Global Cannabidiol Market By Source (Hemp, and Marijuana), By Products (Oil, Concentrates, Isolates, and Other Products), By Application (Pharmaceuticals, Food and Beverages, Pet Care, Cosmetics, and Other Applications), By Distribution Channel (Online Pharmacies, Hospitals, Retail Stores, Drug Stores, and Other Distribution Channel), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2023, the global Cannabidiol Market Size accounted for USD 7.6 billion and is expected to grow to around USD 36.6 billion in 2033. Between 2023 and 2032, this market is estimated to register the highest CAGR of 27%.

Cannabidiol is a chemical molecule that is present in the cannabis sativa plant and is derived from hemp or cannabis, with hemp serving as the source most often due to the naturally high levels of cannabidiol (CBD) that are present in hemp. It helps with pain reduction and the treatment of seizures and anxiety.

Because of its therapeutic benefits, there is a significant demand for CBD for health and wellness applications, which is the main reason driving the market. The increased acceptability and use of products as a result of government approvals is another important factor anticipated to increase the manufacturing of CBD-infused goods.

Key Takeaways

• Market Growth: The global cannabidiol (CBD) market reached USD 9.4 billion in 2022 and is projected to surge to approximately USD 97 billion by 2032, with a remarkable CAGR of 27% during 2023-2032.
• CBD Source: The marijuana segment dominates the market, driven by increasing acceptability and legalization for various medical applications. However, hemp-derived CBD is also expected to grow rapidly.
• Product Types: CBD oil is the most dominant product type, with a market share of over 30%, largely due to its effectiveness in managing chronic pain.
• Applications: Pharmaceuticals represent the most lucrative segment, accounting for over 25% of the market, driven by CBD’s neuroprotective and pain-relieving properties.
• Distribution Channels: Online pharmacies hold the largest market share (25%) due to the convenience of online sales and global reach.
• Drivers: The rising demand for personal care products, increased research and development, and growing awareness of CBD’s health benefits are key market drivers.
• Restraints: Misconceptions about CBD products, especially in developing economies, can hinder market growth.
• Opportunities: Advancements in manufacturing technology, increased public-private funding, and changing lifestyles offer growth opportunities for market players.
• Trends: Growing demand for CBD-infused products and increased research into CBD’s potential health benefits are significant trends in the market.
• COVID-19 Impact: The pandemic disrupted supply chains but also increased demand for CBD products, especially for health and wellness purposes.
• Regional Dominance: North America leads the market, holding a 60% market share, with Europe and Asia-Pacific showing emerging demand.
• Key Players: Major companies in the CBD market include Medical Marijuana Inc., Isodiol International Inc., Aurora Cannabis Inc., Elixinol Global, and others.

Product Analysis

The Oil Segment is the most Dominant among Product Type

By product, the market is further divided into oil, concentrates, isolates, and other products. The oil segment is estimated to be the most lucrative segment in the global cannabidiol market, with a market share of over 30%. CBD oil, produced by extracting CBD from cannabis plants, offers numerous advantages and is often prescribed for illnesses characterized by chronic pain. Many are leading sedentary lifestyles with little physical activity, leading to an increase in chronic pain among adults.

On a global scale, chronic pain has been linked to an extensive illness burden; estimates put its prevalence among adults around 1 out of 10. As such, market analysts anticipate significant growth over the coming years due to alarming data and regulatory authorities addressing CBD consumption.

Source Analysis

The Marijuana Segment is Dominant in the Market.

Based on the source, the market for cannabidiol is segmented into hemp & marijuana. Among these sources, the hemp segment is the most lucrative in the global cannabidiol market. The total revenue share of the hemp segment is over 63.2% in 2023. The low THC content in hemp makes it the preferred source for CBD extraction, as it allows for the production of CBD products with minimal to no psychoactive effects. Additionally, hemp cultivation is often legal in many countries and regions, making it more accessible for commercial production of CBD. Due to expanding pharmaceutical demand and increased public awareness of health issues, it is projected that the market for cannabidiol derived from hemp would expand quickly. The demand for cannabidiol in the pharmaceutical industry is predicted to increase as consumer disposable income rises and medical marijuana is legalized.

Sales Type Analysis

The B2B Segment is the most Dominant among Sales Type

By Sales Type, the market is further divided into B2C and B2B. The B2B sector played a dominant role in the global CBD market in 2023, accounting for a substantial revenue share of 55.1%. This segment is poised for significant growth during the forecast period, primarily driven by the increasing presence of wholesalers offering CBD oil and a rising demand for CBD oil as a crucial raw material. The global legalization of CBD products across various countries has also created a favorable landscape for the supply of these products, thanks to the expanding consumer base.

End-Use Analysis

The Pharmaceuticals Segment is the most Dominant among End-Use

Among the various end-use segments in the CBD market, pharmaceuticals stands out as the dominant force with 37.2% market share. This segment has asserted its prominence due to the extensive applications of CBD in the pharmaceutical industry. CBD, or cannabidiol, has gained substantial attention for its therapeutic properties and potential health benefits, which has led to its widespread utilization in pharmaceutical products.

