Cannabidiol Market

Market Definition

The global Cannabidiol Market size was valued at USD 13.2 billion in 2023 and is predicted to reach USD 105.5 billion by 2030 with a CAGR of 34.9% from 2024-2030. Cannabidiol (CBD) emerged as a highly sought-after compound in various industries due to its unique qualities. Its non-psychoactive nature distinguishes it, making it an attractive option for applications where the therapeutic benefits of cannabis are desired without the associated "high." The versatility of CBD expands its reach across diverse sectors, from health and wellness products to sustainable industrial applications.

The intersection of legal shifts towards cannabis acceptance and ongoing research into potential health benefits has fueled its popularity, prompting its integration into pharmaceuticals, skincare, and even food and beverage items. CBD's eco-friendly cultivation further aligns with sustainability goals, appealing to industries focused on environmentally conscious practices. As consumer awareness and education about CBD continue to grow, its widespread adoption across multiple industries reflects a convergence of health trends, regulatory changes, and the desire for innovative, sustainable solutions.

Market Dynamics and Trends

The gradual legalization of cannabis and CBD products in many countries and states as governments revise their regulations to permit the sale and use of CBD to consumers is driving the growth of the CBD market. For instance, the government of Germany announced the legalization of the recreational use of cannabis starting in April 2024. The legalization represents a significant shift in the country's approach to cannabis regulations, opening up new opportunities for businesses and potentially reshaping the market landscape in Germany.

Moreover, the rising focus on health and wellness, coupled with the increasing preference for CBD products in managing several medical conditions including pain relief, reducing anxiety and depression, alleviating sleep disorders is further accelerating the growth of the market. Furthermore, the escalating investment in CBD for product development research, and innovation, leading to the introduction of new and enhanced CBD products is significantly fueling the growth of the CBD market.

For instance, in October 2022, Real Brands Inc., acquired R&D Bioscience Lab, a move aimed at bolstering their research and development capabilities in the cannabis industry. The acquisition will enable Real Brands to enhance product offerings and develop innovative CBD-based solutions, capitalizing on the growing demand for such products in the market.

However, limited consumer awareness and education regarding CBD’s healthcare benefits are the negative perception of CBD among the general public and are anticipated to hinder the growth of the market in the forecast period. On the contrary, the introduction of cannabis-infused products, encompassing both medicinal and food & beverage sectors, is expected to create ample opportunities for the growth of the CBD market.

CBD is increasingly being incorporated into items such as infused beverages, supplements, chocolates, gummies, and even culinary products. As these products become more prevalent, the CBD market is poised to grow providing not only potential therapeutic benefits but also an innovative and enjoyable way to integrate CBD into daily routines.

Market Segmentations and Scope of the Study

The cannabidiol market share is segmented based on form, source type, route of administration, product type, application, end-user, and region. Based on form, the market is divided into solid and liquid. Based on source type, the market is segmented into hemp and marijuana. On the basis of the route of administration, the market is classified into tincture, capsules, inhalation, and aerosol spray. Based on product type, the market is divided into food grade and therapeutic grade.

Based on application, the market is segmented into neurogenerative disorders, fibromyalgia, diabetes, protein bars, and energy drinks. Based on end-users, the market is divided into food & beverages, pharmaceuticals, pet care, cosmetics, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and the Rest of the world (RoW).

Geographical Analysis

North America holds the dominant share of the cannabis market and is expected to continue its dominance during the forecast period. This is attributed to the rising legalization and regulations of cannabis for medicinal and recreational purposes by the government in this region. For instance, In January 2021, Mexico's General Health Law introduced regulations in the Federal Official Gazette, outlining guidelines for the production, research, and medicinal use of cannabis and its derivatives. The regulations aim to oversee and control the raw materials, pharmacological derivatives, and medicines derived from cannabis, facilitating their production, research, manufacturing, and medical applications.

Also, the presence of major key players such as Molson Coors, Aurora Cannabis Inc., and Canopy Growth Corporation, which are adopting various strategies including product launches boosts the market growth in this region. For instance, in January 2021, Molson Coors launched Veryvell, a CBD beverage line with sparkling, nonalcoholic CBD drinks. Veryvell is a hemp-derived, adaptogenic, sparkling CBD water with no calories or sugar and is available in three flavors including grapefruit tarragon, strawberry hibiscus, and blueberry lavender.

Europe is expected to exhibit a steady rise in the cannabis market during the forecast period due to the increasing usage and consumption of cannabis-related products for medicinal purposes, along with the favorable government regulations & approvals for cannabis usage in the region. For instance, in January 2022, France’s Ministry of Health announced a new cannabis regulatory framework for the sale and trading of hemp extracts. It provides an extension for the authorization of the cultivation, import, export, and industrial & commercial use of hemp.

Moreover, the expanding legalization and regulatory frameworks surrounding cannabis in various European countries, driven by the increased consumer acceptance which is creating a favorable business environment, is driving the growth of the cannabis beverages market. For instance, in March 2023, the German government announced to introduction a bill to legalize the possession and sale of cannabis, joining a growing number of countries moving towards the legalization of cannabis in Europe. The proposed legislation aims to regulate and tax the cannabis market, allowing adults to possess and purchase cannabis for recreational use.

Competitive Landscape

Various market players operating in the cannabidiol market include Folium Biosciences, Cannoid LLC, Canopy Growth Corp., Charlottes Web Holdings Inc, Medterra CBD, Medical Marijuana Inc., Aurora Cannabis Inc., Cannabis Science Inc., NuLeaf Naturals LLC, VIVO Cannabis Inc., and others.

These market players are adopting various strategies such as product launches to remain dominant in the market. For instance, in June 2023, Ananda, a leading company in the CBD industry, announced to launch its CBD oil product in July. Through this launch, the company aims to provide consumers with access to high-quality CBD oil, offering potential health and wellness benefits. 

Moreover, in May 2023, Biophore India Pharmaceuticals and its subsidiary Zenara Pharma have obtained the first approval for the use of cannabidiol (CBD) in India. This significant milestone allows the companies to introduce CBD-based medications to the Indian market, offering potential therapeutic benefits for various conditions. Furthermore, in January 2021, CB21 Pharma has recently introduced a new line of cannabidiol (CBD)-based suppositories. This innovative product offers an alternative method of CBD administration, potentially providing targeted relief and therapeutic benefits to users.

Key Benefits

• The report provides a quantitative analysis and estimations of the cannabidiol market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future cannabidiol market trends to depict prevalent investment pockets in the industry.

• Information related to the key drivers, restraints, and opportunities and their impact on the cannabidiol market is provided in the report. 

• The competitive analysis of the key players, along with their market share is provided in the report.

• A SWOT analysis and Porter's Five Forces model is elaborated on in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Cannabidiol Market Key Segments

By Form 

• Solid 

• Liquid

By Source Type 

• Hemp

• Marijuana

By Route of Administration 

• Tincture

• Capsules

• Inhalation

• Aerosol Spray

By Product Type

• Food Grade 

• Therapeutic Grade

By Application 

• Neurogenerative Disorder

• Fibromyalgia

• Diabetes

• Protein Bars

• Energy Drinks

By End User 

• Food & Beverages

• Pharmaceuticals

• Pet Care

• Cosmetics

• Others

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)    

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 13.2 Billion
Revenue Forecast in 2030	USD 105.5 Billion
Growth Rate	CAGR of 34.9% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Legalization of cannabis and CBD products in numerous countries drives the market growth, Increasing utilization of CBD in healthcare boosts market growth, Investment in CBD for product development and research drives the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Folium Biosciences

• Cannoid LLC

• Canopy Growth Corp.

• Charlottes Web Holdings Inc

• Medterra CBD

• Medical Marijuana Inc.

• Aurora Cannabis Inc.

• Cannabis Science Inc.

• NuLeaf Naturals LLC

• VIVO Cannabis Inc.