Global Cannabidiol Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Cannabidiol Market is expected to record a CAGR of 18% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 17.50 Billion. By 2032, the valuation is anticipated to reach USD 19.67 Billion.

The Cannabidiol (CBD) market refers to the industry centered around the production, sale, and distribution of products containing cannabidiol, which is a naturally occurring compound found in the cannabis plant. Unlike tetrahydrocannabinol (THC), another well-known cannabinoid found in cannabis, CBD does not produce a psychoactive “high” effect.

Instead, it is believed to offer potential therapeutic benefits without causing intoxication. The CBD market has experienced significant growth and popularity in recent years due to the increasing acceptance and legalization of cannabis for medicinal and recreational purposes in various countries. CBD is now widely used in various forms, including oils, tinctures, capsules, edibles, topicals, and more.

 Key aspects of the CBD market include:

• Health and Wellness: CBD products are often marketed as health and wellness supplements. Many consumers use CBD to potentially alleviate symptoms of various conditions, including anxiety, pain, inflammation, insomnia, and seizures.

• Regulatory Landscape: The legality of CBD varies from country to country, and regulations surrounding CBD products can be complex. Some regions have legalized CBD for medical use, while others allow it for over-the-counter sales.

• Product Diversity: The CBD market offers a wide range of products to cater to different consumer preferences. Companies continually innovate to create new CBD-infused items, such as beverages, skin care products, pet treats, and more.

• Consumer Awareness: As CBD gains popularity, consumer awareness of its potential benefits and usage grows. However, there is still ongoing research to fully understand its effects and safety.

• Quality and Safety: Due to the rapid growth of the market, there are concerns about product quality and safety. Consumers are encouraged to buy CBD products from reputable brands that provide third-party testing and transparent information.

• Research and Medical Applications: CBD is the subject of ongoing research to explore its potential medical applications. Some FDA-approved drugs contain CBD to treat specific medical conditions, such as epilepsy.

• International Trade: CBD products are often traded internationally, leading to a complex global supply chain and export-import regulations.

Cannabidiol Market – Significant Growth Factors

The Cannabidiol (CBD) market has experienced significant growth, driven by several key factors that have contributed to its popularity and widespread adoption. Some of the significant growth factors in the CBD market include:

• Increasing Acceptance and Legalization: The growing acceptance and legalization of cannabis and CBD products in various countries and states have significantly contributed to the market’s expansion. As more regions relax their regulations on CBD, the market has seen increased consumer access and demand.

• Therapeutic Potential: CBD is believed to offer potential therapeutic benefits, and there is growing interest in its use as a natural remedy for various health conditions. Consumers are increasingly turning to CBD products to potentially alleviate symptoms of anxiety, pain, inflammation, insomnia, and other ailments.

• Wellness and Health Trends: The rising focus on health and wellness has spurred interest in natural and alternative remedies, leading consumers to explore CBD as a potential option for maintaining overall well-being.

• Diverse Product Offerings: The CBD market offers a wide range of products, catering to different preferences and consumption methods. This variety, including oils, tinctures, capsules, edibles, topicals, and more, has expanded the consumer base and market reach.

• Non-Psychoactive Nature: CBD’s non-psychoactive nature, meaning it does not produce the “high” associated with THC, has made it more accessible and appealing to a broader audience, including individuals seeking health benefits without the intoxicating effects.

• Increasing Research and Medical Applications: Ongoing research into the potential medical applications of CBD has provided scientific support for its therapeutic properties. The development of FDA-approved medications containing CBD, such as Epidiolex for epilepsy treatment, has boosted confidence in CBD’s legitimacy as a medicinal compound.

• Online Retail and E-commerce: The growth of online retail and e-commerce platforms has facilitated easy access to CBD products, allowing consumers to purchase them conveniently from the comfort of their homes.

• Beauty and Skincare Industry Integration: CBD’s integration into the beauty and skincare industry, with claims of potential benefits for skin health and appearance, has contributed to its popularity among beauty enthusiasts.

