Cannabidiol Market Projected To Reach US$ 36.6 Billion By 2033

Introduction

Global Cannabidiol Market size is expected to be worth around US$ 36.6 Billion by 2033 from US$ 7.6 Billion in 2023, growing at a CAGR of 27% during the forecast period from 2024 to 2033. In 2023, North America held over 60% market share, reaching a revenue total of USD 5.5 Billion.

Key growth drivers for the CBD market include its increasing utilization across pharmaceuticals, personal care, and wellness sectors. Legalization in various regions has significantly propelled the market forward, with North America maintaining a substantial market share due to a conducive regulatory landscape and heightened consumer awareness.

Moreover, continuous enhancements in product innovation and escalating investments in research and development are further stimulating market growth. Notably, CBD is being studied for potential therapeutic benefits in conditions such as epilepsy and chronic pain, which is augmenting its adoption.

Nonetheless, the market encounters obstacles, particularly in areas where misconceptions about CBD’s psychoactive properties remain prevalent, which limits wider acceptance. Furthermore, regulatory complexities and inconsistent laws across different nations pose substantial barriers to market expansion. Despite these challenges, the market presents ample opportunities, driven by increasing consumer expenditure and technological advancements that improve production efficacy and product quality.

Recent market developments include the introduction of new CBD-infused products like gummies, skincare items, and beverages by leading companies such as Medterra and Medical Marijuana Inc. These innovations meet the growing consumer demand for varied CBD applications, underscoring the vibrant and swiftly evolving nature of the market.

Key Takeaways

• The global cannabidiol (CBD) market, valued at USD 7.6 billion in 2023, is projected to reach USD 36.6 billion by 2033, growing at a CAGR of 17.5%.
• The marijuana segment leads the market due to increasing legalization and acceptability for medical use, though hemp-derived CBD is also rapidly expanding.
• CBD oil, accounting for over 30% of the market, dominates due to its effectiveness in managing chronic pain.
• Pharmaceuticals, representing over 25% of the market, are the most lucrative segment, driven by CBD’s neuroprotective and pain-relieving properties.
• Online pharmacies hold a 25% market share, benefiting from the convenience of online sales and global reach.
• Rising demand for personal care products, increased research, and growing awareness of CBD’s health benefits are key market drivers.
• Misconceptions about CBD products, especially in developing economies, pose a challenge to market growth.
• Advancements in manufacturing technology, increased public-private funding, and changing lifestyles offer growth opportunities for market players.
• Significant trends include growing demand for CBD-infused products and increased research into CBD’s potential health benefits.
• The COVID-19 pandemic disrupted supply chains but increased demand for CBD products, particularly for health and wellness purposes.
• North America leads the market with a 60% share, while Europe and Asia-Pacific show emerging demand.
• Major companies in the CBD market include Medical Marijuana Inc., Isodiol International Inc., Aurora Cannabis Inc., and Elixinol Global.

Cannabidiol Statistics

• Prevalence of Use: 60% of U.S. adults surveyed have tried CBD, citing its medicinal benefits.
• Purposes for Use: 62% of CBD users take it to manage medical issues, mainly pain, anxiety, and depression.
• Safety Perception vs. Legalization Support: Approximately 65% of Americans believe CBD is safer than alcohol, but only 44% support its full legalization.
• Legal Status: As of 2023, CBD is conditionally or fully legal in all 50 U.S. states.
• Age-Related Usage Trends: Under one-third of individuals aged 18 to 25 use CBD, in stark contrast to nearly 90% of those aged 77 and older.
• Market Growth: The U.S. CBD market grew from $108 million in sales in 2014 to $1.9 billion by 2022.
• Consumer Spending: Despite economic challenges, 29% of CBD consumers spend at least $50 monthly on CBD products. The highest spenders are those aged 34 to 44.
• Retail Sales: In 2021, CBD retail sales in the United States reached approximately $5.3 billion.
• Future Sales Projections: Sales are expected to climb to nearly $16 billion by 2026, with e-commerce remaining a dominant channel.
• E-Commerce Share: Online sales currently account for about 40% of total U.S. CBD product sales.
• Demographics of Survey Respondents: The survey involved 2,409 individuals, mostly females (50.87%) and males (47.40%), spanning ages primarily between 55 to 74 years (39.97%).
• Educational Background: A significant 71.22% of respondents had some college education or higher.
• Geographic Distribution: 91.23% of respondents were from the U.S., with the highest numbers from California (21.90%), followed by Texas, Oregon, Florida, and Colorado.
• Usage Patterns: Regular cannabis use was reported by 55.17% of participants. 61.56% used CBD specifically for medical conditions, while 38.44% used it for general health and well-being.
• Sources of Information: Internet research, family members, and friends were the primary sources of CBD information for 75.85% of respondents.
• Frequency of Usage: Daily CBD use was reported by 39.70% of respondents, with 26.92% using it more than once per day.
• Duration of Use: Over half of the respondents (53.17%) had been using CBD for more than five years, while 34.57% had used it for less than a year.

