Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the CBD Gummies market.
Trusted Business Insights presents an updated and Latest Study on CBD Gummies Market 2019-2026. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the CBD Gummies market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: CBD Gummies Market
The global CBD gummies market size was valued at USD 998.2 Million in 2018 and is expected to register a CAGR of 31.9% from 20 19 to 2025. A rise in legalization of cannabis for medical and recreational purpose is a major factor supporting the demand for Cannabidiol (CBD) gummies. No traces of Tetrahydrocannabinol (THC) content in the product is expected to further drive the demand among consumers interested in consumption of the product for medical purposes.
CBD gummies are non-psychotropic, which means that the gummies wont give highness to consumers as they dont contain THC. Increasing use of cannabis for treatment of neurological disorders, psychiatric disorders, and cancer along with pain control is anticipated to drive the demand for CBD gummies. Diverse application of cannabis is expected to result in significant growth opportunity for the market in the forthcoming years.
Growing consumer interest in cannabis edibles and concentrated and CBD-infused products is projected to support the market growth. Cannabis consumers are looking for alternatives for smoking cannabis, which is projected to drive the demand for gummies, tincture, and chocolates among other edibles. As per 4As, 36% of the CBD consumers use edibles.
CBD Gummies are expected to replace the other consumables, such as chocolates, cookies, brownies, and confectionaries that are considered to be unhealthy. Also, as per FONA International, CBD gummies were the third most popular food related Google search in 2018. Also, the demand for CBD the gummies is majorly driven by millennials. Convenience in terms of carrying and consuming the product, is anticipated to bode well for the demand. Absence of THC in the product, is also expected to support the demand.
Consumption of CBD gummies to relieve anxiety, depression, pain, inflammation, and to induce sleep is expected to drive the growth of the market. Longer lasting effect of the edibles over smoking is also estimated to drive the demand. Three-fourths of the participants associate consumption of CBD with at least one health benefit. Around 56% associate it with pain relief, 47% for anti-anxiety, 34% for sleep-aid, 30% for epilepsy, and 22% for socialization.
By concentration, the CBD gummies market is bifurcated into high and low/ concentrated products. The demand for high CBD gummies is estimated to witness strong growth over the forecasted period. Patients of epilepsy, sleep disorders, schizophrenia, and glaucoma are the major consumers of high concentrated CBD gummies with more than 20mg CBD content per gummy. Growing awareness among consumers regarding the advantages of the marijuana edibles for the treatment of sleep disorders is anticipated to fuel the segment growth in near future.
Low/ concentrated CBD gummies was estimated to be the largest segment in 2018. First time buyers prefer low content gummies ranging from 1 mg to 20 mg of CBD per gummy. Uncertainty and side effects such as tiredness, diarrhea, and changes in appetite and weight with the consumption of high CBD is anticipated to drive the demand for low concentration products. Low price is also projected driving the demand among consumers, buying the CBD gummies for general heath purpose, socialization, and first timers. Growing popularity among millennials is anticipated to further drive the demand in near future.
Distribution Channel Insights
By distribution channel, the market is segmented into online and offline. Regular consumers of CBD gummies prefer online purchasing, owing the ease of convenience. Also, the key players operating in the market are focusing on direct-to-consumer sales strategy to increases transparency and trust and to gain greater consumer base. This factor is projected to positively influence the segment growth in the forthcoming years.
Consumers are more inclined toward offline stores, such as smoke and head shops, heath stores, pharmacies, and cannabis dispensaries where cannabis sale are legal. Consumers prefer offline stores to purchase authentic and quality products. Retail pharmacies provide CBD products with a specific prescription. The key manufacturers are focusing on retail pharmacies as the preferred distribution channel owing to the easy availability of products for the consumers.
Regional Insights of CBD Gummies Market
North America is estimated to be the fastest and largest market for the CBD Gummies. The legalization of cannabis usage for medial and recreational purpose is a major factor driving the regional demand. Canada legalized the use of cannabis for recreational and medical purpose in 2018. According to the National Conference of State Legislatures, total 33 U.S. states, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands approve publically available medical cannabis program resulting in increased launch of new products in the region. Also, 13 U.S. states allow the use of low THC and high CBD products for medical purpose, resulting in increased demand for CBD gummies.
The market players focus on are introducing new products and expanding their product portfolio. For instance, in 2018, CV Sciences, Inc., supplier and manufacturer of hemp-derived phytocannabinoids, announced the launch of PlusCBD Oil Gummies at the Natural Product Expo East 2018. Gummies are offered in two flavors-Cherry Mango and Citrus Punch-each containing 5 mg of CBD. These products are gluten free, vegan-friendly, and non-GMO.
Europe is also estimated to witness significant growth over the forecasted period, owing to the rise in cannabis consumers. As per the Cannabis Trade Association, the number of CBD user in U.K. increased from 125,000 in 2016 to 250,000 in 2017. In Europe, U.K. is estimated to be the fastest growing market owing to growing product demand. New companies are entering the market to cater to the rising demand for CBD infused edibles. For Instance, in 2019, Pollen-a new CBD brand-was launched in U.K. It offers luxury products such as CBD gummies, drink drops, and sparkling drinks. Its gummies are available in three flavors, namely, Cacao, Lemon, and Orange; Turmeric, Cayenne, and Grapefruit; and Honey and cherry.
Rising demand from Australia and Uruguay owing to the legalization of cannabis for medical and recreational purpose and consumers willingness to try new CBD infused edibles, is expected to positively influence growth of the rest of the world segment.
Market Share Insights of CBD Gummies Market
Key market players are CV Sciences; Dixie Brands Inc.; Reliva CBD Wellness; Sunday Scaries; Green Roads CBD; Medix CBD; Hemp Bombs; Pure Kana; Diamond CBD and Premium Jane. The market is highly fragmented in nature, as a large number manufacturers actively engage in product launches and mergers and acquisitions to gain greater market share.
The market players engage in vertical integration and partnerships with players from various industries. For instance, in 2019, Plus Products Inc., a California-based edibles company, entered into a partnership with mattress startup company Casper to introduce melatonin- and CBD-infused sleep gummies. The company also partnered up with American artist and philanthropist John Legend for promoting the products. In 2019, Plus Products Inc. expanded its product offering in Nevada Adult-Use market by signing a partnership agreement with TapRoot, a vertically integrated cannabis company operating with cultivation and manufacturing facilities in Las Vegas, Nevada.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of CBD Gummies Market Research Report
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the CBD gummies market on the basis of concentration and distribution channel.
Concentration Outlook (Revenue, USD Million, 2019 – 2030)
Distribution Channel Outlook (Revenue, USD Million; 2015 – 2025)
Quick Read Table of Contents of this Report @ CBD Gummies Market Size, Share, Global Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)
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