CBD Market Size

CBD Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global CBD market is expected to grow rapidly, with a current market size of $ 10.48 billion in 2024, projected to grow to $ 30 billion by 2035. The annual growth rate is 10.03% from 2025 to 2035. The main reason for this growth is the increasing acceptance of CBD products in many industries, such as health and beauty, food and beverages, etc. The demand for CBD is rising due to the rise in public awareness of the healing effects of CBD. There are many reasons for this growth. The regulatory framework in each country has changed, and it is easier to access CBD products, and the extraction and formulation methods have improved. , the quality and effectiveness of the products are improved. The industry's major players, such as Charlotte's Web, Canopy Growth and Aurora, are actively launching new products and entering into strategic cooperation. Charlotte's Web, for example, has launched CBD-infused beverages to enter the market for "healthy drinks". These innovations, combined with the increasing investment in research and development, are expected to lead to further market development in the future.

Regional Market Size

Regional Deep Dive

The market for cannabidiol (CBD) is experiencing a high level of growth in various regions, driven by increasing awareness of the benefits of CBD, evolving regulations and a growing acceptance of CBD products for health and well-being. In North America, especially in the United States, the market is characterized by a largely stable legal framework and a wide variety of products, including oils, edibles and topicals. Europe, on the other hand, is experiencing a growing demand for CBD products, driven by the evolving regulatory environment and the increasing demand for natural products. The Asia-Pacific region is also becoming a potential growth center, with countries such as Japan and Australia embracing the use of CBD for therapeutic purposes. The Middle East and Africa are still in their infancy, with a varied regulatory framework. Latin America is gradually opening up to the market, driven by local and foreign investments.

North America

• The Agricultural Act of 2018 legalized the hemp-derived cannabidiol in the United States. This led to a rapid expansion of the market, with the emergence of a number of brands such as Charlotte’s Web and CBDistillery.
• It is now available in all the large drugstores, such as Walgreens and CVS, which indicates the growing acceptance of consumers and the gradual encroachment of CBD in everyday life.
• The new product formulations like water-soluble CBD and nanoemulsions are developed by Elixinol and Medterra, enhancing bioavailability and the attractiveness of the products.

Europe

• There is a lot of research and development going on, as the European Union's Novel Food Regulation has set the framework for approving CBD products.
• A lot of well-known brands are now offering a variety of CBD products in their health food shops and on their e-shops.
• The rising interest in natural and organic products is driving the demand for cosmetics and toilet preparations based on cannabinoids, and companies like The Body Shop are launching their own lines.

Asia-Pacific

• The Therapeutic Goods Administration (TGA) in Australia has been making great strides in regulating the use of cannabidiol (CBD). The TGA has now allowed the use of CBD on prescription, a move which has opened the way for wider acceptance and market growth.
• The regulations of Japan are such that the sale of products containing cannabidiol is permitted, as long as they do not contain any THC. As a result, a number of companies have entered the market, including Cannabiz and Green Zone.
• The increasing number of lifestyle diseases in the region is pushing interest in CBD as a possible remedy. A number of local start-ups are now exploring new product opportunities.

MEA

• In the United Arab Emirates, the sale of cannabidiol has recently been regulated, and the law has thus changed the whole attitude of the region towards cannabis and its products.
• South Africa is now exploring the medicinal use of CBD, with CannAfrica as the leader in product development and education.
• Cultures are gradually changing their view of cannabis, but the market is still constrained by the strict regulations in many MEA countries, which is limiting growth.

Latin America

• Brazil and Colombia have begun to regulate the use of cannabidiol, and Colombia has become the leading country in the cultivation and export of hemp.
• Clever Leaves, a local company, is investing in the manufacture of CBD and aims to supply both domestic and international markets as the regulatory framework develops.
• The increasing interest in natural health products is bringing new life to the hemp industry, especially in the beauty and health industries.

Did You Know?

“The value of the global market for CBD products was estimated to be $2.8 billion in 2020 and is expected to reach $13 billion by 2028, indicating the rapid growth and interest in CBD products.” — Grand View Research

Segmental Market Size

CBD products are experiencing a boom, driven by the growing popularity of these products for health and well-being. This segment is especially booming as more and more people seek natural remedies for pain, anxiety and general well-being. Legislation such as the US Farm Bill in 2018 has given CBD further legitimacy and helped to create a favorable environment for market growth.

The use of CBD products is in its mature phase, with companies like Charlotte’s Web and CBDistillery leading the way in product innovation and market penetration. The most common applications include dietary supplements, skin care products, and food and beverage infusions, showcasing the versatility of the hemp extract. Demand for products that are sustainable and label-free are driving demand, while advances in extraction methods, like supercritical CO2 extraction, are ensuring the quality and safety of products. These factors are driving the evolution of the CBD market and making it a significant player in the broader health and wellness market.

Future Outlook

CBD, which has been used for some time as a remedy for all sorts of ailments, is a promising market. From 2024 to 2035, the CBD market is expected to grow from $ 10.48 billion to $30.0 billion, a CAGR of 10.03%. The growth is based on the growing awareness of the public about the therapeutic benefits of CBD and the growing number of applications in various industries, such as health and well-being, food and beverages and cosmetics. Also, as the regulatory framework evolves, especially in the US and Europe, the regulatory environment will become more favourable, which will encourage the development of the market and increase its penetration. CBD products will have a penetration of more than 20% in developed countries by 2035, driven by the acceptance of hemp-derived products and the presence of these products in the main distribution channels.

The future of the CBD market will also be influenced by the technological developments and innovations. Developing more efficient extraction methods and formulations will make the products more effective and thus appeal to a larger number of consumers. The rise of e-commerce and direct-to-consumer sales will also increase the availability of CBD products, as well as the availability of information and education. In addition, the trend of integrating CBD into functional foods and beverages and individual health solutions will also create new market opportunities. However, the market is becoming more mature, and companies that emphasize transparency, sustainability, and ethical entrepreneurship will probably have a competitive advantage. The values of the health-conscious consumers will also be reflected in the market.