Comparing the European, Asian and North American CBD Markets
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Table of Contents
Comparing the European, Asian and North American CBD Markets
Table of Contents
Summary
Introduction
CBD: The Basics
The European CBD Market
The Asian CBD Market
The North American CBD Market
What Does the Future Hold for These CBD Markets?
Always Pure Organics
Final Thoughts
Frequently Asked Questions (FAQs)
References
Summary
The CBD industry has become one of the most ground-breaking worldwide. Its potential as a simple but effective health hack is rapidly growing. While we know that there’s a rising interest in CBD that both users and businesses are tapping into, what does this mean for CBD markets across the globe? To help you get a better picture, this article will compare the European, Asian and North American CBD markets. We’ll explore the basics of CBD before moving onto each market, noting the similarities and differences between them. What does the future hold for these CBD markets? Continue reading to learn more!
Introduction
CBD seems like a relatively new industry, given the sudden increase of awareness around it. Regardless of cost, people buy CBD products as they learn more about CBD’s potential therapeutic benefits. This is playing a very significant role in CBD consumer markets.
Even during the pandemic, the CBD market has achieved a steady growth curve. In 2020, the global CBD market size was valued at $2.8 billion. This figure is expected to grow exponentially in upcoming years, thanks to the industry’s innovative and disruptive nature.
Due to the slight stigma surrounding cannabis, it’s natural for some individuals to be more cautious than others about CBD. However, certain businesses and investors have realised CBD’s extremely high potential. CBD’s global reach and relevance show just how successful the cannabis sector is proving to be.
Here at Always Pure Organics, our mission is to accelerate the global acceptance of and access to cannabinoids. We offer and deliver the highest quality wholesale cannabis and cannabinoid products worldwide. Whether you’re after bulk ingredients, bulk products, white label products or bespoke formulation, we can help you along your journey and provide you with regulatory and legal expertise too.
Now, let’s explore the fundamentals of CBD before dissecting the European, Asian and North American CBD markets.
CBD: The Basics
CBD stands for cannabidiol—a natural, isolated chemical compound derived from the Cannabis sativa plant. It’s extracted from the leaves and flowers of this plant, which is referred to as marijuana or hemp. The plant has roughly 120 different compounds, but the two most well-known active ingredients are CBD and tetrahydrocannabinol (THC).
Surprisingly to some, CBD isn’t responsible for a “high” or state of euphoria. It’s also a non-addictive compound. This is still the case even when it may contain small amounts of THC, well-known for its psychoactive properties. Interestingly, THC’s effects on the nervous system might be inhibited by CBD. It’s believed that CBD activates receptors in the body, which influences the body to produce naturally-occurring cannabinoids.
CBD has become particularly desirable because of its potentially powerful and nourishing properties. For anyone that wants to soothe physical discomforts or maintain their wellbeing, CBD is believed to be a credible option. Products come in all shapes and sizes, such as oils and tinctures, edibles, vaporisers, creams, and lotions.
There usually aren’t severe side effects or drug interactions associated with taking CBD; however, it’s essential to be aware of the potential risks. Minimal side effects may occur, including drowsiness or sedation, diarrhoea and loss of appetite, mood changes, liver injury and low blood pressure.
CBD may also interact with antibiotics, antidepressants, and blood thinners. Take extra precautions in these circumstances and when medications or supplements have a grapefruit warning. This is because both CBD and grapefruit are metabolised by the same enzymes vital for drug metabolism. Additionally, you should speak to your doctor before CBD use, who can oversee potential signs of efficacy, toxicity and side effects.
The European CBD Market
Thanks to advances in legislation, the European CBD market is doing extremely well with its investment and racking up millions of pounds. According to CB Insights, 34 innovative startup CBD companies in Europe received a total of $128.5 million in terms of investment in 2019. Through annualised activity, this funding was anticipated to rise and approach $150 million in 2020.
The European CBD oil market has rapidly grown between 2015 and 2020. So, what’s behind this momentum? The short answer is regulatory relaxation. This largely started in 2019 when Luxembourg announced its intent to legalise cannabis for recreational use. This announcement helped decriminalise the cultivation of the plant and shift public opinion. According to New Frontier Data’s EU CBD Consumer Report: 2019 Overview, 46% of Europeans are in favour of CBD, and 77% of surveyed respondents believe it should be accessible in one way or another.
According to a 2019 report by the Centre for Medical Cannabis, an estimated 8-11% of individual UK adults have tried CBD. This equates to approximately four to six million people. At the time, the market size was valued at roughly $390 million per year. Today, it isn’t slowing down; according to the Cannabis Trade Association (CTA), Europe’s CBD market is worth around $635 million. The UK commands the biggest share at around $145 million.
There are noteworthy variances when making CBD market comparisons between different European countries. These are very much dependent on conflicting government rules and regulations. For example, countries like the UK and Switzerland have less conservative regulations, so they’re farther ahead than Scandinavia. Germany is currently Europe’s biggest market for CBD.
In Europe, the nature of the CBD market is unregulated, but the industry is proving that growth is inevitable for companies that provide top-quality, authentic, and legal CBD products. There’s monumental demand for CBD-infused goods, especially for medical and general wellness purposes.
Nowadays, you can find CBD in cosmetics, medical applications, nutraceuticals, pharmaceuticals and personal care. Major retailers are entering the CBD space selling safe, batch-tested CBD supplements in UK pharmacies and online. The CTA estimates that just over half of European CBD products are CBD oil dietary supplements, a third are vaporisers, and the rest are cosmetics and edibles.
The Asian CBD Market
Asia is the largest and most populous continent on Earth, with 48 countries. It’s long been home to 4.6 billion people, constituting most of the world’s human population. Given its size and diversity, it’s no wonder the Asia Pacific CBD market is thriving.
The Asia Pacific CBD market exceeded $129.8 million in 2020. The oil segment revenue was over $31.4 million in the same year due to its efficacy and ease of use for numerous ailments. The CBD tincture segment had the second-largest regional market share with a valuation of more than $18.5 million because of its long shelf life.
CBD-based products are legal in Japan, as regulatory bodies have been open to CBD’s potential benefits. CBD is mostly used for cosmetics, ingestibles, dietary supplements, pet snacks, and electronic cigarettes.
One of the key factors increasing the market growth is the adoption of CBD products for soothing symptoms associated with chronic health conditions. In 2020, the oral route of CBD administration held a 53.1% market share, with people using capsules, oils, tablets and tinctures.
It’s hugely beneficial for the market that the cultivation of hemp-derived CBD products is supported by countries such as China due to CBD’s reportedly anti-ageing, anti-inflammatory and antioxidant properties for health and wellness purposes. In fact, China is the largest hemp cultivator in Asia, producing nearly half of the world’s hemp!
The vast population of China and India is boosting the demand for CBD-infused cosmetics, foods and beverages among consumers. CBD-derived nutritional supplements are being marketed in many food and health stores, widening the production of CBD products among manufacturers. The CBD consumer pool also expanded after the legalisation of CBD in several Asia Pacific countries.
The North American CBD Market
Strong developments have been observed in the North American CBD market, particularly in the United States and Canada. CBD’s increasing prominence in the region is largely due to the supportive and liberal regulatory framework, wide consumer acceptance and rise in the number of manufacturers.
The year 2018 introduced the Farm Bill, which legalised almost every CBD product with less than 0.3% THC content across states in the US. It also redefined hemp and hemp-derived products. However, any product with more than 0.3% THC is considered illegal at a federal level.
It’s best to check the different state-level policies that decriminalise the possession and consumption of CBD products before travelling. Furthermore, as of March 2020, only one CBD product has been approved by the US Food and Drug Administration (FDA), Epidiolex, a prescription drug used to treat two rare and severe forms of epilepsy.
In 2020, there was $4.6 billion worth of CBD product sales in the US. The state of California is the country’s leading market for CBD products, with estimated sales of $730 million, according to Statista.
During its first year of controlled sales back in 2018, California raised a total of $345.2 million in tax revenue from legal CBD. As a result of this financial gain, local councils and governments funded various construction and development programmes for education and infrastructure.
Both the US and Canada are very technologically advanced countries, so large-scale online advertising of CBD helps to increase the popularity and sales of products. Consumers are highly aware of CBD’s benefits and legal stance.
The CBD oil segment accounted for over $1 billion in 2020. CBD vitamins have also dominated American convenience stores, generating over $20 million in this one year. CBD lotions and balms have the greatest consumer interest, closely followed by gummies, supplements and tinctures.
What Does the Future Hold for These CBD Markets?
Europe
While Europe’s CBD industry is still emerging compared to the US, it’s predicted to soon surpass the US as the number one CBD market. The European CBD market is set to rise by 400% over the next four years!
During 2021-2026, the International Market Analysis Research and Consulting (IMARC) Group estimates the CBD oil market to grow at a compound annual growth rate (CAGR) of around 23%. In 2025, the UK CBD market is expected to be just short of $1.3 billion, equivalent to the entire UK herbal supplement market in 2016! By 2027, Europe’s CBD market could surpass $25.8 billion.
