Cannabidiol Market (2025 - 2030) Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Sales Type (B2B, B2C), By End-use (Medical, Personal Use), By Region, And Segment Forecasts

Cannabidiol Market Summary

Companies are developing a variety of cannabidiol products, including edibles, topicals, and beverages, to meet the demand from consumers. Rise of e-commerce has allowed companies to reach a wider audience and increase sales through online channels, which has positively impacted the CBD industry growth projections.

In addition, growing interest in the potential health benefits of cannabidiol has led to increased investment in research and development to understand its effects better and develop new products. Cannabidiol (CBD) market is becoming more competitive, with a growing number of companies entering the market and offering similar products, which in turn is bolstering the global CBD market size.

Growing recognition of therapeutic benefits of cannabidiol has driven consumers to purchase these products, even if they are expensive. As a result, commercial retailers are now focusing on selling cannabis-based items, which have a higher profit margin. For instance, Abercrombie & Fitch—a clothing retailer—plans to sell CBD-infused body care products in more than 160 of its 250-plus stores. Many health and wellness stores, such as Walgreens Boots Alliance, CVS Health, and Rite Aid, now offer CBD-based products. CBD is a non-psychoactive compound found in the hemp plant and is used in various forms, such as cream, edibles, oils, and tinctures. It is marketed for its potential health benefits, such as reducing anxiety and pain. It has seen a surge in demand due to the increasing legalization and normalization of marijuana and hemp-based products.

It effectively treats conditions such as anxiety, seizures, and pain. Demand for CBD for health and wellness is the primary factor driving the market's growth. Additionally, increasing acceptance and use of these products due to government approvals are expected to increase production and sales. Furthermore, CBD oil is growing in popularity as an ingredient in skincare products for treating acne and wrinkles. For instance, Sephora recently added a line of CBD skincare products to its stores, and Ulta Beauty plans to launch its line of CBD-based products. Many new companies are also entering the market for CBD-infused cosmetic products.

Percentage of Marijuana Use in Different Countries

Companies such as Echo Pharmaceuticals have created products such as Arvisol, an oral tablet containing pure cannabinoids for treating conditions such as epilepsy and schizophrenia. Moreover, companies in the market are launching various products and services to maintain a competitive edge.

For instance, in December 2021, Avicanna Inc., a biopharmaceutical company specializing in developing and selling cannabinoid-based products made from plants, announced the introduction of the re+PLAY sports recovery brand in partnership with Harrington Wellness. This brand focused on using CBD for sports recovery and was created through a collaboration with NBA veteran Al Harrington, who founded Harrington Wellness.

Market Concentration & Characteristics

Analyzing the Cannabidiol (CBD) industry statistics, we have derived the market growth stage to be high, and pace of the market growth is accelerating. Cannabidiol market is characterized by a high degree of innovation owing to increased R&D activities on the use of cannabis and its medicinal properties, rising product demand due to its health benefits without intoxication, and increasing preference for cannabis extracts such as oils and tinctures.

Cannabidiol market is also characterized by a medium level of merger and acquisition (M&A) activity by the leading players. Through M&A activity, these companies can expand their product portfolio, enter new territories, and strengthen their market position.For instance, in March 2022, Aurora Cannabis Inc. announced to acquire TerraFarma Inc., a parent company of Thrive Cannabis. This acquisition aims to strengthen Aurora's position in the Canadian market and expand its product portfolio.

Global cannabidiol industry is flourishing owing to the rising number of countries devising a systematic regulatory framework for the cultivation and sale of cannabis. For instance, in August 2022, the Swiss Federal Narcotics Act was amended to utilize cannabis for medical purposes. Wide acceptance and rising awareness of Cannabidiol (CBD) in various countries, majorly for medical purposes, is gaining impetus.

Legalization of cannabis, cannabis-based products, and the popularity of CBD-infused foods are rapidly rising due to the various health benefits associated with CBD. Thus, due to legalization, some market players are expanding their market presence in such areas.

Source Type Insights

In 2024, hemp segment dominated the market and generated 56.8% of the revenue. This segment is expected to grow fastest due to rising demand from the pharmaceutical industry and growing consumer awareness of health benefits. Legalizing medicinal cannabis and growing consumer disposable income is also expected to boost the demand for cannabidiol in the pharmaceutical sector. High demand for CBD products includes oils, tinctures, concentrates, capsules, topical solutions such as salves, lip balms, lotions, and edibles like baked goods, coffee, chocolate, gum, and candies.

Furthermore, uses CBD derived from hemp is growing quickly because of its abilities to fight inflammation, aging, and act as an antioxidant. Various industries such as pharmaceuticals, personal care products, nutraceuticals, and food and beverage companies are creating products that use CBD for health and wellness reasons. Due to these factors, the segment is expected to experience significant growth in the future.

Sales Type Insights

B2B segment dominated the market and accounted for the largest revenue share in 2024. This segment is anticipated to grow at fastest CAGR over the forecast period, owing to rise in the number of wholesalers offering CBD oil and the growing demand for CBD oil as a raw material. Additionally, legalization of CBD products in various countries has opened more opportunities for supplying these products due to the expanding consumer base.

The sub-segment of hospital pharmacies within the B2C segment is expected to experience significant growth over the forecast period. This growth is due to rise in companies partnering with retail pharmacies to improve their exposure and establish a dedicated space for customers to purchase CBD products. Moreover, the market is anticipated to offer ample opportunities for market participants due to the increase in pharmacies stocking up on the products, formation of exclusive partnerships between companies and retail pharmacies, and growing number of patients choosing CBD as a treatment option.

End-use Insights

In B2B end use, pharmaceuticals segment accounted for a largest revenue share in 2024. The segment is expected to see substantial growth over the forecast period. A growing number of clinical trials to assess the effects of CBD on various health conditions is likely to fuel demand for these products over the forecast period. In addition, many companies purchase bulk CBD oil and produce CBD-infused products that consumers widely used as an alternative for managing pain and stress. As a result, these products are likely to be in a growth phase in the market.

Pharmaceutical segment is expected to experience the quickest expansion over the forecast period. The transformation of cannabidiol from herbal remedies to prescription drugs is expected to drive market growth. Additionally, growing recognition of the medical benefits of cannabidiol, including its therapeutic properties, is expected to fuel demand for these products in the pharmaceutical sector.

Regional Insights

In 2024, North America dominated the market with a revenue share of 86.7%. North America is expected to experience significant growth in the cannabidiol market due to several factors, such as a large number of health-conscious individuals, growing acceptance of CBD products, the presence of major manufacturers, and the approval of the U.S. Farm Bill in 2020. The region is considered the most advanced in cannabis and its products, including cannabidiol, with the highest number of CBD companies and favorable laws regarding the use of CBD products. In addition, growing awareness amongst the American citizens towards the multiple benefits associated with cannabidiol is boosting the U.S. CBD market.

Europe is expected to witness fastest growth over the forecast period. Increasing awareness concerning the health benefits among consumers, easy availability, and affordable prices have resulted in the increased popularity of CBD oil in this region. Increasing awareness concerning the health benefits among consumers, easy availability, and affordable prices have resulted in the increased popularity of CBD oil in the UK. Furthermore, CBD oil is often used in personal care products such as shampoos, creams, and lotions. The products offered at stores comprise a low percentage of CBD and are mixed with other substances. CBD is marketed in various forms, namely CBD capsules, CBD edibles, CBD hemp oil, and CBD vaping e-liquid. For instance, under Ambiance Cosmetics, Eos Scientific launched six lines of CBD-instilled cosmetics, including oils, balms, and moisturizers.

Asia Pacific is anticipated to record significant growth over the forecast period due to establishment of hemp production facilities, particularly in China. China is the leading hemp grower in Asia, producing nearly half of the world's hemp. It exports around 90% of its products to the U.S., Germany, the U.K., the Netherlands, and Japan and has started growing hemp in three provinces for CBD extraction purposes. The new government policies supporting the industry, low CBD production costs, and unique large-scale manufacturing infrastructure and expertise are anticipated to create intense competition for hemp companies in the U.S., Canada, and the European Union with low-cost CBD supplies.

Key Companies & Market Share Insights

Some of the key players operating in the market include ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Canopy Growth Corporation and Folium Europe B.V

• ENDOCA primarily manufactures and distributes pharmaceutical-grade hemp-derived cannabidiol (CBD) products across the globe. The vertically integrated company is involved in cultivating, processing, extracting, and selling CBD products.

