The cannabidiol market is to grow by $23B from 2022 to 2027, progressing at a CAGR of 16.28% during the forecast period, according to a report from Technavio.
The legalization and regulatory changes with respect to cannabidiol are the key factors driving market growth. This growth is due to the government recognizing the therapeutic potential of cannabidiol (CBD) and establishing favorable regulations. For example, the US Farm Bill of 2018 legalized the cultivation of hemp, which is the primary source of CBD, allowing the marketing of various CBD products such as oils, capsules, edible foods, and cosmetics. nationwide. In addition, it also leads to the development of new markets and new job opportunities.
The high cost of CBD products is a significant challenge restricting market growth. Fluctuating prices can pose a challenge for those dependent on cannabis treatments. The high cost of CBD is mainly due to its new entrance into the market. In addition, the extraction and purification of CBD involves specialized machinery and is time-consuming, which contributes to the increase in the price of CBD oil. Hence, the high cost is expected to restrict market growth during the forecast period.