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The CBD oil market size is forecast to increase by USD 7.06 billion at a CAGR of 28.26% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. The increasing consumption of cannabis among the millennial population in developed countries is a major growth factor. Additionally, the legalization of cannabis-based products in various regions is fueling market expansion. However, the market also faces challenges, including the potential adverse effects of CBD oil products due to overconsumption. CBD's incorporation into various industries, such as wellness, beauty, and food and beverage has significantly broadened its consumer base. These effects can range from mild symptoms such as dizziness and diarrhea to more serious ones like liver damage and interactions with other medications. Producers and regulators must address these concerns through education and stricter regulations to ensure consumer safety and maintain market growth.
The market is experiencing significant growth due to the legalization of CBD in various regions and the increasing consumer interest in related complications of cannabis. The key market drivers for the CBD industry include the variety of uses for products containing cannabidiol, such as health and beauty, pet care, and treatments for medications and therapies. Consumer attitudes towards CBD have become more open, leading to an increase in demand for CBD-based products. CBD oil, tinctures, capsules, vaping devices, transdermal patches, body lotions, and personal care items are some of the popular CBD consumer goods. Producers are adopting advanced manufacturing processes, processing techniques, and testing methodologies to ensure the quality and safety of their CBD-based products.
Government measures and regulatory processes also play a crucial role in the global CBD business. The legal status of cannabis and its derivatives varies across regions, impacting the production and distribution of CBD-based products. The cannabis plant contains cannabidiol acids, which are extracted to produce CBD oil. The regulatory environment and consumer-facing openness towards CBD are expected to continue influencing the growth of the CBD market in the coming years.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The pharmaceuticals segment is estimated to witness significant growth during the forecast period.CBD oil has gained significant attention in the global market due to its potential benefits in managing chronic diseases and related complications. The legalization of CBD in various regions has fueled the growth of the CBD market, with key market drivers including consumer attitudes towards plant-based alternatives to conventional medications and the variety of uses for CBD-containing products. These products range from tinctures and oils to body lotions, capsules, vaping devices, transdermal patches, and personal care items. Cannabis, the source of CBD, offers a range of uses beyond recreational purposes. CBD is used to treat conditions such as anxiety, pain, dystonia, Parkinson's disease, Crohn's disease, and epilepsy.
Its anti-inflammatory properties help reduce inflammation and pain, making it an effective treatment for various ailments. Furthermore, CBD oil may assist in alleviating PTSD symptoms and those of Amyotrophic lateral sclerosis (ALS). The manufacturing processes, processing techniques, and testing methodologies used in producing CBD-based products are crucial for ensuring health safety assurance. Governments and regulatory processes play a significant role in the global CBD business, with nations implementing measures to legalize and regulate the production and distribution of CBD products. The pharmaceutical business also contributes to the CBD market, with CBD-based treatments and medications gaining popularity. Byproducts of the CBD industry, such as hemp-derived fibers and seeds, offer additional economic opportunities.
Consumer-facing openness towards CBD and its potential health benefits continues to drive market growth. The entourage effect, which is the combined effect of CBD and THC, can provide additional therapeutic benefits, such as alleviating symptoms for those with ALS and PTSD. The CBD market is expected to continue growing as more research is conducted and governments and consumers become more open to the use of CBD as a natural alternative to traditional treatments.
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The pharmaceuticals segment was valued at USD 519.07 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 60% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The CBD oil market has experienced significant growth due to the legalization of hemp-derived CBD in various countries, including the United States and Canada. The 2018 Farm Bill in the US provided regulatory clarity, enabling the production, sale, and distribution of CBD products in several states, fueling regional market expansion. In Canada, the legalization of recreational cannabis in 2018 paved the way for the legal sale of CBD products, with a well-established regulatory framework supporting market growth. The increasing popularity of CBD as a natural and holistic remedy for various medical therapies, such as pain relief and anxiety management, has driven consumer demand.
The cannabidiol market size is segmented into solid form and liquid form, with skincare products, including those for acne and wrinkles, being a significant market segment. Retailers like Sephora and Ulta Beauty have started stocking CBD cosmetics. In the European market, Germany is a major player, with companies like Aphria expanding their reach. The CBD industry offers various route of administrations, including inhalation through aerosol sprays, which falls under the Inhaled sub-segment. CBD products are available in Food Grade and Therapeutic Grade, catering to diverse consumer needs.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing consumption of cannabis among millennial population in developed countries is the key driver of the market. The market is experiencing significant growth due to the increasing prevalence of chronic diseases and related complications. The legalization of CBD in various regions has led to an influx of products containing cannabidiol in the consumer goods sector. This trend is particularly noticeable among millennials, who are more open to trying new health and wellness products. The cannabis industry encompasses a variety of uses for CBD, including tinctures, oils, body lotions, capsules, vaping devices, transdermal patches, and personal care items. Manufacturing processes, processing techniques, and testing methodologies are crucial factors in ensuring health safety assurance for CBD-based products. The global CBD business is expanding, with key market drivers including the pharmaceutical industry's interest in CBD-based treatments and medications.
