Cannabidiol Market Size, Share, Forecast, & Trends Analysis by Product (Cannabidiol Oil, Cannabidiol Isolate), Source (Hemp), Nature (Organic), End User (Pharmaceutical, Food & Beverage, Nutraceutical), Distribution Channel (B2B) - Global Forecast to 2031

The Cannabidiol Market was valued at $9.32 billion in 2023. This market is expected to reach $71.06 billion by 2031 from an estimated $11.32 billion in 2024, at a CAGR of 30% during the forecast period from 2024 to 2031.

Cannabidiol Market Size & Forecast

The growth of this market is driven by the increasing legalization of cannabis, health benefits offered by cannabidiol-infused products, and increasing demand for cannabidiol in medical applications. Moreover, the growing adoption of cannabidiol in pet food and emerging economies in Asia-Pacific and Latin America are expected to create market growth opportunities for the stakeholders operating in this market. Furthermore, the introduction of cannabidiol-infused beverages is a major trend in the cannabidiol market.

Key Findings

• By Product: In 2024, the CBD Oil Segment is Expected to Dominate the Cannabidiol Market
• By Source: In 2024, the Hemp-sourced Cannabidiol Segment is Expected to Dominate the Cannabidiol Market
• By Nature: In 2024, the Non-organic Segment is Expected to Dominate the Cannabidiol Market
• By End User: In 2024, the Pharmaceuticals Segment is Expected to Account for the Largest Share of the Cannabidiol Market
• By Distribution Channel: In 2024, the Business-to-Business (B2B) Segment is Expected to Account for a Larger Share of the Cannabidiol Market
• By Geography: North America is Expected to Dominate the Cannabidiol Market in 2024

Cannabidiol Market Growth Drivers

Increasing Legalization of Cannabis

The growing public awareness, changing legal landscape, and increasing acceptance of CBD product are boosting the demand for cannabis. More countries and states have started embracing cannabis for both recreational and medicinal use. As of 2024, 24 states, three territories, and the District of Columbia permitted cannabis use for recreational purpose and 37 states, three territories, and the District of Columbia permitted cannabis use for medicinal purposes. Notably, in February 2023, the German Bundestag approved the controlled use of cannabis, which allows adults to possess up to 50 grams of cannabis in private and up to 25 grams in public. In 2018, Canada legalized cannabis for both purposes.

As laws surrounding cannabis use soften, consumers are becoming more aware about the benefits of CBD, which has gained popularity for its potential therapeutic effects, such as reducing anxiety, alleviating pain, and improving sleep quality. This newfound accessibility is encouraging individuals who may have previously shied away from cannabis to explore its benefits, thus driving the demand for CBD products. From oils and tinctures to edibles and skincare, the variety available caters to a broad range of preferences and needs.

Moreover, the wellness trend is gaining momentum, with consumers actively seeking holistic and natural remedies. The perception of CBD as a safe and beneficial alternative to pharmaceuticals has led many to incorporate it into their daily health routines. As a result, wellness brands are increasingly integrating CBD into their offerings, creating a synergy that bolsters the compound's popularity.

Therefore, the ongoing legalization of cannabis is expected to support the growth of the CBD market significantly.

Health Benefits Offered by Cannabidiol-Infused Products

CBD, a non-psychoactive compound derived from the cannabis plant, is gaining traction for its potential therapeutic effects, which has spurred both consumer interest and market growth. The increasing awareness of health benefits associated with cannabidiol (CBD) has significantly driven the demand for CBD-infused products. CBD has numerous health benefits such as anxiety and stress reduction, pain management, neuroprotective properties, anti-inflammatory effects, and improved sleep quality, among others.

The primary health benefit of CBD is its ability to alleviate anxiety and stress. CBD helps in reduction in symptoms related to anxiety disorders, making CBD a popular alternative to traditional pharmaceuticals. Some studies suggest that CBD interacts with the body’s endocannabinoid system, potentially helping to regulate mood and promote a sense of calm. Pain relief is another major reason for the rising popularity of CBD products. CBD can be effective in managing chronic pain, inflammation, and even conditions like arthritis. As more individuals seek natural alternatives to over-the-counter pain medications, CBD offers a compelling option with fewer side effects.

Additionally, CBD is being explored for its neuroprotective properties, showing promise in managing conditions like epilepsy. The FDA has approved Epidiolex, a CBD-based medication for specific seizure disorders, which further bolsters confidence in CBD's therapeutic potential. Furthermore, CBD can improve sleep quality and duration after incorporating CBD into their nightly routines, addressing the growing prevalence of sleep disorders.

