According to British Market tech research and advisory firm Technavio, the global Cannabidiol (CBD) oil market is expected to grow by USD $3.52 Billion between now and 2024, with a CAGR of over 32%. Further, the impact of the Pandemic is likely to do nothing more than push reform forward as people turn to CBD for “wellness” purposes beyond any anti-COVID panacea.
The report also segments the global market into hemispheric regions. According to Technavio’s projections, North America will contribute 37% of the total market share. And this is where this prediction gets interesting.
- If any part of the cannabis plant, especially if it is derived from any cannabinoid (early research is progressing on several continents right now to this effect) is proven to significantly retard or even provide natural immunity to COVID, all bets are off.  Growing even the humble hemp will suddenly become part of a “Green New Deal” that no government will ignore – both for the protection of their populace and their economies.
- Regulations in Europe are still being vastly underestimated. While German-cultivated, EU-Bio compliant hanf öl is turning up in chain grocery stores, the European Commission is threatening to declare CBD a narcotic. This three months ahead of the WHO rendering on the entire enchilada is one thing. That the European Commission saw to also hold up 50 pending “novel food” licenses pertaining to CBD derived products is another. This regulatory messiness will absolutely put a drag on the overall market, and far from Europe.
Beyond Predictions of The Future…
According to a report released at the end of July by Research Dive, the COVID-19 pandemic has immensely impacted the global cannabis market in the short term. That said, their long term predictions are within hailing distance of the Technavio predictions. So is a market report released in June by Market Research Future.
However, it is also likely that in retrospect the industry was affected differently, depending on where one is. Beyond the pandemic, the CBD industry is facing large challenges on the “Novel Food” and even narcotic front by European regulators. While these too are likely to resolve over the next 24 months, all of these normalizing regulations, plus presumably at least the beginning of the end of the global pandemic crisis, will allow the industry to quickly recover.
Photo Credit: Marguerite Arnold
- Wang, B. et al. “In Search of Preventative Strategies: Novel Anti-Inflammatory High-CBD Cannabis Sativa Extracts Modulate ACE2 Expression in COVID-19 Gateway Tissues,” Preprints, 19 April 2020. Not peer reviewed.