CBD Products - South Africa | Statista Market Forecast

Revenue in the CBD Products market in South Africa is forecasted to reach US$33.16m in 2024.
The revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -4.37%, leading to a market volume of US$26.51m by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$2.58bn in 2024).
In terms of per person revenues in 2024, in South Africa generates US$21.87 in relation to its total population figures.
South Africa's CBD Products market is witnessing a surge in demand, driven by changing regulations and a growing awareness of the benefits of cannabis-derived products.

Definition:
The CBD Products market encompasses products derived from the cannabis plant that contain Cannabidiol (CBD), a non-psychoactive compound. These products may include oils, tinctures, edibles, topicals, and capsules. They are typically sold in health food stores, pharmacies, online platforms, and specialty CBD stores. These products are consumed for wellness purposes, and depending on the product, can be ingested, applied topically, or inhaled.

Structure:
The CBD Products market includes products used for general wellness, relaxation, and stress relief. The CBD Products market includes various forms of CBD such as oils, edibles, topicals, and capsules.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C).

Cannabidiol (CBD) used for recreational purposes

CBD based medicine holding marketing authorisation
CBD based medicine not holding marketing authorisation

The CBD Products market in South Africa has been experiencing significant growth and development in recent years.

Customer preferences: Consumers in South Africa are increasingly turning to CBD products due to their perceived health and wellness benefits. The growing trend towards natural remedies and alternative medicine has contributed to the rising demand for CBD products in the market.

Trends in the market: One of the key trends in the CBD Products market in South Africa is the expanding product variety and availability. With more companies entering the market and offering a wide range of CBD products, consumers have a plethora of options to choose from. Additionally, there is a growing awareness and acceptance of CBD products among the general population, leading to increased sales and market penetration.

Local special circumstances: South Africa has a unique regulatory environment that impacts the CBD Products market. The country recently legalized the use of CBD for personal and medicinal purposes, which has opened up new opportunities for businesses in the market. However, there are still strict regulations in place regarding the marketing and labeling of CBD products, which companies need to navigate carefully.

Underlying macroeconomic factors: The economic landscape in South Africa plays a significant role in shaping the CBD Products market. Despite facing challenges such as high unemployment rates and economic instability, the growing CBD market presents opportunities for job creation and revenue generation. As more companies invest in the CBD industry, it has the potential to stimulate economic growth and contribute to the overall development of the country's economy.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.