CBD and Hemp Flavored Product Analysis

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CBD Product Market Size- UK

The UK market for CBD products (including "CBD tinctures/oils or capsules," and other CBD products) is currently worth £300 million. The market will be worth close to £1 billion by 2025. The CBD product market is growing with double-digit rates every year, with an estimated to reach a 22% CAGR between 2019 and 2025.

Current Market Size

  • The current market size for CBD products (including "CBD tinctures/oils or capsules," and other CBD products) is worth £300 million. The market will be worth close to £1 billion by 2025.

Projected Growth for CBD Products

  • The CBD product market is growing at double-digit rates, with an estimated to reach a 22% CAGR between 2019 and 2025.

Factors Impacting The Market: Demand From the Older Generations

  • One of the reasons for the growth of the CBD market in the UK is its rising popularity among adults. About 31% of the users of CBD products in the UK are older than 55 years. These adults are among the most frequent users of CBD products in the United Kingdom.

Factors Impacting The Market: Demand for Tinctures, CBD Oils or Capsules

  • More than 70% of UK consumers are demanding CBD products in various forms like tinctures, oils, or capsules.
  • This demand indicates "a desire to use products systemically" with a higher therapeutic dose of CBD.
  • Medically oriented users of CBD are responsible for the growth of the CBD market in the UK. They are spending about 2-3 times more than regular users every month (£55 vs. £25) on CBD formulations.

Factors Impacting The Market: Several Players and Favorable Regulations Causing Market Growth

  • A recent classification of CBD products in the UK stated that cannabinoids are becoming "novel" food in 2019. This classification has encouraged several manufacturers in the UK to explore the market, leading to growing sales of CBD products.
  • Experts reveal that the vagueness of the laws that govern CBD products in UK markets is leading to increased profitability. It is also leading to rising competitiveness among players in the sector.
  • A review of the United Kingdom website of the Cannabis Traders Association (CTA) reveals over 200 brands of CBD products available in markets within the UK offered by over 60 sellers. The UK's CBD market is made up of sellers and manufacturers that are members of the Cannabis Traders Association (CTA).
  • The CBD market in the UK is currently full of products from smaller companies that are sold directly to consumers using online platforms; significant retailers have recently stepped into the rapidly expanding wellness category of CBD products. The Food Standards Agency (FSA) is working on releasing new legal clarification related to the "regulatory status of CBD supplements," which may affect how several manufacturers and retailers of CBD products operate in the UK.
  • Experts predict that after the implementation of the proposed clarification, CBD products in the UK market would need to gain authorization from relevant authorities before "being sold as a foodstuff," which may disrupt the products available in the market.

Factors Impacting The Market: Rising Availability of CBD Products and Growing Consumer Interest/Health Benefits

  • The Open Access Government site reveals that CBD products are becoming increasingly available as more consumers are picking interest in them. The explosion of CBD products in the UK is caused by the increased availability among online stocks and stocks in "street shops."
  • A big portion "of regular CBD users" in the UK claim to be deriving or experiencing medicinal or therapeutic benefits from the consumption of CBD products.
  • Recent surveys conducted in 2019 by Dynata and YouGov reveal that between 8- 11% of adults in the UK (approximately 4-6 million people) have become CBD products consumers. The UK CBD consumer base is large, and the familiarity, as well as utilization of CBD products, cuts across a sizable portion of every age group and social class. The above factors are playing a vital role in the growth of the CBD products market in the UK.
  • There is a rising demand for CBD products in the UK due to the willingness of British consumers to try or test CBD products as well as spend significant sums to purchase regular wellness routine products that contain CBD.

Research Strategy

We began our research by going through industry reports such as EIN News that focused on the market size and projected growth of CBD products in the UK. Insights revealed that the global market size of CBD oil products would grow at a CAGR of 31% between 2018 and 2022. There were no statistics specific to the UK.

We also examined government resources such as Open Access Government. Insights revealed the current market size for "CBD tinctures/oils or capsules" and the projected value of the market in 2025. There were no insights available on the cumulative annual growth rate.

