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.
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.