The pharmaceutical sector has harnessed the potential of CBD in the development of various medicinal formulations. CBD’s well-documented properties, including its anti-inflammatory, analgesic, and anti-anxiety effects, make it a valuable component in the creation of pharmaceutical drugs aimed at treating a wide range of ailments. Conditions such as epilepsy, chronic pain, anxiety disorders, and even certain types of seizures have seen promising results from CBD-based medications.

Key Market Segments

Based on Product Type

• CBD Oil
• Tinctures
• Concentrates
• Capsules
• Other Product Types

Based on Source

• Hemp
• Marijuana

Based on Sales Type

• B2C
• B2B

Based on End-Use

• Medical
• Personal Use
• Pharmaceuticals
• Wellness

Drivers

Rising Demand for Personal Care Products Measures to Favor Growth.

Goods containing cannabidiol are becoming increasingly popular in society, such as pet supplies, cosmetics, and health and beauty items. The primary cause of its rise in popularity is the shift in consumer perceptions toward products made from cannabis and the variety of uses for cannabidiol-infused items. Since cannabis became legal in many nations, demand for personal care products such as tinctures, lotions, skincare items, capsules, vaping devices, transdermal patches and more has skyrocketed.

Due to their many applications, such as potential therapeutic advantages and the ability to relax animals, these items have grown in popularity. Furthermore, key businesses in the cannabis sector and several nations’ governments are funding R&D initiatives. Studies have confirmed that CBD can be an effective treatment for various neurological conditions including epilepsy.

Customers seek nutrient-rich, innovative, and healthy food products to support their exercise goals and avoid issues like inflammation or discomfort. Manufacturers are now introducing products infused with cutting-edge chemicals like CBD oil for added benefits in food products and other items. As a result, the global CBD business could experience strong growth during the forecast period due to increased dependence on these items.

Restraints

The Misconception regarding CBD Products is the Major Restraint.

Western economies are increasingly adopting CBD-based products, but this is not the case in developing economies such as Asia or the Middle East. The misconception that these items produce psychoactive effects due to their popularity among recreational customers hinders their market success. Furthermore, consumers may not be aware of all of the features, services, and offerings that could prove beneficial in numerous ways before they purchase anything from a CBD provider.

Opportunity

Advancement in Technologies Fueling Market Value Growth.

The rapid advancements in manufacturing technology are fueling market value growth. To reduce production costs and wastage, coupled with increasing industrialization, hemp materials have seen an uptick in application, promising a promising future for the sector.

Furthermore, an increase in public-private funding for target research activities, high disposable income levels, rapid urbanization, and changing lifestyles due to technological advancements around the world will provide lucrative opportunities for market players between 2023 and 2032. Furthermore, rising internet penetration rate, ongoing product development, and commercialization, favorable policies by governments regarding cannabis-related products (especially in developing economies) as well as rising per capita expenditure will further drive market growth rates into the future.

Trends

Rising Demand for CBD-infused Products to Augment Market Growth.

Businesses now have more opportunities to produce and market CBD products due to the legalization of cannabis in many nations and states. This has increased market competition and gives consumers access to a wider selection of items. The demand for CBD-infused products is rising as more individuals become aware of the potential health benefits – such as anxiety, pain, and inflammation – that CBD may treat. Investment into research to uncover more about CBD’s uses and applications is rising along with interest in the substance; this in turn aids the production of new goods and formulations.

Regional Analysis

North America Holds the Largest Market Share in Cannabidiol Markets

North America is estimated to be the most lucrative market in the global cannabidiol market, with the largest market share of 60% during the forecast period. Recently, nations such as the U.S. and Canada have begun to relax their regulations regarding cannabidiol products, leading to greater public acceptance of them. Consumer preferences are shifting, and manufacturers in food, pharmaceuticals, and cosmetics are already acknowledging the advantages of CBD.

Due to a growing customer preference for tobacco-free items, sales of such items, including smoking, vaping, and edibles, are surging across Europe. North America may soon face intense competition as demand for such items grows in this region. Asia Pacific accounts for a substantial share of this market, with nations like China, Japan, and India showing signs of emerging demand. With the legality and acceptance of cannabidiol in various products increasing exponentially, there are significant business opportunities for many producers in this region.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Products in the market provide users with the health benefits of cannabidiol (CBD) without intoxication, thus they have gained popularity quickly. Competition in this global market is fierce as companies strive to enhance their product offerings, enter new markets, and acquire customers. Due to the large number of players present, competition for market share is fierce. Companies are launching innovative products and expanding operations in different geographies in an effort to maintain their position. Furthermore, companies are entering multiple partnerships to expand distribution networks and boost their consumer base.

Market Key Players

• Medical Marijuana Inc.
• Cannoid LLC
• Isodiol International Inc.
• ENDOCA
• Folium Biosciences
• Aurora Cannabis Inc.
• Pharmahemp d.o.o
• Elixinol Global
• CV Sciences
• Medterra CBD
• Other Key Players

Recent Developments

• In January 2022, CV Sciences announced the availability of four +PlusCBD pain treatment topicals to address minor aches and pains. With this product launch, they hope to expand their selection of +PlusCBD items.
• In June 2021, Vertical Wellness, a cannabidiol business with headquarters in the US, announced it had entered into a merger agreement with CanaFarma Hemp Products Inc., an Ontario-based provider of hemp-related goods and services. As a result, Vertical Wellness will become a public company with a total value of $50 million following this transaction.

Report Scope