• Cannoid, LLC produces hemp-based therapeutics and works on a contract basis. The company’s primary focus is on cannabinoid oil encapsulation. It offers softgels for various purposes. Its product portfolio includes soft gels with Cannabidivarin (CBDV) for neuromodulation, soft gels with controlled Cannabidiolic Acid (CBDA), and Cannabigerolic Acid (CBGA) fractions intended for immunity.

NuLeaf Naturals, LLC, Isodiol International Inc., PharmaHemp, and The Cronos Group Cannoid, LLC, are some of the emerging market participants in the cannabidiol market.

• NuLeaf Naturals, LLC manufactures and distributes hemp-derived CBD products in the U.S. market. The company provides wholesale, lab-tested, and organic CBD oil & extracts to its consumers in the global market.

• PharmaHemp produces and supplies a range of Cannabidiol (CBD) products. The company provides a range of CBD products under its brand “PharmaHemp CBD.”

Recent Developments

• In June 2024, Rodedawg International Industries, Inc., a cannabis manufacturer and distributor, introduced the Nutrient CBD, which includes five innovative SKUs, such as two CBD Oil Tinctures, two CBD Creams, and one CBD Roll-On, to meet the various needs of consumers seeking natural and effective wellness solutions.

• In April 2023, Aurora Cannabis Inc. partnered with Strainprint and announced the launch of the tracking program through Strainprint App. The tracking program is designed for Aurora patients to keep a track of their medical cannabis journey.

• In January 2023, Medical Marijuana, Inc. announced that HempMeds Brasil, its subsidiary, had launched 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 October 2022, Medical Marijuana, Inc. announced the collaboration of its subsidiary, HempMeds Mexico, 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.

• In October 2022, High Tide, Inc. announced the launch of multi-cannabinoid products by its subsidiary, NuLeaf Naturals, in Ontario, Canada. The products listed for sale include Full Spectrum Hemp Multicannabinoid oil and plant-based softgels with delta-9 tetrahydrocannabinol, cannabichromene, cannabidiol, cannabigerol, and cannabinol.

• In September 2022, Kannaway, a subsidiary of Medical Marijuana, Inc., announced a distribution agreement with Complete Hemp Technologies (CHT), a long-time partner, regarding the expansion of its capabilities in Europe. As per the agreement, CHT added warehousing and daily operations to the services it already offers to Kannaway in the region.

• In January 2022, Elixinol announced the launch of 2 innovative CBD products - the Sleep Rapid Rest Liposome and Sleep Gummies - that focus on offering support for sleep. The former contains a customized formula of CBN (cannabinol), CBD, chamomile, and lemon balm. On the other hand, the Sleep Gummy contains 2mg CBN and 15mg CBD.

Cannabidiol Market Report Scope

Global Cannabidiol Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global cannabidiol market on the basis of source type, sales type, end-use, and region:

• Source Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Hemp

  • Marijuana

• Sales Type Outlook (Revenue, USD Million, 2018 - 2030)

  • B2B

    • By End-use

      • Pharmaceuticals

      • Wellness

        • Food & Beverages

        • Personal Care & Cosmetics

        • Nutraceuticals

        • Others

  • B2C

    • By Sales Channel

      • Hospital Pharmacies

      • Online

      • Retail Stores

    • By End-use

      • Medical

        • Chronic Pain

        • Mental Disorders

        • Cancer

        • Others

      • Personal Use

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Medical

    • Chronic Pain

    • Mental Disorders

    • Cancer

    • Others

  • Personal Use

  • Pharmaceuticals

  • Wellness

    • Food & Beverages

    • Personal Care & Cosmetics

    • Nutraceuticals

    • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Netherlands

    • Switzerland

    • Italy

    • France

    • Poland

    • Czech Republic

    • Croatia

  • Asia Pacific

    • China

    • India

    • South Korea

    • Japan

    • New Zealand

    • Australia

  • Latin America

    • Argentina

    • Brazil

    • Mexico

    • Colombia

    • Uruguay

    • Chile

  • Middle East & Africa (MEA)

    • Israel

    • South Africa