Cannabidiol (CBD) is a naturally occurring component of cannabis plants and hemp seeds. It is extracted and often made into an oil for use in the beauty industry and the supplement market. CBD is not psychoactive: it does not produce the ‘high’ of THC (tetrahydrocannabinol), the primary psychoactive component of cannabis.
CBD is legal in Canada and has been used in the treatment of various medical conditions. Future Market Insights (FMI) predicts that the Global CBD Oil market will continue rising, enabling the market to exhibit a compound annual growth rate (CAGR) of a robust ~31%, through 2031.
The CBD Oil Industry in Canada Finally Starts Its Growth Phase
CBD continues to trend as one of the most popular cannabinoids due to its unique health and medical benefits—albeit without all the negative effects of THC.
The Canadian CBD market continues to grow, both from the consumption aspect to the sales one, as well as manufacturing, and investment. In fact, just two years after legalization, the Canadian Health Food Association (CHFA) reported that the Canadian CBD market could grow to $2 billion if regulations were changed to regulate CBD as a health product. Additionally, the group projects that this number will continue to increase by 7% yearly.
A New Trend in the CBD Oil Market
The big trend of 2022 was focusing on improving product quality, branding, and consumer experiences. This, in turn, led to ameliorated brand recognition and loyalty across the market.
According to researchers, this trend is expected to continue in the next stage of the CBD oil industry in Canada. Brands will seek to appeal to a deeper, more diverse pool of consumers with their product offerings and message—all while balancing regulatory compliance with the innovation and quality that a more mature market will demand.
As the market evolves, the industry will also witness continued partnerships and consolidation, with companies coming together to enhance and play to their strengths to successfully compete in a crowded field.
The Future of CBD Oil in Canada
These days stress and anxiety are at an all-time high, which explains consumers’ drive towards all-natural healing solutions. This, along with the rise in availability of legal CBD goods is causing CBD to become in high demand.
However, this has led to a proliferation of small businesses and retailers that offer CBD products at lower costs but ultimately deliver low-quality and unsafe formulas to their consumers. The need for better education on CBD products, their use, their safety measures, and their effects, has never been more crucial to ensure a healthier and overall better experience.
As economies face a crisis and uncertainty settles in, the possibility of chronic diseases rises. Studies have shown that high levels of stress and anxiety increase the levels of cortisol in our bodies thus making us live in constant crisis mode. This condition causes people to experience health challenges, thus turning to more efficient and effective solutions: a rush of customers will seek high-quality, refined, tested, and transparent CBD products.
Final Words
The CBD oil market in Canada has its limitations due to legal regulations. However, those barriers fall short as the world faces an economic and social crisis that takes a toll on people all over the globe. This includes a Canadian society that is rapidly migrating to CBD products as a way to decrease their stress levels and improve their health while dealing with the uncertainty of modern life.
