Cannabidiol, one of the 113 identified cannabinoids in the cannabis plant, is a phytocannabinoid discovered in 1940. It is extracted from the marijuana plant as either a powder or oil and mixed into creams or gels. The demand for CBD oil is surging due to the legal approval that has been given to it for medical, recreational, and research purposes. According to clinical research on CBD in 2019, it may be used for anxiety, movement disorders, and pain.

The legalization of cannabidiol will drive the CBD oil market from $1,735.1 million in 2019 at a high 24.3% CAGR till 2025. Canada and the U.S. have provided legal approval to this compound. Moreover, several nations in LATAM, APAC, and Europe have permitted the complete or partial sale of CBD products. These include South Africa, Mexico, Brazil, Thailand, the U.K., Japan, South Korea, Norway, and Spain. As a result, in these countries, the number of recreational cannabis users is growing, which is further driving the demand for CBD oil.

This product is available in the form of cartridges, tinctures, topicals, and capsules. Among these, most people are purchasing tinctures to help with movement disorders, pain, anxiety, and depression. In addition, recreational users are using tinctures. The easy availability of tinctures containing CBD oil through multiple distribution channels, such as pharmacies, specialty stores, retail, and e-commerce websites, is also driving their sale. Further, CBD oil in tinctures is considered to have a less-potent effect than in other forms.

The key trend in the CBD oil market is the increasing investments across the value chain of these products. Due to the rapid legalization of cannabidiol in several countries, many companies are looking at it as a lucrative business area. As a result, organizations are stepping up their efforts to gain a license for the production of marijuana and hemp, setting up downstream distribution channels, investing in research and development, and increasing the output of various products containing CBD.

Around the world, the incidence of anxiety and depression is rising because of the hectic lives, peer and parental pressure, weak financial health, and other issues. Moreover, as per an article in The Lancet, “Altogether, major depressive disorder caused 49.4 million (33.6 to 68.7) DALYs and anxiety disorders caused 44.5 million (30.2 to 62.5) DALYs globally in 2020.” This is majorly attributed to the social and physical isolation people faced during the COVID-19 pandemic, which led to a drastic surge in the usage of cannabis and various CBD-containing products.