The legalization of marijuana in some parts of the world has brought some unexpected economic gains. Most cannabis-based products are gaining popularity for their medicinal components.
This has made their demand surge a lot and create even more financial gains for cannabis farmers. One of the cannabis-related products that most businessmen and women across the world are finding lucrative is cannabis oil.
While cannabis oil might mean different things to different people, it has given entrepreneurs and consumers worldwide another avenue to explore and benefit from the cannabis industry. Cannabis oil is made up of two products, namely, Tetrahydrocannabinol (THC) Cannabidiol (CBD).
Both of these products are believed to contain high therapeutic abilities and are recommended for medicinal purposes only.
In 2018, the World Health Organization (WHO) announced that cannabidiol was very useful in treating some major diseases such as anxiety, pain, Alzheimer’s, Parkinson’s disease, diabetic complications, pain, depression, multiple sclerosis, and cancer.
On the other hand, Tetrahydrocannabinol (THC) is known to contain psychoactive substances. The increased economic growth of these products can be attributed to the wide acceptance of cannabis globally.
Different governments by the day are crafting new bills to legalize the use of marijuana. Most people’s negative view and attitude about cannabis some years ago is slowly evaporating, which has given rise to very successful business ventures tied to the plant.
The increased acceptance of cannabis for medicinal purposes is what has made the cannabis oil market boom in a very short time. Cannabis oil is categorized into two types, namely organic cannabis oil and non-organic cannabis oil.
The non-organic version of cannabis oil received so much attention, and its demand was at an all-time high around 2018. However, in recent years the organic version of cannabis has increased its appeal among many people.
This can be attributed to the fact that it is chemical-free and has a wide variety of benefits compared to non-organic cannabis. With all this into perspective, the cannabis oil market is certainly bound to grow even bigger in the coming years.
So, how big is the cannabis oil market in the world right now?
The market share of cannabis oil in North America
The two kinds of cannabis oil products are all doing exceptionally well in the global market while also increasing popularity among consumers. According to Brightfield Group, the market share of cannabidiol (CBD) alone is bound to reach the heights of $22 billion by 2022.
On the other hand, tetrahydrocannabinol (THC) is projected to attain a market share of around $8.5 billion by the same year. In 2018, North America had the biggest share of the cannabis oil market with about 50% of the total and a revenue share of 37.3%.
This can be attributed to the legalization of marijuana for recreational purposes in Canada. Also, the approval of the CBD-based products by the United States government has been a major catalyst, not to mention the biggest manufacturers are also located there.
According to multiple results, the cannabis oil market, in general, will grow at a CAGR of 49.5% between 2018 and 2025. This makes the cannabis oil market easily one of the hottest new markets in the world.
The CBD oil market alone is expected to grow at a rate of 31.90% by 2027. Aside from the medicinal applications of CBD, this product is also food and beverages, farming, and hemp-induced products.
Some companies such as Joy Organics have come up with a product named Nano oil that you can use to increase your bioavailability or mix it with your drinks to bring more excitement. To put this into perspective, CBD is among the most sought-after products in the world right now.
This means that its demand isn’t likely to fall anytime soon, but will keep growing rapidly. Many wellness and health retailers are supplying CBD-based products on large scale, which has given its market such a great boost.
They include CVS Health, Walgreens Boots Alliance, and Rite Aid. Walgreens Boots Alliance and CVS health are the biggest market players in this front as they have combined to supply CBD products in over 2300 stores in the United States.
Pharmaceutical businesses have dominated the CBD market because they accounted for 42.8% of its overall share in 2020. With more tests and trials conducted worldwide to identify other diseases that CBD can treat, its growth rate in the pharmaceutical sector is bound to grow even bigger.
What makes the CBD market so engaging is that it appeals even to people who are not planning on investing in it. For example, when big companies purchase CBD oils in large quantities and manufacture other CBD-infused products, more customers get involved.
This is because some of these products are so basic that almost everyone is using them. Nowadays, there are even ways on how to use CBD as a muscle relaxer. From stress relievers to painkillers, CBD is increasing its reach even more.
The market share of cannabis oil in Asia
In Asia, the market for cannabis oil is expected to grow even bigger than it was ever anticipated. This is due to the several hemp-producing plants that have already been set up in China.
This is no surprise since China is the biggest hemp cultivator globally, responsible for over 50% of the global hemp. Also, China exports over 90% of its hemp and hemp-based products to the United States, Netherlands, Germany, the United Kingdom, and Japan.
The low-cost hemp supply from china is expected to compete fiercely with the companies from the United States, Canada, and the European Union that produce the same product.
The biggest players in the cannabis oil market
The cannabis oil market has been doing so well in recent years due to some big market players. Different companies are coming with more innovative ways to create even more appealing CBD and THC-based products.
Also, due to the increased demand in the market, more and more companies are joining to better the distribution networks. Some of the biggest players in the cannabis oil market include;
- Cannoid, LLC.
- Medical Marijuana, Inc.
- Pharmahemp d.o.o.
- Folium biosciences.
- Isadiol International, Inc.
- NuLeaf Naturals, LLC.
With more experts finding even better ways to utilize cannabis oil in our daily lives, its market is bound to grow even bigger. In the coming years, CBD and THC-based products will be more common than they are now, and the world will embrace cannabis oil like never before.
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