CBD Market

CBD Market Outlook (2023 to 2033)

The valuation of the global cannabinoids (CBD) market reached US$ 3.86 billion in 2022, according to the latest research report by Fact.MR, with worldwide demand rising at a CAGR of 13.7% from 2018 to 2022. Global sales of cannabinoids are predicted to accelerate at a CAGR of 28.1% and reach US$ 58.83 billion by the end of 2033.

Increasing awareness among a majority of people about the potential health benefits of cannabinoids is leading to their rising consumption. In addition, prominent players in the industry are spending at a significant rate on R&D activities to get more detailed insights about the production of new and efficient products. The industry is expanding at a rapid pace with the rising legalization of hemp-based products.

• Sales of marijuana-based cannabinoids are forecasted to rise at a CAGR of 27.7% and reach US$ 37 billion by 2033.
• Demand for CBD-based products in Japan is projected to increase at 24.5% CAGR and reach a value of US$ 1.94 billion by 2033.

Cannabinoid is a non-psychoactive compound that is found in hemp plants. It is used in numerous forms, including edibles, tinctures, oils, and creams. The potential health benefits include reducing pain and anxiety, etc. Companies operating in the CBD landscape are investing to produce a wide variety of products to match consumer requirements. Moreover, significant expansion of the e-Commerce platforms to reach a larger consumer base and contribute to increased sales of CBD is also driving market expansion.

Growing recognition of the different therapeutic benefits of CBD is stimulating its sales, irrespective of high prices. The rising normalization and legalization of hemp-based products and marijuana are contributing to the growing sales of cannabinoids. Seizures, pain, anxiety, etc., are some conditions for which CBD is used effectively.

CBD oil is becoming popular due to its use in numerous skincare products. Some manufacturers from the personal care industry are also concentrating on the production of CBD-infused cosmetic products. Companies are launching new products to gain a competitive edge in the market.

For instance :

• In December 2021, Avicanna Inc. launched the re+PLAY, a CBD-based sports recovery brand, while entering into a partnership with Harrington Wellness in Canada.

Fact.MR, a market research and competitive intelligence provider, recently published a report on different dynamics of CBD that are helpful for readers to get detailed insights. New developments, growth driving factors, restraints, regional analysis, etc., are some dynamics found in this research report.

Report Attributes	Details
CBD Market Size (2023)	US$ 4.94 Billion
Forecasted Market Value (2033)	US$ 58.83 Billion
Global Market Growth Rate (2023 to 2033)	28.1% CAGR
Pharmaceuticals Segment Value (2033)	US$ 19.12 Billion
United States Market Value (2033)	US$ 16.59 Billion
United Kingdom Market Growth Rate (2023 to 2033)	27.3% CAGR
China Market Growth Rate (2023 to 2033)	26.5% CAGR
Key Companies Profiled	EPIDIOLEX INSYS Therapeutics, Inc. Nightfood Holdings Pivot Pharmaceuticals Inc. SolMic GmbH HoneyB Healthy Marijuana Company of America Inc.

Which Facets are Driving the Growth of the Global CBD Market?

“Clinical Use of CBD for Efficient Treatment of Epilepsy”

Cannabis comprises more than 100 chemical compounds, which are addressed as cannabinoids. Popular among them are THC (tetrahydrocannabinol) and CBD (cannabidiol).

• The expert committee from the World Health Organization acknowledged the clinical use of CBD as an efficient treatment against epilepsy.

CBD is believed to have numerous therapeutic values for seizures because of relevant conditions and epilepsy. Moreover, various clinical trials are also conducted on cannabinoids that have depicted their efficiency to treat different forms of epilepsy.

“Rapidly Rising Awareness about Therapeutic Potential of CBD”

Increased consumption of cannabidiol is attributed to the growing awareness among various people about its health or therapeutic benefits. The growing acceptance and regulatory approvals are leading to the rising use of CBD-infused products.

Based on their health benefits, various people are inclined to purchase CBD products irrespective of their high prices. Various commercial merchants are concentrating to adopt numerous marketing strategies as they offer significant profit margins.

Which Aspects are Projected to Limit the Adoption of CBD Products?

“Side-effects of CBD Products Impeding Their Adoption”

Numerous organizations have mentioned minor side effects of cannabinoids despite their wide application in various research studies and medical illnesses. Drowsiness, lightheadedness, low blood pressure, and dry mouth are some negative effects of CBD that are experienced by consumers. Therefore, a slight negative impact on the consumption of CBD is experienced.

How are Start-ups Predicted to Transform the Future of the Cannabinoids Market?

“Incorporation of Natural Treatment with CBD of Pharmaceutical Grade”

New entrants are putting efforts to introduce marketing services that are based on cutting-edge technologies. They are trying to explore new ways to introduce products with CBD of pharmaceutical grade. Certain drinks are also introduced containing cannabis.