Furthermore, the rise of the wellness industry has fuelled demand for CBD-infused products in various forms, including oils, edibles, beverages, and topical applications. Consumers are increasingly seeking holistic approaches to health, and CBD fits well within this trend. The growing acceptance of cannabis-related products and with more extensive research, the demand for cannabidiol is expected to increase.

Cannabidiol Market Trends

Introduction of Cannabidiol-infused Beverages

The growing consumer interest in functional drinks that offer health benefits is driving the demand for cannabidiol-infused beverages. Several companies have recently launched innovative products that incorporate CBD, appealing to a diverse range of consumers. In September 2024, 3BW Ltd (U.K.), also known as One Living, launched cold pressed CBD drinks in the U.K. The drink is available in mint & lime and wild berry flavors. In August 2024, SKIP BRANDS LTD (U.K.) launched three sparkling variations, including peach & ginger, elderflower & mint, and lemon & basil. The drink contains 5mg of cold-pressed active CBD, fruit juices, and botanicals. In January 2024, Aurora Cannabis Inc. (Canada) launched three new cannabis-infused beverages for the patients looking for alternative forms of cannabis to support their wellbeing. These are available in three flavors: neon rush, strawberry pineapple tropical fizz, and pineapple coconut fizz.

The rise of these CBD-infused beverages is part of a broader trend towards functional drinks that not only quench thirst but also offer therapeutic effects. Consumers are increasingly looking for natural alternatives to traditional wellness products, and CBD beverages fit this demand by combining enjoyment with potential health benefits. The emphasis on cold-pressed methods and natural ingredients further enhances their appeal, as consumers become more health-conscious and discerning about product quality. Therefore, the introduction of cannabidiol-infused beverages represents a significant shift in the market, driven by innovation and consumer demand for health-enhancing products.

Cannabidiol Market Analysis: Top Market Opportunity

The Hemp-sourced Cannabidiol Segment to Dominate the Cannabidiol Market in 2024

Based on the source, the cannabidiol market is segmented into hemp-sourced cannabidiol and marijuana-sourced cannabidiol. In 2024, the hemp-sourced cannabidiol segment is expected to account for a larger share of the cannabidiol market. This segment’s large market share is primarily due to the widespread acceptance and legalization of hemp-derived products across various regions. In addition, hemp’s versatility allows it to be incorporated into a range of products, from food and beverages to pharmaceuticals. Furthermore, consumers increasingly prefer hemp-derived CBD for its lower THC content, due to its therapeutic benefits without psychoactive effects associated with marijuana.

Furthermore, the hemp segment is also projected to register a higher CAGR during the forecast period. This growth is mainly driven by growing demand for hemp from personal care applications, including cosmetics and skincare. The growing consumer awareness and innovations in health and wellness are expected to further boost the growth of this market.

Geographical Analysis

North America Dominates the Cannabidiol Market

Based on geography, the cannabidiol market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the cannabidiol market, followed by Europe and Asia-Pacific. North America's significant market share can be attributed to several key factors, such as presence of key players, growing acceptance of CBD products, rising prevalence of chronic diseases, changing perceptions towards CBD consumption for both medical and recreational purposes, and ease of accessibility. Furthermore, in 2024, the U.S. is expected to account for a larger share in the North America cannabidiol market.

Moreover, this region is expected to record the highest CAGR during the forecast period of 2024–2031, due to the increasing health and wellness trends, increasing awareness regarding the health benefits of cannabidiol, rising investments from leading players, and technological advancements in the production and processing of cannabidiol.

Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the cannabidiol market are Aurora Cannabis Inc. (Canada), Cannoid, LLC (U.S.), NuLeaf Naturals, LLC (U.S.), Medical Marijuana, Inc. (U.S.), PharmaHemp d.o.o. (Slovenia), Water for Living LLC (U.S.), Elixinol Global Limited (Australia), Isodiol International Inc. (U.S.), Tilray Brands, Inc. (Canada), Tweedle Farms (U.S.), Endoca LLC (U.S.), and CV Sciences, Inc. (U.S.).

Cannabidiol Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Aurora Cannabis Inc. (Canada) launched three new cannabis-infused beverages for the patients looking for alternative forms of cannabis to support their wellbeing. These are available in three flavors: neon rush, strawberry pineapple tropical fizz, and pineapple coconut fizz.
• In July 2023, HealthyTOKYO K.K. (Japan) launched highly concentrated CBD oil (CBD Oil 18.2%) to support individuals for stress relief.
• In April 2021, Canopy Growth Corporation (Canada) entered a partnership with Southern Glazer’s Wine & Spirits to leverage Quatreau – Canopy’s first line of CBD-infused beverages in the U.S. market.

Cannabidiol Market Research Summary

Key Questions Answered in the Report: