(MENAFN – GetNews) According to report published by Grand View Research, Increasing use of cannabis for treatment of neurological disorders, psychiatric disorders, and cancer along with pain control is anticipated to drive the demand for CBD gummies market.
According to a report, ‘ CBD Gummies Market Size, Share & Trends Analysis Report By Concentration (High, Low/Concentrated), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2019 – 2025 , published by 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. Majority of the companies are based out of Canada owing to the legalization of cannabis in the country for medical and recreational purpose. 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.
Growing consumer interest for cannabis edibles is expected to support the 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 the consumer trends for planning the 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 up with American artist and philanthropist John Legend for promoting the products.
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
The players operating in the CBD gummies market are expanding their reach through business partnerships. For instance, in 2019, Plus Products Inc. expands its product offering in 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 channel. 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 mini bar with canniabidiol gummies in its Los Angeles, New York, and Miami Beach locations.
To gain market share, the companies are focusing on merger and acquisition strategies. For instance, in 2019, Tilary acquired alcoholic cocktail gummy maker, Smith & Sinclair to create a line of CBD edibles. The product will be distributed in U.S. and Canada. This acquisition offers company an opportunity to diversify the product portfolio, differentiate themselves from others, and gain market share.
Published: January 22, 2020
Founder & Interim Editor of L.A. Cannabis News