Cannabidiol Market Soars to USD 36.6 Billion by 2033 || Growing Demand For Personal Care Products

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The hemp segment is the most lucrative source for CBD, accounting for over 63.2% of the market in 2023. Hemp’s low THC content and legal status in many countries make it an attractive source for CBD extraction.

New York, Dec. 11, 2023 (GLOBE NEWSWIRE) — According to the market.us, the global Cannabidiol Market Size was valued at USD 7.6 billion in 2023 and is anticipated to reach approximately USD 36.6 billion by 2033. Over the period from 2024 to 2033, it is projected to experience the highest Compound Annual Growth Rate (CAGR) of 17.5%.

Cannabidiol (CBD), a chemical compound found in the cannabis sativa plant and predominantly sourced from hemp, is garnering widespread attention for its therapeutic properties. With hemp being a natural CBD-rich reservoir, it has become the primary source for extraction. CBD is renowned for its efficacy in pain alleviation, seizure management, and anxiety treatment. This has fueled a burgeoning demand for CBD in health and wellness sectors, propelling the market forward. Government approvals further contribute to the growing acceptance and utilization of CBD-infused products, fostering increased manufacturing to meet the rising consumer demand.

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The prominence of Cannabidiol (CBD) has surged as it emerges as a key player in health and wellness applications. Derived primarily from hemp due to its inherent high CBD content, this chemical compound from the cannabis sativa plant is recognized for its therapeutic advantages. Its effectiveness in pain relief, seizure control, and anxiety treatment has driven a significant market demand. Government endorsements have played a pivotal role, fostering greater acceptance and utilization of CBD-infused products. Consequently, manufacturers are scaling up production to meet the escalating demand from a discerning consumer base.

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Cannabidiol Market Growth

Key Takeaway

  • Market Growth: The global cannabidiol (CBD) market reached USD 7.6 billion in 2023 and is projected to surge to approximately USD 36.6 billion by 2033, with a remarkable CAGR of 17.5% during 2024-2033.
  • Product Types: CBD oil is the most dominant product type, with a market share of over 30%, largely due to its effectiveness in managing chronic pain.
  • Source: Hemp represents the most lucrative segment, accounting for over 63.2% of the market, driven by the fact that hemp contains high levels of CBD and very low levels of THC (tetrahydrocannabinol), which is the psychoactive compound responsible for the “high” associated with marijuana.
  • Sales Type: B2B holds the largest market share (55.1%) as the B2B transactions typically involve larger quantities of products or services compared to B2C. The segment is also expected to grow in the future as demand for CBD as a raw material is anticipated to increase.
  • End-Use: Pharmaceuticals represent the most lucrative segment, accounting for over 37.2% of the market, driven by CBD’s neuroprotective and pain-relieving properties.
  • Regional Dominance: North America leads the market, holding a 60% market share, with Europe and Asia-Pacific showing emerging demand.

Factors affecting the growth of the cannabidiol industry

The Cannabidiol (CBD) industry has witnessed remarkable growth driven by several key factors. Legalization and regulatory changes have removed barriers, allowing for the cultivation and sale of hemp-derived CBD products. Consumer awareness has surged with increasing recognition of CBD’s potential health benefits, contributing to a growing demand for CBD products. Medical acceptance, backed by research on CBD’s therapeutic properties, has further propelled its adoption. The industry’s diverse product offerings, ranging from oils to edibles, cater to varied consumer preferences, fostering market expansion. Accessibility through various distribution channels and retail outlets has played a crucial role in making CBD products widely available.

Additionally, the CBD industry has benefited from investment influx, supporting research, development, and marketing efforts. Changing attitudes toward cannabis, coupled with the globalization of the market, have expanded opportunities on a global scale. The industry’s response to quality concerns, with the establishment of standards and certification, has enhanced consumer confidence. Despite the growth, challenges such as regulatory uncertainties and quality control issues persist, influencing the industry’s trajectory. Ongoing developments in regulations and market dynamics will continue to shape the future of the CBD industry.

Regional Analysis

In the global cannabidiol market, North America takes the lead, boasting a substantial 72.1% market share during the forecast period. The region’s ascendancy is attributed to the easing regulations on cannabidiol products in countries like the U.S. and Canada, fostering increased public acceptance. Notably, consumer preferences are evolving, prompting recognition of CBD’s benefits by manufacturers in the food, pharmaceutical, and cosmetic industries. However, North America’s dominance may face challenges as Europe experiences a surge in sales for tobacco-free alternatives, including smoking, vaping, and edibles. This trend signals potential intense competition in the region.

In the Asia Pacific region, which includes countries like China, Japan, and India, there is a notable growth in the cannabidiol (CBD) market. The increasing demand for products infused with CBD and a noticeable rise in their legal status and acceptance present significant opportunities for businesses in the area.

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Cannabidiol Market Regions

Scope of the Report

Report Attributes Details
Market Value (2023) US$ 7.6 Billion
Forecast Revenue 2033 US$ 36.6 Billion
CAGR (2023 to 2033) 17.5%
North America Revenue Share 60%
Base Year 2023
Historic Period 2018 to 2022
Forecast Year 2024 to 2033

Market Drivers

The surging demand for personal care products is significantly influenced by the increasing popularity of goods containing cannabidiol (CBD). From pet supplies to cosmetics and health and beauty items, the shift in consumer perceptions toward cannabis-derived products is evident. The legalization of cannabis in many nations has propelled the demand for CBD-infused personal care items like tinctures, lotions, skincare products, capsules, vaping devices, and transdermal patches. The diverse applications, including potential therapeutic benefits and the calming effect on animals, contribute to their widespread appeal. Notably, significant investments in research and development by key players in the cannabis industry and various governments further fuel the growth of CBD-infused products, supported by studies confirming their efficacy in treating neurological conditions such as epilepsy.

