Rising awareness of the health benefits of minor cannabinoids is driving US cannabis market growth according to new analysis.
Increasing awareness of the health benefits of CBG, CBDa, CBC and CBN are driving the growth of the US market according to a Grand View Research commentary looking at the rise of minor cannabinoids. Grand View said that the US cannabinoids market size was valued at USD$2.3bn in 2019 and is expected to expand at a compound annual growth rate of 20.4% from 2020 to 2027.
Currently, CBD products that are derived from hemp have been rising in popularity over the past several years and now secondary or ‘minor’ cannabinoids are also seeing exceptional growth rates.
Health benefits of minor cannabinoids
An increase in demand for cannabinoids and research being carried out looking at their health benefits has helped in increasing the awareness regarding cannabinoid use. Grand View Research says that favorable government regulations have also proved to be beneficial for the increase in the number of players entering the market.
The analysis notes that there is moderate competition amongst existing players as machinery and extraction processes are quite expensive, posing a high barrier to entry, but that existing players are keen on diversifying their product portfolio into other cannabinoids – making the market dynamic.
Grand View Research states: “It would further help in creating an environment for R&D in accordance with the growing CBD industry.
“Moreover, the research funding for the industry also plays an important role in promoting startups to launch novel and innovative products in the market. The growth of the market is expected to favour the entry of several new players in the future, with rising awareness regarding the health benefits of minor cannabinoids such as CBG, CBDa, CBC, and CBN in the US.
“Increasing number of consumers opting for isolated cannabinoid products and rising awareness pertaining to cannabinoid products are the key factors driving the market. CBDa products are anticipated to witness the fastest growth over the forecast period owing to potential health benefits and higher efficiency in managing health conditions.
“The rise in the number of players entering the market coupled with increasing awareness regarding health benefits offered by CBDa such as relieving pain, reducing inflammation, and lowering serotonin levels is further anticipated to fuel the growth of the product segment during the forecast period.”