Over the next five years, the global CBD market is expected to accelerate to $23.6bn, according to Grand View Research and Europe’s CBD market is set to grow by 400%.
The growth of the CBD market in Europe is thanks to the growing adoption of CBD infused products in industries such as pharmaceuticals, personal care, cosmetics, nutraceuticals, along with medical applications.
CBD is seeing monumental demand in Europe. In Europe alone, the market is on course to grow 400% over the next four years, according to the Brightfield Group.
According to New Frontier Data‘s EU CBD Consumer Report: 2019 Overview, 46% of Europeans view CBD favourably, and up to 77% of surveyed respondents also believe CBD should be accessible in some way.
The legal cannabis industry continues to expand around the world with major contribution to the market coming from continuous legislative victories in North America and Europe. In particular, legalisation of medical cannabis, and decriminalisation in some countries, has led to a significant decrease in black-market activity, as people are shifting to legally purchasing cannabis for medical as well as recreational use.
In the meantime, local governments reap the benefits through taxation. For instance, the state of California had collected a total of $345.2m in tax revenue from legal cannabis during the first year of regulated sales in 2018. Revenue generated from these taxes encouraged the local governments to fund several development programmes for education and infrastructure.
Overall, data by Grand View Research indicates that the medical segment held the dominant revenue share of the cannabis market, accounting for 71.0% in 2019. Medical use of cannabis is strictly categorised as a medicine prescribed by a physician and the distribution of these medicines is regulated by the government. However, by 2027, adult-use is expected to become the fastest-growing segment with adult-use products ranging from a highly potent concentrate to a simple food ingredient.
In recent years, CBD products have swiftly emerged and the growth of the CBD market is largely attributed to various medical applications that are associated with the products. For example, full-spectrum CBD oil is considered to be a great source of Omega 3 and Omega 6; Omega 3 plays a vital role in creating hormones that regulate inflammation as well as contractions and relaxation of arteries.