Additional investigation was conducted by reviewing medical publications such as articles of the Center for Medical Cannabis. This strategy examined the factors impacting the market and its cumulative annual growth rate (CAGR). Uncovered insights revealed some factors affecting the market growth of CBD products in the UK but there were no insights on the CAGR of the market. As such, we have calculated the CAGR by using the current and projected size of the market in the UK.


  • The CBD products (tinctures/oils or capsules, and other CBD products) market is worth £300 million as of 2019.
  • The market will be worth close to £1 billion by 2025.
  • According to CAGRcalculator.net, this represents a CAGR of roughly 22%.
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CBD Market Segmentation

The main categories of products in the CBD market include beauty products, oil based capsules, concentrates, drinks, edibles, pet products, suppositories, oil-based tinctures, topicals, transdermal patches, vape products and water-soluble/emulsified CBD.

CBD Origins

CBD extract

  • According to Big Sky Botanicals, "CBD extract is an oily substance that ranges from a dark black paste to a honey color and consistency".
  • It "contains cannabis plant materials such as fatty acids, cannabinoids and terpenoids" and is designed to provide the highest possible medical benefits.
  • It is mostly used as an ingredient for other products but is also sold as a standalone product.

CBD Isolate

products in the CBD market

Beauty products

Oil-Based Capsules

  • These are pill-forms of CBD extract that are swallowed like other regular supplements.
  • The capsules come in the form of softgels or two-piece capsules.
  • There are two main types of capsules, liquid-containing oil-based capsules and powder-containing capsules.
  • Examples of CBD capsules include Hemp Bombs CBD capsules, CBDFx gel capsules, Cycling Frog CBD, and cbdMD capsules.




Pet Products

  • These are CBD products "specifically designed for animal use" and are often made for "appropriate dosing or application methods for pets".
  • CBD has been used as a natural way for pet owners to help aging pets and as a way to promote good health.
  • Examples of CBD pet products are HolistaPet CBD oil for dogs and cats, Hemp Bombs CBD dog biscuits, Cannimal Equine Formula and Honest Paws Purity CBD oil for dogs.


  • Suppositories offer a highly bioavailable means of ingesting CBD and offer a long-lasting effect.
  • They are bullet-shaped pills that are inserted into the anus, from where the contents are absorbed directly into the bloodstream.
  • Because of its bioavailability (the amount of the product and the rate that it is absorbed into the bloodstream), a suppository is the most effective of all methods of ingestion.
  • Examples of suppositories are CBD Living Suppository, Endoca Hemp CBD suppositories, Foria Basics CBD suppositories, Hemp Health CBD Suppositories from Pharma Hemp and Infinite You Rocket Ships.

Oil-Based Tinctures

  • These are "oil-carried form of CBD that is consumed by mouth by placing under the tongue".
  • It is a liquid product that usually comes in a small bottle with a dropper.
  • The liquid "comprises several components," including CBD extract or CBD isolate base, a carrier oil and optional additives like flavors.
  • Examples of CBD tinctures include CBDfx CBD tincture, Diamond CBD tincture and cbdMD Reviews.


  • These come in a wide variety of products like balms and salves.
  • The products include massage oil, skin conditions and applications for muscle soreness.
  • Examples of CBD topicals include CBDfx Hemp Cream, Hemp Bombs pain rub, Nature's Script hemp pain gel, Green Roads pain relief cream, WA CBD foot cream, JustCBD pain roll on, and JustCBD coconut oil.

Transdermal Patches

  • Just like topical solutions, these CBD products are also applied through skin.
  • These are stick-on patches that have CBD infused strips that are placed onto veinous areas of the body like the wrist and provide slow-release, long-lasting effects for the user.
  • They provide long-lasting relief for users with chronic issues as compared to traditional balm or salve.
  • Examples of CBD transdermal patches include CBD Topical Hemp patch, Transdermal Patches by Manna Molecular Science, Transdermal patches by Pura Elements, Nano 101 CBD patches by CBD+ and Elite Transdermal patch by Mary's Nutritionals.

