Hemp-Derived CBD Oil Market Size & Outlook, 2025-2033

Hemp-Derived Cbd Oil Market Size

The global hemp-derived CBD oil market size was valued at USD 2.38 billion in 2024 and is estimated to grow from USD 2.91 billion in 2025 to reach USD 14.56 billion by 2033, growing at a CAGR of 22.3% during the forecast period (2025–2033).

Hemp-derived CBD oil is a natural extract obtained from the hemp plant, a variety of Cannabis sativa with low THC (tetrahydrocannabinol) content, typically less than 0.3%. It contains cannabidiol (CBD), a non-psychoactive compound known for its potential therapeutic benefits, such as reducing anxiety, inflammation, and pain. Unlike marijuana-based CBD, hemp-derived CBD is legal in many regions due to its minimal THC levels. The oil is commonly used in wellness products like tinctures, capsules, and topicals, promoting relaxation and general health without producing a "high."

One of the primary drivers of the global hemp-derived CBD oil market is the increasing adoption of CBD oil in pharmaceutical and therapeutic applications. Another significant driver is the expansion of CBD oil use in pet care. As pet owners become more conscious about the health and wellness of their animals, demand for natural and holistic treatments is growing. Moreover, growing retail penetration through e-commerce platforms is fueling market accessibility and visibility.

Current Market Trends

Regulatory Clarity and Supportive Legislation

Supportive regulatory changes are playing a critical role in the global market. As CBD products become more mainstream, governments are introducing clear legal frameworks to ensure product safety and consumer protection. These regulations help legitimize the industry, promoting investment and innovation.

• In the United States, the 2024 Farm Bill aims to redefine hemp to include all derivatives, extracts, and cannabinoids, provided the final product contains less than 0.3% THC. This redefinition addresses regulatory gaps while mandating rigorous testing for contaminants and accurate labeling, which boosts consumer trust.

As more countries adopt similar regulations, regulatory clarity will foster sustained market growth by enhancing product quality, reducing uncertainty, and encouraging broader consumer acceptance. This trend is key to the continued expansion of the market for hemp-derived CBD oil.

To get more insights about this report Download Free Sample Report

Hemp-Derived Cbd Oil Market Growth Factors

Health and Wellness Trends

One of the primary drivers of the global hemp-derived CBD oil market is the rising consumer inclination toward health and wellness. CBD oil is increasingly embraced as a natural alternative for managing conditions such as anxiety, chronic pain, and insomnia. Consumers seeking plant-based and holistic remedies are turning to CBD products for both preventive and therapeutic purposes. Middle-aged and elderly populations, in particular, are showing growing interest in non-pharmaceutical options that offer fewer side effects.

• A 2023 study published in PubMed assessed a 10:25 preparation of Δ9-THC and CBD for chronic back or neck pain and found that the combination was well-tolerated and led to clinically significant reductions in pain scores, with improvements observed at higher doses.

This aligns with a broader wellness trend driving demand globally.

Market Restraints

Quality Control Issues

Quality control issues in the hemp-derived CBD oil market stem from a lack of standardized testing and inconsistent manufacturing practices. Variations in the extraction process, potency, and contamination levels can result in product inconsistencies, affecting consumer safety and trust. Moreover, the absence of universally accepted industry standards complicates regulatory compliance and hampers market credibility. These quality concerns can limit the market's growth, especially in regions with stringent regulations, as consumers and authorities demand higher product consistency and transparency. Overcoming these challenges requires improved testing methods, regulatory oversight, and enhanced manufacturing processes.

Key Market Opportunities

Research and Development

Research and development (R&D) is a key opportunity in the global hemp-derived CBD oil market, offering the potential for product innovation and validation of therapeutic benefits. As scientific interest in cannabinoids intensifies, companies are investing in clinical trials and technological advancements to create more targeted and effective formulations.

• For instance, a 2024 clinical trial published in the Journal of Cannabis Research explored the efficacy of CBD in managing treatment-resistant anxiety disorders, reporting promising results in reducing symptom severity. Such findings boost credibility and pave the way for pharmaceutical-grade CBD products.

Thus, continued R&D not only strengthens consumer trust but also supports regulatory approval processes, allowing broader market penetration and expanding the scope of CBD applications in healthcare and wellness industries.

Regional Insights

North America holds a dominant position in the global hemp-derived CBD oil market, largely driven by progressive regulatory frameworks and high consumer awareness. The United States, in particular, has witnessed exponential growth since the 2018 Farm Bill legalized industrial hemp, enabling the production and sale of hemp-derived CBD products. Leading companies like Charlotte's Web and CBDistillery have expanded their product offerings to include tinctures, topicals, and edibles, targeting wellness-conscious consumers.

Moreover, the growing acceptance of CBD for therapeutic uses, such as pain management, anxiety relief, and sleep improvement, has bolstered demand. Canada also supports market growth through nationwide cannabis legalization, which includes CBD. Overall, the region benefits from an advanced retail infrastructure and increasing investments in R&D.

U.s. Hemp-Derived Cbd Oil Market Trends

• United States: The U.S. is the largest market for hemp-derived CBD oil, propelled by the 2018 Farm Bill legalizing hemp cultivation. Widespread availability through wellness chains like CVS and Walgreens, coupled with growing demand for natural remedies, supports market expansion. States like Colorado and California are leaders in product innovation, with brands such as Charlotte’s Web and Green Roads dominating shelves.

Asia-Pacific Hemp-Derived Cbd Oil Market Trends

Asia-Pacific is emerging as a significant growth frontier, driven by increasing consumer awareness, evolving legislation, and the rising demand for wellness products. Countries like Japan and South Korea are witnessing a gradual relaxation of regulations surrounding hemp-based products, enabling greater market access. For instance, in Japan, CBD-infused beauty and wellness products are gaining popularity in urban centers such as Tokyo, where consumers are actively seeking natural solutions for stress relief and skincare.

Moreover, Australia's legalization of low-dose CBD products over the counter is accelerating mainstream adoption. With a projected CAGR exceeding 25%, the Asia-Pacific market presents lucrative opportunities for international and domestic players aiming to tap into health-conscious, trend-savvy populations.

• China: Despite hemp cultivation being legal in Yunnan and Heilongjiang, China's use of CBD in consumables remains restricted. However, the country is a global leader in CBD extraction for export purposes. Chinese companies like Yunnan Industrial Hemp have capitalized on global demand, supplying high-purity CBD to Western markets. Domestic use is mostly limited to cosmetics and topical applications due to regulatory barriers.
• India: India's traditional use of cannabis in Ayurveda is spurring renewed interest in hemp-derived CBD oil. While regulation remains gray, startups like Boheco and HempStreet are developing CBD-based therapeutics for pain and anxiety. The market is niche but expanding, particularly in urban wellness circles. Growing awareness and policy discussions around regulating medical cannabis could significantly bolster market growth.
• Japan: Japan permits the sale of hemp-derived CBD products provided they contain zero THC. The market is growing in wellness and skincare segments, with products such as Elixinol's CBD drops and cosmetics gaining traction. Consumer demand is driven by interest in non-psychoactive natural health alternatives. Despite cultural conservatism, acceptance is rising, particularly among younger, health-conscious consumers in cities like Tokyo and Osaka.
• Saudi Arabia: CBD remains illegal in Saudi Arabia, with strict drug laws prohibiting any cannabis-derived substances. However, regional interest in alternative medicines is growing. While there is no domestic market, Gulf neighbors like the UAE are exploring regulated CBD use, which may influence future Saudi policy shifts. International companies do not operate in the country, but education and advocacy may open dialogue in the years to come.

Europe Hemp-Derived Cbd Oil Market Trends

• Germany: Germany is Europe's largest CBD market, driven by progressive healthcare policies and increasing consumer interest in natural therapeutics. CBD oils are available in pharmacies and wellness stores. The country’s legalization of medical cannabis has paved the way for hemp-derived CBD oil, with companies like Sanity Group and Nordic Oil playing significant roles. Recent EU clarifications on novel foods support retail expansion.
• Italy: Italy has legalized hemp cultivation and permits CBD oil with less than 0.6% THC. The market is growing through health food stores and pharmacies. Retailers such as Enecta offer CBD oils targeting anxiety and sleep disorders. Consumer adoption is supported by EU directives and public interest in plant-based wellness, though inconsistent enforcement has caused occasional product seizures and legal debates.

Brazil Hemp-Derived Cbd Oil Market Trends

• Brazil: In Brazil, CBD oil is legal for medical use with a doctor’s prescription, mainly for epilepsy and chronic pain. ANVISA (Brazil’s health regulatory agency) has approved imports and regulated domestic production. Companies like Prati-Donaduzzi have launched CBD medications, reflecting institutional support. Though cost and access remain challenges, demand is rising as awareness of therapeutic benefits spreads among physicians and patients.

Product Type Insights

Full-spectrum CBD oil dominates the market due to its "entourage effect," where multiple cannabinoids and terpenes work synergistically to enhance therapeutic benefits. This type is preferred for conditions like chronic pain, anxiety, and inflammation. It's trace amounts of THC (within legal limits) and holistic composition attract consumers seeking natural, comprehensive wellness solutions. Increasing acceptance in medical and wellness applications further supports its strong market demand.

Source Insights

The organic hemp segment is witnessing significant growth, driven by rising consumer demand for clean-label and chemical-free CBD products. Cultivated without synthetic pesticides or fertilizers, organic hemp ensures higher purity and better safety profiles. Regulatory approvals and certifications boost consumer trust. As health-conscious and environmentally aware consumers increasingly seek sustainable wellness solutions, manufacturers are prioritizing them.

Application Insights

The nutraceuticals and dietary supplements segment is expanding rapidly as consumers increasingly incorporate CBD oil into daily health routines. Products like capsules, gummies, and tinctures are popular for managing stress, sleep disorders, and joint pain. Growing awareness about preventive healthcare, along with CBD's natural healing properties, is driving adoption. Regulatory clarity and scientific endorsements continue to strengthen its credibility and market penetration in the wellness industry.

Distribution Channel Insights

Online pharmacies have emerged as the most accessible and preferred distribution channel in the CBD oil market. It offers consumers convenience, privacy, a wide product selection, and competitive pricing. E-commerce platforms and brand websites also provide educational resources, lab test reports, and customer reviews, enhancing buyer confidence. The COVID-19 pandemic further accelerated digital adoption, establishing online channels as essential for market growth and direct-to-consumer CBD product delivery.

Company Market Share

Companies in the hemp-derived CBD oil market are focusing on expanding their product portfolios, enhancing quality standards, and investing in research and development to create innovative formulations. Strategic partnerships, regional expansions, and compliance with evolving regulations are also key priorities. To strengthen their market position, many are leveraging digital platforms for direct-to-consumer sales and are actively involved in awareness campaigns to educate consumers on the benefits and safety of CBD products.

List of key players in Hemp-Derived CBD Oil Market

1. Aurora Cannabis Inc.
2. Canopy Growth Corporation
3. CV Sciences Inc.
4. Medical Marijuana, Inc.
5. Isodiol International Inc.
6. ENDOCA
7. Elixinol Global Limited
8. NuLeaf Naturals, LLC
9. Charlotte’s Web Holdings, Inc.
10. PharmaHemp
11. Folium Biosciences
12. Gaia Herbs
13. Joy Organics
14. Green Roads

To get more findings about this report Download Market Share

Recent Developments

• April 2025 – Wynk, a leading and award-winning innovator in the low-dose, hemp-derived cannabis beverage market, is thrilled to expand its footprint across the U.S. with the introduction of its THC-infused seltzers in four new states: Wisconsin, Kentucky, Alabama, and Arkansas.

Analyst Opinion

As per our analyst, the global hemp-derived CBD oil market is poised for significant growth, driven by increasing consumer inclination toward natural wellness solutions and expanding applications in pharmaceuticals, cosmetics, and food products. The market is also witnessing a surge in R&D activities aimed at enhancing product efficacy and safety.

However, challenges such as regulatory inconsistencies, varying global legal frameworks, and quality control issues continue to hinder market expansion. Many manufacturers face difficulties in maintaining standardization and compliance across borders. Despite these challenges, the long-term outlook remains optimistic.

The evolving legalization landscape and growing consumer awareness about CBD's therapeutic benefits are expected to unlock new growth avenues. Companies that invest in transparent practices, product innovation, and strategic regional expansions will be well-positioned to capitalize on emerging opportunities and maintain a competitive edge.