Cannabidiol Extract Market Size & Share 2023 to 2032
Market Size by Type (CBD Oil Extracts {Full Spectrum, Broad Spectrum}, CBD Isolates), by Source (Hemp, Marijuana), by Application (Pharmaceuticals {Transdermal Patches, Suppository}, F&B, Cosmetics).
Report ID: GMI5474
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Published Date: March 2023
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Report Format: PDF
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Authors:
Mariam Faizullabhoy, Gauri Wani
Cannabidiol Extract Market Size
Cannabidiol Extract Market size surpassed a valuation of USD 5 billion in 2022 and is foreseen to depict 21% CAGR between 2023 and 2032 on account of soaring product utilization backed by increasing government approvals.
Cannabidiol Extract Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Extensive uptake of cannabidiol-based products in numerous forms, such as beauty & health, CBD pharmaceutical, and pet products, is propelling market progress. Changing consumer perception about cannabis-derived products and the ways to apply and consume CBD products is likely to promote industry penetration. Additionally, positive legislative actions have amplified CBD use for medical conditions viz., seizures, anxiety, muscle disorders, and Parkinson’s disease. In recent years, CBD-based products have been sold as supplements in several countries, including the U.S., Canada, the UK, the Netherlands, Italy, and so on, which is also forecast to spur industry expansion.
Side effects related to CBD oil to impede cannabidiol extract market progression
While cannabidiol is known for its significance in treating various ailments, such as anxiety, neurological conditions, seizures, cancer-induced nausea, chronic pain, and others, research studies have found that CBD-based products can have certain side effects. Some of these side effects include dry mouth, drowsiness, low blood pressure, light headedness, and so on, which are hampering product adoption. Nonetheless, widespread emphasis on leveraging the potential of CBD as a novel pharmacotherapy, mainly to address unmet clinical needs and manage chronic diseases, is estimated to fuel market share.
Cannabidiol Extract Market Analysis
Based on type, the cannabidiol extract market share from the CBD isolates segment is expected to surpass USD 17.5 billion by 2032. CBD isolate, which is the pure and potent form of CBD that contains no THC, terpenes, flavonoids, and other compounds present in cannabis plant, offers numerous benefits, including inflammation, anxiety, and pain relief. Moreover, it offers easy dosing and various consumption methods, including both sublingual administration and as an addition to food & beverages, which is likely to support segment expansion.
Cannabidiol extract market from the pharmaceutical application segment was valued at over USD 3 billion in 2022 and is expected to show notable growth between 2023 and 2032. The pharmaceutical segment is further divided into tablets & capsules, transdermal patches, creams & roll-ons, suppository, and others. Increasing adoption of CBD extracts in the pharmaceutical sector owing to its varied advantages in the treatment of joint pain & inflammation, seizures, sleep/insomnia, and neurological conditions, among others is foreseen to impel segment uptake.
Cannabidiol extract market share from the marijuana segment is speculated to exceed USD 9.5 billion by 2032 bolstered by mounting applications of marijuana-based CBD products for pain relief, depression, and for the treatment of Alzheimer’s disease, dementia, neuropathic pain, and other brain-related illnesses. Moreover, supportive government efforts to legalize marijuana usage, especially for medicinal purposes, are slated to facilitate segment adoption.
North America CBD extract market was worth more than USD 3 billion in 2022 and is projected to exhibit steady progress over the forecast period. Surging adoption of marijuana for medical utilization, such as for managing pain, inflammation, anxiety, and stress among the adult population in the region is likely to boost product sales. Furthermore, prominent focus of government and health agencies viz. the U.S. FDA on research efforts pertaining to CBD and its applications is anticipated to be favorable for the regional industry scenario.
Cannabidiol Extract Market Share
are some key firms operating in the cannabidiol extract market. These companies are developing innovative products to cater to diverse consumer needs and attain a competitive edge in the industry. For instance, in March 2023, mood elevation expert Daytrip Beverages introduced its NightTrip gummies at the Natural Products Expo West. These gummies, which are available in a CBD + CBN infused variant, are gluten-free and vegan and are created to ease tension and support restful sleep.
Impact of the COVID-19 pandemic
The COVID-19 outbreak negatively impacted the global economy, interrupting the operations of virtually all sectors and organizations. It adversely impacted the demand for non-essential services worldwide. However, several countries, including the U.S., Canada, Germany, Argentina, and Portugal, considered the cultivation and distribution of CBD as essential services and allowed companies to continue their operations throughout the pandemic. Moreover, some studies indicated that CBD has the potential to prevent and inhibit SARS-CoV-2 infection, which has also been lucrative for the CBD extract market.
The cannabidiol extract market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and units from 2018 to 2032, for the following segments:
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By Type
By Source
By Application
The above information is provided for the following geographies:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →