Home Healthcare IT Cannabidiol (CBD) Market Size, Top Share, Report to 2031

Cannabidiol (CBD) Market

Cannabidiol (CBD) Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Product Type (CBD Oil, CBD Capsules, CBD Topicals, CBD Tinctures, CBD Vape Products, Others), By Application (Tincture, Food, Beverages, Pharmaceutical, Topicals, Dietary Supplements, Others), By Distribution Channel (Online, Offline) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRHI55107DR
Study Period 2020-2032 CAGR 18.6%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global cannabidiol (CBD) market size was valued at USD 9.34 billion in 2023. It is projected to reach USD 32.43 billion by 2032, growing at a CAGR of 16.8% during the forecast period (2024-2032).

Cannabidiol (CBD) is a naturally occurring phytocannabinoid that was first identified in the year 1940. CBD, or cannabidiol, is the second most abundant psychoactive compound in cannabis (marijuana). CBD is an essential constituent of therapeutic cannabis, which can be obtained from hemp, a closely related plant to cannabis, or synthesized through laboratory processes. CBD, one of the hundreds of components of cannabis, does not produce a "high" on its own. According to the World Health Organization's report, "CBD demonstrates no effects indicative of abuse or dependence in humans. Currently, there is a lack of evidence indicating any potential risks to public health associated with the consumption of unadulterated CBD."

Cannabidiol (CBD) can be administered through various routes, including oral ingestion, topical application, aerosolized delivery via cheek spray, or inhaling cannabis smoke or vapor. The available administration forms include oral pills, dried cannabis, CBD-dominant hemp extract oil, CBD oil containing CBD solely as the active constituent (devoid of THC or terpenes), or a liquid solution that requires a prescription. CBD can counteract its psychoactive effects on the body when combined with THC, as it does not have the same psychoactivity as THC. CBD may partially transform into THC when heated between 250 and 300 °C.

Market Dynamics

Global Cannabidiol (CBD) Market Drivers

Growing Adoption of CBD-Based Products for Treating Various Medical Conditions

CBD-based products are gaining wide recognition in the health and wellness sector as scientific studies have confirmed the therapeutic properties of CBD. Patients use it to treat various mental disorders, cancer, and arthritis. Pharmaceutical drugs for anxiety and depression can have several negative side effects, including drowsiness, insomnia, sexual dysfunction, and headaches. On the other hand, CBD oil is a non-addictive natural method for treating anxiety and depression. CBD has also proven effective in reducing the number of seizures.

Cancer patients undergoing chemotherapy and radiation treatments often suffer nausea, vomiting, and post-cancer pain. These side effects can be minimized by regular intake of CBD oil. In 2018, after years of research, FDA approved Epidiolex for treating Lennox-Gastaut Syndrome (LGS) and Dravet syndrome, as studies confirmed that CBD is effective in treating seizures. Several additional potential CBD health benefits are currently being investigated. Acne, type 1 diabetes, and even some cancers may respond favorably to CBD treatment, according to preliminary research. Such factors boost the market growth.

Increasing Preference Towards Cannabis Extracts Such as Oils and Tinctures

Cannabis oils and tinctures are extracts that can be used for manufacturing edibles and topicals other than smoking. These extracts are generally used for treating conditions such as cancer, mental disorders, and nausea and for recreational purposes such as vaping. Moreover, the demand for cannabis oils and tinctures for medical uses is increasing owing to social stigma related to the smoking of cannabis buds.

Furthermore, children undergoing cannabis therapy are prescribed cannabis oils due to age limitations and because the dose of cannabis extracts can be calculated exactly. Quantifying this accurate dosage of components in cannabis buds is difficult. Therefore, factors such as accurate dose calculation lead to the increasing adoption of cannabis extracts, such as oils and tinctures, for medical purposes. According to some studies, the consumption of cannabis oil has a longer effect than that of smoked cannabis.

Global Cannabidiol (CBD) Market Restraint

Absence of Legalization Programs in Several Asian and African Countries

CBD, unlike its primary produce, cannabis, is facing restrictions in many Asian and African countries. For instance, Middle Eastern and Asian countries rarely promote the use of cannabis-based products, even for medical purposes. These countries have strict laws and stringent punishments for those caught or found consuming CBD-based products and are not in favor of relaxing these laws or decriminalizing the use of CBD. Therefore, very few countries have legalized the use of cannabis for medical purposes.

For instance, drug regulations in Indonesia are so stringent that they include life imprisonment, USD 1.2 million fine, and even death penalty for those found consuming illegal drugs, including cannabis. This is expected to hinder the medical cannabis market in these regions.

