CBD Gummies Industry Overview
The global CBD gummies market size is expected to reach USD 13.9 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 30.7% from 2021 to 2028. The exceptional medicinal properties without any harmful side effects are expected to be a major factor contributing to the growth of the market. The consumption of CBD (Cannabidiol) gummies to relieve anxiety, depression, pain, and inflammation, and to induce sleep is expected to boost the growth of the market.
The 2018 U.S. Farm Bill is considered to be one of the most supportive government policies for the promotion of CBD gummies and other CBD-based products in the U.S. The bill legalizes hemp and hemp-based products in the country and omits hemp from the definition of marijuana in section 102(16) of the Controlled Substances Act. As per this bill, the USDA will approve the states before harvesting for monitoring and production regulating purposes.
In addition to this, a few favorable changes in the overall regulations on hemp are promoting the supply of various CBD-based products in the U.S. market. For instance, under the 2018 Farm Bill, hemp has been removed from the Controlled Substances Act (CSA), which implies that cannabis plants and derivatives that constitute less than or equal to 0.3% dry weight THC are no longer controlled substances under federal law.
These aforementioned supportive policies are anticipated to boost the demand for CBD gummies in the U.S. market. The market, however, is still at a nascent stage and the products being launched are only in the countries where CBD-based edible products are legalized. Manufacturers are, however, expecting a significant shift in product positioning in the global market, with the hopes that CBD oil and gummies will become as common as fish oil or multivitamin gummies.
CBD Gummies Market Segmentation
Grand View Research has segmented the global CBD gummies market on the basis of concentration, distribution channel, and region:
Based on the Concentration Insights, the market is segmented into Surfing Boards, and Apparels & Accessories.
- The low concentrated CBD gummies held the largest share of 90.2% in 2020 and are expected to maintain their lead over the forecast period. First-time buyers prefer low CBD content gummies ranging from 1 mg to 20 mg CBD per gummy.
- High concentrated gummies are projected to register the fastest CAGR of 34.7% from 2021 to 2028. The increasing awareness among consumers regarding the advantages of marijuana edibles for the treatment of sleep disorders is anticipated to fuel the segment growth in the near future.
Based on the Distribution Channel Insights, the market is segmented into Online, and Offline.
- The offline distribution channel was the largest segment with a share of 56.4% in 2020 and is expected to witness the fastest growth over the forecast period. The overall sales through offline channels dropped drastically owing to the closure of all the brick and mortar stores due to the pandemic across the globe.
- The online distribution channel is expected to register a growth rate of 17.2% from 2021 to 2028. The hassle-free shopping experience offered by Amazon and other online platforms is expected to drive the segment. Easy payment methods, which fit into the regulatory standards of different countries, have made operations easier.
CBD Gummies Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market players face intense competition, especially from the top companies in the market as they have a large consumer base, strong brand recognition, and vast distribution networks and they are continuously expanding their presence across major markets. For instance, in February 2021, Champs, Inc. signed an exclusive distribution agreement with First Capital Venture Co., a subsidiary of PotNetwork Holdings and the owner of Diamond CBD. This cooperative effort is to bring athlete-approved products to the market that will widen the opportunity for Diamond CBD.
Companies have been implementing various expansion strategies, such as mergers & acquisitions, new product launches, and production capacity expansion, to gain a competitive advantage over other players. For instance, in August 2020, CV Sciences, Inc. launched its Happy Lane product line that includes soft gels, roll-ons, liquids, chews, and gummies. These are distributed through the convenience store channel and select natural products retailers across the U.S. Some prominent players in the global CBD gummies market include: –
- CV Sciences, Inc.
- Dixie Brands
- Reliva CBD
- Sunday Scaries
- Green Roads
- Medix CBD
- Hemp Bombs
- PureKana
- Diamond CBD
- Premium Jane
Order a free sample PDF of the CBD Gummies Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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