Cannabidiol Market Estimated to Expand at a 27% CAGR by 2033

Trishita Deb
Trishita Deb

Updated · May 30, 2024


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The global Cannabidiol (CBD) market is experiencing significant growth, driven by increasing legalization and growing awareness of its potential health benefits. In 2023, the market size was valued at USD 7.6 billion and is projected to reach approximately USD 36.6 billion by 2033, registering a remarkable compound annual growth rate (CAGR) of 27% from 2023 to 2032.

Key growth factors include the expanding use of CBD in various sectors such as pharmaceuticals, personal care, and wellness products. Legalization in several regions has facilitated market growth, with North America holding a dominant share due to favorable regulatory environments and high consumer awareness. Additionally, advancements in product development and increasing investments in research and development are propelling market expansion. For instance, CBD is being explored for its therapeutic benefits in treating conditions like epilepsy and chronic pain, further boosting its adoption.

However, the market faces challenges, particularly in regions where misconceptions about CBD’s psychoactive effects persist, hindering broader acceptance. Additionally, regulatory hurdles and varying laws across different countries can impede market growth. Despite these challenges, opportunities abound, particularly with the rise in consumer spending and ongoing technological advancements that enhance production efficiency and product quality.

Recent developments in the market include the launch of innovative CBD-infused products such as gummies, skincare lines, and beverages by key players like Medterra and Medical Marijuana Inc. These innovations cater to the growing demand for diverse CBD applications, highlighting the dynamic and rapidly 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 Market Growth
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Cannabidiol Statistics

  • 60% of surveyed U.S. adults have tried CBD, believing in its medicinal benefits.
  • 62% of CBD users employ it to address medical conditions, predominantly pain, anxiety, and depression.
  • Approximately 65% of Americans view CBD as safer than alcohol, yet only 44% advocate for its legalization.
  • CBD consumption is conditionally or fully legal across all 50 states as of 2023.
  • Less than one-third of individuals aged 18 to 25 use CBD, contrasting with nearly 90% of those aged 77 and older.
  • The U.S. CBD market experienced significant growth, with sales escalating from $108 million in 2014 to $1.9 billion by 2022.
  • Despite economic challenges, 29% of CBD consumers spend at least $50 monthly on CBD products, with 34- to 44-year-olds being the highest spenders.
  • CBD retail in the United States reached sales of approximately $5.3 billion in 2021.
  • Sales are projected to soar to nearly $16 billion by 2026, with e-commerce expected to remain a dominant force.
  • Online sales currently make up around 40% of total CBD product sales in the US market.
  • The survey involved 2,409 respondents, mainly females (50.87%) and males (47.40%), regarding their usage and perceptions of CBD or Cannabidiol.
  • Most respondents were aged 55 to 74 years (39.97%), reflecting a balanced age distribution in the study on CBD.
  • A significant 71.22% of respondents had some college education or were enrolled in higher education, showcasing the educational background of CBD users.
  • An overwhelming 91.23% of respondents were from the U.S., with California leading at 21.90%, followed by Texas, Oregon, Florida, and Colorado.
  • Regular cannabis use was reported by 55.17% of the participants, indicating a high prevalence of Cannabidiol consumption.
  • A notable 61.56% of respondents used CBD to treat medical conditions, while 38.44% used it for general health and well-being.
  • Internet research, family members, and friends were the primary sources of CBD knowledge for 75.85% of respondents.
  • Daily CBD usage was reported by 39.70% of participants, with 26.92% using Cannabidiol more than once per day.
  • 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.

Cannabidiol In the United States

  • CBD sales in the United States reached $5.9 billion in 2022.
  • 35% of American adults used cannabidiol recreationally in 2022.
  • 62% of users reported using CBD for anxiety and stress relief.
  • The most common CBD dose in the U.S. is 5-10 milligrams.
  • In 2022, 28% of CBD brands did not test for pesticide contamination.
  • The global market for CBD consumer health products was $15.88 billion in 2022.
  • Hemp CBD product sales in traditional retail outlets declined by 10% in 2023.
  • Hemp CBD pain relief product sales were $7.4 million as of March 2023.
  • Hemp CBD beverage sales reached $8.8 million as of March 2023.
  • Online CBD sales captured 66% of the market in 2020 due to the pandemic.
  • In 2021, the U.S. CBD market was composed of 71% Millennials and Gen Xers.
  • By the end of 2021, pet CBD sales reached $426 million.
  • 52% of pet CBD buyers sought advice from veterinarians in 2021.
  • In 2021, 77% of pet CBD buyers purchased products for their dogs.
  • Sky Wellness generated $700K in sales in 2022.
  • Charlotte’s Web held 2.7% of the online CBD market in Q2 2022.
  • In Q1 2021, 8% of CBD users bought products from gas stations or convenience stores.
  • E-commerce generated over $2 billion in CBD sales in 2021.
  • Approximately 32% of CBD consumers bought their products from dispensaries in Q1 2021.
  • In Q1 2022, e-commerce represented 39.2% of total CBD sales.
  • In 2021, CBD market offline distribution held 52.4% of sales.
  • In Q1 2021, 13% of CBD users bought products from pharmacies.
  • Pharmacies generated 19.5% of total CBD sales in Q1 2022.
  • CBD specialty retailers secured 10.7% of sales in Q1 2022.
  • Natural food stores and vitamin retailers represented 7.2% of sales in Q1 2022.
  • In 2022, CBD supplements were the top-selling products in convenience stores.
  • In 2021, CBD-infused seltzers and sparkling waters held 57% of the beverage market.
  • 58% of CBD users in 2022 used it to improve sleep quality.

Emerging Trends

  • Integration into Beauty and Skincare: CBD is increasingly being incorporated into beauty and skincare products due to its potential skin health benefits, such as reducing inflammation and promoting hydration. This trend is driven by a growing consumer interest in natural and holistic wellness products. Beauty brands are capitalizing on CBD’s anti-inflammatory properties and its ability to soothe and moisturize the skin, making it a popular ingredient in products like serums, creams, and masks. The rising demand for natural and organic skincare solutions has led to a surge in CBD-infused beauty products, attracting consumers looking for effective and sustainable skincare options.
  • Rise in E-commerce: The e-commerce sector’s growth has greatly increased the accessibility of CBD products to a broader audience. Online platforms provide convenience, a wide range of products, and detailed information, which drive higher sales and greater consumer engagement. E-commerce allows consumers to easily compare products, read reviews, and make informed purchasing decisions from the comfort of their homes. This has led to a surge in online CBD sales, with many brands investing in robust e-commerce strategies to reach a global customer base. The convenience of online shopping, coupled with discreet delivery options, has further fueled the popularity of CBD products.
  • Pharmaceutical Integration: The pharmaceutical segment is expected to see substantial growth due to increasing clinical trials and research validating CBD’s therapeutic benefits. CBD is being explored for its potential in treating various conditions, including epilepsy, chronic pain, and anxiety. As scientific evidence supporting CBD’s efficacy grows, pharmaceutical companies are incorporating it into medications and treatment plans. The development of CBD-based pharmaceuticals offers promising solutions for patients seeking alternative treatments with fewer side effects. Regulatory approvals and the introduction of CBD medications in the market are poised to drive significant growth in this segment, enhancing the overall credibility and acceptance of CBD in healthcare.
  • Geographic Expansion: While North America currently dominates the CBD market, regions like Europe and Asia-Pacific are expected to experience rapid growth. Europe’s market expansion is driven by increasing consumer awareness and the availability of a wide range of CBD products. In Asia-Pacific, particularly in China, large-scale hemp production is fueling market growth. As these regions adopt favorable regulatory frameworks and invest in the cultivation and processing of hemp, the availability and popularity of CBD products are set to rise. This geographic expansion presents opportunities for global CBD brands to enter new markets, diversify their product offerings, and cater to a growing international consumer base.
  • Regulatory Developments: Changes in regulatory frameworks across various countries are opening new markets for CBD products. The legalization of CBD in different regions is creating opportunities for market expansion and product diversification. As governments implement clear regulations and guidelines for the production, distribution, and sale of CBD, businesses can operate with greater confidence and security. These regulatory developments are fostering innovation and competition in the market, leading to the introduction of a diverse range of CBD products. As more countries recognize the potential health benefits of CBD and adjust their legal stance, the global market is poised for continued growth and diversification.

