by Cannabidiol (CBD) is a chemical compound derived from hemp or marijuana plants that is widely used as a relaxant, pain reliever, and active ingredient in consumer health products. CBD provides various therapeutic benefits such as relieving anxiety, reducing inflammation, improving sleep quality, alleviating chronic pain, and managing symptoms of epilepsy. CBD is commonly infused in topicals, edibles, capsules, tinctures, and vaping liquids. The growing consumer awareness about the therapeutic properties of CBD has significantly increased its popularity among various health-conscious consumers in recent years.
The global Cannabidiol Consumer Health Market is estimated to be valued at US$ 19 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the CBD consumer health market is the increasing legalization of hemp-derived CBD products across various regions. For instance, the 2018 U.S. Farm Bill legalized industrial hemp and hemp-derived CBD products with a THC concentration of less than 0.3%. Several other countries like Canada, Mexico, Thailand, South Africa, and certain countries of Europe have also decriminalized or legalized medical cannabis along with products containing CBD extracted from hemp. This growing acceptance and legal framework has encouraged new product innovations, market expansions, and investments in CBD consumer brands, facilitating the growth of the overall market. Consumers are also increasingly using CBD as a preventive healthcare product to manage lifestyle-related health concerns like stress, insomnia, mental focus, etc. advancing the “wellness” aspect of CBD consumer products. Strong R&D activities to develop effective, scientifically validated CBD formulations for various therapeutic areas will further expand the consumer base and market reach going ahead.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Global Cannabidiol Consumer Health Market Size is moderate as setting up manufacturing facilities requires significant investment and resources. However, increasing demand provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers in the cannabidiol consumer health market is high due to availability of various product options. Buyers can choose from multiple brands based on price, quality, and other features.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials like hemp are produced by few players globally. However, rising number of suppliers is lowering their bargaining power.
Threat of new substitutes: The threat of substitutes is moderate as alternative consumer products like omega fatty acid supplements, herbal supplements offer similar benefits. However, CBD is increasingly preferred due to its multiple therapeutic effects.
Competitive rivalry: The competitive rivalry in the global cannabidiol consumer health market is high. Players compete based on product range, quality, pricing, and innovation to gain more market share.
Key Takeaways
The global cannabidiol consumer health market is expected to witness high growth over the forecast period.
North America is expected to dominate the global cannabidiol consumer health market during the forecast period. Favorable regulations coupled with increasing consumer awareness regarding health benefits of CBD are supporting market growth.
Key players operating in the cannabidiol consumer health market are Murata Manufacturing Co., Ltd., TDK Corporation, Qorvo, Inc., Broadcom Inc., Skyworks Solutions, Inc., AVX Corporation, Johanson Technology, Inc., Anatech Electronics, Inc., API Technologies Corp., Pole/Zero Corporation, Corry Micronics, Inc., Knowles Precision Devices, SAWTRON, Temwell Corporation, Telonic Berkeley, Inc. Major players are focusing on new product development and mergers & acquisitions to strengthen their market position. For instance, in 2021, AVX Corporation acquired Chengdu Sky Link Microelectronics for expanding its passive component portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
