Cannabidiol (CBD) Market - Global Industry Research Analysis

According to Market Research Store, the global cannabidiol (CBD) market size was valued at around USD 7.72 billion in 2023 and is estimated to reach USD 27.85 billion by 2032, to register a CAGR of approximately 15.32% in terms of revenue during the forecast period 2024-2032.

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The cannabidiol (CBD) report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Cannabidiol (CBD) Market: Overview

Cannabidiol (CBD) is a naturally occurring compound found in the cannabis plant, specifically in its hemp variety. Unlike tetrahydrocannabinol (THC), the psychoactive compound in cannabis, CBD is non-intoxicating and does not produce a "high." It is known for its potential therapeutic benefits, including pain relief, reduction of anxiety and stress, anti-inflammatory properties, and support for conditions such as epilepsy, insomnia, and certain neurological disorders.

CBD can be consumed in various forms, including oils, capsules, edibles, creams, and even beverages, making it versatile for both medical and wellness purposes.

The CBD market has been growing rapidly, driven by increasing consumer awareness of its potential health benefits and the rising acceptance of CBD products in the wellness and healthcare sectors. Legalization trends in many countries, particularly across North America and Europe, have further supported market expansion.

The U.S., Canada, and parts of Europe have seen regulatory changes that allow the cultivation of industrial hemp and the sale of CBD products, boosting consumer access and market growth.

Key Highlights

• The cannabidiol (CBD) market is anticipated to grow at a CAGR of 15.32% during the forecast period.
• The global cannabidiol (CBD) market was estimated to be worth approximately USD 7.72 billion in 2023 and is projected to reach a value of USD 27.85 billion by 2032.
• The growth of the cannabidiol (CBD) market is being driven by increasing awareness of its potential health benefits, changing social attitudes towards cannabis, and regulatory changes in many countries.
• Based on the type, the oil segment is growing at a high rate and is projected to dominate the market.
• Based on the source type, the hemp-derived CBD segment is expected to lead the global market.
• On the basis of application, the food & beverages segment is projected to swipe the largest market share.
• In terms of end-use, the personal segment is expected to dominate the market.
• By region, North America is expected to dominate the global market during the forecast period.

Cannabidiol (CBD) Market: Dynamics

Key Growth Drivers

• Increasing awareness of CBD benefits: Growing public awareness of the potential health benefits of CBD, including its potential to reduce anxiety, pain, and inflammation, is driving market demand.
• Changing legal landscape: The legalization of CBD in many countries and states has made it more accessible to consumers.
• Advancements in CBD extraction and production: Improvements in CBD extraction and production methods have made CBD more affordable and accessible.
• Expanding applications beyond health and wellness: CBD is being used in a wider range of products, including cosmetics, food and beverages, and pet care.

Restraints

• Regulatory uncertainties: The regulatory landscape for CBD can be complex and subject to change, creating uncertainty for businesses and consumers.
• Limited scientific research: While there is growing evidence for CBD's potential benefits, more research is needed to fully understand its efficacy and safety.
• Competition from traditional pharmaceuticals: CBD faces competition from traditional pharmaceuticals for treating conditions such as anxiety and pain.
• Social stigma and misconceptions: Some consumers may still have negative perceptions about CBD due to its association with cannabis.

Opportunities

• Expanding applications in various industries: CBD can be used in a wide range of industries, including healthcare, beauty, and wellness.
• Integration with other products: CBD can be combined with other ingredients to create innovative products.
• Development of new CBD formulations: Innovations in CBD delivery systems and formulations can improve its bioavailability and effectiveness.
• Growing demand for natural and plant-based products: Consumers are increasingly seeking natural and plant-based products, driving demand for CBD.

Challenges

• Market volatility: The market for CBD can be subject to fluctuations due to changes in regulations, consumer preferences, and economic conditions.
• Competitive landscape: The market is competitive, with numerous players offering CBD products.
• Technological advancements: The rapid pace of technological advancements can make it difficult for companies to keep up with the latest innovations and maintain a competitive edge.
• Regulatory compliance: Adherence to regulatory standards and compliance requirements can be complex and costly for CBD businesses.

Cannabidiol (CBD) Market: Segmentation Insights

The global cannabidiol (CBD) market is divided by type, source type, application, end-use, and region.

Segmentation Insights by Type

Based on Type, the global cannabidiol (CBD) market is divided into oil, capsule, extract, and other.

