Cannabidiol Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source Type (Hemp, Marijuana), By Sales Type (B2B, B2C), By End User (Medical {Chronic Pain, Mental Disorder, Cancer, Others}, Personal Use, Pharmaceuticals, Wellness {Food & Beverage, Personal Care & Cosmetics, Nutraceuticals, Others}), By Region and Competition, 2019-2029F

Market Overview

Global Cannabidiol Market was valued at USD 5.27 Billion in 2023 and is anticipated to project steady growth in the forecast period with a CAGR of 12.05% through 2029. The Cannabidiol (CBD) market refers to the industry surrounding the production, distribution, and sale of CBD products. CBD, a compound found in the cannabis plant, offers potential health benefits without the psychoactive effects associated with THC, another compound in the same plant. The CBD market is flourishing, with products ranging from oils, edibles, and vanes to skincare items and pet products. This market growth is attributed to the increasing consumer awareness of CBD's potential health benefits and the gradual liberalization of cannabis laws worldwide.

Key Market Drivers

Increasing Awareness and Acceptance

Increasing awareness and acceptance of Cannabidiol plays an important role in driving the growth of Global Cannabidiol Market. China produces more than half of the world's cannabis supply. With increasing awareness of Cannabidiol (CBD) potential health benefits, large number of individuals were looking for Cannabidiol (CBD) products as a natural therapy for various health conditions. Consumers are actively looking for alternatives to conventional medications and are attracted to Cannabidiol (CBD)non-intoxicating nature and potential therapeutic properties. The growing demand for Cannabidiol (CBD) products, such as oils, tinctures, and edibles, has fueled the market's expansion also drives the growth of Global Cannabidiol Market. With the increasing acceptance of Cannabidiol (CBD) has led to a shift in public perception of cannabis-related products. Traditionally, cannabis has been associated with psychoactive effects and recreational use.

However, as Cannabidiol (CBD) gains detection as anon-intoxicating compound with potential health benefits, it helps break down the stigma surrounding cannabis. As the mindset of the people changes contributes to a wider usage of Cannabidiol (CBD) and encourages its use among a wider consumer base anticipated in the growth of Global Cannabidiol Market.

Increasing in E-commerce and Retail Expansion

The increase in online sale plays an important role in driving the growth of Global Cannabidiol Market. Through online sales consumer can purchase wide range of Cannabidiol (CBD) products with convenient access from the comfort of their homes. By just a few single clicks, consumers can browse through numerous online retailers and choose from various CBD options, including oils, edibles, topicals, and more. This convenience factor has significantly contributed to the increased adoption and consumption of Cannabidiol (CBD) products worldwide which plays an important role in the growth of Global Cannabidiol Market. Online platforms have a global reach, allowing CBD companies to expand their customer base beyond their local markets.

This enables CBD brands to target and reach consumers in regions where CBD is legal, regardless of geographical limitations. As a result, the global CBD market has seen increased sales and market penetration due to the accessibility provided by online sales channels. Some consumers prefer a discreet purchasing experience when it comes to Cannabidiol (CBD) products. Online sales offer a level of privacy and anonymity that may be desirable for individuals who do not wish to purchase CBD products in physical retailers. This aspect is particularly relevant for individuals whore side in areas where there might still be social stigmas associated with cannabis-related products.

Wellness and Self-Care Trend

Wellness and self-care trend has had a significant impact on the growth of Global Cannabidiol Market. The wellness and self-care trend underlines the importance of taking care of one's physical and mental well-being using natural and holistic approaches. CBD, derived from hemp or cannabis plants, aligns with this philosophy as a natural compound that offers potential health benefits. Consumers seeking natural alternatives to conventional medications are drawn to CBD products as part of their wellness routines. Flowers typically contain 10-30% THC, while concentrates typically contain 60-90% or more. If used, use the product within its limits and follow the guidelines and instructions provided on the original packaging. Some of the trends of self-care are stress reduction and relaxation are key elements of wellness.

Cannabidiol (CBD) has been related to potential calming and anxiety-reducing effects, making it appealing to individuals seeking relief from stress and looking to enhance their overall well-being. Cannabidiol (CBD) products such as oils, edibles, and bath products are marketed as aids in promoting relaxation, which aligns with the self-care practices embraced by wellness enthusiasts thus availability of broader product drives the growth of Global Cannabidiol Market. Wellness and self-care trends put both physical and mental health at the forefront. CBD is known for its potential therapeutic properties, including analgesic, anti-inflammatory effects, and potential effects on mental health conditions such as anxiety and depression.

Increased Use in Treatment of Neurological Disorders

The global demand for Cannabidiol (CBD) is experiencing a significant upswing, propelled by the increased utilization in the treatment of neurological disorders. CBD, a non-psychoactive compound derived from the cannabis plant, has gained traction as a potential therapeutic agent for various neurological conditions, including epilepsy, multiple sclerosis, and anxiety disorders. The growing body of scientific research supporting the efficacy of CBD in managing neurological symptoms has spurred a surge in demand for CBD-based pharmaceuticals and wellness products. Patients and healthcare professionals alike are increasingly exploring CBD as a complementary or alternative treatment option due to its purported neuroprotective and anti-inflammatory properties.

As regulatory frameworks evolve and become more favorable towards CBD, the market is witnessing increased acceptance and integration of CBD-based medications. The pharmaceutical industry's commitment to research and development in this space is contributing to the expansion of CBD-based neurological treatments. The burgeoning wellness industry has led to the development of diverse CBD-infused products catering to the global consumer market. As neurological disorders continue to pose significant health challenges globally, the demand for CBD is poised to persist and potentially escalate, driving innovation and shaping the landscape of both pharmaceutical and wellness sectors worldwide. The intersection of scientific advancements, regulatory shifts, and increasing consumer awareness is positioning CBD as a prominent player in the global healthcare and wellness markets.

Key Market Challenges

Lack of Standardization

The global demand for Cannabidiol (CBD) is facing a downturn due to the prevalent issue of a lack of standardization within the industry. The absence of consistent and universally accepted standards for CBD products has led to concerns among consumers, healthcare professionals, and regulatory authorities. The varying quality and composition of CBD offerings, stemming from differences in extraction methods, labeling practices, and overall product formulation, have created a sense of uncertainty regarding the safety and efficacy of CBD products.

This lack of standardization undermines consumer confidence, hindering widespread acceptance and adoption of CBD across diverse markets. Inconsistent product quality also poses challenges for healthcare professionals, as it complicates dosage recommendations and treatment plans. Regulatory authorities are grappling with the need for standardized guidelines to ensure product safety and accurate labeling. Industry stakeholders are recognizing the urgency to establish robust standards to address these concerns and instill confidence in consumers and healthcare practitioners. As the CBD market matures, efforts towards standardization will be crucial to rebuilding trust, driving demand, and positioning CBD as a reliable and mainstream component of the health and wellness landscape on a global scale. Establishing standardized practices will not only benefit consumers but also provide a foundation for sustainable growth and regulatory clarity within the evolving CBD industry.

Presence Of Counterfeit & Low-Quality Product

The global demand for Cannabidiol (CBD) is experiencing a decline attributable to the pervasive issue of counterfeit and low-quality products within the industry. The market's rapid growth has led to an influx of unscrupulous suppliers, flooding it with substandard and even fraudulent CBD offerings. The prevalence of such products undermines consumer trust and confidence in the overall quality and efficacy of CBD. Instances of mislabeling, inaccurate dosage information, and contamination further contribute to the erosion of trust among both consumers and healthcare professionals. The negative impact is not only felt by reputable CBD businesses but also extends to the industry as a whole, hindering its acceptance on a global scale. Regulators are increasingly concerned about the lack of oversight, and consumers are hesitant to embrace CBD products due to uncertainty about their authenticity and safety.

Key Market Trends

Advances in CBD Extraction Technologies

Advances in CBD extraction technologies are fueling a substantial increase in the global demand for Cannabidiol (CBD). As the therapeutic potential of CBD gains recognition, innovative extraction methods have emerged to enhance the efficiency, purity, and scalability of CBD production. Technologies such as supercritical CO2 extraction, ethanol extraction, and lipid-based extraction have revolutionized the industry, allowing for the isolation of high-quality CBD from the cannabis plant. These advancements contribute to the development of potent and standardized CBD products, meeting the growing demand for consistent formulations in pharmaceuticals, wellness products, and edibles. The increased efficiency in extraction also facilitates cost-effectiveness, making CBD more accessible to a broader consumer base.

