Other key findings and trends culled from BDSA’s forecast include:
*Nearly 50% of all adults are now consuming cannabis in fully legal states. As the cannabis consumer population continues to grow, BDSA predicts this momentum will continue well into the future. According to the cannabis data researcher, only 8% of adults oppose cannabis legalization, and even the most mature legal markets in the U.S. are continuing to expand;
With CBD product sales surging, a new forecast predicts that the market will soar to $19.5 billion in 2025. This projection takes into account a compound annual growth rate of nearly 37% over that period. But there is a catch: The estimate hinges on whether the U.S. Food and Drug Administration will finally approve CBD as a legal additive in 2022. Top cannabis market research firm BDSA, which made this prediction, believes the agency will do so. This would be a significant watershed for the space because even though CBD was legalized as a result of the passage of the U.S. Farm Bill in late December 2018, there are currently no FDA-approved drug products that contain CBD.
If this prediction about the FDA comes to pass, there is sure to be a floodgate of interest from traditional food and beverage brands as well as major retailers. Much of that growth will transpire as ingestibles come to market and legalization continues to expand throughout the country. Consumers actively seeking functional benefits for pain relief, improved sleep, stress and anxiety management will drive this boom.
Of BDSA’s 2025 $19.5 billion CBD sales forecast, mainstream retail, which includes grocery, drug, ecommerce, natural/vitamin, pet/vet and beauty channels, will seize a lion’s share of that figure, clocking in at $14.92 billion or 77%. The pharmaceutical channel is estimated to take up a 12% of that pie at $2.36 billion. And, dispensaries will grab 11% at $2.22 billion. Currently, the cannabis dispensary channel is the only legal channel for CBD-infused ingestibles.
*The percentage of adults consuming cannabis across all fully legal cannabis states increased by 11% from the first quarter of 2018 to the first quarter in 2021;
While some areas of the healthcare sector remain to be impacted, the CBD sales have increased since the advent of the COVID-19 pandemic as restrictive movement and isolation largely impact the human body in several ways causing chronic pain and concerns surrounding mental health, among others. Further, several studies are also noted to remain underway to test the effectiveness of CBD-derived products against the lung damage caused by COVID-19.
Limited approval from the authorities and high level of monitoring restricts the market growth
North America cannabidiol market size crossed USD 4.3 billion in 2020. Several factors such as supportive regulatory framework, large-scale adoption offered by consumers as well as the higher intensity of suppliers in the region increasingly contribute to the sizeable regional market demand. The increasing geriatric population and higher disease prevalence will also boost the industry expansion in the region.
Hemp-based CBD products witness a smooth entry into the market
The oral route of administration segment accounted for nearly USD 3.5 billion revenue in 2020. A significant consumer preference has been observed for oral route of administration and to address the same, suppliers have increasingly developed products that work efficiently when consumed orally. For instance, in July 2020, USFDA approved Epidiolex (a pure oral solution) developed by GW Pharmaceuticals for the treatment of seizures in patients over one year. The drug has earlier been approved for seizures associated with rare types of epilepsy.