The market is estimated to witness a y-o-y growth of approximately 20% to 23% in the next 5 years
In 2020, North America dominated the market with a revenue share of 37.3% and will continue to retain its leading position in the market. The presence of large health-conscious people in the region, growing acceptance for CBD-based products, the presence of major manufacturers, and approval of the U.S. Farm Bill in 2020 are some of the major factors driving the growth of the region. North America is known to be the most progressive region for cannabis and its products, including cannabidiol. It has the highest number of CBD companies and lenient laws regarding the utilization of CBD products.
Source Type Insights
However, the COVID-19 pandemic has caused unprecedented lockdowns all around the world, collapsing daily operations and changing consumer behaviors in nearly every industry. As the response to COVID-19 ramps up, retail stores have shut down. The market started experiencing a shortage in supply due to the nationwide shutdown of transportation and manufacturing in major raw material manufacturing countries, such as China and India. In addition, due to supply chain disruptions in the U.S., the supply of other raw materials has been limited, which is disrupting the manufacturing, and in turn, the supply chain of CBD consumer health products.
On the other hand, the existence of strict regulations and the high cost of cannabidiol products are some of the major factors limiting the growth of the market. In addition, the absence of legalization initiatives in many Asian and African countries is another main factor impeding the market growth.
The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, which is the major factor driving the market growth. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products.
2020 was a huge year for cannabis in Europe and around the globe. The fourth quarter of 2020 in particular saw several important developments. In November, the European Court of Justice ruled that CBD is not to be considered a narcotic substance under EU Law. Weeks later, the UN finally recognised the medical potential of cannabis by removing the plant and its derivatives from Schedule IV of the Single Convention on Narcotic Drugs.
We estimate that over 60,000 people were able to access cannabis medications for the first time in Europe during 2020, bringing the total to 185,000 patients accessing medical cannabis treatment in the region during the year. Overall, we estimate the value of the market for medical cannabis to be worth €230.7 million as of the end of 2020. Further, we expect the value of European cannabis to grow with a CAGR of 67.4%, to reach €3.2 billion in 2025. Our approach to forecasting the European cannabis industry has its foundation in the database of historical data points (sales, patients, volumes, imports, prices etc.), available in Atalis.
This report takes an in-depth look at the progress of cannabis legalisation across Europe, the trade flows on the continent, the business opportunities, the medical products on the market and the patients who use them. We also consider how COVID-19 has affected the market in Europe and what this means for the year ahead.
As the patient access to medical cannabis advances across Europe, so too do the opportunities for businesses to embed themselves in niches of the value chain, before the market becomes more established. The European Cannabis Report: Sixth Edition is designed to support businesses in doing so, along with the conferences offered by Prohibition Partners Live as well as our Consulting services for cannabis and psychedelic ventures.
Accessibility of CBD products was examined in the USA, Canada, Germany, Ireland, United Kingdom, Switzerland, Japan, Australia, and New Zealand as of May 2020. Regulatory and other relevant documents were obtained from government agency websites and related sources. Relevant commercial websites and some physical retailers were visited to verify access to CBD-containing products and the nature of the products available.
A range of CBD products appeared to be accessible without prescription in seven out of nine countries reviewed. Australia and New Zealand were the exceptions where clinician prescription was required to access any CBD-containing product. CBD products commonly available without prescription included oils, gel capsules, purified crystal and topical products. The daily recommended doses with orally administered non-prescription products were typically well below 150 mg and substantially lower than the doses reported to have therapeutic effects in published clinical trials (e.g., 300-1500 mg). The legal foundations enabling access in several countries were often unclear, with marketed products sometimes failing to meet legal requirements for sale. There was an obvious disparity between federal directives and available products in both the USA and European countries examined.
Recent legislative change has allowed increased access to cannabis products in many jurisdictions. In some locations, this includes over-the-counter (OTC) and/or online access to products containing cannabidiol (CBD), a non-intoxicating cannabinoid with therapeutic properties. Here we compared the availability of CBD products and the associated legislative and regulatory background in nine selected countries.
There are a variety of approaches in how countries manage access to CBD products. Many countries appear to permit OTC and online availability of CBD products but often without legislative clarity. As consumer demand for CBD escalates, improved legislation, guidelines and quality control of CBD products would seem prudent together with clinical trials exploring the therapeutic benefits of lower-dose CBD formulations.