CBD Gummy Market Projected to Grow Significantly, But Growth Restraints Remain

The market for cannabidiol (CBD) gummies is expected to grow by $10.05 billion in value from 2021 to 2028, according to a recent report published by the Insight Partners. Over the 7-year period, the market will hit $12.18 billion with a compound annual growth rate of 28.3%.¹

“The growing number of people using CBD for therapeutic purposes and the increasing acceptance of CBD as a dietary supplement are driving market growth,” wrote experts at the Insight Partners in a recent press release.¹

Insight Partners forecasts that the global market will become saturated with companies who launch new and innovative CBD gummy products—new flavors, delivery methods, and formulations. The formulations are expected to have different potencies and dosages that cater to a variety of needs, and companies will begin creating products that target specific conditions.¹

Another trend experts are seeing is an expansion towards gummies made with organic, natural ingredients and sweeteners. “As consumers become more conscious of what they put in their bodies, they are looking for products made with natural and organic ingredients,” experts wrote in the press release.¹

Data also suggest that cannabis and CBD legalization will drive the CBD market, along with an increased interest in CBD among different industries, such as makeup and food and beverage. Further, CBD exposure in these other industries has the potential to propel the market for CBD gummies as well.¹

However, there appear to be some major restraints for growth in the industry. First, CBD is not fully legal in all 50 states, nor is it legal in many other countries around the world. Additionally, there needs to be more research on the long-term effects of CBD. Without further research and standardization, manufacturers are not able to make claims about their products as easily.¹

CBD is a primary chemical found in marijuana, which contains CBD and tetrahydrocannabinol (THC)--the latter of which has psychoactive properties.² CBD products do not contain THC, and it is often sold as a vaporized liquid, extract, or oil formulation, while CBD gummies are often infused with CBD oil.

CBD is currently being studied to treat many conditions, such as epilepsy, Parkinson disease, schizophrenia, diabetes, multiple sclerosis, and anxiety. Although it usually has a favorable tolerability, it can cause dry mouth, diarrhea, reduced appetite, fatigue, or may interact with other medications.²

“The CBD gummies market is driven by the increasing awareness and acceptance of CBD as a potential alternative medicine,” wrote authors of the report.¹ “As more research is conducted on the potential health benefits of CBD, more people are becoming interested in using it to manage various health conditions.”

References

1. The Insight Partners. CBD Gummies Market Size ($12.18 Billion) Growth Forecasts at 28.3% of CAGR during 2021 to 2028 – Global Analysis by The Insight Partners. News Release. January 31, 2023. Accessed January 31, 2023. https://www.globenewswire.com/en/news-release/2023/01/31/2598670/0/en/CBD-Gummies-Market-Size-12-18-Billion-Growth-Forecasts-at-28-3-of-CAGR-during-2021-to-2028-Global-Analysis-by-The-Insight-Partners.html
2. Bauer B. What are the benefits of CBD — and is it safe to use? Mayo Clinic. 2022. Accessed January 31, 2023. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/expert-answers/is-cbd-safe-and-effective/faq-20446700