Use Cases

  • Pain Management: CBD is widely recognized for its analgesic properties, making it a popular choice for managing chronic pain conditions. People suffering from arthritis, multiple sclerosis, and neuropathic pain have found relief through CBD use. Its anti-inflammatory effects play a significant role in alleviating pain, offering an alternative to conventional pain medications which often come with adverse side effects. By targeting the endocannabinoid system, CBD helps reduce inflammation and pain signals, providing a natural remedy that appeals to those seeking to avoid the long-term health risks associated with opioid and non-steroidal anti-inflammatory drugs (NSAIDs).
  • Anxiety and Stress Relief: CBD is increasingly used to alleviate anxiety and stress. It interacts with the endocannabinoid system, which regulates mood and anxiety levels, providing a natural alternative to pharmaceutical anxiolytics. Studies have shown that CBD can reduce symptoms of social anxiety disorder, generalized anxiety disorder, and post-traumatic stress disorder (PTSD). Users report feeling calmer and more relaxed, without the sedative effects commonly associated with traditional medications. This makes CBD a preferred option for those looking to manage their anxiety and stress naturally, without the risk of dependency or severe side effects.
  • Epilepsy Treatment: CBD has gained significant attention for its efficacy in treating epilepsy, particularly severe forms such as Dravet syndrome and Lennox-Gastaut syndrome. The FDA-approved drug Epidiolex, which is based on CBD, has demonstrated the ability to reduce the frequency of seizures in patients who have not responded to other treatments. This approval marks a milestone in the medical community, highlighting CBD’s potential as a safe and effective treatment for epilepsy. The success of Epidiolex underscores the importance of continued research into CBD’s therapeutic applications, offering hope to many individuals and families affected by epilepsy.
  • Skin Care: CBD-infused skincare products are becoming increasingly popular due to their potential benefits for a range of skin conditions, including acne, eczema, and psoriasis. CBD’s anti-inflammatory and antioxidant properties help soothe the skin, reduce redness, and alleviate irritation. These products can help balance sebum production, making them particularly effective for acne-prone skin. Additionally, the antioxidant properties of CBD protect the skin from environmental stressors, contributing to a more youthful appearance. As consumers continue to seek natural and effective skincare solutions, CBD products offer a promising alternative to traditional treatments.
  • Sleep Disorders: CBD is widely used to improve sleep quality and manage sleep disorders such as insomnia. Its calming effects help reduce anxiety and promote relaxation, which are essential for a good night’s sleep. Unlike traditional sleep aids that can cause grogginess and dependency, CBD offers a natural alternative that helps users wake up feeling refreshed and alert. Studies have shown that CBD can improve overall sleep patterns and reduce the time it takes to fall asleep. As more people look for safe and effective ways to enhance their sleep, CBD continues to gain popularity as a natural sleep aid.
  • Cancer Symptom Management: CBD is used to alleviate various symptoms related to cancer and its treatment, including pain, nausea, and loss of appetite. Patients undergoing chemotherapy often experience severe side effects that can be debilitating. CBD offers a complementary approach to traditional treatments, helping to improve the quality of life for cancer patients. Its anti-inflammatory and analgesic properties make it effective in managing pain, while its antiemetic effects help reduce nausea and vomiting. Additionally, CBD can stimulate appetite, which is crucial for maintaining strength and energy during cancer treatment.
  • Neurological Disorders: Research into CBD’s potential benefits for neurological disorders is ongoing, with promising results for conditions such as Parkinson’s disease, Alzheimer’s disease, and multiple sclerosis. CBD’s neuroprotective properties may help manage symptoms and slow disease progression. Studies have shown that CBD can reduce inflammation and oxidative stress in the brain, which are key factors in the development of neurological disorders. While more research is needed to fully understand CBD’s impact, early findings suggest that it could offer a valuable addition to existing treatments for these debilitating conditions.
  • General Wellness: Many consumers incorporate CBD into their daily wellness routines to maintain overall health and well-being. Products such as CBD oils, capsules, and edibles are commonly used for their perceived health benefits, including stress reduction, improved sleep, and enhanced mood. Users appreciate the natural origin of CBD and its ability to promote balance within the body. As a non-psychoactive compound, CBD provides these benefits without the high associated with THC. The growing interest in natural and holistic health solutions has propelled CBD to the forefront of the wellness industry.
  • Pet Products: The use of CBD in pet products is a rapidly growing trend, with many pet owners reporting positive outcomes for managing their pets’ anxiety, pain, and inflammation. CBD is used to help animals cope with separation anxiety, noise phobias, and joint pain, improving their overall quality of life. Available in forms such as treats, oils, and capsules, CBD products for pets are designed to be easy to administer. As more research supports the safety and efficacy of CBD for animals, its popularity as a natural remedy for pet health issues continues to rise.


The global Cannabidiol (CBD) market is poised for substantial growth, driven by increasing legalization and consumer awareness of its health benefits. With applications spanning pharmaceuticals, personal care, and wellness products, CBD is gaining widespread acceptance. North America remains a key market leader, but regions like Europe and Asia-Pacific are quickly catching up. Challenges such as regulatory inconsistencies and misconceptions persist, yet the market’s future looks promising due to ongoing research, product innovations, and rising consumer demand. Companies investing in diverse CBD-infused products are well-positioned to capitalize on this growth, contributing to a dynamic and expanding market landscape. The CBD market’s evolution highlights its potential as a significant player in the global health and wellness industries.

Trishita Deb

Trishita Deb

Trishita has more than 7 years of experience in market research and consulting industry. She has worked in various domains including healthcare, consumer goods, and materials. Her expertise lies majorly in healthcare and has worked on more than 400 healthcare reports throughout her career.