U.S. Minor Cannabinoids Industry Overview
The U.S. minor cannabinoids market size was valued at USD 4.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 20.1% from 2021 to 2028. The rising trend of adopting cannabinoid-based medicines over traditional medicines, owing to their affirmative health benefits for many health conditions such as chronic pain, cancer, arthritis, neurological disorders, and metabolic disorders is a key factor supporting the market growth. The rising acceptance of cannabis-based medications by consumers as well as medical practitioners is further bolstering the growth.
The approval of the Farm Bill in 2018 has led to an increase in the awareness and adoption of cannabis-related products in the country. It has also created numerous opportunities, thereby proving to be beneficial in increasing the research and funding for cannabis and its derivatives. Furthermore, in recent years, minor cannabinoids have gained impetus and positive research regarding the health benefits of minor cannabinoids, which is anticipated to boost market growth. For instance, there are various ongoing trials for analyzing the effect of minor cannabinoids on conditions such as diabetes, alopecia, epidermolysis bullosa, pain management, and arthritis.
Gather more insights about the market drivers, restrains and growth of the U.S. Minor Cannabinoids Market
In addition, the growing adoption of cannabinoids by healthcare professionals for various medical conditions is one of the key factors supporting the market growth. Prescription of cannabinoid-based products by healthcare personnel develops a positive influence on the minds of patients or consumers, thereby increasing the adoption and gaining popularity. For instance, according to an article published by Innovation Shares in January 2020, the Google Search Index for health benefits provided by CBG increased from 60 in January 2019 to around 95 in January 2020. It signifies rising popularity for CBG among consumers. Such instances are likely to promote market growth.
Moreover, the expensive extraction and purification process is one of the factors impeding the growth of the market. Minor or rare cannabinoids are found in very few quantities in the cannabis plants, and hence they are hard to extract and purify, thereby reducing the number of players opting for rare cannabinoid production. For instance, CBG accounts for around 1% of the total cannabis plant as compared to CBD, which accounts for around 20%. It signifies that for extraction of the same quantity of CBG as that of CBD, it will require around 20x amount of biomass. This expensive extraction and purification procedure thus hamper the growth of the market.