Overview of Cannabidiol (CBD) Market in the United States

• General Sales and Usage: In 2022, CBD sales in the United States reached $5.9 billion, with 35% of American adults using cannabidiol recreationally. Notably, 62% of these users utilized CBD primarily for anxiety and stress relief.
• Consumption Details: The most prevalent dosage of CBD in the U.S. is between 5-10 milligrams. However, a concerning 28% of CBD brands did not test for pesticide contamination in 2022.
• Market Segments and Trends: The global market value for CBD consumer health products stood at $15.88 billion in 2022. Despite this growth, hemp CBD product sales in traditional retail outlets saw a 10% decline in 2023. Specific categories such as hemp CBD pain relief and beverage products reached sales of $7.4 million and $8.8 million, respectively, as of March 2023.
• E-commerce Influence: Online sales dominated the market in 2020, capturing 66% due to the pandemic influence. This trend continued with e-commerce generating over $2 billion in CBD sales in 2021. By Q1 2022, e-commerce accounted for 39.2% of total CBD sales.
• Demographic Insights: Millennials and Gen Xers composed 71% of the U.S. CBD market in 2021. Pet CBD also saw significant traction, with sales reaching $426 million by the end of 2021. Veterinary advice was sought by 52% of pet CBD buyers, and 77% of these consumers purchased CBD products for their dogs.
• Market Players and Distribution: Key players like Sky Wellness and Charlotte’s Web made notable impacts, with sales of $700K and holding 2.7% of the online market in Q2 2022, respectively. Approximately 32% of CBD consumers purchased their products from dispensaries in Q1 2021.
• Retail and Distribution Channels: In Q1 2021, 13% of CBD users bought products from pharmacies, which rose to 19.5% of total sales by Q1 2022. CBD specialty retailers secured 10.7% of the market, and natural food stores along with vitamin retailers held 7.2% in the same quarter. Notably, CBD supplements were the top-selling items in convenience stores in 2022.
• Beverage Market: In 2021, CBD-infused seltzers and sparkling waters dominated the beverage sector, comprising 57% of the market. Additionally, 58% of users in 2022 reported using CBD to improve sleep quality.

Emerging Trends

• Integration into Beauty and Skincare: CBD is gaining popularity in the beauty and skincare industry due to its potential benefits for skin health, such as reducing inflammation and enhancing hydration. This trend is propelled by consumer interest in natural and holistic wellness solutions. Beauty brands are utilizing CBD’s anti-inflammatory and moisturizing properties to develop products like serums, creams, and masks. The demand for natural and organic skincare options is driving the increase in CBD-infused beauty products, appealing to consumers seeking sustainable and effective skincare solutions.
• Rise in E-commerce: The growth of the e-commerce sector has significantly enhanced the accessibility of CBD products, reaching a wider audience. Online platforms offer convenience, a diverse product selection, and detailed information, leading to increased sales and customer engagement. E-commerce enables consumers to compare products, read reviews, and make informed decisions from home, boosting online CBD sales. Many brands are expanding their e-commerce presence to tap into a global customer base, with the added benefit of discreet delivery options.
• Pharmaceutical Integration: The pharmaceutical industry is witnessing substantial growth in CBD integration due to ongoing clinical trials and research affirming its therapeutic benefits. CBD is being explored for potential applications in treating conditions like epilepsy, chronic pain, and anxiety. As evidence of CBD’s effectiveness mounts, pharmaceutical companies are incorporating it into medications, offering patients alternative treatments with potentially fewer side effects. Regulatory approvals and the launch of CBD-based pharmaceuticals are expected to drive significant market growth and enhance CBD’s credibility and acceptance in healthcare.
• Geographic Expansion: Although North America currently leads the CBD market, regions such as Europe and Asia-Pacific are poised for rapid growth. In Europe, increased consumer awareness and a broad product range are driving market expansion. In Asia-Pacific, particularly in China, extensive hemp cultivation is boosting the market. As these regions develop favorable regulatory environments and invest in hemp cultivation and processing, the availability and popularity of CBD products are expected to increase. This expansion offers opportunities for global CBD brands to enter new markets and diversify their product lines.
• Regulatory Developments: Regulatory changes in various countries are opening up new markets for CBD products. The legalization and clear regulatory guidelines being established in different regions are facilitating market expansion and product diversity. These developments allow businesses to operate with more confidence and security, spurring innovation and competition in the market. As more countries acknowledge the potential health benefits of CBD and adapt their regulations, the global CBD market is set to experience continued growth and diversification.

