Cannabidiol (CBD) Market – By Source, By Product, By Application, By Route of Administration, By Distribution Channel, Global Forecast 2024 – 2032

Cannabidiol Market Size

The global cannabidiol market size was valued at USD 22.8 billion in 2023. The market is anticipated to grow from 28.9 billion in 2024 to 108 billion growing at a CAGR of 17.9% from 2024 to 2032. Global market is expected to witness significant growth owing to positively changing regulatory scenario coupled with the novel product launches.
 

For example, the Agriculture Improvement Act of 2018 removed hemp and its derivatives (including hemp-derived CBD) from the Controlled Substances Act (CSA) definition of marijuana.  By removing hemp from the CSA, the Farm Bill provided a clear legal framework for the cultivation and sale of hemp-derived CBD. This has motivated businesses to invest more into their product range, thereby creating more diversification of CBD products available in the market.
 

Additionally, it is observed that cannabidiol products are undergoing multiple clinical trials encompassing the treatment of numerous disorders such as neuropathic pain. Even though conventional medicine exists for the treatment of such illnesses, concerns surrounding its side effects are largely paving the way for CBD products in the market. Hence, its adoption as an alternative medicine is gaining prominence and is anticipated to fuel the industry growth.
 

Cannabidiol (CBD) is a chemical compound obtained from marijuana and hemp plants and is commonly used for medical purposes. The CBD market encompasses various cannabidiol products such as oil, tinctures, capsules and tablets, topical creams, and transdermal patches. Cannabidiol (CBD) is used for treating pain, anxiety, muscle disorder (dystonia), Crohn disease, Parkinson disease and many other medical conditions. Hence, cannabidiol is gaining widespread popularity across regions.
 

Cannabidiol Market Trends

• Increasing utility of cannabidiol in the pharmaceutical industry is expected to fuel market growth. Cannabidiol products can be used to manage symptoms of several diseases such as epilepsy, neuropathic pain, anxiety disorders, along with Parkinson's and Alzheimer's disease. With the development of policy frameworks and advancements in clinical research, the pharmaceutical industry is using CBD for the development of new treatment modalities, thereby accelerating market growth.
   
• Moreover, changing regulatory frameworks in several countries in favor of CBD use has legalized the production and sale of CBD products. For instance, in 2018, the U.S. Food and Drug Administration approved Epidiolex (cannabidiol) oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome. This is the first FDA-approved drug that contains a purified drug substance derived from marijuana. Such approvals will foster market growth.
   
• Numerous cosmetic applications of cannabidiol products are anticipated to positively drive the market growth. Some evidence-based studies suggest that CBD has antioxidant, anti-inflammatory, moisturizing, anti-acne, wound-healing, and anti-aging properties. Thus, as the properties of CBD for cosmetic application are explored further, this will provide considerable market growth opportunity.
   
• Additionally, cannabis has been used to treat pain with various studies stating that certain components of cannabis including CBD are responsible for pain-reliving effects. For instance, according to a study from the Michigan University, in 2021, out of 878 patients with fibromyalgia, 72% patients were reported using CBD to manage their pain. Thus, widespread use of CBD products along with changing consumer opinion has increased the adoption of CBD products, thereby propelling the market growth.
   
• Rising sales of CBD products in retail stores will spur market growth. Manufacturers have tie ups with huge retail stores such as The Vitamin Shoppe, CVS Pharmacy (Consumer Value Stores), Walgreens and Rite Aid. CVS was the first retail store that introduced cannabidiol based products in eight states of U.S. Similarly, The Kroger Co. also joined this market and started selling CBD based products in 22 states in the U.S. Thus, the increased adoption of CBD products in retail stores across the globe is expected to augment the growth of the market during the forecast period.
   

Cannabidiol Market Analysis

Based on the source, the CBD market is segmented into marijuana and hemp. The hemp segment dominated the market in 2021 with USD 9.3 billion. It is estimated to grow from USD 12.6 billion in 2022 to USD 16.2 billion in 2023.
 