• Increasing Awareness and Education: As knowledge about CBD’s potential benefits and safe usage spreads, consumers have become more informed and confident in trying CBD products.

• Supportive Consumer Advocacy: The vocal support of consumers who have experienced positive effects from using CBD products has helped create a positive perception of CBD and encouraged others to explore its potential benefits.

Cannabidiol Market – Mergers and Acquisitions

• Curaleaf Holdings Acquisitions: Curaleaf, a leading cannabis company, made several significant acquisitions to strengthen its position in the CBD and cannabis markets. For example, in 2020, Curaleaf acquired Cura Partners Inc., a major CBD brand known for its Select brand products. This acquisition expanded Curaleaf’s reach into new markets and enhanced its product portfolio.

• Canopy Growth and Acreage Holdings: Canopy Growth, a major player in the cannabis industry, entered into an agreement to acquire Acreage Holdings, a multi-state cannabis operator in the United States. The deal was structured to become effective upon the federal legalization of cannabis in the U.S. This acquisition aimed to establish a strong presence in the American CBD and cannabis markets.

• Charlotte’s Web Acquisition of Abacus Health Products: In 2020, Charlotte’s Web, a prominent CBD company, completed its acquisition of Abacus Health Products, a manufacturer of over-the-counter topical pain relief products infused with CBD. This acquisition allowed Charlotte’s Web to expand its product offerings and market share in the CBD industry.

• Cronos Group and Redwood Holding Group: Cronos Group, a Canadian cannabis company, acquired Redwood Holding Group, the parent company of Lord Jones, a well-known CBD brand. This acquisition provided Cronos Group with a presence in the U.S. CBD market and access to Lord Jones’ product portfolio.

• Green Growth Brands and MXY Holdings: Green Growth Brands, a CBD and cannabis retailer, acquired MXY Holdings, a CBD product manufacturer. This acquisition aimed to enhance Green Growth Brands’ vertical integration and supply chain capabilities.

• Harvest Health & Recreation and CBD Naturals: In 2019, Harvest Health & Recreation, a multi-state cannabis operator, acquired CBD Naturals, a CBD product manufacturer. This acquisition enabled Harvest Health & Recreation to expand its product offerings and enter the CBD market segment.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Cannabidiol Market – Significant Threats

• Regulatory Uncertainty: The legal status of CBD varies from country to country and even within different regions of the same country. Unclear or inconsistent regulations can create uncertainty for CBD companies, leading to difficulties in market expansion and compliance.

• Changing Legal Landscape: The evolving legal landscape surrounding cannabis and CBD products can impact the market. Shifts in regulations, bans, or restrictions on CBD sales could disrupt existing business models and limit market access.

• Quality and Safety Concerns: The lack of standardized quality control and testing protocols in the CBD industry can lead to the presence of low-quality or contaminated products in the market. Reports of such issues can erode consumer trust and negatively impact the market’s reputation.

• Misinformation and Misleading Claims: The proliferation of inaccurate information and misleading claims about CBD’s health benefits can misguide consumers and create unrealistic expectations. This could result in dissatisfaction with products and potential legal issues for companies making unsubstantiated claims.

• Adverse Health Effects: While CBD is generally considered safe, there is still ongoing research to fully understand its long-term effects and potential drug interactions. Any reports of adverse health effects, even if isolated incidents, can generate negative publicity and affect consumer confidence.

• Competition from Illicit Markets: The presence of unregulated CBD products in the black market can pose a threat to legal CBD businesses. Illicit products may not adhere to safety standards and regulations, undermining the legal market’s credibility.

• Supply Chain Disruptions: The CBD market relies on a complex global supply chain, involving the cultivation, extraction, and manufacturing of CBD products. Supply chain disruptions, such as crop failures, transportation issues, or international trade restrictions, can affect product availability and prices.

• Financial and Banking Challenges: The CBD industry faces difficulties in accessing traditional banking services due to its association with cannabis, which remains illegal at the federal level in some countries. Limited banking services can hinder business operations and growth.

• International Trade Barriers: Cross-border trade of CBD products can be hampered by differing regulations and import/export restrictions, leading to market entry challenges for companies looking to expand globally.

• Stigma and Perception: Despite growing acceptance, there remains a stigma associated with CBD due to its association with cannabis. This can deter some consumers and investors from engaging with the market.

Report Scope

Category-Wise Insights

Sales Type:

In 2023, the B2B segment emerged as the market leader, holding a substantial revenue share of 55.7%. This segment is expected to continue its significant growth over the forecast period, primarily driven by an increase in the number of wholesalers providing CBD oil and a rising demand for CBD oil as a raw material.

Moreover, the legalization of CBD products in various countries has opened up new opportunities for supplying these products, given the expanding consumer base. Within the B2C segment, the sub-segment of hospital pharmacies is projected to experience remarkable growth during the forecast period.

This growth can be attributed to the growing acceptance of CBD products in healthcare settings, where CBD oil is increasingly recognized for potential therapeutic benefits.

End-user Type:

As of 2023, the pharmaceuticals segment held a dominant revenue share of more than 75.3% in the B2B end-use category. This segment is anticipated to experience significant growth throughout the forecast period.

The increasing number of clinical trials aimed at evaluating the potential health benefits of CBD is expected to drive the demand for these products in the years ahead.

Additionally, numerous companies are procuring bulk CBD oil to manufacture CBD-infused products widely utilized by consumers as an alternative for managing pain and stress.

Cannabidiol Market – Regional Analysis

• North America: North America, particularly the United States and Canada, is one of the largest CBD markets globally. The region’s early adoption of cannabis legalization for medical and recreational use has driven the CBD market’s growth. The presence of established CBD brands, a mature distribution network, and favorable consumer attitudes toward CBD contributes to the market’s expansion.

• Europe: Europe is witnessing rapid growth in the CBD market, driven by increasing awareness of CBD’s potential health benefits and a progressive regulatory environment in several countries. The European CBD market is diverse, with different regulations in individual countries, creating opportunities for local and international CBD companies.

• Asia-Pacific: The Asia-Pacific region, including countries like China, Japan, South Korea, and Australia, is experiencing significant growth in the CBD market. While regulations regarding CBD can be stringent in some countries, changing attitudes toward cannabis and increasing consumer interest in CBD products are driving market growth.

• Latin America: Latin America is emerging as a promising CBD market, with countries like Brazil, Mexico, and Colombia showing increasing interest in CBD products. The region’s potential lies in its vast agricultural resources for hemp cultivation and growing acceptance of CBD for medicinal and wellness purposes.

• Middle East and Africa: The CBD market in the Middle East and Africa is relatively nascent, with varying levels of acceptance and regulation across different countries. Some regions are exploring the potential of CBD for medical use, while others have stricter regulations.

• Rest of the World: Other regions not covered in the above categories also contribute to the global CBD market. Some regions may have limited CBD acceptance due to cultural or regulatory factors, while others may be exploring opportunities for market growth.

List of the prominent players in the Cannabidiol Market:

• ENDOCA
• Cannoid LLC
• Medical Marijuana Inc.
• Folium Biosciences
• Elixinol
• NuLeaf Naturals LLC
• Isodiol International Inc.
• Pharmahemp d.o.o.
• Others

The Cannabidiol Market is segmented as follows:

By Source Type

• Hemp
• Marijuana

By Sales Type

• B2B
• B2C

By Sales Channel

• Hospital Pharmacies
• Online
• Retail Stores

By End-use

• Medical
  • Chronic Pain
  • Mental Disorders
  • Cancer
  • Others
• Personal Use
• Pharmaceuticals
• Wellness
  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America