The widespread legalization of cannabis has helped the CBD industry to boom and flourish. The demand and popularity of CBD as a natural compound having the potential to being useful for people has grown significantly in the past few years. Let us have a look at the worldwide growth of the CBD industry and the research supporting that this non-psychoactive cannabis-derived compound has all reasons to be popular.
Growth of CBD Industry in the UK
The UK has seen an unprecedented growth in the cannabidiol market in the past decade making it one of the fastest growing industries in the country. Moreover, the demand for CBD products has soared, especially during the COVID-19 pandemic, with 90% of the compound’s users buying CBD oil and other products online. The industry’s current value in the UK has been estimated at around £300 million and is expected to triple and hit the £1 billion mark in the next 5 years.
A number of factors have contributed to the growth of this industry in the UK, with the primary factor being a surge in demand.
Firstly, An increasing number of people are beginning to prefer more natural healthcare solutions, natural products with weak side effects. Awareness about CBD’s potential benefits pushed people to actively start to try CBD products.
Second, comes CBD’s rise in popularity and its ongoing researches. People’s growing interest and trust in using the compound largely comes from watching a number of famous celebrities, athletes, and social media influencers publicly endorsing CBD products. This is how CBD-infused products grow in popularity.
The third factor is availability. The first prescription cannabis-based medicine became available in the UK in the year 2015 while all other CBD-based products became legal in 2018. With legality came availability, which led to a gradual increase in the number of CBD users in the UK. This in turn led to a constant rise in the buying curve. Moreover, with the rise of the CBD industry and the popularity of CBD-based products among consumers, manufacturers started expanding the CBD market into other areas such as beauty and fitness. A demand by consumers to innovate and improve existing products as well as a boost in investment in the UK’s CBD industry led to a boom in the CBD market in the UK.
All these factors combined have helped the UK to steadily move along the path to becoming one of the global leaders in the CBD industry.
International CBD Industry Growth
With this being said, when we look at the worldwide CBD market statistics, the global CBD market size was found to have an overall estimated value of USD 2.8 billion. Within a span of 8 years from 2021 to 2028, the CBD industry is expected to undergo expansion at a compoundannual growth rate of 21.2%. Having high potential significance and being devoid of psychoactive effects, CBD oil and CBD-infused products have become more widely approved by the government. This is also one of the major factors which have contributed to a boost in production.
Furthermore, the growing awareness of CBD’s potential has influenced consumers to continue buying CBD-infused products. Some of the CBD popular products that generated maximum revenue include CBD oil and CBD edibles.
Last year, North America held a dominant position in the cannabinoid market by holding a revenue share accounting to 37.3%, the key reason being its tolerant CBD laws and the region’s progressive mindset towards cannabis and related products.
Taking into account the CBD statistics of countries in the Asia Pacific, let us have a look at the growth of the CBD and hemp industry in China. According to the FAS report, China has been found to be the leading cultivator and producer of hemp, exporting nearly 90% of its produce to countries such as the US, UK, Japan, Germany and the Netherlands. In 2018, China’s hemp-fibre sales were evaluated at a whooping 1.2 million. Moreover, given its low production costs, extensive manufacturing infrastructure and government support, China is likely to rival other hemp companies based in the US, Canada and European Union.
However, regardless of its growing popularity, there are also several factors that may suppress the growth of the CBD industry. Firstly, the relatively high cost of quality CBD products makes them less affordable in general. Secondly, strict regulations combined with a lack of initiatives to legalize the compound in several Asian and African countries are also major factors that have limited CBD market growth. Moreover, the COVID-19 pandemic has also had a huge impact on the cannabinoid industry due to disruptions in the supply of raw materials and manufacturing which largely affected the supply chain of CBD products.
Numerous studies have shed light on the potential benefits of CBD, making it a very sought-after compound by celebrities, athletes, and commoners alike. Although CBD research in some areas is lacking, there is however enough evidence that suggests CBD’s ability to be a useful alternative.
A cross sectional study conducted in 2018 aimed to find out the key reasons for the gradual increase in demand and use of CBD. The research consisting of an online anonymous questionnaire was sent out to participants, all of whom were recruited through social media. Results showed that consumers were considering CBD as an alternative that may help alleviate the symptoms of a variety of ailments ranging.
Chronic pain is a common condition which affects around 28 million adults in the UK and more than 50 million adults in the USA. One of the latest medical research on CBD oil consisted of a 2020 study that showed CBD’s potential ability to affect this situation.
The study also highlighted the dangers of adulterated CBD products containing toxic compounds and the potential risks associated with the use of these products by pregnant women. CBD oil research has also shown that products derived from cannabis such as CBD oil have a plethora of potential benefits.
One 2018 report suggests the compound’s potential ability to affect neuropathic pain.
There are different types of inflammation, with the most common ones being acute and chronic inflammation. Out of these two, acute inflammation is more commonly detectable and easier to treat while chronic inflammation is often found to be undetectable due to an absence of physical signs.
One such study published in the European Journal of Pain observed a rat model find out the effect that transdermal CBD had on arthritis. Results from the study became one of the main reasons why athletes have started using and promoting this compound for years.
Besides physical ailments, mental health issues such as anxiety and depression are also a growing concern in today’s fast-paced world. While there has been a lot of CBD depression and anxiety research aiming to find out the compound’s effects on mental health. One such research included a 2020 systematic review which aimed to find out the role of cannabidiol for certain conditions.
However, further large-scale studies and randomised controlled trials would be required to explore the benefits of CBD for other conditions such as bipolar disorder, Tourette’s syndrome and PTSD.
Also, CBD products have attracted attention and have given rise to further research in preclinical conditions for drug addiction and alcohol dependence. There are notices in the literature indicating the potential of CBD, especially for several indications. But to date, studies have produced mixed results, so the promise of CBD as a treatment for addictive disorders warrants further studies.
Author Madhuri Ramesh