Use Cases

• Pain Management: CBD is renowned for its analgesic properties, making it a preferred choice for those suffering from chronic conditions like arthritis, multiple sclerosis, and neuropathic pain. Its anti-inflammatory effects help alleviate pain, offering an alternative to traditional medications which may have adverse side effects. By engaging the endocannabinoid system, CBD reduces inflammation and pain signals, serving as a natural option for those wary of the health risks associated with opioids and NSAIDs.
• Anxiety and Stress Relief: CBD’s ability to modulate mood and anxiety through the endocannabinoid system makes it a natural alternative to pharmaceutical anxiolytics. Research indicates its potential to diminish symptoms of various anxiety disorders, including social anxiety disorder and PTSD, providing a sense of calm without the sedative effects typical of conventional medications. This positions CBD as a favored choice for managing anxiety and stress naturally, avoiding risks of dependency.
• Epilepsy Treatment: CBD has captured attention for its success in treating severe epileptic conditions, such as Dravet syndrome and Lennox-Gastaut syndrome, through the FDA-approved drug Epidiolex. This medication has proven effective in reducing seizure frequency in treatment-resistant patients, highlighting CBD’s therapeutic potential and encouraging further research into its medical applications.
• Skin Care: The skincare market has embraced CBD-infused products due to their potential to treat conditions like acne, eczema, and psoriasis. CBD’s anti-inflammatory and antioxidant properties help soothe skin, reduce redness, and prevent irritation, while also balancing sebum production. These benefits make CBD a compelling component in natural skincare regimes, driving its popularity in this sector.
• Sleep Disorders: CBD is commonly used to enhance sleep quality and manage disorders like insomnia. Its calming effects facilitate relaxation, crucial for restful sleep, without the side effects associated with traditional sleep aids. Research supports CBD’s role in improving sleep patterns and reducing sleep onset times, making it an appealing alternative for those seeking natural sleep solutions.
• Cancer Symptom Management: CBD helps mitigate symptoms related to cancer and its treatments, such as pain, nausea, and appetite loss. For chemotherapy patients, CBD can be especially beneficial in improving quality of life by managing pain and reducing nausea. Its ability to stimulate appetite also plays a crucial role in supporting patients’ nutritional status and energy levels during treatment.
• Neurological Disorders: Ongoing studies into CBD’s benefits for neurological disorders show promising results, especially for Parkinson’s disease, Alzheimer’s disease, and multiple sclerosis. CBD’s neuroprotective properties may help alleviate symptoms and decelerate disease progression by reducing brain inflammation and oxidative stress, suggesting potential as a supplementary treatment.
• General Wellness: CBD is increasingly incorporated into daily wellness routines to promote overall health and balance. Products like CBD oils, capsules, and edibles are utilized for their stress-reducing, sleep-enhancing, and mood-improving properties, appealing to those seeking holistic health solutions without the psychoactive effects of THC.
• Pet Products: CBD’s use in pet care is expanding, with many owners noting improvements in their pets’ anxiety, pain, and inflammation. CBD-infused treats, oils, and capsules offer ease of administration, with growing research backing their safety and effectiveness. This trend underscores CBD’s rising popularity as a natural treatment option in pet health care.

Conclusion

The CBD market is poised for significant growth, driven by its increasing acceptance in pharmaceutical, personal care, and wellness sectors, and bolstered by legalizations in various regions. Despite facing challenges such as regulatory complexities and misconceptions about its psychoactive properties, the market continues to expand due to strong consumer demand and technological advancements in production.

Innovations in product offerings and a growing body of research highlighting CBD’s potential health benefits are likely to sustain market momentum. As regulatory landscapes evolve and consumer awareness increases, the CBD industry is expected to witness continued diversification and robust growth.

Discuss your needs with our analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF