CANNABIDIOL MARKET ANALYSIS

Cannabidiol Market Size and Trends

Global cannabidiol market is estimated to be valued at USD 8.12 Bn in 2024 and is expected to reach USD 23.41 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 16.3% from 2024 to 2031.

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Global cannabidiol market is expected to witness stable growth over the forecast period, owing to increased investments in research & development and legalization of medical cannabis across various countries. With growing health awareness and acceptance of medical benefits of cannabidiol in various health conditions, the market is expected to attract higher investments globally. Furthermore, adoption of cannabidiol as a potential alternative to opioid drugs can offer new growth avenues for market players in the near future. However, variable legislation around use of cannabidiol products and lack of clinical evidence can hamper the market growth. Focus on development of innovative delivery formats and establishing standards through clinical research can provide new growth opportunities in the near future.

Market Driver: Rising prevalence of mental disorders and neurological diseases

Increasing prevalence of mental disorders and neurological diseases has become a major public health concern globally, and this drives the global cannabidiol market growth. According to the World Health Organization, mental illnesses and neurological disorders now contribute nearly 15-20% to the global burden of disease. Conditions like depression, anxiety, Alzheimer's disease, epilepsy, Parkinson's disease, and multiple sclerosis are affecting more individuals each year. As per the National Institute of Mental Health, over 50 million American adults experience mental illness in a given year. It is further estimated that around 1 in 6 people in the U.S. lives with a neurodevelopmental disorder such as attention-deficit/hyperactivity disorder or autism spectrum disorder. The rise in cases has led to an enormous strain on healthcare systems and resources. With limited treatment options available and high rates of chronic morbidity and mortality associated with these conditions, patients and doctors are exploring alternative therapies like Cannabidiol. Cannabidiol is one of the main compounds found in cannabis plants. Extensive scientific research in recent years has demonstrated the therapeutic potential of Cannabidiol in reducing symptoms related to several mental disorders without unwanted psychoactive effects. For instance, studies show Cannabidiol may help lower anxiety in patients with social anxiety disorder and post-traumatic stress disorder when administered prior to public speaking tests or PTSD-related studies. Clinical trials indicate Cannabidiol can reduce seizure frequency in individuals with treatment-resistant epilepsy such as Lennox-Gastaut syndrome and Dravet syndrome. Due to its promising role in symptom management, health experts expect the use of Cannabidiol-based treatments and products to significantly increase for a wide range of mental and neurological conditions.

Market Concentration and Competitive Landscape

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Growing adoption of cannabidiol in cosmetic and personal care products

 Increasing usage of cannabidiol in cosmetic and personal care can drive the market growth. Rising awareness about various therapeutic properties of cannabidiol among consumers  can boost its demand and usage in personal care segments like skin and hair care.  Cannabidiol is known to have natural anti-inflammatory and antioxidant properties that can help in soothing skin conditions like eczema, reducing acne & pimples and treating hair fall. Owing to these benefits, cannabidiol infused body lotions, moisturizers, face creams, hair oils, and others are being extensively developed and marketed by major cosmetic brands and companies. More and more people are choosing cannabidiol based cosmetic products for their daily self-care regime believing it can naturally improve their skin, hair and overall appearance. The youth are displaying strong affinity towards cannabidiol cosmetics partly due to changing consumer lifestyles and preferences for natural and herbal personal care items. Rapid expansion of e-commerce and online wellness stores has made a wide variety of premium cannabidiol beauty brands easily accessible even in remote markets, driving volumes. Retail chains have started dedicating premium shelf space to these innovative items in their stores across nations.

Key Takeaways from Analyst:

Global cannabidiol market growth is driven by growing legalization of cannabis for both medical and recreational use in various jurisdictions worldwide. As more countries legalize medical cannabis, there will be huge demand for cannabidiol products containing less than 0.3% THC for treating conditions like chronic pain, epilepsy, and anxiety.

Unclear regulations can  pose challenge for companies in this market. As laws are evolving quickly, it is difficult to navigate the different rules around product manufacturing, marketing, and sales.  North America currently dominates the cannabidiol market due to legalization at the state level in the U.S. and across Canada. Ongoing liberalization of marijuana policies can also drive the market growth in North America. Europe is also forecasted to offer lucrative opportunities for cannabidiol companies as countries like Germany, U.K., Italy, and Spain allow prescriptions for medical cannabis. With its large population and increasing acceptance of cannabinoid products for health benefits, the Asia Pacific region witness fastest growth.

Market Challenges: Stringent regulatory guidelines for the usage of cannabidiol

The stringent regulatory guidelines imposed by governments around the world on the usage of cannabidiol can hamper the global cannabidiol market growth. Many countries have legalized the usage of cannabidiol derived from hemp for medical purposes but have placed strict limitations on the concentration of tetrahydrocannabinol (THC) present in such products. THC is the psychoactive compound present in cannabis that produces a high. Even trace amounts of THC present in cannabidiol products can result in psychoactive effects, which is a major concern from a regulatory standpoint. Countries are wary of allowing cannabidiol products in the market that may induce psychoactive effects due to THC contamination. This has led many governments to mandate cannabidiol products to contain less than 0.3% THC. Such stringent rules make it extremely difficult for manufacturers to produce cannabidiol extracts without any THC presence. Even sophisticated extraction methods fail to eliminate traces of THC completely. Thus, several cannabidiol products end up violating the regulatory limits and face bans. For instance, European Union banned the import of cannabidiol products containing any detectable THC levels. The U.S. FDA has also cracked down on cannabidiol products that made medical claims without proper clinical trials.

Market Opportunities: Potential growth of cannabidiol infused foods and beverages industry

Cannabidiol infused foods and beverages industry can offer growth opportunities for global cannabidiol market. As research continues to shine more light on Cannabidiol's wellness benefits and its distinction from marijuana, consumer demand for these alternative product formats is likely to rise substantially in the coming years. Cannabidiol is non-intoxicating and according to preliminary research, may help with anxiety, insomnia, and chronic pain when ingested. Offering Cannabidiol through foods and drinks could allow for a more discreet and convenient method of consumption versus pills or oils. This may help increase accessibility and market penetration, especially among younger demographics. Currently several food and beverage firms are experimenting with infusing cannabidiol into products like chocolate, baked goods, coffee, teas, and water. As these items hit mainstream grocery and convenience store shelves, and their efficacy and safety is proven over time, consumer familiarity and trust in Cannabidiol solutions will grow. The stigmas surrounding cannabis are lessening on a global scale through legalization efforts. According to the World Health Organization, around 60% of countries legalized Cannabis in some form by 2022, as compared to just 25% in 2010. As more places permit Cannabidiol use, multi-state and cross-border trade of these items will thrive.

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By Source Type- Versatile applications drive hemp dominance

In terms of source type, hemp segment is estimated to contribute the highest market share of, owing to its versatile applications across industries. Hemp contains only trace amounts of THC but is highly rich in cannabidiol, making it legal for use in food & beverages, cosmetics, pharmaceuticals and other consumer products. This wide scope of legal use provides hemp a significant advantage over marijuana-derived cannabidiol. Hemp farmers can use established agricultural practices to grow the crop on a large commercial scale due to its low maintenance requirements. Its fast growth cycle allows it to be harvested multiple times a year, enabling a stable year-round supply of cannabidiol-rich biomass. Major hemp cultivators like Canada, China, and European nations benefit from its ease of cultivation and export hemp worldwide for extraction into various cannabidiol products. The versatility of hemp cannabidiol extracts also provides opportunities for innovative applications. Leading companies extensively research and develop new uses of hemp extracts in health supplements, beauty and skin care, pet care, and even industrial applications. Food companies introduce hemp-infused snacks and beverages to tap the growing demand for functional foods with wellness benefits. Skin clinics offer hemp-based therapies for conditions like acne, inflammation and aging. Hemp fibre  are used as a sustainable alternative to paper, textiles, construction materials and biofuel. With its abundance, wide legal acceptance and diverse applications, Hemp remains the dominant source for the  cannabidiol.

By Product- Therapeutic benefits boosts oil demand

In terms of product, oil segment is estimated to contribute the highest market share of, owing to its easy administration and high bioavailability. Cannabidiol oil extract is valued for its therapeutic benefits in treating a variety of medical conditions like pain, anxiety, epilepsy and even cancer. The oil concentrate derived from hemp or marijuana plants has high cannabidiol contents ranging between 2-30% that can treat symptoms effectively. Its application as an oral tincture makes cannabidiol oil highly convenient to use. Users administer drops of the oil under their tongue to gain almost immediate relief from symptoms. Moreover, its absorption through the oral mucous membrane and direct entry into blood circulation provides optimal bioavailability compared to other products.The high bioavailability of cannabidiol oil enables treatment of severe, chronic conditions that require stronger doses. Patients of epilepsy, multiple sclerosis and chemotherapy-induced nausea have been successfully using cannabidiol oil to manage their symptoms. Sports enthusiasts and people with active lifestyles also prefer the easy intake of cannabidiol oil over other products. Its widespread therapeutic applications and efficient delivery system have established cannabidiol oil as the preferred product form among medical users. Several pharmaceutical companies engage in clinical research utilizing cannabidiol oil extracts to develop FDA-approved drugs for conditions like schizophrenia and opioid addiction. With its proven effectiveness and simple usage, cannabidiol oil remains the top selling product in the global cannabidiol market.