The UK is awaiting legal clarification on the regulatory status of CBD supplements. Applications for CBD to be used in the European Commission’s Novel Food List were postponed in July 2020 after it was argued that cannabinoids and other hemp flower extracts would be best treated as opioids under the United Nations Single Convention on Narcotic Drugs. This decision might affect the CBD industry and limit cannabis study and advancement in the future. However, the Food Standards Agency (FSA) accepts the Commission’s view of CBD as a novel food and encourages compliance in the marketplace.
The CTA predicts CBD cosmetics will be a particularly fertile growth area within the market, alongside drinks and edibles. As emerging research shows CBD’s potentially positive effect on several skin conditions, there’s likely to be a boom in CBD skincare; this is the latest beauty trend that’s flourishing both in the UK and the US. Healthcare institutions are also adopting CBD-based products, promoting market development.
Asia
Geographically, the Asia Pacific CBD market will have the highest CAGR in the near future, possibly growing at more than 35.2% from 2021 to 2027. According to Data Bridge Market Research, the CBD oil market will account for $182,536.84 by the next six years.
China is currently ruling with the highest shares of the CBD market, especially owing to the setup of hemp-producing plants. The Statista Research Department reported that China’s CBD market is forecasted to reach 4.1 billion CHF by 2024. India’s CBD market isn’t far behind China, with ongoing research and developmental activities in medicinal CBD oil products. However, if Japan adopts the latest techniques in the healthcare sector, Japan’s CBD market could expand to the second-largest in the Asia Pacific Region to 1.9 billion CHF.
Although there’s uncertainty in the availability of raw materials required to manufacture end products, the high potential applications of CBD for diverse ailments will push opportunities in the market. Utilising CBD’s health benefits for specific chronic conditions will cross $570 million by 2027. The CBD tincture segment will also likely gain traction, growing at a 36% CAGR.
Government investments in developing new drugs or vaccines with hemp-based products also fuel the CBD market demand. The hemp-derived source segment will see a significant growth of 35.5% during the forecast period. By distribution channel, it’s estimated that the offline segment will reach $1 billion driven by the increased sales in retail stores.
Asia looks to be fierce competition for Europe, the US and Canada. The market would benefit even more if the regulatory structure in approving CBD oil products becomes less complex and if undeveloped countries in the Asia Pacific adopt advanced technologies.
North America
Cannabis and its products will continue to progress in the North American region. The North American CBD market will observe a 33.3% growth rate between 2021 and 2027. The offline segment will expand at a CAGR of 32.6%. By 2026, the US market will probably grow to $16 billion in value, according to a Statista report.
Like Europe, North America’s continuous political wins positively contribute to the legal CBD sector. This has also created a substantial decline in black market crime in some countries, as users can buy cannabis legally for medical and recreational purposes.
Compared to their opioid counterparts, CBD products could help the North American CBD market to reach $20.6 billion by the end of 2027 when used as an alternative medication. The negligible THC content in hemp-derived CBD products is naturally well within the acceptable limits, so these could capture around 70.8% of the market share.
Globally
According to a Grand View Research report, the global CBD market is expected to expand at a CAGR of 21.2% from 2021 to 2028, accelerating to $23.6 billion over the next five years.
Due to the recent increasing demand from the pharmaceutical sector and rising consumer awareness regarding health post-pandemic, the hemp-derived CBD market will likely grow at a CAGR of 23.4%.
CBD accounted for 4% of the global vitamin and dietary supplements market in 2019, but this number is projected to grow to over 20% by 2027. There’s high anticipation that adult-use of medical cannabis will become the fastest-growing category of adult-use items, whether it’s a powerful concentrate or a basic food ingredient.
The business to business (B2B) segment accounted for the largest revenue share of 58.9% in 2020. The reason for dominating the market can be attributed to an increase in the number of bulk or wholesale CBD oil providers and demand for CBD oil as a raw material.
Companies increase their distribution networks and expand their consumer base by entering into multiple partnerships and launching novel products. In future, we hope that there will be more control over CBD products across global markets and ongoing trials to study the impact of CBD on the body. This, combined with education-based marketing strategies, will best drive future product sales.
Always Pure Organics
Always Pure Organics is a white label specialist manufacturer and distributor of CBD products. We take pride in our B2B business, which delivers the purest and highest quality wholesale cannabis and cannabinoid products worldwide.
We provide the most client-centric experience in the cannabis industry, empowering and maximising your success as business customers along the way. By working across the entire supply chain of the CBD industry, we can give you regulatory and legal expertise and product knowledge and production.
Creating a unique product from scratch can be a lengthy process. That’s why we’re here to help, giving you complete confidence in your product. Browse through our product range, including bulk CBD products, brands and white label CBD products.
Final Thoughts
There’s a myriad of profitable opportunities for the fast-growing CBD markets. It appears as if there’s never been a better time for commercial retailers, health and wellness retailers, and CBD businesses to focus on selling CBD products. There’s huge potential in this sector and what we’re seeing is just the beginning.
For anyone striving to build their CBD business or increase market share, Always Pure Organics can help you. Contact us for more information.
Frequently Asked Questions (FAQs)
What is CBD oil?
CBD oil is made by extracting CBD from the cannabis plant and then diluting it with a carrier oil like coconut, hemp seed, grapeseed, olive or sunflower oil. CBD isolate and broad-spectrum CBD oils don’t contain THC, whereas full-spectrum CBD oil does.
How can I start a CBD business?
Follow these steps for starting a CBD business: identify your CBD niche and products; understand the laws and regulations around CBD; generate a thorough CBD business plan; organise your business documents; find your CBD supplier; decide between a brick-and-mortar or online business; determine shipping and payment terms; and market your business.
How can I buy CBD products in bulk?
Most wholesale suppliers sell CBD products in bulk. What’s more, manufacturers like Always Pure Organics offer a host of other services designed to make it easy for you to launch your CBD brand.
What are the best CBD oil companies for bulk wholesale marketing?
CBD wholesalers that are part of the premium markets often grow high-quality hemp, resulting in high-quality products. Discover the highest quality wholesale cannabis and cannabinoid products here at Always Pure Organics.
What bulk CBD products can I expect to find at Always Pure Organics?
Our pre-produced CBD and cannabinoid products include CBG Oil in Hemp Oil, CBD Oil (hemp or MCT Carrier), High Strength Balm, Daily Lotion, Soft Gel Capsules, Pet CBD Oil (hemp Oil or MCT Carrier) and CBD Patches.
Which white label CBD products are available at Always Pure Organics?
Our white label CBD products include Pet CBD Oil (hemp Oil or MCT Carrier), CBD Oil (hemp or MCT Carrier), CBG Oil in Hemp Oil, Blood Orange Lotion, Lavender Night Cream, High Strength Balm, Tattoo Aftercare Lotion, CBD Gummies, Daily Lotion, Softgel Capsules and CBD Patches.
How expensive is CBD oil in bulk?
The prices for bulk CBD vary depending on where you buy from, the quantity, and the price per kilogram. However, it’s cheaper to buy CBD in wholesale quantities than in retail. You can profit from selling your products in bulk when you buy CBD oil.
What are white label CBD products?
White labelling enables you to put your brand on CBD products manufactured by another company or third party. Instead of getting involved in the production, your focus is on developing your brand, increasing sales and generating profits.
Is there a difference between private label and white label CBD?
Private label CBD products are created and sold exclusively to one retailer. Private label brands can request alterations or enhancements to the product. White label CBD products are universal and made by a producer, and are sold to multiple retailers. The retailers typically cannot request.
What are the top-rated white label CBD?
Always Pure Organics provides the best CBD products supported by worldwide delivery. Our bespoke formulation, coupled with efficient logistics, ensures that we always maintain quality, we’re always compliant, and we always deliver.
References
https://www.medicalnewstoday.com/articles/can-cbd-lower-blood-pressure
https://newfrontierdata.com/product/the-eu-cbd-consumer-report/
https://www.populationof.net/asia/
https://www.graphicalresearch.com/industry-insights/1824/asia-pacific-cannabidiol-cbd-market#:~:text=How%20much%20is%20the%20Asia,35.2%25%20between%202021%20and%202027
https://www.grandviewresearch.com/industry-analysis/cannabidiol-cbd-market
https://www.europeanbusinessreview.com/how-much-the-cbd-market-is-growing-in-the-eu/
https://www.graphicalresearch.com/industry-insights/1823/europe-cannabidiol-cbd-market
https://www.databridgemarketresearch.com/reports/asia-pacific-cbd-oil-market
https://www.statista.com/statistics/1233135/apac-forecast-cannabidiol-market-size-by-country/
https://www.marketdataforecast.com/market-reports/apac-cbd-oil-market
https://www.graphicalresearch.com/industry-insights/1821/north-america-cannabidiol-cbd-market#:~:text=The%20industry%20for%20cannabidiol%20in,33%25%20over%202021%2D2027
Table of Contents
Comparing the European, Asian and North American CBD Markets
Table of Contents
Summary
Introduction
CBD: The Basics
The European CBD Market
The Asian CBD Market
The North American CBD Market
What Does the Future Hold for These CBD Markets?
Always Pure Organics
Final Thoughts
Frequently Asked Questions (FAQs)
References
Summary
The CBD industry has become one of the most ground-breaking worldwide. Its potential as a simple but effective health hack is rapidly growing. While we know that there’s a rising interest in CBD that both users and businesses are tapping into, what does this mean for CBD markets across the globe? To help you get a better picture, this article will compare the European, Asian and North American CBD markets. We’ll explore the basics of CBD before moving onto each market, noting the similarities and differences between them. What does the future hold for these CBD markets? Continue reading to learn more!
Introduction
CBD seems like a relatively new industry, given the sudden increase of awareness around it. Regardless of cost, people buy CBD products as they learn more about CBD’s potential therapeutic benefits. This is playing a very significant role in CBD consumer markets.
Even during the pandemic, the CBD market has achieved a steady growth curve. In 2020, the global CBD market size was valued at $2.8 billion. This figure is expected to grow exponentially in upcoming years, thanks to the industry’s innovative and disruptive nature.
Due to the slight stigma surrounding cannabis, it’s natural for some individuals to be more cautious than others about CBD. However, certain businesses and investors have realised CBD’s extremely high potential. CBD’s global reach and relevance show just how successful the cannabis sector is proving to be.
Here at Always Pure Organics, our mission is to accelerate the global acceptance of and access to cannabinoids. We offer and deliver the highest quality wholesale cannabis and cannabinoid products worldwide. Whether you’re after bulk ingredients, bulk products, white label products or bespoke formulation, we can help you along your journey and provide you with regulatory and legal expertise too.
Now, let’s explore the fundamentals of CBD before dissecting the European, Asian and North American CBD markets.
CBD: The Basics
CBD stands for cannabidiol—a natural, isolated chemical compound derived from the Cannabis sativa plant. It’s extracted from the leaves and flowers of this plant, which is referred to as marijuana or hemp. The plant has roughly 120 different compounds, but the two most well-known active ingredients are CBD and tetrahydrocannabinol (THC).
Surprisingly to some, CBD isn’t responsible for a “high” or state of euphoria. It’s also a non-addictive compound. This is still the case even when it may contain small amounts of THC, well-known for its psychoactive properties. Interestingly, THC’s effects on the nervous system might be inhibited by CBD. It’s believed that CBD activates receptors in the body, which influences the body to produce naturally-occurring cannabinoids.
CBD has become particularly desirable because of its potentially powerful and nourishing properties. For anyone that wants to soothe physical discomforts or maintain their wellbeing, CBD is believed to be a credible option. Products come in all shapes and sizes, such as oils and tinctures, edibles, vaporisers, creams, and lotions.
There usually aren’t severe side effects or drug interactions associated with taking CBD; however, it’s essential to be aware of the potential risks. Minimal side effects may occur, including drowsiness or sedation, diarrhoea and loss of appetite, mood changes, liver injury and low blood pressure.
CBD may also interact with antibiotics, antidepressants, and blood thinners. Take extra precautions in these circumstances and when medications or supplements have a grapefruit warning. This is because both CBD and grapefruit are metabolised by the same enzymes vital for drug metabolism. Additionally, you should speak to your doctor before CBD use, who can oversee potential signs of efficacy, toxicity and side effects.
The European CBD Market
Thanks to advances in legislation, the European CBD market is doing extremely well with its investment and racking up millions of pounds. According to CB Insights, 34 innovative startup CBD companies in Europe received a total of $128.5 million in terms of investment in 2019. Through annualised activity, this funding was anticipated to rise and approach $150 million in 2020.
The European CBD oil market has rapidly grown between 2015 and 2020. So, what’s behind this momentum? The short answer is regulatory relaxation. This largely started in 2019 when Luxembourg announced its intent to legalise cannabis for recreational use. This announcement helped decriminalise the cultivation of the plant and shift public opinion. According to New Frontier Data’s EU CBD Consumer Report: 2019 Overview, 46% of Europeans are in favour of CBD, and 77% of surveyed respondents believe it should be accessible in one way or another.
According to a 2019 report by the Centre for Medical Cannabis, an estimated 8-11% of individual UK adults have tried CBD. This equates to approximately four to six million people. At the time, the market size was valued at roughly $390 million per year. Today, it isn’t slowing down; according to the Cannabis Trade Association (CTA), Europe’s CBD market is worth around $635 million. The UK commands the biggest share at around $145 million.
There are noteworthy variances when making CBD market comparisons between different European countries. These are very much dependent on conflicting government rules and regulations. For example, countries like the UK and Switzerland have less conservative regulations, so they’re farther ahead than Scandinavia. Germany is currently Europe’s biggest market for CBD.
In Europe, the nature of the CBD market is unregulated, but the industry is proving that growth is inevitable for companies that provide top-quality, authentic, and legal CBD products. There’s monumental demand for CBD-infused goods, especially for medical and general wellness purposes.
Nowadays, you can find CBD in cosmetics, medical applications, nutraceuticals, pharmaceuticals and personal care. Major retailers are entering the CBD space selling safe, batch-tested CBD supplements in UK pharmacies and online. The CTA estimates that just over half of European CBD products are CBD oil dietary supplements, a third are vaporisers, and the rest are cosmetics and edibles.
The Asian CBD Market
Asia is the largest and most populous continent on Earth, with 48 countries. It’s long been home to 4.6 billion people, constituting most of the world’s human population. Given its size and diversity, it’s no wonder the Asia Pacific CBD market is thriving.
The Asia Pacific CBD market exceeded $129.8 million in 2020. The oil segment revenue was over $31.4 million in the same year due to its efficacy and ease of use for numerous ailments. The CBD tincture segment had the second-largest regional market share with a valuation of more than $18.5 million because of its long shelf life.
CBD-based products are legal in Japan, as regulatory bodies have been open to CBD’s potential benefits. CBD is mostly used for cosmetics, ingestibles, dietary supplements, pet snacks, and electronic cigarettes.
One of the key factors increasing the market growth is the adoption of CBD products for soothing symptoms associated with chronic health conditions. In 2020, the oral route of CBD administration held a 53.1% market share, with people using capsules, oils, tablets and tinctures.
It’s hugely beneficial for the market that the cultivation of hemp-derived CBD products is supported by countries such as China due to CBD’s reportedly anti-ageing, anti-inflammatory and antioxidant properties for health and wellness purposes. In fact, China is the largest hemp cultivator in Asia, producing nearly half of the world’s hemp!
The vast population of China and India is boosting the demand for CBD-infused cosmetics, foods and beverages among consumers. CBD-derived nutritional supplements are being marketed in many food and health stores, widening the production of CBD products among manufacturers. The CBD consumer pool also expanded after the legalisation of CBD in several Asia Pacific countries.
The North American CBD Market
Strong developments have been observed in the North American CBD market, particularly in the United States and Canada. CBD’s increasing prominence in the region is largely due to the supportive and liberal regulatory framework, wide consumer acceptance and rise in the number of manufacturers.
The year 2018 introduced the Farm Bill, which legalised almost every CBD product with less than 0.3% THC content across states in the US. It also redefined hemp and hemp-derived products. However, any product with more than 0.3% THC is considered illegal at a federal level.
It’s best to check the different state-level policies that decriminalise the possession and consumption of CBD products before travelling. Furthermore, as of March 2020, only one CBD product has been approved by the US Food and Drug Administration (FDA), Epidiolex, a prescription drug used to treat two rare and severe forms of epilepsy.
In 2020, there was $4.6 billion worth of CBD product sales in the US. The state of California is the country’s leading market for CBD products, with estimated sales of $730 million, according to Statista.
During its first year of controlled sales back in 2018, California raised a total of $345.2 million in tax revenue from legal CBD. As a result of this financial gain, local councils and governments funded various construction and development programmes for education and infrastructure.
Both the US and Canada are very technologically advanced countries, so large-scale online advertising of CBD helps to increase the popularity and sales of products. Consumers are highly aware of CBD’s benefits and legal stance.
The CBD oil segment accounted for over $1 billion in 2020. CBD vitamins have also dominated American convenience stores, generating over $20 million in this one year. CBD lotions and balms have the greatest consumer interest, closely followed by gummies, supplements and tinctures.
What Does the Future Hold for These CBD Markets?
Europe
While Europe’s CBD industry is still emerging compared to the US, it’s predicted to soon surpass the US as the number one CBD market. The European CBD market is set to rise by 400% over the next four years!
During 2021-2026, the International Market Analysis Research and Consulting (IMARC) Group estimates the CBD oil market to grow at a compound annual growth rate (CAGR) of around 23%. In 2025, the UK CBD market is expected to be just short of $1.3 billion, equivalent to the entire UK herbal supplement market in 2016! By 2027, Europe’s CBD market could surpass $25.8 billion.