Market Restraints

In Western economies, there’s a rising acceptance of CBD-based products, a trend not mirrored in developing regions like Asia and the Middle East. The primary hurdle lies in a prevalent misconception that these products induce psychoactive effects, fueled by their association with recreational use. This misconception impedes the potential success of CBD in these markets. Additionally, there’s a lack of consumer awareness regarding the diverse features and benefits offered by CBD products, hindering informed decision-making. Before making purchases from CBD providers, consumers may not fully grasp the potential advantages these products could bring to various aspects of their well-being.

Market Opportunities

The market is experiencing significant growth thanks to rapid advancements in manufacturing technology, fostering increased market value. This surge is attributed to the drive for cost reduction and waste minimization in production, coupled with a rising tide of industrialization. Notably, hemp materials are finding expanded applications, pointing to a promising future for the sector. As we look ahead to the period between 2024 and 2033, an array of factors such as heightened public-private funding for targeted research, growing disposable incomes, rapid urbanization, and evolving lifestyles due to technological strides are poised to offer lucrative opportunities for industry players. Moreover, the market is set to benefit from various factors contributing to its growth trajectory.

The rising global internet penetration rate, continuous strides in product development and commercialization, and favorable government policies, particularly in developing economies, are significant catalysts. Additionally, the escalating per capita expenditure and an overall positive environment surrounding cannabis-related products underscore the potential for sustained market growth in the foreseeable future.

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Report Segmentation of the Cannabidiol Market

Source Insights

In the realm of cannabidiol, the market is divided into hemp and marijuana segments. Notably, the hemp sector emerges as the most profitable, commanding a robust 63.2% share of the global cannabidiol market as of 2023. The efficacy of cannabidiol sourced from hemp plays a pivotal role, driving category expansion in response to heightened pharmaceutical demand and a surge in public awareness of health-related issues.

Furthermore, the market anticipates swift growth in the cannabidiol derived from marijuana. The projection aligns with the accelerating demand for cannabidiol within the pharmaceutical sector, driven by both the rising disposable income of consumers and the ongoing legalization of medical marijuana. As these factors converge, the landscape for hemp-derived cannabidiol is expected to evolve rapidly, reflecting the dynamic interplay of economic trends and changing regulatory landscapes.

Cannabidiol Market Size Analysis

Product Insight

In the realm of CBD products, the oil segment stands out as the frontrunner, claiming a commanding market share exceeding 30%. Extracted from cannabis plants, CBD oil has proven to be exceptionally lucrative, particularly due to its myriad benefits. This product, renowned for alleviating chronic pain associated with sedentary lifestyles, has witnessed soaring demand. Globally, approximately 1 in 10 adults grapple with chronic pain, contributing significantly to the overall burden of illness. With regulatory authorities addressing CBD consumption and alarming data on the rise of chronic pain, market analysts project substantial growth in the oil segment in the foreseeable future.

Sales Type Insight

In the dynamic landscape of Sales Type, the global cannabidiol market delineates a comprehensive spectrum, encompassing B2B and B2C channels. Notably, the B2B segment emerges as a formidable leader, securing a robust 55.1% market share in 2023. This preeminence is underpinned by the sheer volume and scale of transactions involved. B2B transactions often occur in larger quantities and monetary values compared to B2C transactions.

End-Use Insight

Among the diverse end-use segments in the CBD (cannabidiol) market, the pharmaceuticals category asserts itself as the preeminent force, commanding a substantial 37.2% market share. The pharmaceuticals segment dominates due to CBD’s therapeutic potential for treating various medical conditions, supported by clinical research and regulatory approvals. Precision medicine and the commitment of pharmaceutical companies to innovate further reinforce its position in the market, meeting the demand for effective and personalized treatments.

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Market Segmentation

Based on Product

  • Oil
  • Concentrates
  • Isolates
  • Others Products

Based on Source

  • Hemp
  • Marijuana

Based on Sales Type

  • B2C
  • B2B

Based on End-Use

  • Medical
  • Personal Use
  • Pharmaceuticals
  • Wellness

By Geography

  • North America
    • The US
    • Canada
  • Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Russia
    • Netherland
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • New Zealand
    • Singapore
    • Thailand
    • Vietnam
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA

Competitive Landscape

In the dynamic landscape of the Cannabidiol (CBD) market, numerous products have surged in popularity, providing users with the health benefits of CBD without inducing intoxication. This global industry witnesses intense competition as companies strive to enhance their product portfolios, explore new markets, and attract a broader customer base. With a multitude of players vying for market share, the competition is robust. Companies are actively introducing innovative CBD products and expanding their operations across various regions to solidify their positions. Additionally, strategic partnerships are being forged to amplify distribution networks and bolster consumer outreach.

Top 10 Biggest Key Players

  • Medical Marijuana Inc.
  • Cannoid LLC
  • Isodiol International Inc.
  • ENDOCA
  • Folium Biosciences
  • Aurora Cannabis Inc.
  • Pharmahemp d.o.o
  • Elixinol Global
  • CV Sciences
  • Medterra CBD

Recent Developments in the Cannabidiol Market

  • In January 2022, CV Sciences unveiled four new +PlusCBD pain treatment topicals designed to alleviate minor aches and pains. This product launch marks their effort to broaden the range of +PlusCBD offerings.
  • In June 2021, Vertical Wellness, a US-based cannabidiol company, shared news of its merger with CanaFarma Hemp Products Inc., a company based in Ontario specializing in hemp-related products and services. This strategic move is set to transform Vertical Wellness into a public company, with an estimated total value of $50 million post-merger.

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