By Application- Expanding medical applications drive overall growth

In terms of application, medical segment is estimated to contribute the highest market share of, owing to growing acceptance of cannabidiol-based therapies. While consumer use of cannabidiol for relaxation and wellness has increased significantly, its role in improving medical outcomes through clinical research validates therapeutic applications. An increasing number of patients are turning to Cannabidiol to manage chronic conditions instead of synthetic pharmaceuticals due to cannabidiol's natural profile and lack of psychoactive effects. Research studies have demonstrated cannabidiol's potential against neurological disorders, reducing epileptic seizures and easing psychotic episodes in schizophrenics. It shows promise for relieving cancer treatment side effects and may work synergistically with conventional therapies. Several prescription Cannabidiol medicines have been approved or are in the pipeline for severe forms of epilepsy and other seizures disorders. Many medical cannabis programs now allow use of cannabidiol-dominant cannabis for conditions like multiple sclerosis, chronic pain, Parkinson's disease and insomnia based on its satisfactory safety profile. More clinical data on cannabidiol's mechanism in treating various ailments can expand its acceptance within the medical community.

Regional Insights

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North America dominates the global cannabidiol market with an estimated market share of 40.2% in 2024. The U.S. makes up the majority of the North American market and was one of the first regions to legalize hemp-derived cannabidiol on a federal level through the 2018 Farm Bill. Several U.S. states have also legalized recreational and medical marijuana use, creating a supportive regulatory environment for cannabidiol products. Major cannabidiol companies first established operations in the U.S. and have heavily marketed their brands in the U.S. Cannabidiol formulations are widely available across distribution channels like pharmacies, wellness stores, and online. North American consumers also have high health awareness and many people willingly adopt cannabidiol as a wellness supplement.

Asia Pacific has emerged as the fastest growing regional market for cannabidiol. Countries like China, Japan, South Korea and India offer massive untapped market potential due to their combined population of over 4 billion. While cannabidiol regulatory policies vary across nations, Asia is progressively moving towards acceptance of hemp-derived cannabidiol. Domestic cultivation and production of hemp is increasing in China and other countries. This boost availability and lower costs for cannabidiol product manufacturers. Local formulators are introducing new cannabidiol lifestyle brands that cater to Asia's health-conscious young demographics. E-commerce also gives cannabidiol companies an effective entry point before physical retail landscapes fully develop. Geopolitical tensions sometimes hamper international trade between Asia and other regions, but many Asian consumers prefer locally sourced cannabidiol options now available. 

Market Report Scope

Cannabidiol Industry News

• In January 2023, Medical Marijuana, Inc.'s subsidiary HempMedsBrasil introduced two new full-spectrum cannabidiol products in Brazil, available in concentrations ranging from 3,000-6,000 mg and sizes of 30 mL and 60 mL.
• In October 2022, Medical Marijuana, Inc. announced a collaboration between its subsidiary HempMeds Mexico, the Autonomous University of Barcelona in Spain, and the Meritorious Autonomous University of Puebla in Mexico to study the therapeutic benefits of cannabidiol in treating Parkinson’s disease.
• Also in October 2022, High Tide, Inc. launched multi-cannabinoid products through its subsidiary NuLeaf Naturals in Ontario, Canada. Offerings include Full Spectrum Hemp Multi cannabinoid oil and plant-based softgels containing delta-9 tetrahydrocannabinol, cannabichromene, Cannabidiol, cannabigerol, and cannabinol.
• In September 2022, Kannaway, another subsidiary of Medical Marijuana, Inc., expanded its partnership with Complete Hemp Technologies (CHT) in Europe. The agreement enhanced CHT’s services to Kannaway by adding warehousing and daily operations to support the company’s regional operations.
• In January 2022, Elixinol launched two new cannabidiol products focused on promoting sleep: Sleep Rapid Rest Liposome and Sleep Gummies. The Sleep Rapid Rest Liposome features a blend of CBN, cannabidiol, chamomile, and lemon balm, while the Sleep Gummies contain 2mg of CBN and 15mg of cannabidiol.

*Definition:

The Global Cannabidiol Market refers to the worldwide trade and market for products containing Cannabidiol (cannabidiol), a legal non-psychoactive compound found in cannabis and hemp plants. The market has grown significantly in recent years due to the increasing legalization of cannabis in many countries for both medical and recreational use, as well as greater social acceptance of cannabidiol products. cannabidiol products including oils, edibles, skin care products, and more are sold online and in health food stores around the globe. Major regions driving demand include North America, Europe, and Asia Pacific.

Market Segmentation

• Source Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Hemp
  • Marijuana
•  Product Insights (Revenue, USD Bn, 2019 - 2031)
  • Oil
  • Tinctures
  • Suppository
  • Transdermal patches
  • Vape Oil
  • Isolates
  • Creams and Roll-on
  • Capsules
  • Tablet
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Medical
  • Personal Use
  • Pharmaceuticals
  • Wellness
  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hospital Pharmacies
  • Online Stores
  • Retail Stores
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • ENDOCA
  • Cannoid LLC
  • Medical Marijuana Inc.
  • Folium Biosciences
  • Elixinol
  • NuLeaf Naturals LLC
  • Isodiol International Inc.
  • Pharmahemp d.o.o.
  • Aurora Cannabis Inc.
  • CV Sciences
  • Medterra CBD
  • Canopy Growth Corporation
  • Aphria, Inc.
  • GW Pharmaceuticals Plc
  • Organigram Holding Inc.