The UK is awaiting legal clarification on the regulatory status of CBD supplements. Applications for CBD to be used in the European Commission’s Novel Food List were postponed in July 2020 after it was argued that cannabinoids and other hemp flower extracts would be best treated as opioids under the United Nations Single Convention on Narcotic Drugs. This decision might affect the CBD industry and limit cannabis study and advancement in the future. However, the Food Standards Agency (FSA) accepts the Commission’s view of CBD as a novel food and encourages compliance in the marketplace.
The CTA predicts CBD cosmetics will be a particularly fertile growth area within the market, alongside drinks and edibles. As emerging research shows CBD’s potentially positive effect on several skin conditions, there’s likely to be a boom in CBD skincare; this is the latest beauty trend that’s flourishing both in the UK and the US. Healthcare institutions are also adopting CBD-based products, promoting market development.
Asia
Geographically, the Asia Pacific CBD market will have the highest CAGR in the near future, possibly growing at more than 35.2% from 2021 to 2027. According to Data Bridge Market Research, the CBD oil market will account for $182,536.84 by the next six years.
China is currently ruling with the highest shares of the CBD market, especially owing to the setup of hemp-producing plants. The Statista Research Department reported that China’s CBD market is forecasted to reach 4.1 billion CHF by 2024. India’s CBD market isn’t far behind China, with ongoing research and developmental activities in medicinal CBD oil products. However, if Japan adopts the latest techniques in the healthcare sector, Japan’s CBD market could expand to the second-largest in the Asia Pacific Region to 1.9 billion CHF.
Although there’s uncertainty in the availability of raw materials required to manufacture end products, the high potential applications of CBD for diverse ailments will push opportunities in the market. Utilising CBD’s health benefits for specific chronic conditions will cross $570 million by 2027. The CBD tincture segment will also likely gain traction, growing at a 36% CAGR.
Government investments in developing new drugs or vaccines with hemp-based products also fuel the CBD market demand. The hemp-derived source segment will see a significant growth of 35.5% during the forecast period. By distribution channel, it’s estimated that the offline segment will reach $1 billion driven by the increased sales in retail stores.
Asia looks to be fierce competition for Europe, the US and Canada. The market would benefit even more if the regulatory structure in approving CBD oil products becomes less complex and if undeveloped countries in the Asia Pacific adopt advanced technologies.
North America
Cannabis and its products will continue to progress in the North American region. The North American CBD market will observe a 33.3% growth rate between 2021 and 2027. The offline segment will expand at a CAGR of 32.6%. By 2026, the US market will probably grow to $16 billion in value, according to a Statista report.
Like Europe, North America’s continuous political wins positively contribute to the legal CBD sector. This has also created a substantial decline in black market crime in some countries, as users can buy cannabis legally for medical and recreational purposes.
Compared to their opioid counterparts, CBD products could help the North American CBD market to reach $20.6 billion by the end of 2027 when used as an alternative medication. The negligible THC content in hemp-derived CBD products is naturally well within the acceptable limits, so these could capture around 70.8% of the market share.
Globally
According to a Grand View Research report, the global CBD market is expected to expand at a CAGR of 21.2% from 2021 to 2028, accelerating to $23.6 billion over the next five years.
Due to the recent increasing demand from the pharmaceutical sector and rising consumer awareness regarding health post-pandemic, the hemp-derived CBD market will likely grow at a CAGR of 23.4%.
CBD accounted for 4% of the global vitamin and dietary supplements market in 2019, but this number is projected to grow to over 20% by 2027. There’s high anticipation that adult-use of medical cannabis will become the fastest-growing category of adult-use items, whether it’s a powerful concentrate or a basic food ingredient.
The business to business (B2B) segment accounted for the largest revenue share of 58.9% in 2020. The reason for dominating the market can be attributed to an increase in the number of bulk or wholesale CBD oil providers and demand for CBD oil as a raw material.
Companies increase their distribution networks and expand their consumer base by entering into multiple partnerships and launching novel products. In future, we hope that there will be more control over CBD products across global markets and ongoing trials to study the impact of CBD on the body. This, combined with education-based marketing strategies, will best drive future product sales.
Always Pure Organics
Always Pure Organics is a white label specialist manufacturer and distributor of CBD products. We take pride in our B2B business, which delivers the purest and highest quality wholesale cannabis and cannabinoid products worldwide.
We provide the most client-centric experience in the cannabis industry, empowering and maximising your success as business customers along the way. By working across the entire supply chain of the CBD industry, we can give you regulatory and legal expertise and product knowledge and production.
