreciative inquiry to focus the business on what is known to work, rather than internal weaknesses or perceived threats that might not eventuate. The technique is more action-oriented than a SWOT analysis and is focused on meaningful outcomes.
Innovations will drastically shift across product types. What may work in Beauty & Skincare may not work in Sports & Fitness. The best part about innovations is, they will always exist . B usinesses will continue to push the boundaries on what CBD products enter the market and it is up to the consumers to decide what continues to live on in the market.
All of these companies, including the disruptors, share a slice of the CBD industry pie. This is known as market share. Market share is calculated by taking the company’s sales over a given time period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors. With new CBD brands entering the fold every day, the share of market is always changing.
Zooming out, the efficacy of CBD itself is constantly being tested by universities, brands, and pharmaceutical companies . More research around CBD can open new doors for innovation and further legitimize emerging industries.
The first question that many people wonder when beginning market research is: where is the market going to go? Understanding trends driving the market and forecasting where retail sales are heading over the next five years is an excellent first step to plan the growth of your business. If a market like CBD is expected to have strong growth, you can feel a bit more confident in the decisions you make.
Because of this variation across use cases, consumer segments, regulatory dynamics, and channel performance, each product category will have its own growth path that may, or may not, align with the total market forecast. Gaining a strategic understanding of which products will outpace the total market, and which may be losing ground helps CBD brands identify white spaces and where their next big opportunity may be.
In CBD, regulations heavily influence the growth of the market. In the United States, for example, the FDA’s decision on hemp-derived CBD will significantly impact market forecasts.
It’s always important to know what other people are doing in the industry in which you operate. Competitors can be role models, threats, or even opportunities for work you eventually want to do. The competitive landscape drastically varies across industries , and in CBD, we are rapidly seeing more business consolidation. On top of that, the overall market is becoming increasingly fragmented as various countries have vastly different approaches to the CBD industry.