Rising production of CBD products without any sort of intoxication is projected to help start-ups gain a competitive edge. Moreover, the growing demand for CBD wine, CBD patches, CBD gummies, etc., is also predicted to help new entrants to expand their footprints.

Country-wise Insights

What is Propelling the Growth of the United States Market for CBD?

“Presence of Numerous CBD Manufacturers Complementing Market Growth”

The United States market is forecasted to expand at a CAGR of 28.7% and reach US$ 16.59 billion by 2033.

The growing population of health-conscious people, the presence of some prominent manufacturers, and the rising acceptance of various types of CBD products are contributing to market growth opportunities in the United States. In addition, the approval of the United States Farm Bill in the year 2020 is also driving lucrative opportunities for industry players.

Why are CBD Products Gaining Traction in the United Kingdom?

“Low Cost of CBD Production and Presence of Large-scale Manufacturing Infrastructure”

Demand for cannabinoids in the United Kingdom is predicted to increase at a CAGR of 27.3% and reach a value of US$ 4.35 billion by the end of the forecast period.

The low cost of CBD production is estimated to help in the expansion of the CBD landscape. Moreover, unique large-scale manufacturing infrastructure and expertise are also projected to create intensive competition among companies operating in hemp supply. These factors are predicted to contribute to the rising consumption of CBD products.

Which Asia Pacific Countries are Generating High Profits for Manufacturers?

“Supportive Government Policies Boosting Sales of CBD in South Korea & Japan”

The South Korean market is projected to expand at a CAGR of 25.3% and reach a valuation of US$ 1.94 billion by the end of the projected period. Sales of CBD in Japan are estimated to accelerate at a CAGR of 24.5% and reach US$ 1.94 billion by 2033.

Japan is one the prominent countries in Asia Pacific that recently started the production of CBD in the region to extract related products to match the growing market demand over the coming 10 years. Supportive government policies in South Korea and Japan are predicted to open up opportunities for players over the forecast period.

Category-wise Insights

Which is a Prominent Source for Deriving CBD Products?

“Growing Demand for Marijuana-based CBD Products”

Sales of marijuana-based CBD products are forecasted to advance at a CAGR of 27.7% and reach US$ 37 billion by 2033.

Noteworthy growth of the marijuana industry is predicted to lead to rising sales of marijuana-based CBD products. CBD is commonly derived as powder or oil from marijuana plants. These are further put into capsules or blended into gels or capsules and applied to the skin or ingested.

Tetrahydrocannabinol (THC) is also utilized in the production of medications for the treatment of neurological illnesses, including epilepsy, Alzheimer’s disease, dementia, and other conditions. THC is restricted due to its psychotropic characteristics across the majority of countries. Therefore, it is predicted to grow sluggishly.

Why is Demand for CBD Products High in the Pharmaceutical Industry?

“Rising Awareness about Health Benefits of Cannabidiol Fueling its Sales for Pharmaceutical Applications”

Demand for cannabinoids in the pharmaceutical sector is predicted to progress at a 26.3% CAGR and reach a value of US$ 19.12 billion by 2033.

CBD can reverse hemorrhoids, lowering psychotic events of schizophrenia, and avoid menstrual cramps. Prominent companies in the market are promoting this product as a no-side-effect ingredient for pharmaceutical drugs, making it an effective alternative to tetrahydrocannabinol (THC). THC presents certain effects in the CNS (central nervous system) and cannabidiol has similar effects on the immune system. While combining both in equal ratios, they complement the positive impacts of each other.

Competitive Landscape

Strengthening the supply chain system, maintaining product standards, taking initiatives for quality control, etc., are prominent objectives that industry players are focusing on.

New launches, collaborations, strategic acquisitions, etc., are some strategies that are focused on by manufacturers of cannabinoids.

For instance :

• Greenheart CBD is an Irish company. In March 2021, the company launched a decentralized financial token. The company is the first of its kind to take such an action. This initiative is projected to help in the expansion of the company’s footprints and provide cost-effective products to end users.

Epidiolex, Insys Therapeutics, Inc., Nightfood Holdings, Pivot Pharmaceuticals Inc., SolMic GmbH, HoneyB Healthy, and Marijuana Company of America Inc. are some of the prominent players in the CBD market.

Segmentation of CBD Industry Research

• By Source :

  • Hemp-based
  • Marijuana-based

• By Form :

  • Processed Oil
  • Distillates
  • Isolates

• By Grade :

  • Food Grade
  • Therapeutic Grade

• By Application :

  • Food & Beverages
  • Cosmetics & Personal Care
  • Pharmaceuticals

• By Distribution Channel :

  • Offline
  • Online

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa