Global CBD market projected to hit £80 billion by 2026
The CBD market has experienced a period of explosive growth in recent years, and that doesn’t look set to stop any time soon according to new data from market research specialists Global Market Insights. There may be 1.6 million CBD users in the UK active currently, but that number is set to rise even further!
At Vitality CBD, we’re proud to be the UK’s number one CBD brand, at the very forefront of that market growth. We’ve gone through the study by Global Market Insights and pulled out the key information that really draws a picture of how massive CBD is set to be in the coming years. It’s time to get excited about CBD!
CBD market growth projections
First up, the CBD market is said to have exceeded $2.8 billion in 2019 (roughly £2.2 billion), which is pretty amazing for such a fledgling category. What’s more amazing is that that same market is set to grow at a rate of 52.7% CAGR between 2020 and 2026. So, what does that mean exactly?
CAGR stands for Compound Annual Growth Rate. Basically, that just means the amount that a specific investment or industry will grow year-on-year over a specified period of time longer than a year in itself. So, in the six years between 2020 and 2026 the CBD market is expected to consistently grow at a rate of 52.7%. That’s a truly massive prediction.
Global Market Insights points to the increasing popularity, and the implementation of specific agricultural acts both in Europe and North America as a reason for the growth. As hemp production is incentivised and encouraged, it seems likely CBD products as an industry are only set to grow even faster.
CBD market growth by product
Not only did Global Market Insights look at the colossal growth incoming for the global CBD market, they also broke down the current market size based on CBD product type. Whether it’s CBD oils, CBD edibles, CBD vape oils, CBD patches or CBD suppositories, it’s clear that cannabidiol's uses are ever-expanding.
One of the most fascinating areas of growth was CBD tinctures. Seen as one of the most popular and well-established CBD product categories, CBD tinctures saw a substantial growth from 2015 to 2019, starting at $0.39 million and ending at $389 million. The fact that this kind of growth is ongoing is why so many people are taking notice of CBD.
Oral means of administration, such as CBD oils, CBD sprays and CBD edibles, was by far the largest CBD category overall, with a market valuation of $1,508.1 million. As other studies have noted though, CBD products like CBD topicals and CBD cosmetics are definitely on the rise. Let’s see where things are at in another five years!
Changing CBD regulations
As mentioned earlier, there have been various global initiatives that have created the building blocks of this gigantic, growing industry. Global Market Insights in particular points to the relaxation of the product approval process after the implementation of the Farm Bill (2018), and the subsequent increase in CBD product manufacturers as strong points of causations.
The significance of the Farm Bill in the US is that it fully descheduled certain cannabis products from the Controlled Substance Act for the first time ever. That, alongside a new hemp farming regulatory system has led to a giant increase in the amount of hemp being farmed specifically for CBD products.
As the U.S. continues to lead the way, the UK and other markets aren’t far behind. The UK granted its first license for the growing of hemp for CBD products last year, and more are sure to follow. As regulations continue to soften, and awareness increases, the CBD market is set to grow at rates far in excess of the growth already witnessed.
There’s never been a better time to start your own CBD journey, as the market continues to expand and our understanding of cannabidiol continues to grow. At Vitality CBD we’ve always been a leading voice in CBD, and that’s because we always listen to you: the users.
Whether you’re on the look out for high-quality CBD oils, CBD e-liquids, CBD edibles, or CBD topicals, we’ve got some excellent options for you to explore. Got any questions? Our team of cannabidiol experts are always on hand to help. Either click the chat icon in the bottom right corner of each page or reach out on our CBD contact page. We’re here to help from Monday-Friday, 9am-5pm.