TAGS: Natural/ Organic
According to Grand View Research report, the North America hemp-derived cannabidiol market size is expected to reach USD 16.1 billion by 2027 and expected to expand at a compound annual growth rate (CAGR) of 27.7 percent over the forecast period.
Growing Use in Personal Care and Cosmetics
Growing awareness and adoption of cannabidiol (CBD) for various health conditions are the key factors driving the growth of this market. The liberalization of laws related to hemp cultivation by North America countries is further increasing its adoption.
In 2019, based on end-use, personal care, and cosmetics accounted for the highest revenue share owing to the growing application of hemp-derived cannabidiol in personal care and cosmetic products.
On the other hand, the food and beverage segment is expected to grow at the highest CAGR over the forecast period. The legalization of cannabidiol-infused edibles, coupled with increasing awareness regarding the health benefits of CBD, is one of the major factors driving the growth of this segment.
Increasing Awareness and Adoption of CBD
Based on product type, hemp-derived CBD distillate dominated the market with a share of 58.5 percent in 2019. Also, encouraging government reforms regarding its utilization is increasing the adoption of these products.
The U.S. dominated the North America market, with a revenue share of 82.4 percent in 2019. Increasing awareness about cannabidiol benefits, growing consumer preference towards such products, supportive government reforms, and favorable climatic conditions are some of the key factors fueling the market growth. Mexico is expected to exhibit a lucrative CAGR over the forecast period owing to rising awareness regarding CBD based products and their utilization.
Source: Grand View Research