The continuous refinement of extraction techniques addresses environmental concerns associated with certain methods, aligning CBD production with sustainable practices. This convergence of technological innovation and sustainability is resonating with both consumers and businesses, driving the expansion of CBD offerings in diverse sectors. As extraction technologies evolve, fostering collaborations between researchers, manufacturers, and regulatory bodies, the global CBD market is positioned for sustained growth. The improved quality and accessibility resulting from these advancements are reshaping the landscape of CBD utilization, establishing it as a prominent player in the rapidly evolving markets of health, wellness, and pharmaceuticals worldwide.

Approval of CBD Based Drugs

The global demand for Cannabidiol (CBD) is experiencing a notable upsurge due to the approval of CBD-based drugs, marking a pivotal moment in the acceptance of CBD within mainstream pharmaceuticals. Regulatory approvals for CBD medications have bolstered confidence among healthcare professionals, leading to increased prescriptions and recommendations. Epidiolex, a CBD-based drug approved for treating certain forms of epilepsy, serves as a landmark example of regulatory recognition. As these approvals become more commonplace, the demand for CBD is expanding beyond wellness products into the pharmaceutical realm. Patients are increasingly seeking CBD-based alternatives for various health conditions, ranging from chronic pain to anxiety disorders, under the guidance of healthcare providers.

The legitimization of CBD through regulatory pathways has also spurred investment and research in developing new CBD-based pharmaceuticals, further diversifying treatment options. The global pharmaceutical industry's increasing interest in CBD is reshaping the narrative around cannabis-derived compounds, transforming them from alternative therapies into integral components of traditional medicine. This paradigm shift is likely to drive sustained growth in the global CBD market, creating opportunities for pharmaceutical companies and contributing to the broader evolution of healthcare options worldwide. The approval of CBD-based drugs not only signifies a breakthrough for patients seeking alternative treatments but also propels CBD into a new era of global recognition and acceptance within the pharmaceutical landscape.

Segmental Insights

Source Type

Based on Source Type, Hemp have emerged as the fastest growing segment in the Global Cannabidiol Market in 2023. With its low tetrahydrocannabinol (THC) content compared to marijuana, hemp has gained legal acceptance in many regions, fueling its exponential growth. But it's not just about legality, hemp's versatility is a game-changer. Its seeds, fiber, and oil can be utilized in various industries, from textiles and construction to skincare and health products. This multi-purpose nature makes hemp an incredibly attractive crop for farmers and investors alike. While both hemp and marijuana serve as sources of CBD, it is hemp that is currently leading the charge in the CBD market, revolutionizing the industry with its boundless potential.

Sales Type Insights

Based on Sales Type, B2B have emerged as the dominating segment in the

Regional Insights

Based on Region, North America have emerged as the dominating region in the Global Cannabidiol Market in 2023. This can be attributed to several key factors. There has been a significant surge in consumer demand for CBD products, driven by the growing recognition of their potential health benefits. Regulatory shifts in both the United States and Canada have paved the way for a more favorable environment for CBD-infused products, leading to increased market activity. The region's advanced distribution channels have played a crucial role in ensuring widespread availability and accessibility of CBD products to consumers. As public awareness about the potential benefits of CBD continues to grow, the North American market is poised to maintain its stronghold in the CBD industry.

Recent Developments

• In April 2024, Avicanna unveiled an updated version of its exclusive oral cannabidiol (CBD) formulation, named RHO Phyto Micro Drop 10, in the Canadian market. According to a recent announcement by the company, this new product will be made available to specific Canadian patients, including those suffering from seizures, who have medical authorization through a designated medical cannabis care platform. The oral CBD formulation is a component of Trunerox, an adjunct treatment for seizures in individuals diagnosed with Dravet syndrome and Lennox-Gastaut syndrome (LGS), which has obtained approval in Colombia. However, it is important to note that Trunerox has not yet received authorization in Canada.

Key Market Players

• Eden Partners LLC
• Isodiol International, Inc.
• Medical Marijuana, Inc.
• Cannoid, LLC
• Elixinol Wellness Ltd.
• Folium Food Science Limited 
• NuLeaf Naturals, LLC
• Pharmahemp d.o.o. 
• Holistic Hemp Scotland Ltd.