Cannabidiol Market - Size & Upcoming Industry Trends (2024-2032)

Cannabidiol Market Synopsis:

Cannabidiol Market Size Was Valued at USD 8.13 Billion in 2023, and is Projected to Reach USD 30.99 Billion by 2032, Growing at a CAGR of 16.03% From 2024-2032.

CBD market can be defined as the business segment that focuses on the sale of Cannabidiol (CBD), which is the cannabinoid found in cannabis plants without causing a high. CBD has been seen to provide therapeutic uses such as pain relievers, anxiety reducers and anti-inflammatory. While tetrahydrocannabinol (THC), the psychoactive that makes individuals feel “stoned,” is very good for many medical conditions, CBD does not cause this feeling and is therefore more preferable for the health needs of these individuals. This market comprises oils, edibles, topical, and capsules among others targeting a broad customer base that looks forward to natural remedies instead of artificially produced medicines.

The CBD market has been through significant growth in the past few years concentrated in North America with increased knowledge of health benefits of CBD. Given the legalization and decriminalization of marijuana, among some of the states and the world at large, people’s demand for CBD products and investors’ interest in it have risen in recent time. Such legalization has created opportunities for improvement and expansion of research and developments which has culminated into the development of the plethora of differing Cannabinoid infused food products, beverages, cosmetics, and even drugs across food, beverage, cosmetics and drug industries. In addition, since consumers are now more conscious of their health and there is the search for natural solutions to different illnesses, then the offer of CBD products should follow a similar trend.

However, the CBD industry faces regulatory hurdles and market dispersion that make the industry on the precipice of growth. such extractions ad processing have enhanced product quality and safety, thereby enhancing consumers’ perception of the products. Also, the emergence of online stores has made it more comfortable to access Cannabidiol, and other companies can access a broader market. With conglomerate manufacturers seeking to brand their products, and new formulations dominating the market, the market is slowly opening up for new companies while simultaneously encouraging the growth of existing brands.

Cannabidiol Market Trend Analysis:

Growing Acceptance of CBD Products

• CBD market tendency is the integration and acceptance of cannabidiol by most consumer goods and their manufacturers. It is mainly attributed to altering perception on part of the public towards cannabis and its products. The negative perception about marijuana has reduced greatly, and many people especially the youths use CBD to treat multiple ailments naturally. This is making retailers and manufacturers to develop new products that will suit the market and are legal to be sold such as CBD infused drinks, cosmetics and supplements. While more and more people learn more about CBD and how it can be used for medical and health purposes or for recreational consumption, the market is opening up for more products and the cannabis companies are looking for partnership with normal retailers and grocery stores.

Expansion in Emerging Markets

• The former reveals that one of the most promising trends that can influence the development of the CBD market is its way to expand to new countries. Since the world is thinking of legalizing cannabis for medical and recreational purposes, the chance for CBD products to enter new markets is vast. In particular, the on-going debate regarding legalisation of cannabis in the Europe, Asia and Latin American could unlock enhanced market access and consumer acceptance. Obviously, those companies that are apt to invest on these emerging markets could gain substantial first-mover advantages, creating brand familiarity. Furthermore, the demand for organic and natural products has been on the rise, making CBD as a health supplement complementary to growing market needs thus increasing the marketability of regions.

Cannabidiol Market Segment Analysis:

Cannabidiol Market is Segmented on the basis of Source Type, Sales Type, End User, and Region

By Source Type, Hemp segment is expected to dominate the market during the forecast period

• Within the Cannabidiol market, the hemp segment is forecast to outdo marijuana due to high CBD concentration and comparatively low THC concentration. Hemp derived CBD is the most popular because users and manufacturers consider it legal in many jurisdictions. The versatility in the use of raw material, which is hemp, means that various extraction techniques can be used to offer consumers and wide variety of CBD products. In addition, the legalizations of industrial hemp across many countries and regions with improved understanding of its value to agriculture with the stabilization of supply for CBD. Therefore, the hemp segment is expected to retain the dominant position in the market on the back of the product being sustainable and the increasing preference for more sustainable products.

By Sales Type, B2B segment expected to held the largest share

• B2C segment is likely going to account for limited percentage of the total CBD market because the B2B segment has been seen to have the highest growth rate of CBD usage by corporations in their products. This segment contains sales to manufacturers, wholesalers and retailers who use CBD as an active ingredient in any food and drug products among others. The further enlargement of the B2B segment is attributed to the growing cooperation between CBD suppliers and companies from other industries. Furthermore, in the current matrix of competition, firms are practicing product differentiation by including CBD in their products thereby positively working to increase the B2B sales type market.

Cannabidiol Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• For the year 2023, North America holds the largest market share for Cannabidiol and is expected to reach up to 40-45% of the total market share. Specifically, the book’s focus on the region as the market leader in CBD concentrates on the favorable legislation of cannabis for medical and recreational purposes in many states in the US. This legal framework has created a basis for extensive researches, appearance of new products as well as wide-raising the awareness and stimulating the demand increasing thus facilitating the market advance. In addition, North America now enjoys relatively well-developed transport and logistics system in distribution and retail while the consumer awareness of CBD advantages in healthcare has been more developed than many other regions, making North America secure its leading role in global CBD market.

Active Key Players in the Cannabidiol Market:

• Aurora Cannabis, Inc. (Canada)
• Canopy Growth Corporation (Canada)
• Charlotte's Web Holdings, Inc. (USA)
• CV Sciences, Inc. (USA)
• Elixinol Global Limited (Australia)
• Folly & Fern (USA)
• Green Roads (USA)
• HempFusion (USA)
• Hexo Corp (Canada)
• Just CBD (USA)
• KushCo Holdings (USA)
• Medterra (USA)
• Nuleaf Naturals (USA)
• Purekana (USA)
• Other Active Players