Cannabidiol Market

Cannabidiol Market Size:

The global cannabidiol market size reached US$ 6.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 22.1 Billion by 2032, exhibiting a growth rate (CAGR) of 15.46% during 2024-2032. The market is rapidly expanding, driven by the increasing product legalization, growing consumer awareness of its health benefits, innovations in product offerings, and enhanced distribution channels, while investment in research and a shift towards natural remedies are further propelling its widespread adoption across diverse demographic segments.

Cannabidiol Market Analysis:

• Major Market Drivers: The legalization and decriminalization of cannabis and its derivatives in various regions are expanding the customer base and legitimizing market activities, thereby driving the market growth of cannabidiol. Moreover, CBD's medicinal effects are being supported by rising research, leading to increased consumer confidence and market demand.
• Key Market Trends: Cannabidiol is increasingly being used in popular health and wellness goods, indicating a shift in customer preferences for natural medicines. Moreover, CBD companies are increasingly collaborating with corporations from other industries, like pharmaceuticals and cosmetics, to harness their strengths in technology, marketing, and distribution.
• Geographical Trends: The cannabidiol market is dominated by North America due to its progressive legislation, elevated consumer awareness, and well-established commercial infrastructure for cannabis products. Other regions are also experiencing growth due to more flexible regulations, hiked consumer acceptance, and the growing use of CBD products in wellness and medical therapies.
• Competitive Landscape: Some of the major market players in the cannabidiol industry include Aurora Cannabis Inc., Canopy Growth Corporation, CV Sciences Inc., Elixinol Global Limited, Endoca BV, Folium Biosciences, Green Roads of Florida LLC (The Valens Company Inc.), Isodiol International Inc., Koi CBD, Medical Marijuana Inc., Medterra CBD, NuLeaf Naturals LLC, PharmaHemp d.o.o., and Tilray Brands Inc., among many others.
• Challenges and Opportunities: The market for cannabidiol experiences many regulatory challenges resulting from differing legislation between nations and regions that make entrance and expansion difficult. However, established organizations can gain a competitive edge by effectively navigating these challenges.

Cannabidiol Market Trends:

Growing Legislative Changes and Legalization

The legalization of cannabis for both medicinal and recreational purposes in various nations is a main driver for the cannabidiol market expansion. This legislative change has broadened the legal framework that allows for the cultivation, manufacture, and sale of several CBD products while also legitimizing and improving customer trust in these items. Countries like the United States, Canada, and numerous European nations have shown significant changes in their cannabis legislation. In 2018, the U.S. Farm Bill approved hemp-derived CBD products which have increased their marketability and usage. Also, in February 2024, Germany decriminalized marijuana, which gave allowance to individuals who are over 18 years of age to carry 25 grams and cultivate up to three plants at home. Along with this, cannabis clubs were allowed to offer up to 500 members, with a monthly limit of 50 grams per member. This legal support has led to a rising market with more accessibility for customers and compliance with regulatory safety and quality criteria.

Increasing Awareness and Acceptance of CBD's Therapeutic Properties

Consumers are becoming conscious of the possible medical advantages of CBD as clinical trials and scientific research steadily bolster CBD's effectiveness in treating a range of ailments, including anxiety, pain, and inflammation. Its potential to cure more serious illnesses like multiple sclerosis and epilepsy is also favoring its market expansion. The Food and Drug Administration (FDA) in the United States authorized Epidiolex, a medication containing hemp-derived, pure cannabidiol. This medication aids in the treatment of uncommon seizure disorders. According to the FDA's study, using this medication is both safe and effective. Also, based on a January 2024 Pew Research Center survey, almost 90% of Americans say that marijuana should be allowed for either medical or recreational usage. An overwhelming majority of U.S. adults, accounting for 88%, say either that marijuana should be legal for medical use only (32%) or that it should be legal for medical and recreational use (57%).

Rapid Innovation in Product Offerings

Advancements in cannabidiol development are majorly contributing to the expansion of the market. Companies are continuously diversifying their product lines to include various CBD-infused products, like oils, capsules, edibles, topicals, and cosmetics. For instance, in March 2023, mood elevation expert Daytrip Beverages showcased its NightTrip gummies at the Natural Products Expo West. These gummies are available in a CBD and CBN-infused variant and are gluten-free and vegan. They are known to ease tension and support restful sleep. Also, in December 2021, Cibdol, a Netherlands-based CBD and wellness company, revealed its CBD Oil 2.0 range. This product offers hiked levels of essential compounds, including CBC, CBG, CBN, and CBDa, alongside high-purity CBD. It is expected to address many physical and mental challenges that are associated with modern living and offer solutions for problems related to appetite, mood, pain, and sleep.

Cannabidiol Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product, source type, grade, and sales type.

Breakup by Product:

• CBD Oil
• CBD Isolates
• CBD Concentrates
• Others
   

CBD isolates accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product. This includes CBD oil, CBD isolates, CBD concentrates, and others. According to the report, CBD isolates represented the largest segment.

As per the cannabidiol market report and analysis, CBD isolates represented the largest segment. They are the purest form of CBD, containing 99% cannabidiol, with all other components such as terpenes, flavonoids, and other cannabinoids removed. This high purity makes isolates attractive for consumers who are seeking the specific benefits of CBD without the effects of other cannabis compounds. Moreover, they are favored in regions with strict tetrahydrocannabinol (THC) restrictions, as they ensure no THC content that could otherwise lead to legal issues or psychoactive effects. Besides this, the versatility of CBD isolates, as they can be used in various forms, including powders and crystals, and are easily incorporated into edibles, cosmetics, and topical products, is bolstering the cannabidiol market revenue.

Breakup by Source Type:

• Marijuana
• Hemp
   

Marijuana holds the largest share of the industry

A detailed breakup and analysis of the market based on the source type have also been provided in the report. This includes marijuana and hemp. According to the report, marijuana accounted for the largest market share.

Based on the cannabidiol market trends and forecast, marijuana-derived CBD accounted for the largest segment due to its higher levels of THC as it contributes to the entourage effect. The combined chemical compounds work synergistically to enhance the therapeutic benefits of the plant. The growing popularity of marijuana-based CBD among consumers in regions where marijuana is legally permissible for recreational or medical use, as it allows for products that potentially offer more potent and comprehensive benefits, is catalyzing the market growth. Besides this, the robust infrastructure of dispensaries and a well-established consumer base that appreciates the full-spectrum benefits provided by the marijuana plant is fueling the cannabidiol market demand.

Breakup by Grade:

• Food Grade
• Therapeutic Grade
   

Therapeutic grade represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the grade. This includes food grade and therapeutic grade. According to the report, therapeutic grade represented the largest segment.

According to the cannabidiol market outlook, therapeutic-grade CBD dominated the largest segment. This category is specifically geared towards health and wellness applications, offering products that are designed to alleviate various ailments such as anxiety, chronic pain, and sleep disorders. Moreover, therapeutic-grade CBD is distinguished by its rigorous quality standards, including purity and concentration, ensuring that products are safe and effective for use. Along with this, the growing body of clinical research that supports the therapeutic claims of CBD is enhancing the cannabidiol market share. Moreover, the increasing endorsements from the medical community and the integration of CBD into traditional treatment plans are propelling the market growth.

Breakup by Sales Type:

• B2B
• B2C
   

B2B exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the sales type have also been provided in the report. This includes B2B and B2C. According to the report, B2B accounted for the largest market share.

Based on the cannabidiol market overview, the business-to-business (B2B) model emerged as the largest segment. It encompasses sales between CBD producers and various commercial entities such as wholesalers, retailers, and manufacturers of CBD-infused products. The extensive supply chain requirements in the CBD industry and the adoption of high-quality raw materials and refined products by businesses to create several consumer goods, such as wellness supplements and personal care items, is enhancing the cannabidiol market's recent opportunities. Moreover, the long-term contractual relationships, volume sales, and recurring business, are supporting the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest cannabidiol market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for cannabidiol.

North America is dominating the market for cannabidiol due to the progressive legislative frameworks that have broadly legalized and regulated the production, sale, and use of CBD products. These regulatory advancements have fostered a conducive environment for growth by enhancing consumer confidence and allowing for extensive market penetration in terms of product diversity and innovation. Moreover, the well-established infrastructure for cannabis research and development (R&D), which supports continuous innovation in CBD products, is fueling the market growth. Additionally, the high consumer awareness and acceptance, coupled with substantial investments in marketing and distribution networks, is propelling the cannabidiol market's recent developments.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the cannabidiol industry include Aurora Cannabis Inc., Canopy Growth Corporation, CV Sciences Inc., Elixinol Global Limited, Endoca BV, Folium Biosciences, Green Roads of Florida LLC (The Valens Company Inc.), Isodiol International Inc., Koi CBD, Medical Marijuana Inc., Medterra CBD, NuLeaf Naturals LLC, PharmaHemp d.o.o., Tilray Brands Inc., etc. (Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)
• The top cannabidiol companies are pursuing strategies to solidify their position and capitalize on the growing demand for CBD products. They are intensifying their research and development (R&D) efforts to innovate and diversify their product offerings, ensuring they cater to a broad range of consumer preferences and therapeutic needs. Moreover, some firms are making significant investments in improving product quality and efficacy through advanced extraction and processing technologies that enhance the purity and potency of CBD. Additionally, they are forming strategic partnerships and acquisitions as firms seek to expand their market reach and enhance their supply chain capabilities. For instance, they are collaborating with biotech companies to refine product formulations and create more bioavailable CBD products. Apart from this, some companies are using targeted digital marketing and educational campaigns to destigmatize CBD use and inform potential customers about its benefits.

Cannabidiol Market News:

• 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 June 2021, The Valens Company announced that it has acquired Green Roads for about US $60 million. The Valens Company aims to strengthen its capabilities to supply US domestic and global markets with an expanded product offering.
• 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.

Cannabidiol Market Report Scope:

Key Questions Answered in This Report:

• How has the global cannabidiol market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global cannabidiol market?
• What is the impact of each driver, restraint, and opportunity on the global cannabidiol market?
• What are the key regional markets?
• Which countries represent the most attractive cannabidiol market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the cannabidiol market?
• What is the breakup of the market based on the source type?
• Which is the most attractive source type in the cannabidiol market?
• What is the breakup of the market based on the grade?
• Which is the most attractive grade in the cannabidiol market?
• What is the breakup of the market based on the sales type?
• Which is the most attractive sales type in the cannabidiol market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global cannabidiol market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cannabidiol market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global cannabidiol market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cannabidiol industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.