Creating a unique product from scratch can be a lengthy process. That’s why we’re here to help, giving you complete confidence in your product. Browse through our product range, including bulk CBD products, brands and white label CBD products.
Final Thoughts
There’s a myriad of profitable opportunities for the fast-growing CBD markets. It appears as if there’s never been a better time for commercial retailers, health and wellness retailers, and CBD businesses to focus on selling CBD products. There’s huge potential in this sector and what we’re seeing is just the beginning.
For anyone striving to build their CBD business or increase market share, Always Pure Organics can help you. Contact us for more information.
Frequently Asked Questions (FAQs)
What is CBD oil?
CBD oil is made by extracting CBD from the cannabis plant and then diluting it with a carrier oil like coconut, hemp seed, grapeseed, olive or sunflower oil. CBD isolate and broad-spectrum CBD oils don’t contain THC, whereas full-spectrum CBD oil does.
How can I start a CBD business?
Follow these steps for starting a CBD business: identify your CBD niche and products; understand the laws and regulations around CBD; generate a thorough CBD business plan; organise your business documents; find your CBD supplier; decide between a brick-and-mortar or online business; determine shipping and payment terms; and market your business.
How can I buy CBD products in bulk?
Most wholesale suppliers sell CBD products in bulk. What’s more, manufacturers like Always Pure Organics offer a host of other services designed to make it easy for you to launch your CBD brand.
What are the best CBD oil companies for bulk wholesale marketing?
CBD wholesalers that are part of the premium markets often grow high-quality hemp, resulting in high-quality products. Discover the highest quality wholesale cannabis and cannabinoid products here at Always Pure Organics.
What bulk CBD products can I expect to find at Always Pure Organics?
Our pre-produced CBD and cannabinoid products include CBG Oil in Hemp Oil, CBD Oil (hemp or MCT Carrier), High Strength Balm, Daily Lotion, Soft Gel Capsules, Pet CBD Oil (hemp Oil or MCT Carrier) and CBD Patches.
Which white label CBD products are available at Always Pure Organics?
Our white label CBD products include Pet CBD Oil (hemp Oil or MCT Carrier), CBD Oil (hemp or MCT Carrier), CBG Oil in Hemp Oil, Blood Orange Lotion, Lavender Night Cream, High Strength Balm, Tattoo Aftercare Lotion, CBD Gummies, Daily Lotion, Softgel Capsules and CBD Patches.
How expensive is CBD oil in bulk?
The prices for bulk CBD vary depending on where you buy from, the quantity, and the price per kilogram. However, it’s cheaper to buy CBD in wholesale quantities than in retail. You can profit from selling your products in bulk when you buy CBD oil.
What are white label CBD products?
White labelling enables you to put your brand on CBD products manufactured by another company or third party. Instead of getting involved in the production, your focus is on developing your brand, increasing sales and generating profits.
Is there a difference between private label and white label CBD?
Private label CBD products are created and sold exclusively to one retailer. Private label brands can request alterations or enhancements to the product. White label CBD products are universal and made by a producer, and are sold to multiple retailers. The retailers typically cannot request.
What are the top-rated white label CBD?
Always Pure Organics provides the best CBD products supported by worldwide delivery. Our bespoke formulation, coupled with efficient logistics, ensures that we always maintain quality, we’re always compliant, and we always deliver.
References
https://www.medicalnewstoday.com/articles/can-cbd-lower-blood-pressure
https://newfrontierdata.com/product/the-eu-cbd-consumer-report/
https://www.populationof.net/asia/
https://www.graphicalresearch.com/industry-insights/1824/asia-pacific-cannabidiol-cbd-market#:~:text=How%20much%20is%20the%20Asia,35.2%25%20between%202021%20and%202027
https://www.grandviewresearch.com/industry-analysis/cannabidiol-cbd-market
https://www.europeanbusinessreview.com/how-much-the-cbd-market-is-growing-in-the-eu/
https://www.graphicalresearch.com/industry-insights/1823/europe-cannabidiol-cbd-market
https://www.databridgemarketresearch.com/reports/asia-pacific-cbd-oil-market
https://www.statista.com/statistics/1233135/apac-forecast-cannabidiol-market-size-by-country/
https://www.marketdataforecast.com/market-reports/apac-cbd-oil-market
https://www.graphicalresearch.com/industry-insights/1821/north-america-cannabidiol-cbd-market#:~:text=The%20industry%20for%20cannabidiol%20in,33%25%20over%202021%2D2027
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