Consumer attitudes towards cannabis are evolving, leading to increased demand for CBD-infused products. Governments in different regions and nations are implementing regulatory processes to ensure the production and distribution of CBD comply with health and safety standards. Producers are focusing on producing cannabidiol acids and byproducts to cater to the diverse needs of consumers. The CBD market is expected to continue growing, with the legal cannabis market in the US and Europe being significant contributors. Consumer-facing openness and government measures are essential to the continued growth of the market.
Growing legalization of cannabis-based products is the upcoming trend in the market. The legalization of cannabis for medicinal and recreational use is a global trend that is influencing various regions to reconsider their regulations. In the US, 30 states have legalized marijuana for medicinal purposes, and eight states permit its use for both recreational and medicinal purposes. Portugal was the first country to legalize all types of drugs in 2001, and more recently, Canada legalized marijuana for medicinal use in 2016. Other nations, including Ireland, Jamaica, Australia, Germany, and South Africa, have also legalized marijuana for medicinal purposes. This legalization is driving the growth of the CBD market as consumers seek out products containing cannabidiol to manage chronic diseases and related complications.
Key market drivers include the variety of uses for CBD, which range from tinctures and oils to body lotions, capsules, vaping devices, transdermal patches, and personal care items. Manufacturing processes, testing methodologies, and consumer-facing openness are also important considerations. The regulatory processes for CBD-based products and treatments are evolving, with governments implementing measures to ensure health safety assurance. The global CBD business is expanding, with producers focusing on cannabidiol acids and byproducts for use in consumer goods, pharmaceutical business, and health and beauty industries. Consumer attitudes towards cannabis are shifting, with many viewing it as a plant-based alternative to conventional medications.
This trend is expected to continue as more nations legalize marijuana and consumers seek out CBD products for their health and wellness needs.
Adverse effects of CBD oil products owing to overconsumption is a key challenge affecting the market growth. The global CBD market has experienced significant growth due to the legalization of CBD in various regions and the increasing awareness of its potential health benefits for managing chronic diseases and related complications. Key market drivers include the variety of uses for products containing cannabidiol, such as tinctures, oils, body lotions, capsules, vaping devices, transdermal patches, and personal care items. Consumer attitudes towards CBD have become more open, with increasing acceptance in the health and beauty, pharmaceutical, and consumer goods industries. Manufacturing processes, processing techniques, and testing methodologies have advanced to ensure consumer safety and health assurance. However, the regulatory processes for CBD-based treatments and medications can be complex, with governments implementing different measures in various nations.
The global CBD business encompasses not only CBD itself but also its byproducts and the cannabis plant from which it is derived. Producers must adhere to stringent quality standards and safety measures to ensure the production of plant-based CBD that is safe for use in conventional medications and personal care items. Despite the potential benefits, it is crucial to maintain transparency and consumer-facing openness to address any concerns regarding cannabidiol acids and their potential interactions with other medications.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Isodiol International Inc. - The company offers beverages, candies, capsules, coffee, oral spray, tinctures, tropical, and kits and bundles using CBD. The key offerings of the company include CBD oil such as RapidCBD hemp oil.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing prevalence of chronic diseases and related complications. The legalization of CBD in various regions has opened up new opportunities for producers to offer a range of CBD-based products, including tinctures, oils, body lotions, capsules, vaping devices, transdermal patches, and personal care items. Consumer attitudes towards CBD have shifted positively, with many viewing it as a natural alternative to conventional medications for treating various health conditions. Cannabis, a primary source of CBD, offers a variety of uses beyond recreational purposes. The global CBD business encompasses both the consumer goods sector and the pharmaceutical industry.
Manufacturing processes and processing techniques for CBD-based products are continually evolving, with testing methodologies ensuring health safety assurance. Governments in different regions and nations are implementing regulatory processes to govern the production and distribution of CBD. Producers are focusing on cannabidiol acids and byproducts to expand their offerings. Consumer-facing openness and government measures are crucial factors driving the growth of the CBD oil market. CBD is a plant-based alternative to traditional treatments and medications, offering a natural approach to managing various health concerns.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 28.26% |
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Market growth 2024-2028 |
USD 7.05 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
26.98 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 60% |
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Key countries |
US, Canada, UK, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amazon.com Inc., Aurora Cannabis Inc., BIOTA Biosciences LLC, Cantourage GmbH, CBD American Shaman LLC, CV Sciences Inc., Dr Reddys Laboratories Ltd., Elixinol, Endoca BV, Green Roads Inc., Happie Hemp Pvt. Ltd., Hemp Horizons Private Limited, HempStreet Medicare Private Limited, Isodiol International Inc., Kimar LLC, LOreal SA, Medical Marijuana Inc., NeoMen, PepsiCo Inc., The Cure Brand, AMP Medical LLC, Gaia Botanics, High Tide Inc., and USA Medical |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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