Vape Products

  • Just like other types of vaping, "CBD extracts or isolates are vaporized using a traditional vape pen or mod and inhaled".
  • Inhaling has the quickest onset of all the methods of taking CBD because of the high bioavailability of inhaling the molecule.
  • CBD vape products available in the market include disposable vape pens like CBDFX's blue raspberry and CBDistillery's grand daddy purp, vape cartridges like Hemp Bombs Cartridge and GRN CBD Cartridge, vape oil/ e-liquid like CBDFX Vape Juice and Avida CBD.

Water Soluble/ Emulsified CBD

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Flavored Hemp Market Size & Growth- UK

The overall hemp industry in the United Kingdom is currently valued at £353.57 million ($466.43 million) and is expected to grow by 22.25% between 2019 and 2025. Further details and calculations have been detailed below.

Market Size and Growth

  • The United Kingdom's overall hemp industry is currently valued at £353.57 million ($466.43 million) and is expected to reach £1.18 billion ($1.56 billion) by 2025.
  • Hemp-derived CBD is currently valued at £99 million ($130.6 million) and is expected to reach £330 million ($435.6 million) by 2025.
  • Between 2019 and 2025, the overall hemp market in the United Kingdom, including hemp-derived CBD, food, supplements, personal care, consumer textile, other consumer, and industrial applications will grow at a cumulative annual growth rate of 22.25%.
  • In the United Kingdom, only about 810 hectares are dedicated to the cultivation of hemp.

Overview of the United Kingdom Hemp and CBD Market

  • The main challenges facing the United Kingdom hemp and CBD market include "improving the education of consumers; defining a proportionate regulatory pathway; rooting out bad practice; creating an infrastructure to support a quality standard; maintaining incentives to invest in clinical trials; and taking the necessary steps to level the playing field in support of UK producers."
  • It is expected that the demand for hemp in the car composites market will increase the demand for industrial hemp in Europe and by extension, the United Kingdom.
  • Other factors such as the "increasing consumption of hemp seeds in food and other food products such as smoothies, yogurt, cereals, and bars is expected to bolster the growth of the market further" in Europe.

Research Strategy and Calculations

Our first strategy in determining the market size and growth rate of the United Kingdom's 'flavored hemp' market was to search for reports by credible market research platforms on the subject matter. Our research showed that the reports available in the public domain focused on only hemp, industrial hemp, and CBD markets. The reports related to the term 'flavored hemp' was not available. In light of this, we switched our attention to the industrial hemp or CBD market. While there are multiple reports on the industrial hemp and CBD market, they were mostly globally-focused or focused on the United States market.

Our next approach was to see what the public discourse was on the industrial hemp market but found that most of the discussion and indeed available market size figures were on the CBD market. Hemp-derived CBD is just one of seven other sub-sectors under the hemp market. The other six markets include food, supplements, personal care, consumer textile, other consumer products, and industrial applications. Since we found the present and future market size of the CBD market, and we sought to triangulate the size of the hemp market by piggybacking off of the market share that CBD occupies in the overall hemp market. However, our search for the market share of CBD in the United Kingdom hemp market was not fruitful. We then expanded the scope of our search to see if we could find a similar market share for the European region.

We found an article that breaks down the market share of each hemp sector in Europe. The market breakdown is as follows:
  • Industrial applications: 42%
  • Hemp-derived CBD: 28%
  • Personal care: 12%
  • Consumer textiles: 7%
  • Food: 5%
  • Supplements: 4%
  • Other consumable products: 2%
On the assumption that the market share figures listed above for Europe mirrors that of the United Kingdom, we can leverage the data points to triangulate the market size and growth of the United Kingdom hemp market.

It is also worth pointing out that CBD can be derived in three ways: pharmaceutically or derived from either hemp or marijuana. It is expected that the three methods "are expected to contribute, roughly equally (33% each), to future CBD sales." According to the Center for Medical Cannabis, the CBD market in the United Kingdom is valued at £300 million ($395.88 million) in 2019 and is expected to reach £1 billion ($1.32 billion) by 2025. If CBD derived from hemp only contributes 33% of the market sales, then hemp-derived CBD is valued at:
  • 2019: 33% of £300 million ($395.88 million) = £99 million ($130.6 million)
  • 2025: 33% of £1 billion ($1.32 billion) = £330 million ($435.6 million)

If hemp-derived CBD occupies 28% of the hemp market, then the hemp market is valued at:
  • 2019: [£99 million ($130.6 million)] /0.28 = £353.57 million ($466.43 million)
  • 2025: [£330 million ($435.6 million)] /0.28 = £1.18 billion ($1.56 billion)
Using an online CAGR calculator and inputting the variable below, we were able to calculate the growth rate of the hemp market in the United Kingdom.
  • Number of period (2025-2019): 6
  • Initial value (2019 market size): £353.57 million
  • Final value (2025 market size): £1.18 billion
  • Growth rate: Unknown variable
The projected growth rate of the United Kingdom hemp industry between 2019 and 2025 is 22.25%.

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Flavored Hemp Market Segmentation

There are several categories which hemp and its CBD extracts or isolates are being applied on the market. They are not all of equal size, and there can be several categories. However, the main categories found are in wellness products, e-liquids, foodstuffs and cosmetic products, as was recognized by Swissmedic, a public institution of the Swiss government.

CBD Wellness Products and Supplements

CBD E-liquids

CBD Food and Other Consumables

  • CBD is being infused into several types of edibles meant for normal human consumption. CBD is infused into a wide range and type of ingestibles and new technology was developed to allow CBD to be water-soluble.
  • CBD isolates can be infused to various products, including snacks such as hard candy, cookies and chocolate, and in beverages such as water, juices, coffee and tea.

CBD Cosmetic or Skin Care Products

CBD for Pet Products

Research Strategy

The hemp and CBD market is expanding at a fast rate while countries are taking steps to legalize these substances. In order to create the main categories, the most popular products available were researched through online shops. These fell into existing categories which were used to create this list. This categorization was backed up by the Swiss regulatory agency.
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Biggest CBD Retailers- UK

The five largest retailers for CBD products in the UK include; Holland and Barrett, Walgreens Boots Alliance, LloydsPharmacy, Aurora Cannabis, and CV Sciences

Holland and Barrett

CV Sciences

Walgreens Boots Alliance


Aurora Cannabis

Research Strategy

In conducting the search for the largest retailers for CBD products in the UK, we took advantage of a compilation of leading publications, expert blogs, and reviewers, industry databases to put together the largest retailers for CBD products in the UK.

We started by searching for common retailers for CBD products globally and we found quite a good deal of information. We then streamlined our search to the largest retailers for CBD products in the UK and then we got fewer but precise information as to what was needed.

For this particular request, we couldn’t find a precompiled list based on the quantitative metrics indicated. We then went further and searched for the list in market research reports and press releases.

We were able to find a release titled “Where to buy CBD Oil in the UK and places to avoid” published by The Extract, another titled “Where to buy CBD Oil — Places in the UK to avoid and to buy from” by Candid listed Holland and Barrett and other high street shops as retailers of CBD in the UK.

Furthermore, reports such as “Who are the top 10 CBD companies” by UK Magazine The Extract, “The Ten Best CBD Oils in the UK”, “European CBD Market Snapshot: UK Leads As Retailers Get On Board With FSA Decision Pending” all listed companies and brands such as Holland and Barrett, Walgreens Boots Alliance, McKesson Corp.’s Lloydspharmacy chain, Garden of Life Whole Hemp, CV Sciences, CBD Oil/Endoca, Aurora, Isodiol International, Canopy Growth Corporation, Elixinol, Pedanios, Bedrocan, Gaia Botanicals as the top players based on matrices such as volume, value and market share, product sales, lucrative advancement stratagems, etc.

Some of the companies included in the listing above were a direct-to-consumer company, meaning that they created the product and also retail it. We, however, made sure to ascertain if really the company manufactures and also sells.

The list gave us an idea of the retailers to look out for hence we then went further to search for their revenues using the company's annual report. For those we couldn’t find their revenue in the company’s annual report, we broadened the search by checking reputable databases such as Crunchbase, Hoovers, Craft, and Pitchbook.

Boots had an estimated annual revenue of $9.1billion, LloydsPharmacy has an estimated annual revenue of $3billion, Holland and Barrett has $884.9M in estimated revenue annually and competes with Antares, Vitabiotics etc. Aurora Cannabis has $54.2million in estimated revenue annually.

We compared it with other retailers both listed and not listed to find if there are others with higher revenue or market shares. We did not find manufacturers with higher revenue but found retailers such as Endoca with annual revenue of $1million; The Tonic in West Yorkshire, CBD Supreme whose financial records were hidden behind paywalls and not available to the public.

While the number of mentions helped us identify whose revenues to look at, we, however, did do the work and research to ensure they were picked based on revenue and hence the retailers chosen are the largest based on their revenues.

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UK FMCG Companies Partnering With CBD Brands- Case Studies

Our research reveals that most of the partnerships in the UK CBD industry involve acquisitions of FMCG companies by CBD brands from the UK or outside the UK that aim to have a share of the rapidly growing CBD industry in the UK. Below is a deep dive into our findings.

Cannaray's Acquisition of Therismos

Canopy Partners With This Works

Sundial Partnership With Bridge Farm Group

Additional Partnerships

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UK FMCG Companies Acquiring CBD Brands- Case Studies

There is a limited insight into FMCG companies acquiring CBD brands in the UK. Some companies popularly associated with FMCG in the UK that have gone into partnership by acquiring or intending to acquire stakes in CBD brands include WHSmith and Diageo Plc. WHSmith is a United Kingdom-based company that deals in FMCG confectioneries.

Company Name: WHSmith


Brand Partnered With

Description of the Brand

  • Ignite UK operates within the CBD industry and offers products such as rechargeable vape pens. Ignite International Brands (UK), Ltd. (also known as Ignite), is a wholly-owned subsidiary of Ignite International Brands, Ltd.
  • Ignite is located in the United Kingdom at New Concordia Wharf, Mill Street, London.

Details of The Partnership

  • WHSmith formed the partnership by submitting a purchase order to allow it to offer leading CBD products from Ignite at about 276 retail travel stores within the United Kingdom starting from August 2019.
  • Based on the partnership/agreement, WHSmith launched with the Ignite ONE device, which is a rechargeable vape pen that is compatible with Ignite CBD pods as well as Ignite branded tinctures. Both companies (WHSmith and Ignite) would coordinate future products introduced into the market, such as vape, health, and beauty applications, in line with the road map of Ignite.
  • The partnership with WHSmith aims at giving Ignite a strong retail presence across the United Kingdom by leveraging established specialty retailers.

Company Name: Diageo Plc


Brand Partnered With

  • The name of the CBD brand that Diageo Plc intends to partner with is not made available to the public.

Details About the Partnership

  • There are limited insights on the partnership been pursued by Diageo Plc and a CBD brand.

Research Strategy

The research has examined case studies surrounding an FMCG company acquiring a CBD brand in the UK. The study reviewed food industry publications such as Food Dive for non-durable household packaged foods, beverages brands in the FMCG sector that have acquired a CBD brand in the UK. Insights revealed that Kraft Heinz's recently invested in a CBD startup. According to a new Kantar report, Kraft is Heinz's (Heinz) is one of the top FMCG brands in the UK. Additional research revealed that the acquisition occurred in the US. The study investigated if Kraft is Heinz's has acquired any CBD brand within the UK, or if Heinz sells CBD products from third parties in the UK. Such details are not made available to the public.

The study also examined financial network publications focused on the cannabis sector, such as Cannabis FN. This strategy reviewed FMCG brands that have acquired or are acquiring CBD brands in the UK. Insights revealed that Ignite UK recently confirmed that it has an "exclusive CBD partnership with WHSmith." WHSmith recently submitted a purchase order to Ignite UK. This purchase order will enable WHSmith to offer or sell CBD products from Ignite UK under an exclusive contract.

The research reviewed academic and scholarly repositories, such as the repository of the University of London. This strategy investigated academic studies related to FMCG companies such as packaged foods, beverages, toiletries, or over-the-counter drug brands that are acquiring or have acquired a CBD brand in the UK. Unfortunately, there is no academic article available to the public that has such information. There is no academic report focused on such a niche topic.

Additional studies included legal publications such as the UK's Cannabis Law Report, among other resources. This strategy reviewed agreements made by FMCG companies acquiring CBD brands in the UK. Uncovered insights revealed that the UK's alcohol giant (Diageo Plc) is working on implementing a deal with a cannabis firm. Additional research to verify if the partnership is an acquisition or some other form of collaboration or partnership failed to uncover the needed information as it is not made public. Diageo Plc is a UK-based alcohol giant. Beer (alcohol) is a fast-moving consumer goods (FMCG) brand, and the study assumes that Diageo's alcohol brands are FMCG brands. Further research reveals that Diageo Plc is an FMCG.

The websites of several FCMG brands were reviewed to uncover details of acquisition partnerships they have or are making with uncovered CBD brands, including Diageo Plc. These companies (including Diageo Plc) did not reveal such information on their websites.

Databases like Chruchbase were also reviewed for the details of partnerships between FMCG company acquiring a CBD brand in the UK. Such data is not made public by Diageo and other investigated brands.

There is limited information on FMCG companies acquiring CBD brands in the UK because the participating companies may not be under any obligation to make their agreements public.
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Legal Constraints- CBD & Flavored Hemp Products -UK

Some mandatory requirements for CBD and flavored hemp products distributed in the UK include containing no detectable amount of THC, must be derived from EU-approved strain of hemp, clear labeling of CBD content, packaging that lists manufacturer details and ingredients, no medical claims, and more. Additional details of legal regulations and rules concerning CBD & flavored hemp products are as follows.

THC Content

  • Almost all naturally occurring compounds found in the cannabis plant, called cannabinoids are illegal and listed as controlled substances under the Misuse of Drugs Act 1971.
  • One such cannabinoid tetrahydrocannabinol, commonly known as THC, is well-known for its psychoactive influences. THC is completely illegal in all products in the UK and must not be detectable.
  • However, one exception is the Cannabidiol cannabinoid or commonly known as CBD, which has shown preliminary evidence to help some medical conditions with no potential for abuse or overdose. CBD products are legal in the UK provided they contain no detectable amounts of THC and derived from an industrial hemp strain that is EU-approved.
  • According to EU regulations, the recommended detection limit for THC to comply with the law is 0.01%, as verified by an accredited ISO lab. This means any presence of THC below 0.01% is still practically legal.
  • Flavored hemp products are subjected to similar regulations. However, since hemp products are known to have high CBD and low THC content, and therefore are more likely to pass the same THC requirement.
  • Hemp food products are widely available in stores and sold in Amazon UK.

Additional Requirements

  • Any CBD or flavored hemp product that contains CBD must clearly label the percentage of CBD content.
  • CBD or flavored hemp products used for medicinal purposes must have a medical license. Medicines and Healthcare products Regulatory Agency (MHRA) states that non-medical products must not make any medical claim or present itself as a medicinal by any virtue.
  • CBD products meant for consumption such as oils, oral sprays, beverages, e-liquids, edibles, and capsules are classified as a “novel food” under EU standards and subjected to Novel Food Regulation EU 2015/2283. EU standards define ‘novel food’ as any food that had not been consumed before 15 May 1997. To sell novel food in Europe, an online application must be made to the European Food Safety Authority (EFSA) for them to scientific assess the risk posed by the product and provide a license.
  • However, the actual enforcement of the "novel food" standard in the UK has been notably soft.
  • Flavored hemp products that are derived from cold-pressed hemp seed oil or flour are not regulated as a novel food.
  • CBD and flavored hemp products are not exempted from conventional standards and requirements for their specific industries, such as food and cosmetics. Examples include abiding by food standards set by Food Standards Agency (FSA) such as the mandatory listing of all manufacturer details and ingredients on the packaging, or qualifying for safety assessments within limits set by the Cosmetic, Toiletry and Perfumery Association (CTPA).

