Cannabidiol Market 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, 2023 – 2030
The global cannabidiol (CBD) market size was valued at USD 6.4 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030. The 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. The market is expected to grow with the increasing legalization of hemp-based products. Companies are developing a variety of cannabidiol products, including edibles, topicals, and beverages, to meet the demand from consumers. The rise of e-commerce has allowed companies to reach a wider audience and increase sales through online channels.
The market is becoming more competitive, with a growing number of new companies offering similar products. The growing recognition of the 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. 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 high demand due to the increasing legalization and normalization of marijuana and hemp-based products. The COVID-19 pandemic-induced nationwide lockdowns impacted daily operations and altered consumer behavior across many industries. The market faced a shortage in supply due to nationwide shutdowns of transportation and manufacturing in major raw material-producing countries like China and India. In addition, supply chain disruptions in the U.S. limited the availability of other raw materials, disrupting the manufacturing and supply of CBD consumer health products.
The increasing acceptance and use of CBD products due to government approvals is expected to boost production and sales, thereby supporting market growth. CBD effectively treats conditions, such as anxiety, seizures, and pain. The demand for CBD for health and wellness is the primary factor driving the market growth. Furthermore, CBD in oil is growing in popularity as an ingredient in skincare products for treating acne and wrinkles. For example, 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.
Companies, such as Echo Pharmaceuticals, have created products like Arvisol, an oral tablet containing pure cannabinoids for treating conditions like epilepsy and schizophrenia. Moreover, companies in the global 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, the founder of Harrington Wellness.
Sales Type Insights
The B2B segment dominated the market and accounted for a revenue share of 54.7% in 2022. The segment will have substantial growth over the forecast period owing to a rise in the number of wholesalers offering CBD oil and the growing demand for CBD oil as a raw material. In addition, the legalization of CBD products in various countries has opened up 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 can be attributed to the 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 companies due to the increase in pharmacies stocking up on the products, the formation of exclusive partnerships between companies & retail pharmacies, and the growing number of patients choosing CBD as a treatment option.
In B2B end-use, the pharmaceuticals segment accounted for a revenue share of over 73.5% in 2022. The segment is expected to see substantial growth over the forecast period. The growing number of clinical trials to assess the effects of CBD on various health conditions is likely to fuel demand for these products in the coming years. In addition, many companies purchase bulk CBD oil and produce CBD-infused products that are widely used by consumers as an alternative for managing pain and stress.
As a result, these products are likely to be in a growth phase in the market. The pharmaceutical segment is expected to experience the fastest expansion over the forecast period. The transformation of cannabidiol from herbal remedies to prescription drugs will likely drive the market growth. In addition, the growing recognition of the medical benefits of cannabidiol, including its therapeutic properties, is expected to fuel demand for these products in the pharmaceutical sector.
Source Type Insights
In 2022, the hemp segment dominated the global market and accounted for the largest share of 54.5% of the total revenue. This segment is expected to grow further at the fastest rate during the forecast period on account of the rising product demand from the pharmaceutical industry and growing consumer awareness about its health benefits. Moreover, legalizing medicinal cannabis and increasing consumer disposable income levels are expected to boost the demand for CBD in the pharmaceutical sector.
High demand for CBD products, such as oils, tinctures, concentrates, capsules, topical solutions like salves, lip balms, lotions, and edibles like baked goods, coffee, chocolate, gum, and candies, will boost the market growth. Furthermore, there is a wide application scope for CBD derived from hemp because of its ability to fight inflammation and aging as it acts as an antioxidant. Various industries, such as pharmaceuticals, personal care products, nutraceuticals, and food & beverage, are creating products that use CBD for health and wellness purposes. Due to these factors, the segment is expected to experience significant growth in the near future.
In 2022, North America dominated the market with a revenue share of 87.7% and will retain its leading position throughout the forecast period. North America is expected to experience significant growth in the global 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 approval of the U.S. Farm Bill in 2020. The region is considered the most advanced in cannabis and its products, including CBD, with the highest number of CBD companies and lenient laws regarding the use of CBD products.
The Europe and Asia Pacific regions are also expected to experience substantial growth in the forecast period due to the 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 UK, 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 & 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
The market is growing rapidly due to rising product demand due to its health benefits without intoxication. There is intense competition among companies as they aim to increase their product offerings, reach new markets, and attract more customers. The market is highly fragmented due to the presence of many players. Companies are continuously launching new and innovative products and expanding their reach in different regions to maintain their industry position. In addition, companies are forming partnerships to expand their distribution networks and customer base.
Nano Hydrate introduced its cutting-edge technologies-based marketing services in January 2021 to promote natural treatment with pharmaceutical-grade CBD branding services. The company wanted to start a partnership to bring well-known brands into the niche market for CBD products and expand the market for drinks infused with cannabis. The competition in the industry is anticipated to intensify over the forecast period due to rising global demand for CBD-infused products. Some of the prominent players in the global cannabidiol market include:
- Cannoid, LLC
- Medical Marijuana, Inc.
- Folium Biosciences
- NuLeaf Naturals, LLC
- Isodiol International, Inc.
- Pharmahemp d.o.o.
- In January 2023, Medical Marijuana, Inc. announced that HempMeds Brasil, its subsidiary, had launched 2 new full-spectrum products in Brazil. The concentrations offer 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 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.
- In November 2021, High Tide, Inc. announced the acquisition of an 80% interest in NuLeaf Naturals, LLC; the company also had a 3-year option to acquire the remaining ownership. This completed the sixth acquisition by High Tide in the worldwide e-commerce sector, and its third one in the CBD space.
- 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 2020, Isodiol International and SalesBird, LLC signed a distribution agreement, which would help augment the internal sales operations of Isodiol. Additionally, it would expand the company’s market penetration to conventional physical retailers, as well as improve Isodiol’s efforts to operate efficiently in the online space.
Cannabidiol Market Report Scope
Market size value in 2023
Revenue forecast in 2030
CAGR of 16.2% from 2023 to 2030
Base year for estimation