The second most common active ingredient in cannabis is CBD, often known as cannabidiol (marijuana). An crucial component of medical marijuana, CBD, is directly taken from the hemp plant, a related of the marijuana plant, or is synthesised in a lab. One of the many substances present in marijuana, CBD, does not produce a “high” on its own. World Health Organization research indicates that “In people, CBD has neither a psychotropic nor a habit-forming impact. There are now no signs that pure CBD use endangers people’s health in any way.” For a number of medical issues, CBD has been advocated. The CBD API market is expanding at a CAGR of 41.3% from 2023 to 2030.
The greatest scientific data, however, points to its success in treating some of the most severe forms of childhood epilepsy, like Dravet syndrome and Lennox-Gastaut syndrome (LGS), which frequently do not respond to anticonvulsant medications. Research on cannabidiol has focused on a number of neurological disorders. To establish such uses in clinical practice, the findings, however, have not been independently validated. The FDA issued an advisory caution in October 2019 stating that the effects of CBD during pregnancy or breastfeeding are unclear and that its safety, doses, interactions with other foods and drugs, and side effects have not been clinically established and may pose a danger to the mother and foetus. Several studies have shown that CBD can reduce the frequency of seizures and, in some cases, stop them completely. The first cannabis-derived medication for these diseases to receive FDA approval is Epidiolex, which contains CBD.
Impact of covid-19 on global CBD API market
COVID-19 pandemic has had a significant impact on the monoclonal antibody therapeutics market. A lot of stores closed with the rise in the COVID-19 infection rate. Several of the biggest CBD companies reported a surge in e-commerce sales, according to the sector. Given the effort many firms have put in over the past year to get on the shelves of big-box shops, this was a motivating development. Yet, companies with a strong direct-to-consumer approach fared the best during the COVID-19 crisis.
According to a recent survey, the CBD market may anticipate increased consumption, especially among frequent users, which is a sign of how the market may perform in the coming weeks and months. In a study of CBD users, 39% said they anticipated using the substance more frequently during the COVID-19 issue. This is especially true for Gen Z and Millennial customers, as 49% intend to use more CBD in the upcoming weeks and months.
Nonetheless, even if CBD use may continue despite the crisis, a lot of companies may be adversely affected. Before the crisis, it was already highly difficult for many brands to continue operations due to the industry’s overpopulation (monitoring over 3,500 brands in early 2020) and insufficient access to cash. Due to trade fairs that were cancelled, many brands suffered tens of thousands of dollars in losses, which made them vulnerable to the COVID-19 crisis. The majority of the products from many small firms are distributed by small or neighbourhood stores.
Many of the smaller brands on the market right now are probably doomed to failure as a result of the widespread outlet closures. As they are better equipped to withstand the storm and can maintain a strong e-commerce strategy, many of the larger firms may benefit from this. Once the crisis’ stabilisation, CBD brands that can make it through the upcoming months may be able to compete in a much less congested market.
Increasing Prevalence of demand for health and wellness in global CBD API market
The market is anticipated to expand because of consumer demand for CBD for health and wellness. Pain, seizures, and anxiety are all reduced by CBD. Due to its absence of euphoric effects, cannabidiol—the cannabinoid most frequently used for medicinal purposes—is highly sought after for health and wellness. Production of CBD-infused goods is anticipated to increase as a result of the products’ increasing acceptance and use as a result of regulatory approvals. Government funding for therapeutic research and collaborations with big market players would also be advantageous for CBD as an API. It is projected that a rise in pharmacy hoarding activities, exclusive contracts between businesses and retail pharmacies, and an increase in the number of patients choosing CBD treatment would provide significant opportunities for market participants in the CBD sector.
Due to the sensitivity of CBD as a therapeutic chemical constituent, the FDA is being cautious when authorising medications derived from it. Delays in approvals will hurt the market for CBD APIs. The biggest challenge for them is the high cost of this market. Most people cannot afford them because of their substantial research requirements and medicinal benefits. This makes it difficult for CBD businesses to grow.
Europe to Spearhead the global CBD API market
Europe is the fastest-growing segment in the global peptide drug conjugates market due to several factors, including:
- Large number of health-conscious people: Increasing awareness among consumers regarding health and fitness will assist CBD industry to achieve rapid expansion. The demand for cannabidiol in this industry is predicted to increase as consumer disposable income rises and medical marijuana is legalised. Moreover, CBD products are utilised to treat a wide range of issues, including anxiety, stress, sleeplessness, migraines, skin diseases, seizures, joint pain, and inflammation, as well as neurological conditions.
- Government permits and regulations for CBD products should be improved: Government restrictions are stringent, and CBD-based goods needed stringent permits before they could be sold and supplied on the domestic and foreign markets, which hindered the market’s expansion. But, as marijuana and products derived from it have become more and more legal for a variety of uses, regulations have been loosened and refined CBD products are becoming more and more popular. This will fuel market expansion and demand.
- Presence of major manufacturers: Also, there are significant producers of CBD products all over the world, which has led the government and other regulatory agencies, such the European Union in Europe and the United States, to relax its regulations on CBD and CBD-based goods.
Companies operating in the global CBD API market have adopted several growth strategies to expand their market share and increase their revenue. Key players in the market are Averix Bio, LLC, Bedrocan, Biosyyd, UAB, BIOVECTRA Inc., brains bioceutical, Colombian Golden, DSM, EndoPure, Eurofins, Folium Biosciences, GVB Biopharma, Jordan Process, KD Pharma Group, Kinetochem, KND Labs.
Some of the key growth strategies by Biovectra Inc. include:
- Technology: The first Canadian CDMO to provide 1,000 L of single-use, microbial fermentation is BIOVECTRA. The company now has a wider range of operating scales, including three process development labs with high-throughput multiplex systems at the 1 and 10 L scales, three early to mid-clinical scale production suites with suites from 100 L to 1,500 L vessel capacity, and two large scale production suites (with 10,000, 15,000, and 17,000 L fermentation production scales).
- Manufacturing: A contract development and manufacturing organisation (CDMO) that has been examined and approved by both the U.S. Food and Drug Administration and Health Canada announces the availability of high-quality, fully synthetic cGMP CBD API for use in clinical and commercial applications. Hundreds of kilogrammes of CBD may be produced using BIOVECTRA’s effective cGMP manufacturing process, with the capacity to scale up to multi-metric tonne volumes. For BIOVECTRA, this scale-up and supporting regulatory experience is a crucial skill that may be used with more cannabis compounds. Manufacturing of intermediate-scale batches is still ongoing, and process validation and the submission of a drug master file will come next.
- People and Sustainability: Fostering an atmosphere of fairness and inclusion for all, utilising company’s diversity as a resource; promoting a culture of lifelong learning, enhancing and developing the skills; Streamlining processes, increasing productivity, and maximising digital and technology to provide a better experience for staff members and better patient results are the strategies used.
Overall, these growth strategies enable companies to expand their market presence, develop new products, and increase their revenue in the global CBD API market.