• High segmental growth is owing to the smooth regulatory pathways developed for low THC levels. The THC content in hemp plants is negligible and developing 100% CBD-based products is possible, resulting in a higher market proportion.  The 2018 Farm Bill legalizes the cultivation, processing, marketing, and the sale of hemp and any cannabinoid if it is derived from hemp, further increasing adoption of hemp derived CBD products.
   
• Also, increasing usage of hemp and hemp derived products for managing high cholesterol level, arthritis, constipation among others has significantly boosted the demand for hemp derived CBD products.
   
• Moreover, hemp derived products do not consist of any psychoactive compounds as marijuana. Various countries such as U.S., Canada, China, Uruguay, France, Australia, Spain and Russia support the cultivation of hemp, that would further create profitable opportunities in the for hemp derived CBD products.
   

Based on the product, the cannabidiol market is segmented into oil, oral, topicals, isolates, suppository, CBD inhalers, vape oil, and other products. The oil segment is further divided into full-spectrum CBD oil and broad-spectrum CBD oil. The oil segment held a market share of 29.2% in 2023 and is anticipated to grow at a CAGR of 18.7% over the forecast period.
 

• Due to its high adoption in pharmaceuticals, nutraceuticals, cosmetics, and personal care products, CBD oil has substantial market share in the CBD industry.
   
• Cannabidiol (CBD) oil is made by extracting CBD from cannabis plant and is commonly used in pain disorders owing to its extensive benefits. Studies have shown that the application of CBD oil can achieve significant improvement in pain and other disturbing sensations in patients with peripheral neuropathy.
   
• CBD oil is also known to help ease symptoms of anxiety, neurological disorders, inflammation, and heart health issues. Also, ease of application and its ability to be added in food, beverages, and topical formulations also increases the applications of CBD oil.
   
• Further, increasing legalization of CBD products across several regions and easy availability of these products on online platforms has accelerated the adoption of CBD oil.
   

Based on the application, the cannabidiol market is segmented into anxiety/stress, sleep/insomnia, chronic pain, migraine, skin care, seizures, joint pain and inflammation, and other applications. The chronic pain segment dominated the market in 2023 with a revenue share of 34.9% and is anticipated to reach USD 34.3 billion by 2032.
 

• There is a growing trend of patients switching CBD for regular pain therapies due to it being non-addictive and safe. Studies indicate that CBD elevates the levels of anandamide, a substance that regulates pain in human body which can reduce pain perception and relieve pain.
   
• Several studies supporting the analgesic and anti-inflammatory properties CBD, further increase the adoption of CBD products. For instance, one study published in the journal Cureus showed that CBD decreases pain and inflammation for chronic pain disorders like arthritis, multiple sclerosis, fibromyalgia, and peripheral neuropathy.
   
• Similarly, few of the other reports also stated that CBD combined with other cannabinoids can help effectively managing chronic pain in adult patients. Such studies positively reinforce the effectiveness of cannabidiol in chronic pain management.
   

Based on the route of administration, the cannabidiol market is segmented into oral, topical, inhalation, transdermal patches, rectal and sublingual. The oral segment dominated the market in 2023 and is anticipated to reach USD 58.7 billion by 2032.
 

• The oral route is the most common route for drug administration. It is the most preferred route, due to its advantages such as non-invasiveness, patient compliance, ease of administration, long-lasting drug effects, and reduced toxicity.
   
• Also, increasing use of oral route of administration has prompted suppliers to develop products that work efficiently when consumed orally. For instance, in July 2020, U.S. FDA approved Epidiolex (a oral solution of cannabidiol) developed by GW Pharmaceuticals for the treatment of seizures in patients over one year.
   
• Similarly, Sativex, an oral spray, is another cannabis-based oral prescription product. Therefore, the availability of several CBD products in the form of capsules, tablets, and tinctures drive the dominance of oral route of administration.
   

Based on the distribution channel, the cannabidiol market is segmented into online and offline. The offline segment is further divided into hospital pharmacy and retail stores. The offline distribution channel dominated the market in 2023 with a revenue share of 52.1% and is anticipated to witness considerable growth over the forecast years.
 

• This can be attributed to an increased consumer confidence on offline purchases as compared to online channels. Also, as the penetration of counterfeit products increases, offline channels are largely preferred by consumers.
   
• Moreover, offline distribution channels help manufacturers to maximize their physical presence, build consumer trust and loyalty, and leverage retail partnerships. Thus, as the CBD market is noted to be in its infancy, the offline distribution channel is expected to account for a larger proportion throughout the forecast period.
   

North America cannabidiol market was valued at USD 7.9 billion in 2021. In 2022, the market size was USD 10.6 billion and USD 13.6 billion in 2023. The U.S. dominated the North America market in 2023 with a revenue of USD 11.4 billion and is anticipated to grow at a CAGR of 17.7% between 2024 – 2032.
 

• Supportive regulatory stance in the region paves way for market. It also boosts the confidence of consumers to opt for alternative treatment methods that involve the consumption of cannabidiol.
   
• For instance, U.S. is one of the largest consumers of cannabidiol and marijuana/hemp derived products. This can be largely attributed to the introduction of Farm Bill in 2018 that legalized cannabidiol products with less than 0.3% THC content across U.S. states. It also redefined hemp and hemp-derived products and augmented the market in the country. Such political support augments the regional market growth.
   
• Similarly, Canada legalized the sales of dried cannabis, cannabis oil, fresh cannabis as well as cannabis plants in 2018 under the Cannabis Act. This further led to the increased product innovations which led to augmented sales of CBD products.
   

Europe cannabidiol market is expected to account considerable market revenue of USD 30 billion by 2032.
 

• High growth is attributed to the availability and adoption of cannabidiol based products. Also, the approvals of CBD based medications in various European countries further boosts the market growth. For instance, Sativex (CBD based oromucosal spray) was approved by the European Union in 2011 and was made available in countries such as Italy, Sweden, Denmark, Austria and Czech Republic.
   
• Now this drug has been approved in over 29 countries due to positively changing regulatory landscape in many countries. As a result of such changing regulatory scenario and product approvals, the market is anticipated to garner increased revenue during the analysis period.
   

Germany is anticipated to witness robust growth in the Europe CBD market.
 

• Increasing penetration of cannabidiol and CBD infused products along with rising initiatives by government to support CBD market is expected to drive the market growth during the forecast period.
   
• High growth is attributable to increasing number of companies manufacturing cannabidiol products. Also, increasing availability and adoption of cannabidiol based products along with the approvals of CBD based medications in various European countries further boosts the market growth.
   

Asia Pacific cannabidiol market is expected to grow at a significant pace of 20% during the forecast timeframe.
 

• The liberal stance of the regulating authorities coupled with rising medicinal and cosmetic use of CBD products in various countries is driving the market growth in the Asia Pacific region.
   
• The increasing legalization of cannabidiol have boosted its use in several products that offers manufacturers lucrative opportunity to operate in the market. For instance, in 2018, Thailand become the first country in the Asia Pacific region to approve and legalize the use of cannabis in the medicinal use and research.
   
• Moreover, the increasing awareness of benefits associated to cannabidiol is expected to propel the market growth in the Asia Pacific region.
   

India cannabidiol market is anticipated to witness lucrative growth between 2024 – 2032.
 

• The country possesses high growth potential owing to few initiatives by the government for approving hemp cultivation. For instance, India legalized the production of hemp in only one state i.e., Uttarakhand in 2018.
   
• Further, rising cases of epilepsy, glaucoma, osteoporosis, schizophrenia, cardiovascular disorders, cancer, and obesity, among others are expected to drive the growth of market in the projected timeframe.
   

Cannabidiol Market Share

The) market is highly fragmented in nature. Top 8 players operating in the global CBD industry include Aurora Cannabis, Canopy Growth Corporation, Elixinol, Nuleaf Naturals, Isodol International, CV Sciences, Inc., Medterra and Tilray among few other players account for approximately 18% of the market share. These industry players are noted to adopt organic and inorganic strategies such as merger, acquisition, new product launch, etc. to capture high revenue share in the market.
 

For instance, in January 2022, Tilray announced the expansion of its medical cannabis products offering in Australia. The company also launched a new medical cannabis e-learning platform for healthcare professions in New Zealand and Australia. This strategy is expected to expand their customer base and outreach to untapped economies.
 

Cannabidiol Market Companies

Prominent players operating in the CBD industry include:

• Aurora Cannabis
• Charlotte's Web
• Canopy Growth Corporation
• CV Sciences
• Endoca
• Elixinol
• Folium Biosciencesilray
• Gaia Herbs
• Jazz Pharmaceuticals
• Isodiol International
• KOI CBD
• Medical Marijuana
• Medterra
• NuLeaf Naturals
• Tterrapharma
• Tilray
• Vapen CBD
   

Medical Marijuana manufactures and distributes hemp-derived cannabidiol (CBD) products through online platforms, direct sales, retail and wholesale distribution channels. The company collaborates with several institutions and other companies to gain competitive advantage in the market. For instance, in October 2022, HempMeds Mexico, a subsidiary of Medical Marijuana, announced its collaboration with the Autonomous University of Barcelona, Spain, and the Meritorious Autonomous University of Puebla, Mexico to conduct a study demonstrating the benefits of CBD in treating Parkinson’s disease.
 

Elixinol and its subsidiaries engage in the development and distribution of hemp derived products. The company offers hemp derived cannabidiol products such as dietary supplements, topicals, and skincare products. In January 2022, Elixinol announced the launch of two new innovative CBD products focused on supporting sleep. Elixinol's sleep rapid rest liposome and sleep gummies are unique, melatonin-free options for consumers to support optimal sleep.
 

Cannabidiol Industry News:

• In January 2023, HempMeds Brasil, subsidiary of Medical Marijuana, Inc., announced the launch of 2 new full-spectrum products in Brazil. The concentrations range from 3,000-6,000 mg and are available in 30 mL and 60 mL jars.
   
• In January 2022, CV Sciences, Inc. announced the launch of +PlusCBD pain relief topicals with four unique over the counter (OTC) products formulated to pinpoint sources of minor pain and aches. This product launch is expected enable company to expand its +PlusCBD product offerings.
   
• In June 2021, The Valens Company completed the acquisition of Green Roads for nearly USD 60 million. The acquisition grants The Valens Company access into the U.S. CBD market through a well-developed network of Green Roads.
   
• In March 2021, Medterra announced the launch of Medterra Wellness range. The introduction of Medterra Wellness is part of the company's ongoing commitment to developing innovative and effective wellness products that harness the power of CBD while putting the consumer's health and wellness needs at the forefront. This product launched enhanced the company’s product portfolio and increase the customer base.
   

The cannabidiol market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 - 2032 for the following segments:

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Market, By Source

• Marijuana
• Hemp

Market, By Product

• Oil
  • Full-spectrum CBD oil
  • Broad-spectrum CBD oil
• Topicals
  • Transdermal patches
  • Creams and roll-on
• Oral
  • Tablet
  • Capsules
  • Tinctures
• CBD inhalers
• Suppository
• Isolates
• Vape oil
• Other products

Market, By Application

• Anxiety/ stress
• Sleep/insomnia
• Chronic pain
• Migraines
• Skin care
• Seizures
• Joint pain and inflammation
• Other applications

Market, By Route of Administration

• Oral
• Topical
• Inhalation
• Transdermal patches
• Rectal
• Sublingual

Market, By Distribution Channel

• Online
• Offline
  • Hospital pharmacy
  • Retail stores

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Thailand
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE