The CBD market across North America has been depicting substantial progress in recent times. Cannabidiol is a compound that is naturally derived from the cannabis plant and is popularly used across North America to treat a variety of mental and physical ailments. The region is seeing a notable rise in the number of people being diagnosed with some form of mental health disorder, such as depression, anxiety, PTSD, insomnia, and various neurological conditions.
According to the National Institute of Mental Health (NIMH), 1 in 5 adults in the U.S. are reportedly living with a mental illness, which equated to 52.9 million in 2020. The report further states that in 2019, around 13.1 million adults in the U.S. suffered from at least one episode of major depression with severe impairment.
The COVID-19 pandemic in North America created a serious atmosphere of panic and anxiety for people suffering from mental health issues. The uncertainty over this nightmarish period, rising number of COVID-positive cases, and fear of getting infected by the virus sent many people suffering from mental health disorders into a downward spiral. As per a report by Nature, over 42% of people who participated in a survey conducted by the U.S. Census Bureau in December 2020, reported symptoms of either depression or anxiety.
Part of the reason why many North American citizens are becoming a victim of mental health diseases is the drastic changes seen in their lifestyle. Many reliable studies have shown a strong link between a person’s lifestyle habits and mental health. Poor lifestyle routines, such as irregular sleeping patterns, chronic stress at workplace or in personal life, smoking, and drinking have detrimental effects on a person’s mental health in the long run.
However, cannabidiol products can play a vital role in helping patients cope with their mental illnesses as they are known to successfully treat a wide range of mental health disorders. In fact, these products saw a significant surge in their demand during the pandemic.
Many companies dealing in the production of CBD have noticed a boom in their production capacity during the pandemic period as more and more customers are demanding the product. According to a report by Forbes, the year 2020 was a breakout year for cannabis with legal sales recorded at $17.5 billion, which was a staggering 46% increase from 2019.
Demand for CBD oil may experience robust growth:
CBD oil is expected to hold a major share of North America market in the coming years. There are several proven benefits of using CBD oil, such as relief from pain, reduction in the symptoms of some mental health disorders like anxiety and PTSD, decrease in the side-effects of cancer treatments, and maintenance of good cardiovascular health. It can also help people quit smoking and drug use, thereby increasing the use of CBD oil in the region.
Use of CBD in treating neurological conditions rises:
Cannabidiol products will be highly demanded by people across North America to treat several neurological conditions. These products are known to reduce the symptoms of neurological diseases like Parkinson’s Disease. It can relieve pain and inflammation, two symptoms that regularly affect patients with Parkinson’s. CBD can also reduce tremors and psychosis in these patients and can improve their quality of sleep as well, which will positively impact their demand.
High use of CBD transdermal patches to relieve pain:
CBD transdermal patches will gain traction among customers in North America as they can effectively treat joint pain in patients. These patches can help the CBD oil reach the place where the patient is suffering from chronic pain. CBD patches offer long-term relief to patients suffering from arthritis and other forms of severe pain, which is likely to foster their use among clients.
Factors, such as the COVID-19 pandemic and the growing burden of severe physical and mental disorders will play an important role in increasing the production and consumption of CBD-derived products in North America. With the U.S. FDA gradually warming up to the potential of CBD to treat a long list of chronic disorders, the demand for the compound is set to grow at a substantial rate in the region.
Reputed organizations across North America, such as Aurora Cannabis, Cronos Group, Canopy Growth Corporation, Tilray, CV Sciences, Inc., and Medterra, among others, are engaged in the production of CBD products and are helping governments in increasing the awareness of the benefits of using them among patients.
Mergers, acquisitions, and partnership deals are being inked between different firms to increase their regional presence and strengthen their customer base. For example, in June 2021, Canada-based The Valens Company entered the U.S. CBD industry after acquiring Florida-based CBD product manufacturer Green Roads for a cash-and-stock transaction worth $40 million and an additional $20 million milestone payment, once the business reaches some important financial milestones.