Additional Findings

  • There is a common misconception that CBD or flavored hemp products that contain less than 0.2% THC are also legal. However, this figure refers to the THC content allowed in the hemp grown before the extraction of CBD and not the final product meant for consumption.
  • It is illegal to grow any cannabis or hemp in the UK without permission. CBD producers in the UK must obtain a special license from the UK Home Office to do so under the Misuse of Drugs Regulations 2001. The law states that only the fiber and hemp seeds can be processed, while the rest of the plant including the bud and flower must be destroyed.
  • Products with detectable levels of THC are only allowed for medical purposes and must be prescribed by specialist doctors for needs that cannot be met by licensed medicines.
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CBD Product Market Size- US

The United States market size for cannabidiol(CBD) is $813.2 million, and the projected growth rate is 107% from year 2019 to 2023. A list of factors impacting the sales of CBD in the United States includes the aging population, increasing prevalence of arthritis, among others.

Market Size

  • The US market for cannabidiol is valued at $813.2 million, according to Statista, a business publication.

CBD Projected Annual Growth Rate

  • The projected growth rate for the CBD market is 107% from year 2019 to 2023.

Factors Impacting The CBD Market In The United States

Overview of Factors Impacting CBD Market in The United States

  • The increasing prevalence of arthritis in the United States has contributed to the increase in the consumption of CBD-based products due to CBD products' effectiveness in relieving pain among arthritis patients. A survey of 2,600 people with arthritis shows significant use of CBD products and interest in CBD.
  • The removal of hemp from the Controlled Substance Act that constituted a barrier to its sales in time past in the United States is no longer an issue. The removal of the legal barrier has given CBD a boost in sales in the United States.
  • The growing use of CBD among millennials in North America is driving sales. America is part of North America; hence, the use of CBD products among millennials in the USA would also drive CBD sales positively.
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Legal Constraints- CBD & Flavored Hemp Products -US

The 2018 Farm Bill legalized the sale of hemp and related products. Prior and after its passing states had already begun legalizing CBD and flavored hemp products for recreation and medical use. However, despite the regulations the FDA and DEA have strict enforcement regimes for the distribution of CBD and flavored hemp products.



Federal regulations

Cannabis products for medical use regulations

State regulation and the FDA




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Flavored Hemp Product Market Size- US

The US hemp product market, which is the parent market of the flavored hemp product market, is forecasted to grow from about $1.8 billion in the year 2018 to approximately $20 billion by 2024, expanding at an estimated CAGR of 49.38%.

Hemp Product Market Size / Growth

  • According to hemp market analysis expert, Roy Bingham, the US market size for hemp products is expected to reach approximately $20 billion by 2024, up from $1.8 billion in 2018.
  • The US industrial hemp market was worth $1.2 billion in 2015, according to Grand View Research.
  • Using an online CAGR calculator, the US hemp product market is estimated to grow at a rate of approximately 49.38% from 2018 to 2024.
  • As reported by PR Newswire, globally, between 2019 and 2025, the industrial hemp market is expected to increase from $4.6 billion to about $26.6 billion. It is projected to grow at a CAGR of around 34%.
  • Some players in the US market for hemp products include Hemp Inc., GenCanna, and Colorado Hemp Works.

Hemp Milk Market

  • By 2024, the global hemp milk market is expected to be worth $454 million. Between 2018 and 2024, it is anticipated to expand at a CAGR of 16%.
  • Flavor-wise, it can be segmented into unflavored and flavored.
  • In 2018, the unflavored segment accounted for about three-fourths (75%) of the market, while the flavored segment made up the remaining 25%. Also, the unflavored segment is anticipated to expand at an estimated CAGR of 15% during 2018-2024.

