Top Emerging Trends Of CBD Gummies Market Progress Forecast 2025 | Grand View Research, Inc.

 

The global CBD gummies market size is expected to reach USD 6.94 billion by 2025, exhibiting a 31.9% CAGR over the forecast period, according to a new report by Grand View Research, Inc. The market is highly fragmented in nature owing to the presence of small and medium scale companies. The majority of the companies are based out of Canada owing to the legalization of cannabis in the country for medical and recreational purposes. The growth is driven by the growing trend of cannabis legalization across the globe. Different governments are legalizing marijuana to eradicate the black market and to boost the tax revenue from legal sales of marijuana products.

Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.

Growing consumer interest in cannabis edibles is expected to support market growth. As per 4A’s, 36% of the Cannabidiol (CBD) consumers used edibles. Three-fourths of the participants associate consumption of CBD with at least one health benefit. Around 56% associate it with pain relief, 47% for anti-anxiety, 34% for sleep-aid, 30% for epilepsy, and 22% for socialization. The market players focus on consumer trends for planning their business strategies. For instance, in 2019, Plus Products Inc., a California-based edibles company, entered into a partnership with mattress startup company Casper to introduce melatonin- and CBD-infused sleep gummies. The company also partnered with American artist and philanthropist John Legend for promoting the products.

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The players operating in the CBD gummies market are expanding their reach through business partnerships. For instance, in 2019, Plus Products Inc. expanded its product offering in the Nevada Adult-Use market by signing a partnership agreement with TapRoot, a vertically integrated cannabis company operating with cultivation and manufacturing facilities in Las Vegas, Nevada.

CBD gummies manufacturers are coming up with new ways to create brand value and distribution channels. For instance, in 2018, the first cannabis dispensary in a hotel was established in The Standard Hotel for an LA-based cannabis company, Lord Jones. The hotel stocks the minibar with cannabidiol gummies in its Los Angeles, New York, and Miami Beach locations.

CBD Gummies Market Report Highlights

• The high concentration segment is estimated to witness strong growth over the forecasted period. Epilepsy, sleep disorders, schizophrenia, and glaucoma patients are the major consumers of high concentrated CBD gummies, with more than 20mg CBD content per gummy
• The low/concentrated segment was estimated to be the largest segment in 2018. Newcomers are the major consumers of low CBD content gummies ranging from 1mg to 20 mg of CBD per gummy
• North America is estimated to be the fastest and largest market over the forecast period. Legalization of cannabis for medical and recreational purposes is the major factor driving the regional growth
• In Europe, the U.K. is estimated to be the fastest-growing market, owing to growing consumer demand. As per the Cannabis Trade Association, the number of CBD users in the U.K. increased from 125,000 in 2016 to 250,000 in 2017
• Some of the key players operating in the market include CV Sciences; Dixie Brands Inc.; Reliva CBD Wellness; Sunday Scaries; Green Roads CBD; Medix CBD; Hemp Bombs; Pure Kana; Diamond CBD and Premium Jane.

To gain market share, the companies are focusing on merger and acquisition strategies. For instance, in 2019, Tilray acquired alcoholic cocktail gummy maker, Smith & Sinclair, to create a line of CBD edibles. The product will be distributed in the U.S. and Canada. This acquisition offers the company an opportunity to diversify the product portfolio, differentiate itself from others, and gain market share.

The companies are also entering into partnerships with distributors. For instance, in 2019, CV Sciences, Inc. expanded its distribution partnership with more than 400 Kroger stores in five new states - Georgia, Montana, Texas, Utah, and Virginia. This partnership will help the company sell its product in 22 states and 1,350 stores across many of Kroger’s retail banners, including Kroger, Dillons, Fry’s, Fred Meyer, King Sooper, Mariano’s, Pick ‘n Save, QFC, and Smiths. The company also partnered up with Southeastern Grocers, Inc. to distribute the products in Florida and South Carolina. Tilray, Inc., in 2019, acquired all of the issued and outstanding securities of 420 Investments Ltd. (FOUR20), an adult-use cannabis retail operator headquartered in Calgary, Alberta.

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The market is competitive in nature due to the rising number of new entrants. For instance, in 2019, Pollen - a new CBD brand - was launched in the U.K., offering luxury products such as CBD gummies, drink drops, and sparkling drinks. Their CBD gummies are available in three flavors, namely, Cacao, lemon, and orange; Turmeric, cayenne, and grapefruit; and Honey and cherry. Companies are also launching new products to gain greater market share. For instance, in 2018, CV Sciences, Inc., supplier and manufacturer of hemp-derived phytocannabinoids, announced the launch of PlusCBD Oil Gummies at the Natural Product Expo East 2018. These CBD gummies are available in two flavors - Cherry Mango and Citrus Punch - each containing 5 mg of CBD. They are also gluten-free, vegan-friendly, and non-GMO.

Key market players are CV Sciences; Dixie Brands Inc.; Reliva CBD Wellness; Sunday Scaries; Green Roads CBD; Medix CBD; Hemp Bombs; Pure Kana; Diamond CBD and Premium Jane. The market is highly fragmented in nature, as a large number of manufacturers actively engage in product launches and mergers and acquisitions to gain greater market share.

The market players engage in vertical integration and partnerships with players from various industries. For instance, in 2019, Plus Products Inc., a California-based edibles company, entered into a partnership with mattress startup company Casper to introduce melatonin- and CBD-infused sleep gummies. The company also partnered up with American artist and philanthropist John Legend for promoting the products. In 2019, Plus Products Inc. expanded its product offering in the Nevada Adult-Use market by signing a partnership agreement with TapRoot, a vertically integrated cannabis company operating with cultivation and manufacturing facilities in Las Vegas, Nevada.

Grand View Research has segmented the global CBD gummies market on the basis of concentration, distribution channel:

CBD Gummies Concentration Outlook (Revenue, USD Million, 2015 - 2025)

·         High

·         Low/ Concentrated

CBD Gummies Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

·         Online

·         Offline

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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