The soluble dietary fibers market is
experiencing high growth, particularly in the Asia-Pacific region. The
Asia-Pacific region is projected to be the fastest-growing segment from 2017 to
2022. The growth in this region is attributed to the rapid economic growth,
less stringent regulations, and growing population in the region. Growing
demand from industries such as food and pharmaceutical has resulted in high
demand for soluble dietary fibers in this region. The Asia-Pacific region
offers the most attractive growth opportunities for soluble dietary fiber
products with its large untapped market, growing food sector, and low
production costs.
Ease of Incorporation has Increased Application Base for Soluble Dietary
Fibers
Restraints:
Inconsistency on Universal Guidelines & High Turnaround Time for
Approval From Regional Regulatory Bodies
High R&D Costs Involved in Manufacturing Soluble Dietary Fibers
Opportunities:
Rising Consumer Awareness About Value-Added Products
Emerging Markets: New Growth Frontiers
Challenges:
International and Domestic Food Safety
Standards
The soluble
dietary fibers market caters to industries such as functional food &
beverage, animal feed, and pharmaceutical. Soluble dietary fibers are used in
the functional food & beverage industry for various applications such as
confectionery products, beverages, and processed foods. The pharmaceuticals
segment is projected to grow at the highest CAGR from 2017 to 2022. Increasing
awareness about health & nutrition products has a major influence on the
rising demand for soluble dietary fibers in the pharmaceuticals sector. The
global market is witnessing the development of a wide range of applications of
soluble dietary fibers, with a strong base of research for benefits on human
health.
The
soluble dietary fibers market, by type, has been segmented into inulin,
polydextrose, pectin, and beta-glucan. The pectin segment is projected to grow
at the highest CAGR from 2017 to 2022 due to its varied functional properties
in various applications. In the food industry, it is extensively used as a
gelling substance in the preparation of jams and thickening foods. Pectin is an
important ingredient in industrial yogurt, cakes, ketchup, and fruit jellies.
The
soluble dietary fibers market, by source, has been segmented into fruits &
vegetables, cereals & grains, and nuts & seeds. The fruits &
vegetables segment is projected to grow at the highest CAGR from 2017 to 2022
grow due to the easy availability of these sources.
According to the US Farm Bill 2014, industrial
hemp is defined as, “the plant Cannabis sativa L. and any part of such plant,
whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration
of not more than 0.3% on a dry weight basis.”
MarketsandMarkets projects that the global industrial
hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6
billion by 2025, recording a compound annual growth rate (CAGR) of 34.0% during
the forecast period. The growing usage of hemp-derived seed as a superfood due
to its rich nutritional profile and other health benefits is driving the market
for industrial hemp. Furthermore, increasing legalization of hemp in different
countries across the world is also driving the growth of industrial hemp.
Hemp fiber is estimated to dominate the
market for industrial hemp in 2019. It
is used primarily in the textile and pulp & paper industry, due to its long
and robust fibers as compared to cotton. Furthermore, being a renewable source
material, its application to obtain biofuels and bioplastics has been expected
to increase its demand in the coming years.
Food is projected to be the dominating application
segment of the industrial hemp market during the forecast period due to the wide
application of hemp seeds and hemp seed oil in food products for their vitamins,
proteins, and omega-3 fatty acid content. Hemp seeds are consumed raw or are
used as a topping in cereals, smoothies, and yogurt. Rising consumer awareness
about the benefits of consuming hemp-based products is driving the market for
its application in food.
In terms of geographic coverage, the industrial
hemp market has been segmented into four regions, namely, North America, Europe,
Asia Pacific, and Rest of the World (RoW). Europe is projected to be the fastest-growing
region during the forecast period owing to growth in consumption of hemp seeds
as food as well as their broad application in other food products such as
smoothies, yogurt, cereals, and bars especially in countries such as Germany
and the Netherlands. Moreover, the rise in awareness among consumers about the
nutritional benefits of consuming hemp is further expected to fuel the demand
for hemp-based food and personal care products. Furthermore, increasing
legalization of industrial hemp in the European region in the coming years is
expected to boost the industrial hemp market.
The increasing legalization of the cultivation
of hemp provides enormous opportunities to the manufacturers and research
institutions to develop new products from industrial hemp. Bioplastic is one
such product that can be manufactured from the leftover of hemp seeds and CBD
oil. Furthermore, biofuel derived from the hemp plant provides opportunities
for the companies to explore this application of hemp as a fuel for
automobiles. The growing consumer demand for sustainable goods, along with
initiatives and support from corporate and government, is expected to support
the growth of hemp-based biofuel and bioplastics in the coming years.
The beverage
flavoring systems market was valued at USD 3.8 billion in 2018 and is
projected to reach USD 5.2 billion by 2023, at a CAGR of 6.1% from 2018 to 2023.
The global demand for beverage flavoring systems is increasing significantly
due to the launch of advanced technologies in flavor processing, the increasing
consumer inclination toward clean-label and organic products, and favorable
regulatory environment for fortified products. Fruit & vegetable flavors
find applications in the manufacturing of juices, functional drinks, carbonated
soft drinks, alcoholic beverages, and dairy-based beverages. The Asia Pacific
region is projected to hold the largest market due to growing consumption of
carbonated soft drinks. There is also a growing demand for natural, tropical,
and exotic aromas in flavors from this region. The market for beverage
flavoring systems is set to grow, owing to the favorable regulatory policies
for the consumption of products with low sodium, low sugar, and natural
products. All these factors are expected to fuel the market growth of beverage
flavoring systems.
The beverage flavoring systems market, on the basis of ingredient, constitutes four segments, namely,
flavoring agents; flavor enhancers; flavor carriers; and others, which include
curing & pickling agents, preservatives, acidity regulators, emulsifiers,
and stabilizers. Since consumers are becoming more health conscious, they are demanding low-salt, low-sugar, and
low-fat beverages. This has been fueling the demand for taste modulators and
taste-masking agents. The flavoring agents segment is projected to grow at a
significant rate due to the growing consumption of fortified beverages, owing
to their nutritional values.
Beverage flavoring systems market, on the basis of beverage type, is
segmented into alcoholic and non-alcoholic. The non-alcoholic segment is projected
to be the faster-growing segment due to the growing consumption of carbonated
soft drinks, juices, and functional drinks. The carbonated soft drinks and
juice industries are major application areas of flavoring systems. Consumer
demand for innovative tastes encourages flavor manufacturers to launch new
flavor products.
Beverage flavoring systems market, by form, is segmented into dry and
liquid. The liquid segment is projected to be the faster-growing segment since
liquid flavors can be easily mixed together to provide a homogeneous
distribution of each flavor component—a reason why most beverage manufacturers
prefer the usage of liquid flavors.
The launch of advanced and cost-effective flavor systems, development of
multi-functional flavor systems, and changing lifestyles coupled with the
rising demand for carbonated soft drinks in the Asia Pacific and South American
economies prove to be opportunities for this market. The growing demand for a
variety of innovative flavors in soft drinks, the launch of advanced technologies for flavor processing, and favorable
regulatory environment for fortified products coupled with growing consumer
inclination toward clean-label and organic products are some of the factors
which drive growth in the beverage flavoring systems market.
The major players in the industry are focusing on new service &
technology launches as well as attaining the leading market position through
the provision of a broad portfolio, catering to the varied requirements of the
market, along with a focus on the diverse end-user segments.
The algae
products market is estimated at USD 3.98 billion in 2018 and is projected
to reach a value of USD 5.17 billion by 2023, growing at a CAGR of 5.4%. The key
players profiled have a strong presence in the global algae products market;
they include DowDuPont (US), Cargill (US), Kerry (Ireland), E.I.D Parry
(India), Corbion (Netherlands), and BASF (Germany).
The key market players adopted various growth strategies
such as acquisitions & mergers, expansions & investments, and new product
launches in order to cater to the increasing demand for algae products and expand
their business. The companies in this market focus on increasing their research
& development expenditure to develop new algae products with better food-grade
quality; the companies also focus on expanding their manufacturing capacities
by increasing production capacities of existing plants or by establishing new
production plants.
The core strengths of the key players in this market are expansions
and investments, which help to increase their presence in the algae products market.
The companies are investing in new technologies to create nutrient-fortified algae
ingredients to match the requirements of food and nutraceutical ingredients manufacturers.
Companies such as DSM (Netherlands), DowDuPont (US), Cargill (US), E.I.D Parry
(India), Cyanotech Corporation (US), BASF (Germany), Kerry (Ireland), Corbion
(Netherland), Ingredion (US), Roquette Frères (France), Fenchem Biotek (China),
Algatechnologies (Israel), and CP Kelco (US) are the key players.
Cargill (US) has been one of the major players in the global algae
products market. It offers algae products in Europe, Africa, the Middle East,
Asia, and the Americas. In September 2013, as an expansion strategy, Cargill upgraded
and expanded its alginate business in
France. The main objective of this expansion was to provide a sustainable
supply of high-quality alginates for the food and pharmaceutical markets.
Cyanotech Corporation (US) strengthened its position in the algae
products market, mainly through expansion. In 2015, Cyanotech installed a new
astaxanthin extraction system in Hawaii, US
to meet the increasing demand for
astaxanthin products.
Ingredion (US), in November 2013, expanded its global R&D
facility in Bridgewater, NJ, US. This expansion is part of the company’s
overall strategic plan to expand its product portfolio with innovative
ingredient solutions, based on recent trends and demand.
The key players identified have a strong presence in the top
10 trends in food safety testing and technologies industry including SGS
S.A. (Switzerland), Bureau Veritas S.A. (France), Intertek Group plc (U.K.),
Eurofins Scientific SE (Luxembourg), ALS Limited (Australia), Thermo Fisher
Scientific Inc. (U.S.), Mérieux NutriSciences Corporation (U.S.), AsureQuality
Ltd. (New Zealand), Microbac Laboratories Inc (U.S.), and Romer Labs Diagnostic
GmbH (Austria).
The key market players adopted various growth strategies
such as expansions, acquisitions, agreements, in order to cater to the
increasing demand for food safety and testing technologies. The companies
increased their research and development expenditure to expand their
manufacturing capacities and offer diversified food safety testing
technologies.
The core strengths of the key players that have driven the
top 10 trends in food safety testing and technologies industry are strategic
expansions and acquisitions, in order to enhance their market presence. Market
players such as SGS S.A. (Switzerland), Bureau Veritas S.A. (France), and
Intertek Group plc (U.K.) successfully tapped the potential markets through
expansions, acquisitions, and new service launches. Moreover, these companies
also focused on offering a diverse range of testing services such as food
pathogen testing, GMO Testing, pesticide residue testing, and others to cater
the changing requirements of the food safety testing and technologies industry.
SGS S.A. (Switzerland) has been one of the major players in
the global food safety testing and technologies industry; it adopted strategies
such as acquisitions, expansions, partnerships, and new technology &
service launches in the recent years. The company acquired Laboratoire LCA
(Morocco), to expand its business in the Moroccan agriculture market, it also
expanded its food testing laboratory in South Korea, to offer food chemical
testing, food contaminant testing, and microbiological and DNA testing.
Bureau Veritas S.A. (France) adopted acquisitions as its
strategy to expand its presence in the food safety testing and technologies
industry. Bureau Veritas S.A. is a global leader in providing testing,
inspection, and certification services to meet the growing challenges of
quality, safety, environmental protection, and social responsibility. The
company offers innovative solutions for regulations & standards, reducing
risks, improving performance, and promoting sustainable development.
Intertek Group plc (U.K.) adopted strategies such as
expansions and acquisitions in order to efficiently expand its geographic
presence in recent years. Intertek set up its AgriTech laboratory at Hyderabad
(India) to perform DNA-based testing of various agricultural products. The
company introduced its advanced ScanBi DNA testing technology in India with
this expansion. The company also acquired the Italian company Food
International Trust (FIT-Italia), which provided a wide range of assurance,
testing, and certification services.
The food
sterilization equipment market is projected to reach USD 922.7 million by
2023, at a CAGR of 6.3% from 2018. This market is mainly being driven by rising
instances of foodborne diseases and growing awareness about food safety among
consumers. Factors such as increasing consumption of sterilized food products
in the emerging markets of the Asia
Pacific and Europe are also projected to drive the growth of the food
sterilization equipment market.
The dried fruits & nuts segment is projected to grow at
the highest CAGR from 2018 to 2023. Dried fruits and nuts are consumed as a snack
and are used as ingredients in various confectionery and bakery products.
Insects, mites, and microbes can spoil dried fruits and nuts, and degrade its
quality. To maintain the quality of the dried fruits and nuts, manufacturers
are focusing on opting for food sterilization equipment. These factors are
projected to drive the growth of the market in this segment.
The radiation
segment of the food sterilization equipment market is projected to grow
at the highest CAGR from 2018 to 2023. Radiation technology minimizes the presence of pathogens
and reduces the speed of enzymes production, which eventually slows down the
ripening, spoilage, and sprouting process in the food products.
The batch sterilization process is projected to witness the fastest
growth between 2018 and 2023. This process involves minimal expenditure on the
apparatus and assets as compared to the continuous sterilization system. Due to
these factors, this process remains the most-preferred in various food
application industries.
Asia Pacific is estimated to record the highest CAGR in the global
market during the review period. The rising number of foodborne diseases is mainly
due to the presence of allergens and pathogens s, which results in the
contamination of food products from plastic, glass, and metal parts. Such
factors are driving the food sterilization equipment market.
Manufacturers in the region are focusing on utilizing various
sterilization technologies for packaging food products. Upcoming sterilization
technologies such as aseptic packaging are
being used by several food manufacturers due to its fast and easy process. In
addition, leading technology solutions enable the manufacturers to offer better
quality products, save production energy, and prevent the deformation of the packaged
food product. The key market players in developing countries such as India and
China are utilizing various sterilization processes to cater to the growing
demand for packaged and processed food products.
Similar to peas,
rice, and canola, potato proteins are vegetable sourced proteins with significantly smaller market size. The small
market size of potato protein can be mainly attributed to the introductory stage of its lifecycle.
However, it is increasingly becoming a subject of R&D in the protein
industry among both food and feed manufacturers. The consumption of potato
protein is currently the largest in the feed industry, especially in cattle and
swine feed, whereas in the food industry, it is used in limited applications
such as confectionery, bakery, processed meat, and to some extent in dairy
products. However, it is extensively researched as potato protein isolated by
thermal coagulation is highly unstable and insoluble, resulting in the loss of
their functionality in food applications. Furthermore, due to its solubility
issues, potato protein concentrate is considered as a by-product of low value
despite the high nutritional value of the indentured protein.
According to
MarketsandMarkets, the global potato protein market is projected to grow from
USD 72.2 million in 2017 to USD 88.2 million by 2022. The growth of the market
is projected to be directly affected by the rising veganism trends and
increased concerns toward the food allergen products. The global potato protein
market is projected to grow at a CAGR of 4.1% from 2017 to 2022.
What is driving the growth of the
potato protein market?
Consumer
concerns regarding food allergens in food products
Intolerance
and allergenic reactions are common health concerns globally, particularly in
regions such as North America and Europe. According to the Food Allergy
Research & Education (FARE), in the US, nearly 200,000 people each year
require emergency medical care due to allergic reactions to food, which cost
about USD 25 billion annually. In the EU, according to The European Academy of
Allergy and Clinical Immunology (EAACI), currently, around 150 million citizens
suffer from chronic allergic diseases, and by 2025, it is estimated that more
than 50% of all Europeans will suffer from allergies.
As a result of
the growing concerns regarding allergies, an increasing emphasis is placed on
accurate labeling of food products in order to help customers identify the presence of allergens. Manufacturers in the
food industry have responded accordingly by introducing allergen-free products,
labeling them as ‘gluten-free,’ ‘lactose-free,’ or by providing disclaimers on
food products such as ‘this product is processed in a factory that also
processes soy, wheat, peanuts, and eggs, among others’, in order to create
product awareness and prevent allergen concerns among consumers through
cross-contamination.
Therefore,
consumers in the European and North American regions prefer allergen-free
proteins such as potato proteins in food products. This has resulted in an increasing focus of food manufacturers on the
identification of alternate sources of protein that are allergen-free, such as
potato proteins. Consequently, this has resulted in increasing industrial
investments in R&D for the use of potato protein in food applications.
Untapped
regional markets are creating opportunities for potato protein
The market
for potato protein is currently at a nascent stage of its life cycle, and its
production is largely concentrated in the European region, followed by the
North American region. Moreover, the production of potation protein for use in
both food and feed applications is significantly low in regions such as the Asia
Pacific and South America. As a result, any industrial demand in these regions
has to be met with imports from the European and North American regions, which
significantly adds to the cost of procurement, and thereby production,
translating into higher prices of the final products. This provides an
opportunity for investments in potato protein production facilities in emerging
economies that would enable easy procurement of potential potato protein for
industrial users.
The feed segment is projected
to dominate the potato protein market by 2022.
The feed segment dominated the potato protein market in 2016 and is projected to grow at the highest CAGR during the forecast period. Potato protein is widely used in feed applications. However, its usage in food & beverage applications is still at a nascent phase. Of the various feed applications, it is mainly used for piglets and broilers. The high usage of potato protein in the feed is due to its high digestibility, pure protein content, and good palatability. It is known to be of superior quality as compared to various animal protein sources and other plant protein as soy concentrates and pea protein.
Based on region, the potato
protein market is segmented into North America, Europe, Asia Pacific, and Rest
of the World.
The Asia Pacific
accounted for the fastest growing market for potato protein in 2016. This market
is projected to grow at the highest CAGR of 4.4% during the forecast period. The
growth of this market is attributed to the increasing demand for potato protein,
which is used in feed, due to Asia Pacific’s highest livestock population as
well as feed consumption in the world.
The large base of the vegan population in the Asia Pacific
region is another major driver for the market. However, predominant preferences
for soy protein in food applications, the lack of awareness about the benefits
of potato protein, constrained supply issues, and drawbacks associated with potato
protein inhibit its growth in the food industry.
Pea starches are carbohydrates extracted from peas for application in the food and feed industries. In addition, due to their biodegradable and renewable nature, they are increasingly being used as an alternative to fossil fuel components in various chemical applications, including detergents, cosmetics, and pharmaceuticals. They are stable under high temperature, and various pH levels and have good resistance to shearing. In addition, they are mostly used for the aseptic processing of food products such as sauces, soups, and meat products.
Pea starch stability is also used for enhancing the crispness in food products along with improving volume in various extruded snacks. Along with various nutritional properties, it is also used in products such as gluten-free and lactose-free solutions, low-calorie formulations, and allergen solutions, due to which it is widely used in the pet food industry.
According to MarketsandMarkets, the global pea starch market is projected to grow from USD 91.8 million in 2018 to USD 134.7 million by 2023. The market growth is attributed to the rise in demand for high-quality convenience food and beverage products.
What is driving the growth of the pea starch market?
The rising demand for pea starch in various food and industrial applications
Pea starch offers various functions such as gelling, texturizing, binding, coating, thickening, and film forming. Due to its multifunctionalities, pea starch is used in various food applications, such as pasta, noodles, bakery products, confectioneries, soups, sauces, meat products, and poultry. It is also widely used in vermicelli as a binding agent. Pea starch is also a potential replacement for other starches in food and beverage applications as it is an economical option and offers a wide range of functions. In the pharmaceutical and cosmetic industries, pea starch is used for its gelling, thickening, and texturizing properties. With the rapid growth and changing trends in the pharmaceutical industry, the demand for pea starch is projected to increase. Companies such as Meelunie B.V. (Netherlands) and Parrheim Foods (US) are the major producers of pea starch, which cater to the pharmaceutical and cosmetic industries.
The rapid growth in the corn ethanol industry has contributed to a significant increase in the prices of corn and ethanol, due to which producers are focusing on shifting from corn to low-cost alternatives such as pea starch, which in turn, contributed to the growth of the pea starch market. The production of ethanol by pea starch improves the fermentation rates and allows ethanol producers to expand the annual production capacity and decrease capital costs by increasing the number of fermentations per year.
Starch granules, when heated in excess water above their gelatinization temperature, undergo irreversible swelling, resulting in amylose leaching into the solution. The changes that pea starch undergoes due to retrogradation are a major determinant to its functional properties for food and industrial applications and pose significant challenges to the food processing industry. For instance, it causes the staling of bakery products and the embrittlement of starch plastics, coatings, and adhesives. In non-food uses of pea starch such as in paper and adhesive applications or plastics, retrogradation affects the processing and final properties. Hence, it is one of the major restraints for the growth of the market globally.
The pea starch market is witnessing significant demand in developing countries such as China and India, due to the rising awareness of healthy and natural ingredients in food products, along with the increasing production of food and feed products in these countries. Localizing operations can help in reducing costs and improving access to local distribution networks, thereby optimizing profit margins. Resources and labor are readily available at a cheaper rate in these regions. The local governments in China and India are providing incentives for multinationals to set up Greenfield ventures. The Indian government has declared major tax breaks to attract multinational investors. China provides special tax incentives over the usual tax holidays to encourage foreign investors.
The gelling segment is estimated to dominate the global pea starch market
Pea starch is used to maintain the texture of food and also to create texture in water-based products. Gelling improves the availability of starch for amylase hydrolysis. Hence, the gelling process for starch is used constantly in the food & beverage industry to make starch digestible and to thicken or bind food products. Pea starch as a gelling agent is used in various applications such as confectionery and feed due to the high availability of amylose. In addition, the gelling function helps to keep the nutrients in food and feed products intact. As pea starch has strong gelling capabilities, manufacturers are using it to produce various food products and meet consumer demands globally.
Based on region, the pea starch market is segmented into North America, Europe, Asia Pacific, and Rest of the World.
North America accounted for the largest share with a value of USD 29.5 million in 2017. This market is projected to grow at a CAGR of 8.4% during the forecast period. Emsland Group (Germany), Cosucra Groupe Warconing SA (Belgium), Parrish and Heimbeckar, Ltd. (Canada), Puris Foods (US), and Axiom Foods, Inc. (US) are a few key players that occupy a significant share in the global market for pea starch.
The major factors driving the demand for pea starch in North America are the growing awareness of animal nutrition and the presence of a large number of pea starch companies in the region.
Cannabis is a drug derived from the cannabis sativa, cannabis indica, and hybrid strains. Although cannabis is composed of different cannabinoids, the two main cannabinoids that are considered to be the most active compounds are tetrahydrocannabinol (THC), the psychoactive compound, and cannabidiol (CBD), the non-psychoactive compound. The market definition for cannabis, in this study, takes into consideration both medical as well as recreational cannabis.
The use of medical cannabis and the implementation of cannabis-derived compounds for treatment and therapy have been widely debated, globally. Furthermore, there are several opposing notions associated with the use of cannabis for medical purposes, owing to its societal and ethical implications. However, the adoption of cannabis has continued to evolve, with a growing gradual acceptance of its use by a number of states. The least contentious extract of cannabis is derived from its hemp plant and is known as CBD (cannabidiol). CBD is currently touted as the safest and most potent form of cannabis and is effective for medicinal use.
According to MarketsandMarkets, the global cannabis market is projected to grow from USD 10.30 billion in 2018 to USD 39.35 billion by 2023. The growth of this market is attributed to the growing number of medicinal applications and increasing legalization of cannabis. The complex regulatory structure for the use of cannabis is restraining market growth. The cannabis market is projected to grow at a CAGR of 30.7% from 2018 to 2023.
What is driving the growth of Cannabis?
Growing medicinal application of cannabis
CBD-dominant strains of cannabis have little or no amount of THC (tetrahydrocannabinol), the chemical that is responsible for psychological alterations. As a result, when the extract is used for treatment purposes, the benefits such as relief from insomnia, anxiety, spasticity, epilepsy, and pain, have been observed with little or no alteration in consciousness. Another important and extensive use of cannabis for medical purposes is observed for pain control. Although the use of cannabis is not strong enough for severe pain, its use remains potent for chronic pain. Cannabis remains especially effective in easing the pain caused by multiple sclerosis and nerve-related issues. It also acts as a muscle relaxant and could be used to lessen the tremors caused by Parkinson’s disease.
Therefore, CBD, being non-psychoactive in nature, has highly garnered favor for being used for the treatment of a number of ailments. There are various studies confirming the anti-inflammatory, anti-pain, and antipsychotic properties of CBD wherein its use has been proven effective. To further establish its effective use amongst consumers, the pharmaceuticalized form of CBD, Epidiolex, was approved by the US Food and Drug Administration in June 2018 as a treatment for seizures associated with two rare and severe forms of epilepsy. According to the data published in the New England Journal of Medicine, the use of the drug could help reduce seizures by about 40%. Additionally, GW Pharmaceutical’s drug, Sativex, which contains both CBD and THC, is available as a treatment for multiple sclerosis-related spasticities, in Canada, Australia, and a majority of the European and South American regions. Furthermore, the infusion of CBD in edible products has also been developing as an emerging wellness trend in many countries, which is further expected to impact the market for cannabis positively.
Increasing legalization of cannabis
Cannabis legalization is often viewed upon with dual perceptions wherein its legalization has been proven to be met with skepticism associated with possible abuse. While supporters of cannabis legalization have argued that its prohibition has not been successful at reducing access to and the use of cannabis, it has been presumed that legalization could, in turn, allow people to practice safe substance use while also reaping its medicinal benefits. As a result, there is an increase in the number of states that are gradually legalizing the use of cannabis across the globe. As of November 2018, it is legal to smoke marijuana for medical use in 33 states in the US, whereas nine states will still be requiring a doctor’s prescription to do so. The recreational use of cannabis is, in turn, legalized in 10 of these states. Similarly, Uruguay became the first country to legalize marijuana fully, outside the US, in 2013. Similarly, Canada too legalized the complete use of marijuana in 2018.
While most countries across the globe have still not legalized the use, the approach to the use and sales has been relaxed over the years. For example, the Netherlands allows citizens to store and cultivate some amount of marijuana while they are also permitted to be sold via coffee stores as long as they are not sold to minors. Additionally, Spain permits the use of marijuana in clubs while it still remains illegal to be traded. While marijuana legalization is still at a nascent stage, globally, its growing use for medicinal and therapeutic purposes has been gradually driving a number of countries toward its legalization. As more countries move toward its partial or complete legalization, the market for cannabis will be experiencing a positive trajectory.
Medical cannabis is expected to be the most widely used application of cannabis
The use of cannabis is being legalized across countries for medical purposes for the treatment of various illnesses and ailments. CBD or cannabidiol, which is a major component of cannabis, is not psychoactive in nature and provides various medicinal benefits associated. In addition, regulatory bodies in various countries are legalizing medical cannabis, as the compound is considered safe for use compared to other medications prescribed for the treatment of similar ailments. Over the past few years, countries such as Australia, Argentina, Mexico, and Germany have legalized the use of medical cannabis. Furthermore, with the use of medical CBD in the form of oils, topical pain relief treatment solutions and edibles could also dissuade its smoke intake among patients while being equally effective medically. Medical cannabis remains the most effective, as they are also used for various health conditions which include pain management, neurological health management, and mental health management.
Based on region, the cannabis market is segmented into North America, Europe, South America, and the Rest of the World.
North America accounted for the largest share, with a value of USD 6,122.7 million, in 2017. This market is projected to grow at a CAGR of 30.8% during the forecast period. Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), and Medical Marijuana Inc., (US) are a few key players who occupy a significant share in the global market for cannabis.
The growing legalization of cannabis for both medical and recreational purposes all over North America and the increasing awareness among consumers regarding the health benefits of cannabis have driven the cannabis market in the region.
Trends & Forecast on Agricultural and Food Industry 