Cannabidiol Market Size, Share, Trends, Growth and Forecast 2032

Cannabidiol Industry Prospective:

The global cannabidiol market size was worth around USD 6.05 billion in 2023 and is predicted to grow to around USD 21.96 billion by 2032 with a compound annual growth rate (CAGR) of roughly 15.40% between 2024 and 2032.

Request Free Sample

Cannabidiol Market: Overview

Cannabidiol (CBD) is the second-most common active ingredient of marijuana, also known as cannabis. CBD, according to market research, is widely used for the production of medical marijuana. However, cannabidiol is either laboratory-produced or derived from hemp plants. Research has proven that CBD does not cause high among consumers on its own.

In addition to this, the World Health Organization (WHO) has confirmed that there is no evidence suggesting that CBD can lead to any form of abuse or excessive dependence among consumers. One of the major factors governing the growth of the industry is the lack of standard regulations legalizing CBD for production, sale, and consumption. Each country has different laws for qualifying CBD and end-user applications. Studies conducted worldwide have proven that controlled consumption of cannabidiol has several potential health benefits.

For instance, it is used for managing the symptoms of some of the most dangerous childhood epilepsy syndromes, including Lennox-Gastaut syndrome (LGS). Furthermore, it can also help with managing chronic pain, anxiety, and addiction. The demand for cannabidiol is projected to grow during the forecast period, led by several factors, including growing awareness and increasing legal recognition of the marijuana ingredient. The absence of standard regulatory support may affect the overall revenue in the industry, according to market analysis.

Key Insights:

• As per the analysis shared by our research analyst, the global cannabidiol market is estimated to grow annually at a CAGR of around 15.40% over the forecast period (2024-2032)
• In terms of revenue, the global cannabidiol market size was valued at around USD 6.05 billion in 2023 and is projected to reach USD 21.96 billion by 2032.
• The cannabidiol market is projected to grow at a significant rate due to the rising applications of CBD for the treatment of certain mental health conditions.
• Based on product, the CBD oil segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on application, the pharmaceuticals segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Cannabidiol Market: Growth Drivers

Rising applications of CBD for the treatment of certain mental health conditions will fuel the market demand rate

The global cannabidiol market is projected to witness high growth due to the growing applications of CBD for treating highly prevalent mental health conditions. Several studies focused on learning the impact of CBD consumption on health indicate that the active ingredient can be used for treating depression and anxiety. The former is a clinically diagnosed common mental health condition that includes prolonged loss of interest in activities or low mood. Depression can be caused by a number of factors, including biological, psychological, and social. For instance, repeated trauma or life-changing events can trigger depression among victims. Moreover, changes in brain chemistry can also cause the onset of the widely prevalent medical condition.

According to the official reports of Yale Medicine, around 3.2% of children and adolescents in the US are diagnosed with depression. On the other hand, while occasional anxiety among humans is not uncommon, studies indicate that a large number of people globally are suffering from anxiety-related disorders. Some of the most commonly observed anxiety-related medical conditions include panic disorder, generalized anxiety disorder, various phobia-related disorders, and social anxiety disorder.

Increased use of cannabidiol in personal care items to generate higher revenue in the long term

According to intensive research, CBD has shown potential benefits in managing and treating several types of skin conditions, such as psoriasis and acne. The growing use of the products available in the global cannabidiol market in the form of personal care and skin care items is likely to help the industry expand further in the coming years.

According to the National Eczema Association, the use of topical creams containing CBD is useful in decreasing inflammation, pain, and itching caused by eczema. The increased consumer awareness and rising number of people suffering from skin conditions will create demand for CBD-infused skin care and medical creams.

Cannabidiol Market: Restraints

Risks associated with CBD and concerns over product quality to limit the industry’s expansion rate

The global industry for cannabidiol is projected to be restricted due to the health risks associated with the unregulated consumption of cannabidiol. For instance, reports indicate that excess exposure to CBD can result in reduced appetite, diarrhea, dry mouth, fatigue, and drowsiness.

Furthermore, consuming CBD along with other medications can lead to adverse reactions, especially in the case of combining the compound with blood thinners. In addition to this, questions have been raised over the purity of CBD products. Studies indicate that around one-fourth of CBD-infused products contained less cannabidiol than labeled.

Cannabidiol Market: Opportunities

Intensifying research & development along with government approvals to create expansion opportunities

The global cannabidiol market is projected to generate growth opportunities due to the rising levels of research & development aimed at learning more about the compounds and their medical or non-medical applications. For instance, researchers at the University of Northern Colorado have been working on exploring CBD effects on general health as scientists are seeking proof that can debunk myths surrounding the impact of CBD on the overall well-being of a person.

According to a recent study by university researchers, regular consumption of CBD for 8 weeks in healthy individuals did not cause any form of negative mental and physical health impact. In June 2024, DSM-Firmenich, a leading player in the field of beauty, health, and nutrition, launched CBtru®.

According to company claims, it is a highly advanced formulated CBD drug that can be delivered through oral means. CBtru® stands out from its competitors due to higher drug loading and enhanced bioavailability. In addition, the growing rate of government approvals worldwide concerning the use of CBD in medical and non-medical applications will pave the path for industry players in the coming years.

Cannabidiol Market: Challenges

Regulatory complexities are the major barriers to growth in the industry

The global cannabidiol industry is projected to be challenged by the regulatory complexities surrounding the production and application of CBD. Cannabidiol use is heavily regulated, with only selective countries legalizing the medicinal use of CBD. In addition, the absence of globally standard regulations for manufacturing CBD-induced products further impacts the overall return on investment (ROI).

Cannabidiol Market: Report Scope

Cannabidiol Market: Segmentation

The global cannabidiol market is segmented based on product, source, application, and region.

Based on product, the global market divisions are CBD concentrates, CBD isolates, CBD oil, and others. In 2023, the highest growth was listed in the CBD oil segment. The variant is highly versatile and can be used in several formats, including topical drugs, capsules, and food & beverages. According to market analysis, the recommended average dosage for managing conditions such as stress is 10–20 mg per day. Furthermore, CBD isolates have witnessed higher demand in the last few years due to the growing popularity of products without Tetrahydrocannabinol (THC).

Based on source, the global cannabidiol industry is divided into hemp and marijuana.

Based on application, the global market divisions are topicals, dietary supplements, food & beverages, pharmaceuticals, tinctures, and others. In 2023, the highest revenue was generated in the pharmaceuticals segment. The surge in research-based investments for novel medications and their impact on human health is expected to help promote segmental revenue in the coming years. According to the American Psychiatric Association, around 4% of the world’s population suffers from clinically-diagnosed depression.

Cannabidiol Market: Regional Analysis

Europe to dominate the market growth rate during the projection period

The global cannabidiol market is expected to witness the highest growth in Europe. According to market analysis, cannabidiol oil produced across major European countries is ranked as one of the most high-quality products available globally. CBD products from Europe are manufactured using strict and clear quality standards, allowing them to dominate the regional and global markets. Furthermore, most countries across Europe have legalized the production of cannabidiol products; however, these items should contain less than 0.2% of THC. In April 2024, Germany launched the Cannabis Act.

After the adoption of the new rules, Germany has become one of the most liberal nations to adopt a legal approach toward cannabis production and application across Europe. Furthermore, the growing focus on managing the mental health conditions of European nationals is expected to further promote the use of CBD in the European continent.

North America is expected to emerge as the second-highest revenue generator. Growing research and analysis of CBD across the US and Canada will fuel regional market revenue. Additionally, the increase in the number of mental health patients, especially the ones affected by depression and anxiety, will be critical to the region’s overall revenue in the long term.

Cannabidiol Market: Competitive Analysis

The global cannabidiol market is led by players like:

• Holmes Organics
• Cornbread Hemp
• PharmaHemp
• Medterra
• Gaia Botanicals
• Charlotte's Web
• Joy Organics
• NuLeaf Naturals
• Soul CBD
• CBDfx
• Lazarus Naturals
• Green Roads
• One Farm
• CBDistillery
• Isodiol International Inc.

The global cannabidiol market is segmented as follows:

By Product

• CBD Concentrates
• CBD Isolates
• CBD Oil
• Others

By Source

• Hemp
• Marijana

By Application

• Topicals
• Dietary Supplements
• Food & Beverages
• Pharmaceuticals
• Tincture
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa