Cannabidiol (CBD) Oil Market Size 2025-2029
The cannabidiol (cbd) oil market size is forecast to increase by USD 8.23 billion at a CAGR of 29.4% between 2024 and 2029.
- The CBD oil market is experiencing significant growth, driven by increasing consumption among the millennial population in developed countries and the expanding legalization of cannabis-based products. This demographic trend, coupled with regulatory changes, presents a substantial opportunity for market expansion. However, the market is not without challenges. Adverse effects from overconsumption of CBD oil products, including potential liver damage and interactions with certain medications, pose a risk to consumers and may negatively impact market perception. Companies seeking to capitalize on this market must prioritize product safety and transparency, as well as invest in research and development to address these concerns and differentiate themselves from competitors.
- Additionally, navigating the complex regulatory landscape and maintaining compliance with varying laws and regulations will be crucial for market success. Overall, the CBD oil market offers significant potential for growth, but companies must address these challenges to effectively capitalize on the opportunities presented.
What will be the Size of the Cannabidiol (CBD) Oil Market during the forecast period?
- The global CBD business is experiencing significant growth as this non-psychoactive compound derived from cannabis gains popularity for its various uses in treatments and consumer goods. Key market drivers include the legalization of CBD in several regions and the increasing acceptance of cannabidiol acids in medications, personal care items, and health and beauty products. CBD-based products come in various forms, including oils, capsules, transdermal patches, and vaping devices. Producers are continually refining manufacturing processes and testing methodologies to meet consumer demands for high-quality, safe products. Government measures and regulatory processes play a crucial role in shaping the market dynamics.
- For instance, stricter regulations on vaping devices have led to a shift towards other delivery methods like body lotions and tinctures. Consumer attitudes towards cannabis and related complications also influence the market trends. As more people turn to CBD for pain relief, anxiety reduction, and other health benefits, the demand for CBD-based treatments continues to rise. The variety of uses for CBD extends beyond human applications. Producers are exploring opportunities in pet care and pharmaceuticals, further expanding the market's reach. Processing techniques and cannabis strains with high CBD content are under constant development to cater to the evolving consumer preferences and regulatory requirements.
How is this Cannabidiol (CBD) Oil Industry segmented?
The cannabidiol (cbd) oil industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Product
- Marijuana derived CBD oil
- Hemp derived CBD oil
- Application
- Pharmaceuticals
- Personal care and cosmetics
- Food and beverages
- Wellness
- Geography
- North America
- US
- Canada
- APAC
- China
- India
- Japan
- South Korea
- Europe
- France
- Germany
- Italy
- UK
- South America
- Middle East and Africa
- North America
By Product Insights
The marijuana derived cbd oil segment is estimated to witness significant growth during the forecast period.
CBD oil derived from marijuana is gaining popularity among consumers due to its broader range of therapeutic components, including cannabinoids, terpenes, and other chemicals found in the cannabis plant. Known as full-spectrum CBD oil, this product is believed to have an entourage effect, where the synergistic interaction of these components enhances the overall therapeutic benefits of CBD. The potential medicinal advantages of marijuana-derived CBD oil, such as pain relief, anxiety reduction, and potential anti-inflammatory properties, are driving demand for this product. As research progresses and more information becomes available, consumer acceptance of marijuana-derived CBD oil as a natural remedy for various health conditions continues to grow.
This trend is not limited to humans but extends to pets and health and beauty industries, with CBD-based products being used in medical therapies, cosmetics, and personal care items. The legalization of marijuana and CBD in several countries and regions is further fueling the global CBD business, leading to the development of new manufacturing processes and products, such as capsules, tinctures, transdermal patches, and inhalation devices. Governments and regulatory bodies are implementing measures to ensure health safety assurance and consumer-facing openness, while producers are focusing on Food Grade and Therapeutic Grade quality to cater to the evolving consumer attitudes.
The CBD industry is expected to continue growing, with key market drivers including the variety of uses, legalization of marijuana, and increasing consumer awareness and acceptance.
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The Marijuana derived CBD oil segment was valued at USD 637.50 billion in 2019 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 59% 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 legalization of hemp-derived CBD in the US and Canada has brought regulatory clarity and market growth in these regions. In the US, the 2018 Farm Bill allowed for the legal production, sale, and distribution of CBD products, fostering regional market expansion. Simultaneously, Canada's legalization of recreational cannabis in 2018 created opportunities for the legal sale of CBD products, leveraging the country's established regulatory framework for cannabis and cannabis-derived products. The growing interest in health and wellness, coupled with a shift towards natural and holistic remedies, has fueled demand for CBD products as consumers seek alternatives to conventional medications.
This trend is not limited to humans; the pet industry has also shown interest in CBD-based products for animal health. CBD is used in various forms, including solid and liquid, for medical therapies, skincare products, and health and beauty applications. The global CBD business encompasses a wide range of products, from tinctures and capsules to topical treatments like transdermal patches and body lotions. Manufacturing processes include food and therapeutic grade, ensuring health safety assurance and consumer-facing openness. Key market drivers include legalization measures, consumer attitudes, and the variety of uses for CBD in industries like pharmaceuticals, health and beauty, and food and beverages.
Market Dynamics
Our researchers analyzed the data with 2024 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.
What are the key market drivers leading to the rise in the adoption of Cannabidiol (CBD) Oil Industry?
- Growing consumption of cannabis among millennial population in developed countries is the key driver of the market.
- The CBD oil market is experiencing significant growth due to the increasing popularity of cannabis products among the millennial demographic. With the largest legal cannabis market in the world, the US, having a millennial population of 72.19 million in 2021, which is projected to expand at a Compound Annual Growth Rate (CAGR) of 0.37 percentage and reach 81.1 million by 2036, this trend is expected to continue. Europe also presents an encouraging outlook for the global CBD oil market, as the millennial population there forms the largest consumer base for cannabis products.
- The millennial generation's inclination towards trying new variants is a significant factor driving the market's growth. The CBD oil market dynamics are influenced by various factors, including changing consumer preferences, increasing awareness, and regulatory frameworks. Despite the market's positive trajectory, it is essential to adhere to professional
What are the market trends shaping the Cannabidiol (CBD) Oil Industry?
- Growing legalization of cannabis-based products is the upcoming market trend.
- The global CBD oil market is experiencing significant growth due to the increasing legalization of cannabis for medicinal and recreational use in various countries. Currently, over 30 states in the US have legalized marijuana for medicinal purposes, and some have allowed its use for recreational purposes as well. Portugal was the first country to legalize the use of all types of drugs, including marijuana, in 2001. More recently, Canada legalized marijuana for medicinal use in 2016. Other nations, such as Ireland, Jamaica, Australia, Germany, and South Africa, have also legalized marijuana for medicinal purposes. This trend is expected to continue, driving the growth of the CBD oil market.
- CBD oil is derived from the cannabis plant and is known for its therapeutic properties, making it a popular choice for those seeking natural remedies for various health conditions. The market dynamics include increasing awareness of CBD oil's health benefits, growing acceptance of cannabis use, and favorable regulations in various countries. Despite the challenges, the market is expected to continue its growth trajectory in the coming years.
What challenges does the Cannabidiol (CBD) Oil Industry face during its growth?
- Adverse effects of CBD oil products owing to overconsumption is a key challenge affecting the industry growth.
- CBD oil, derived from the cannabis plant, has gained significant attention due to its potential health benefits. However, the ease of access to marijuana and related products, including CBD oil, poses potential risks. Prior to 2015, approximately 15 countries permitted the commercial sale of marijuana, with nearly half of their populations under 18 years old having easy access. This widespread availability increases the likelihood of misuse and abuse, leading to various respiratory problems and health issues. Moreover, the legalization of marijuana in public spaces can result in passive or indirect consumption by older populations, which can be detrimental to their health.
- It is crucial to understand the implications of this trend and ensure proper regulations are in place to mitigate potential harm. While CBD oil offers potential health benefits, it is essential to approach its use with caution and adhere to legal guidelines.
Exclusive Customer Landscape
The cannabidiol (cbd) oil 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 cannabidiol (cbd) oil market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, cannabidiol (cbd) oil market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
AMP Medical LLC - CBD Oil, such as Purity Seeker, is a popular choice for those seeking to enhance skin health. This all-natural solution effectively addresses various skin concerns, including acne and blemishes, by preventing their formation. Its wound healing properties expedite the recovery process, while soothing rashes and reducing redness. Moreover, it significantly boosts skin hydration and improves elasticity, resulting in a more youthful and radiant complexion.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- AMP Medical LLC
- Aurora Cannabis Inc.
- BIOTA Biosciences LLC
- Cantourage GmbH
- CBD American Shaman.
- CV Sciences Inc.
- Elixinol
- Endoca BV
- Gaia Botanics
- Green Roads Inc.
- Happie Hemp Pvt. Ltd.
- Hemp Horizons Private Ltd.
- HempStreet Medicare Private Ltd.
- High Tide Inc.
- Kimar LLC dba Natural Wellness Corner
- LOreal SA
- Medical Marijuana Inc.
- NeoMen
- The Cure Brand
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 industry 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.
Research Analyst Overview
The pharmaceutical business has witnessed a significant shift in consumer preferences towards natural and plant-based remedies, with CBD oil gaining popularity in various countries around the world. This trend is particularly noticeable in the health and beauty sector, where CBD oils are increasingly being used in skincare products due to their potential benefits in addressing related complications. The CBD market encompasses a wide range of products, including oils in both liquid and solid form, as well as tinctures, capsules, and transdermal patches. The variety of uses for CBD extends beyond human applications, with pet products also gaining traction in the industry.
Manufacturers are focusing on health safety assurance and consumer-facing openness to meet the growing demand for CBD-based products. The conventional medications market is experiencing increased competition from these natural alternatives, particularly in the treatment of chronic diseases. The regulatory processes surrounding CBD are evolving in various regions, with some nations leading the way in legalization and others implementing strict controls. The global CBD business is expected to continue growing, driven by key market drivers such as increasing consumer awareness and acceptance, as well as advancements in manufacturing processes. Cannabidiol acids are the raw materials used in the production of CBD products.
Producers are continually exploring new processing techniques to optimize yields and improve product quality. The CBD industry is also seeing innovation in delivery methods, with inhalation and topical applications gaining popularity. Consumer attitudes towards CBD are shifting, with many viewing it as a safer and more natural alternative to conventional medications. This trend is reflected in the increasing availability of CBD products in consumer goods stores, such as Ulta Beauty and Sephora. The legalization of marijuana in some regions has contributed to the growth of the CBD industry, with aerosol sprays and vaping devices emerging as popular delivery methods.
However, testing methodologies and quality control remain critical concerns for regulators and consumers alike. The CBD market is segmented into various categories, including food grade, cosmetics, and pharmaceutical applications. The inhaled sub-segment is expected to see significant growth due to its rapid onset of action and convenience. Byproducts of the cannabis plant, such as hemp, are also gaining attention in the industry due to their potential applications in CBD production. The regulatory landscape for CBD is complex and varies from region to region, making it essential for producers to stay informed and adapt to changing market dynamics. In , the CBD market is a dynamic and evolving industry, driven by consumer preferences for natural and plant-based remedies.
The trend towards CBD use in health and beauty applications is expected to continue, with innovation in manufacturing processes and delivery methods driving growth. Regulatory compliance and consumer safety remain critical concerns, making it essential for producers to stay informed and adapt to changing market conditions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
201 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 29.4% |
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Market growth 2025-2029 |
USD 8229.6 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
22.3 |
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Key countries |
US, Canada, China, Japan, UK, India, Germany, South Korea, France, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Cannabidiol (CBD) Oil Market Research and Growth Report?
- CAGR of the Cannabidiol (CBD) Oil industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the cannabidiol (cbd) oil market growth of industry companies
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