Global Cannabidiol (CBD) Market Opportunities

Rising Number of Retailers Selling CBD-Based Products

People are becoming more eager to purchase CBD-based products, regardless of price, as awareness of the medical benefits of CBD grows. Formerly involved in selling groceries, medications, and other commodities, mainstream shops increasingly concentrate on selling CBD-based goods due to their larger profit margins. In more than 160 of its 250 stores, the clothing giant Abercrombie & Fitch intends to sell body care items infused with CBD.

Several businesses specializing in health and wellness, including CVS Health, Rite Aid, and Walgreens Boots Alliance, have chosen to carry CBD-based goods. CVS Health plans to sell CBD topicals through its 800 stores, and Walgreens Boots Alliance plans to sell CBD-containing topicals in 1500 of its stores in the U.S. The increasing availability of CBD products in stores is a key factor fueling the industry's expansion.

Regional Analysis

Based on region, the global cannabidiol (CBD) market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global cannabidiol (CBD) market shareholder. The United States will probably control the global market due to chronic illnesses' rising prevalence and demand for efficient therapeutic products. The cannabidiol (CBD) market in the United States is anticipated to expand due to increased biopharmaceutical research and development activities. According to data from the Center for Rare Neurological Disease Research in January 2021, approximately 200,000 Americans were affected by rare neurological diseases. Consequently, the rising prevalence of these disorders and associated complications increased the demand for CBD products, fostering market expansion in this region.

Significant market participants and advanced product development technologies are also anticipated to endow this region with a dominant share. For instance, Cheef Botanicals launched Vegan CBD Gummies in August 2022 to expand its portfolio. The recent introduction of CBD gummies seeks to revitalize the cannabinoid market. These CBD gummies are the finest on the market because they come from organic farms. The factors above are anticipated to drive market expansion over the forecast period.

Europe is expected to demonstrate a significant CAGR characterized by strong and steady growth during the forecast period. Historically, Germany relied on the importation of raw materials from foreign nations. However, with the recent legalization of domestic cannabis cultivation and the establishment of legal provisions for medical cannabis accessibility, the country has undergone a significant shift. This German initiative substantially impacts the expansion of the CBD market. In contrast to certain nations, patients within the country are able to obtain medical cannabis through the means of a prescription. The country has allowed 20,000 pharmacies to sell medical cannabis by prescription. In addition, a wide-ranging benefit of CBD, including anti-inflammatory for acne and antioxidants for anti-aging, has increased the consumer demand for CBD-infused beauty products. This has encouraged major cosmetic retailers such as Sephora, CVS, and Walgreens to move to the emerging segment. Changing consumer mindsets and the growth of the beauty and wellness market are drawing the interest of large-scale retailers in the sector, thereby fueling regional market growth.

Asia-Pacific is predicted to witness substantial growth over the projected period, primarily attributed to the establishment of hemp production facilities, focusing on China. China is the largest hemp cultivator in Asia and cultivates nearly half of the world's hemp production. The country also exports nearly 90% of its produce to the U.S., Germany, the UK, the Netherlands, and Japan. China is also considered a superpower in hemp production, owning 300 world hemp patents out of 660 and providing half of the world's hemp products. Moreover, the country is looking to produce CBD from hemp. China is currently allowing the sale of hemp oil and CBD in cosmetics. They are provided by only four Chinese companies that hold special licenses to grow and process hemp for CBD. On the other hand, the growing popularity of CBD products means that more farmers and manufacturers will enter the market, likely increasing the demand for CBD oil, edibles, and tinctures. Moreover, growing awareness about CBD-based products and their application is expected to fuel market growth.

Report Scope

Report Metric Details
By Source Type
  1. Hemp
  2. Marijuana
By Product Type
  1. CBD Oil
  2. CBD Capsules
  3. CBD Topicals
  4. CBD Tinctures
  5. CBD Vape Products
  6. Others
By Application
  1. Tincture
  2. Food
  3. Beverages
  4. Pharmaceutical
  5. Topicals
  6. Dietary Supplements
  7. Others
By Distribution Channel
  1. Online
  2. Offline
Company Profiles Charlottes Web Holdings Medterra CV Sciences Elixinol Canopy Growth Corporation Aurora Cannabis Tilray CBD American Shaman Green Roads Bluebird Botanicals PlusCBD Oil Lazarus Naturals Joy Organics Hemp Bombs Lord Jones Koi CBD Fab CBD PureKana NuLeaf Naturals
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global cannabidiol (CBD) market is segmented by source type, product type, application, distribution channels, and end-user.

Based on the source type, the global CBD market is segmented into hemp and marijuana. 

The hemp segment owns the highest cannabidiol (CBD) market. The cannabis sativa plant species known as hemp, commonly called industrial hemp, has a THC level as low as 0.3%. It is a variety of the cannabis plant family. Hemp-derived CBD finds application in several sectors, including pharmaceuticals, cosmetics, nutraceuticals, and food and beverage. The demand for CBD-infused cosmetics and personal care products is ascending rapidly owing to CBD's anti-inflammatory, anti-seborrheic, and antioxidant properties. Several beauty brands, such as The Body Shop and MGC Derma, are now involved in producing personal care and cosmetics products infused with hemp-derived CBD.

Marijuana-derived CBD is mainly used in medical applications because of its health benefits. In states where cannabis has been legalized, marijuana-based CBD can be used in any form, including gummies, vape pens, and flowers. In most states, CBD derived from marijuana can be accessed legally with a prescription; however, the standards vary for different states depending upon the condition to be treated using CBD and the amount of THC in the products. Growing legalization of medical marijuana, along with rising awareness regarding the health advantages of products infused with CBD derived from marijuana, are factors projected to foster growth over the forecast period.

Based on distribution channels, the global CBD market is divided into Business to Business (B2B) and Business to Consumer (B2C). 

The B2B channel segment is the largest revenue contributor to the market. The B2B segment comprises end users such as food and beverages, nutraceuticals, personal care and cosmetics, and pharmaceutical companies using CBD to manufacture CBD-infused products. The B2B distribution channel mainly comprises companies using CBD oil to manufacture their line of products. These mainly include pharmaceutical and wellness companies. Pharmaceutical companies further use CBD oil and tinctures to produce their medicines. 

The B2C segment comprises hospital pharmacies, retail pharmacies, and online stores. Retail pharmacies dominated this segment. Retail pharmacies provide cannabidiol-infused products such as personal care products, food items, and medicines with a specific prescription. The key manufacturers of cannabidiol-infused products focus on retail pharmacies as the preferred distribution channel owing to the easy availability of products for the consumers.

Based on end-user, the global CBD market is divided into medical, pharmaceuticals, wellness, and personal use. 

The pharmaceuticals segment dominates the global market. Cannabidiol is beneficial for medical conditions such as inflammation, pain, sleep disorders, epilepsy, schizophrenia, anorexia, and symptoms of multiple sclerosis, among others. This rapidly progressing transformation of cannabidiol from herbal preparations to prescription drugs is anticipated to boost the cannabidiol market growth. Increasing awareness about the medical benefits of cannabidiol, including its healing properties, is also anticipated to drive product demand in the pharmaceutical industry.

Smoking marijuana has several negative effects that have increased interest in CBD oil for both therapeutic and recreational uses. CBD isolates, such as oils and tinctures, can be added to various personal remedies, mixed with oils, added to coffee, or used to make edibles, thus making them consumer-friendly. In addition, CBD oil can be directly applied on the face to treat skin conditions, such as acne vulgaris, dry rashes, and cold sores, due to its anti-inflammatory properties. The expansion of the CBD industry can be attributed to the fact that patients now have a convenient self-dosing option in the form of powdered CBD. Moreover, the rising utilization of CBD in food, beverage, and personal care is likely to fuel the CBD market growth.

Market Size By Source Type

Recent Developments

  • May 2023- Biophore India Pharmaceuticals announced that it received approval from India's Central Drugs Standard Control Organisation (CDSCO) to manufacture and sell cannabidiol in India.
  • July 2023- LegitScript, the industry authority in merchant and product certification and monitoring in the e-commerce and payment industries collaborated with Meta to certify certain topical, non-ingestible CBD products and the websites that sell them.

Top Key Players

Charlottes Web Holdings Medterra CV Sciences Elixinol Canopy Growth Corporation Aurora Cannabis Tilray CBD American Shaman Green Roads Bluebird Botanicals PlusCBD Oil Lazarus Naturals Joy Organics Hemp Bombs Lord Jones Koi CBD Fab CBD PureKana NuLeaf Naturals Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global cannabidiol (CBD) market?
The global cannabidiol (CBD) market growing at a CAGR of 18.6% from (2023–2031).
North America region has the largest share of the cannabidiol (CBD) market.
The key players in the global market include The Cronos Group, Organigram Holding, Inc., Canopy Growth Corporation, Aphria, Inc, Aurora Cannabis, Tilray, GW Pharmaceuticals, Plc, Abcann Medicinals, Inc.
Pharmaceuticals segment is the leading segment for the market during forecast period.
Growing adoption of cbd-based products for treating various medical conditions, increasing preference towards cannabis extracts such as oils and tinctures are the key drivers for the growth of the cannabidiol (CBD) market.

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