Cannabidiol (CBD) Oil Market By Type (Hemp and Marijuana), End-Use (Chronic Pain, Mental Disorders, Cancer, Food & Beverages, Personal Care & Cosmetics, Nutraceuticals, Personal Use and Pharmaceuticals), and Distribution Channel (B2B, Hospital, Online Stores and Retail Stores), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032
The global Cannabidiol (CBD) Oil Market size was worth around USD 580 million in 2022 and is projected to reach USD 6.77 billion by 2032 at a CAGR of around 31.2% between 2023 and 2032.
Cannabidiol (CBD) is a non-psychoactive compound extracted from the hemp or cannabis plant. It has various therapeutic properties, including the ability to prevent seizures, treat anxiety, reduce pain and inflammation. The market for CBD products is gaining momentum due to the increased utilization of CBD oil in the pharmaceutical industry, cosmetics, and food. The demand for CBD in the health and wellness sector has risen substantially due to its properties that aid in the healing process. Many governments are now allowing the use of CBDs in the pharmaceutical industry, which is driving an increase in demand. More than 50% of consumers have reported the effectiveness of CBD oil.
The United States is among the leading countries in the development of the pharmaceutical and cosmetic use of CBD oils. European countries such as Germany, the United Kingdom and Switzerland are also expected to make significant progress in the market. However, compared to the US, only 20% of European consumers have preferred CBD oil in the last couple of years, but year-on-year data shows an upward trend towards the consideration of CBD oil as a product.
Key Insights of the Global Cannabidiol (CBD) Oil Market
- Based on type, the marijuana segment held the largest market share
- Based on end-use, the pharmaceutical segment dominated the market
- Based on distribution channel, the B2B segment generated the highest revenue
- On the basis of region, North America is leading the CBD oil market in terms of revenue and consumption
Increasing Use of Cannabidiol Oil in Skincare Products
Advancing research has provided the utilization of CBD oil in industries beyond pharmaceuticals. The use of CBD oil is also growing in the cosmetics market. Its anti-inflammatory, antioxidant, and anti-bacterial properties make it an effective treatment for acne, dermatitis, and other skin issues. This has led to the introduction of CBD oil-based skincare products by several companies such as Ulta Beauty, Sephora, and others. This trend is driven by consumer interest in natural and organic skincare products, as well as the growing awareness of the potential benefits of CBD oil for the skin.
It is expected that the cosmetic industry will continue to innovate and introduce more CBD-infused skincare and beauty products in the market, catering to the growing demand. Additionally, the legalization and regulation of hemp-derived CBD oil in many countries is providing a legal framework for the production and distribution of CBD-infused cosmetics, which is further driving the growth of this market.
Imposition of Stringent Regulations by the Government to Restrict Market Growth
Strict government regulations regarding the use of CBD oils is one of the major challenges facing the market growth. In many Asian countries such as India and China, the use of CBD oil for recreational purposes is not permitted. Additionally, in some European countries, the legal status of CBD use is unclear or it is only permitted with a prescription. This lack of clear legalization for CBD in certain countries is impeding the global growth of the market.
Despite these challenges, the market for CBD products is expected to continue to grow, as more countries are beginning to legalize and regulate the use of CBD and THC. The increasing awareness of the potential benefits of CBD for various medical and therapeutic applications is also driving growth. Furthermore, the development of more sophisticated and accurate testing methods for CBD and the growing availability of high-quality CBD products are also contributing to the market growth.
In January 2021:
- An agreement was signed to acquire 220kgs of high-potency dried cannabis flowers from a licensed producer from Canada and to acquire 1000kgs of CBD biomass from a cultivator from Western Canada to level up THC extracts.
- A service of product marketing that utilizes innovative techniques to encourage natural treatment was introduced by Nano Hydrate. The treatment offered is through pharmaceutical high-grade cannabidiol branding.
Based on type, the market is categorized into hemp and marijuana. The marijuana segment dominated the market in 2022 because the category is driven by the increasing popularity of CBD products that are refined and the legalization of marijuana and products derived from marijuana for various medical applications. In addition, the high efficacy of cannabidiol produced from marijuana is a significant element driving the segment's expansion. Cannabidiol extracted from hemp is predicted to experience substantial expansion due to rising demand from the pharmaceutical industry and rising consumer health consciousness. Increasing consumer disposable income and the legalization of medical cannabis are expected to have a favorable impact on the pharmaceutical industry's demand for cannabidiol. CBD items in great demand include oils, tinctures, concentrate, capsules, topical solutions such as slaves, lip balms, and lotions, and consumables such as coffee, baked goods, gum, chocolates, and sweets.
On the basis of the end-use, the market is categorized into chronic pain, mental disorders, cancer, food & beverages, personal care & cosmetics, nutraceuticals, personal use and pharmaceutical. The pharmaceutical segment dominates the market share. During the projected period, the segment is expected to expand at a rate that is profitable. In the coming years, product demand is predicted to be driven by the rising number of current clinical trials examining the effects of CBD on a variety of medical disorders. In addition, numerous businesses purchase CBD oils in bulk and make CBD-infused products. These items are utilized by a vast consumer base as an alternative to pain and stress treatment. Thus, the majority of these products are portrayed to be in the market expansion phase.
Over the forecast period, the medicines segment is expected to experience the highest growth rate. This rapidly advancing metamorphosis of cannabidiol from natural products to prescription medications is expected to stimulate market growth. In addition, increased knowledge of the medical benefits of cannabidiol, especially its therapeutic capabilities, is predicted to stimulate product demand in the pharmaceutical business.
By distribution channel, the market is categorized into B2B, Hospital, Online Stores and Retail Stores. The B2B segment held largest market in 2022. The segment is anticipated to grow at a productive rate through the forecast years. The increase in demand for CBD oil as a raw material and the rise in the number of large-scale or bulk CBD oil suppliers are both associated with the surge. Correspondingly, numerous countries legalized the use of CBD products, growth in consumer base led to a large expansion in the supply options for these goods. Furthermore, significant opportunities are anticipated for the market players owing to increase in the number of patients choosing for CBD treatments, exclusive collaborations of companies with retail pharmacies, and surge in stockpiling events by pharmacies.
North America is Dominating the Market Due To Presence of Major Players
North America is dominating the CBD oil market due to the presence of numerous manufacturers, a large population of health-conscious individuals, and the legalization of CBD-based products under the U.S. Farm Bill 2020. The region is widely considered the most advanced for cannabis and related products, with a large number of CBD companies and permissive legislation governing their use.
Asia Pacific is the Fastest Growing Market Owing to Legalization of CBD
The Asia Pacific region is experiencing the fastest growth in the market due to increasing market share and the legalization of cannabidiol in countries such as China, Japan, and India. In 2019, Thailand became the only Southeast Asian country to legalize cannabis for medical and scientific purposes and also approved the use of CBD hemp oil in the production of textiles, apparel, and other goods. Manufacturers in the region are capitalizing on customer awareness and product demand to drive market growth, with companies such as Franck Muller launching limited-edition watches targeting the Indian market.
- Cannoid, LLC
- Folium Biosciences
- ISODIOL INTERNATIONAL, INC.
- Medical Marijuana, Inc.
- Pharmahemp d.o.o.
- SEPHORA USA, INC.
- Ulta Beauty, Inc.
The global Cannabidiol (CBD) Oil market is segment as follows:
- Chronic Pain
- Mental Disorders
- Food & Beverages
- Personal Care & Cosmetics
By Distribution Channel
- Online Stores
- Retail Stores
- North America
- The U.S.
- The UK
- Nordic countries
- Benelux Reunion
- The Netherlands
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America