CBD Oil is currently the dominating segment due to its versatility, ease of use, and quick absorption. CBD oil is one of the most popular forms of CBD products. It is typically made by extracting CBD from the cannabis plant and diluting it with a carrier oil such as hemp seed oil, coconut oil, or olive oil. CBD oil can be taken sublingually (under the tongue), added to food and beverages, or used topically. It is available in various concentrations, allowing consumers to choose a strength that suits their needs.

However, CBD Capsules are rapidly gaining popularity, especially among those who prefer a convenient and consistent dosing format. CBD capsules are pre-measured doses of CBD enclosed in a soft gel or hard-shell capsule. They offer a convenient and discreet way for consumers to take CBD, without the need for measuring or handling oil. Capsules are ideal for those who prefer a consistent dosage and a tasteless option. They are often used as part of a daily supplement routine, similar to vitamins or other dietary supplements.

While CBD Extracts continue to play a critical role as the foundation for many CBD-based products across various industries. CBD extract refers to raw or minimally processed forms of CBD, including isolates, full-spectrum, and broad-spectrum extracts. These extracts are used as ingredients in various CBD products, from edibles and beverages to skincare items and wellness products. CBD extracts can be further processed to create oils, capsules, tinctures, edibles, and other formulations, making them a versatile base product in the CBD market.

Segmentation Insights by Source Type

The cannabidiol (CBD) Market can also be segmented by source type into two main categories: hemp and marijuana.

Hemp-Derived CBD is currently the dominating segment due to its broad legal acceptance and the ability to produce a wide range of non-psychoactive products. Hemp-derived CBD is extracted from the hemp plant, a variety of the Cannabis sativa species that contains very low levels of tetrahydrocannabinol (THC) — typically less than 0.3%. This low THC content means that hemp-derived CBD products do not have psychoactive effects, making them legal in many countries where marijuana remains restricted. Hemp-derived CBD is popular for its versatility and is used in various products, including oils, capsules, edibles, and skincare products.

However, Marijuana-Derived CBD is gaining traction in markets where marijuana legalization is expanding, offering consumers the option of more potent, full-spectrum products. Marijuana-derived CBD is extracted from the marijuana plant, which contains higher levels of THC compared to hemp. While marijuana-derived CBD can offer similar therapeutic benefits, the presence of THC means that these products are often regulated under stricter laws. In regions where marijuana is legal for medicinal or recreational use, marijuana-derived CBD products may be sold under specific regulations, offering consumers the option of full-spectrum products that include other cannabinoids and terpenes.

Segmentation Insights by Application

On the basis of Application, the global cannabidiol (CBD) market is bifurcated into food & beverages, cosmetics, pharmaceutical, and other.

The Food & Beverages segment currently leads the market due to the broad consumer appeal, ease of integration into daily routines, and the variety of products available. The Food & Beverages segment includes CBD-infused products such as drinks, snacks, baked goods, supplements, and even gourmet items. CBD is added to these products to enhance their health and wellness benefits, with consumers often seeking CBD-infused foods and drinks for relaxation, stress relief, and general well-being.

The food and beverage industry has embraced CBD, especially in regions where its use is legally permitted, creating a diverse range of products that appeal to a health-conscious audience.

However, the Cosmetics segment is rapidly growing as CBD gains popularity in the beauty industry for its natural skincare benefits. The Cosmetics segment includes skincare, haircare, and personal care products that are infused with CBD. CBD is known for its anti-inflammatory, antioxidant, and moisturizing properties, making it a popular ingredient in cosmetics aimed at improving skin health, reducing redness, and combating acne.

The cosmetics industry has quickly adopted CBD due to its perceived benefits, leading to a variety of products such as creams, serums, lotions, and bath products.

Meanwhile, the pharmaceutical segment is a critical part of the CBD market, especially as more clinical research highlights the therapeutic benefits of CBD. This segment includes prescription medications as well as over-the-counter products intended for medicinal use.

Segmentation Insights by End-Use

In terms of End-Users, the global cannabidiol (CBD) market is categorized into medical and personal.

The personal end-use segment currently dominates the CBD market due to the widespread appeal and accessibility of wellness and beauty products. These products are easier to market and sell as over-the-counter items, making them popular among consumers who want to incorporate CBD into their daily lives.

However, the medical end-use segment includes CBD products that are used for therapeutic and clinical purposes. These products are typically more potent and formulated to address specific health conditions, such as chronic pain, epilepsy, anxiety, multiple sclerosis, and other ailments.

Medical CBD products can be prescribed by healthcare professionals or sold over-the-counter in regions where they are legally permitted. They are often subject to stricter regulations to ensure safety, efficacy, and consistent quality.

Cannabidiol (CBD) Market: Report Scope

Cannabidiol (CBD) Market: Regional Insights

• North America remains the dominant market for CBD

North America leads the global CBD market, accounting for the largest share, primarily due to the widespread legalization of hemp-derived CBD products across the United States and Canada. The U.S. market is particularly strong, supported by favorable regulations like the 2018 Farm Bill, which legalized hemp cultivation. This has enabled widespread production and commercialization of hemp-derived CBD products with less than 0.3% THC.

North America's dominance is also fueled by a high level of consumer awareness, advanced infrastructure for cultivation and processing, and significant investments in research and development. There is also growing interest in the pharmaceutical use of CBD, contributing to market expansion.

Europe is a key player in the CBD market, with countries like Germany, the UK, and Italy leading in terms of consumption and market size. The European market benefits from increasing consumer acceptance of CBD for wellness purposes, such as pain management, anxiety relief, and skincare. Despite stringent regulations in some countries, CBD products have gained traction, especially in the personal care and wellness sectors. Europe is expected to grow steadily over the forecast period, driven by regulatory reforms, increasing retail availability, and growing demand for premium, high-quality CBD products.

The Asia-Pacific region is anticipated to see substantial growth, with a CAGR of over 20% during the forecast period. Although the market is still emerging, countries like China, Japan, and Thailand are showing potential. China, in particular, is a major producer of hemp, which is used for CBD extraction, and has begun to establish hemp production facilities aimed at expanding exports. Japan and South Korea have also started allowing the use of CBD for medicinal purposes, promoting growth. Increasing investments in hemp cultivation, the growth of e-commerce, and gradual legalization in parts of the region are driving the market. However, cultural resistance and strict regulations in many Asian countries remain a challenge.

Latin America is showing promising growth, especially in countries like Brazil, Colombia, and Uruguay. Uruguay was the first country to legalize cannabis for recreational use, and others have followed with laws permitting medical cannabis. The shift towards legalization for medical and wellness purposes is creating new opportunities for CBD producers.

The Latin American market is expected to expand, with a focus on exporting CBD products to North America and Europe, due to favorable climatic conditions for hemp cultivation.

The Middle East & Africa (MEA) region shows slower growth due to strict regulations surrounding cannabis use. However, some countries like South Africa and Lebanon have started to legalize CBD for medicinal use, marking a shift that could lead to gradual market expansion.

South Africa has particularly seen the rise of local CBD brands, supported by online retail. The market is hindered by regulatory barriers and social stigma, but there is potential for growth as more countries begin to recognize the medicinal benefits of CBD products.

Recent Developments:

• In January 2023, HempMeds Brasil, a subsidiary of Medical Marijuana, Inc., expanded its product line in Brazil by introducing two new full-spectrum CBD products. These products are available in 30 mL and 60 mL jars and offer concentrations ranging from 3,000 to 6,000 mg.
• In October 2022, Medical Marijuana, Inc. announced a partnership between its subsidiary, HempMeds Mexico, and two prominent universities in Spain and Mexico to investigate the potential benefits of CBD in treating Parkinson's disease. The collaborative study aimed to gather scientific evidence supporting CBD's therapeutic applications for this neurological condition.
• In October 2022, High Tide, Inc. expanded its product offerings in Canada with the launch of multi-cannabinoid products through its subsidiary, NuLeaf Naturals. These new products included Full Spectrum Hemp Multicannabinoid oil and plant-based softgels containing a variety of cannabinoids, such as delta-9 tetrahydrocannabinol (THC), cannabichromene (CBC), cannabidiol (CBD), cannabigerol (CBG), and cannabinol (CBN).

Cannabidiol (CBD) Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the cannabidiol (CBD) market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global cannabidiol (CBD) market include:

• Cannoid, LLC
• Canopy Growth Corporation
• Cresco Labs
• Curaleaf
• Elixinol
• ENDOCA
• Folium Europe B.V.
• Green Thumb Industries
• Harvest House of Cannabis
• Isodiol International, Inc.
• Medical Marijuana, Inc.
• MedMen
• NuLeaf Naturals, LLC
• PharmaHemp
• The Cronos Group
• Trulieve

The global cannabidiol (CBD) market is segmented as follows:

By Type

• Oil
• Capsule
• Extract
• Other

By Source Type

• Hemp
• Marijuana

By Application

• Food & Beverages
• Cosmetics
• Pharmaceutical
• Other

By End-use

• Medical
• Personal

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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