Overview of Factors Impacting the Market

Farm Bill

  • The 2018 Farm Bill is one of the major factors predicted by hemp industry experts to greatly impact the growth of the US hemp industry.
  • The Farm Bill will set the US market up for a remarkable growth, as the bill is predicted to lead to a similar growth pattern with that of Colorado.

Entrance of New Players

  • The entrance of big players in the US market is expected to not greatly affect the market.
  • The entrance of multiple players in the industry is predicted to have an impact the US market growth.


  • Timing is another factor the US hemp industry expert Roy predicts to impact the space. While industry experts remain confident that the industry will experience rapid/healthy growth, they are not sure when the market will undergo most of its growth. However, the most likely time that the industry will experience the majority of this development is in six to twelve months.

Research Strategy:

Our research began by scouring through market reports published by reputable market research firms such as Grand View Research, Markets and Markets, and RD Research, as well as media sources like PR Newswire and Business Insider for existing information on the market size and projected growth rate of the US flavored hemp industry. After an exhaustive search, we could not locate such information in the public domain or paid reports. All the reports we came across segmented the industry based on product type (stalks, fibers, seeds, etc.), source (organic and conventional), applications (animal feed, food and beverages, construction materials, automotive, cosmetics, etc.), and regional markets. None of them considered the market in terms of either flavored or unflavored.

Next, we attempted to triangulate a proxy for the market by aggregating the revenue generated by some flavored hemp products such as flavored CBD hemp extracts, flavored hemp milk, flavored hemp energy drinks, flavored hemp flax crackers, among others. For this, we searched through market reports and media sources such as Grand View Research, Markets and Markets, RD Research, PR Newswire, and Business Insider. We wanted to find data points, such as market share, that we could use to estimate the market size of the global flavored hemp industry. However, information on the US market was behind a paywall.

Afterward, we attempted to estimate the market by searching through media and industrial sources for the number of flavored hemp products sold in the United States, along with the average cost of those items. We visited sources such as BLS, USDA, PR Newswire, Grand View Research, Markets and Markets, and Business Insider. While we found the price of flavored hemp products, data on the total number of flavored hemp products sold in the United States was unavailable in the public domain.

Due to the lack of available data, we decided to provide information on the US market for general hemp products since all products in the industry could either be considered flavored or unflavored, making the flavored hemp market a subset of the overall hemp market (industrial).

From Part 02
  • "CBD extract is an oily substance that ranges from a dark black paste to a honey color and consistency. "
From Part 04
  • "Aside from one prescription drug approved to treat two pediatric epilepsy disorders, these products have not been approved by the FDA and we want to be clear that a number of questions remain regarding CBD’s safety"
From Part 10
From Part 11
  • "Now the hemp has been further legitimized by provisions in the 2018 Farm Bill, the market is set to take off. Bingham says the market for hemp products in the US is now about $1.8 billion. But he tentatively predicts it will hit around $20 billion in 2020. "
  • "The global industrial hemp market size was estimated at USD 3.9 billion in 2017, expanding at a CAGR of 14.0% over the forecast period."
  • "The hemp milk market is likely to reach around $454 million by 2024, growing at a CAGR of approximately 16% during 2018–2024."
  • "The hemp milk market by flavors can be segmented into flavored and unflavored. The unflavored segment captured nearly three-fourths market share in 2018 and is expected to grow at a CAGR of around 15% during the forecast period."
  • "The 2018 Farm Bill brought immense change to the industrial hemp world, legalizing the cultivation of hemp and opening the floodgates for a brand new CBD industry. With the move of hemp from the Controlled Substances list to an agricultural commodity, numerous companies had the confidence to enter the CBD space."
  • "Over the course of 6 years/months your investment grew from 1.8 to 20.0. Its compound annual growth rate (CAGR) is 49.38 %. "
  • "The global industrial hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025, recording a CAGR of 34%."