CBD Oil Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

CBD Oil Market Trends & Drivers

Investments Are Increasing across CBD Value Chain is the Key Trend

• The growing deregulation of this ingredient and hemp across countries has garnered interest among CBD market players. This has increased the market activities such as licensing, hemp and marijuana production, investment in R&D, and downstream product distribution.
• Numerous companies are trying to ensure supply chain certainties, enter newer geographies, and even ramp up the production of a differentiated array of CBD products. These steps are aimed at developing a loyal customer base, expansion of the supply chain, and generating brand equity in the nascent stage of the market.
• For instance, in April 2023, Tilray Inc. acquired HEXO Corp. for approximately $56 million to make its position stringer in the cannabis market.

Legalization of CBD for Research, Medical, and Recreational Usage Is Boosting Revenue

• The legalization of CBD across the U.S. and Canada has caused a cascading effect which is leading to many countries joining the bandwagon of decriminalizing to even deregulating cannabis and CBD-based products.
• Countries in Europe, APAC, and LATAM, such as the U.K., Norway, Spain, Japan, South Korea, Thailand, Mexico, Brazil, and South Africa, have legalized complete or partial sales of CBD-infused products.
• While regulations are varied across geographies, the countries have increased the production of hemp and downstream hemp-based CBD products. This has also helped national and state governments generate additional jobs and increase revenue from the sales of the products and licensing fees.
• Other potential upsides include income from recreational and medical tourism and sales of paraphernalia.
• Furthermore, with stakeholders, like government agencies, expediting regulatory approvals for the products, investing in research for mass-commercialization and manufacturing, and improvising supply chain logistics, the CBD oil market is anticipated to witness major growth during the forecast period.

Non-standardization of Regulations and High Degree of Competition Is a Major Hurdle

• The global CBD market is currently in initial stage and comprises of high degree of competition, with market players restoring to offer products at discounted prices to gain long-term supply contracts and build dedicated customer base worldwide.
• This will hamper the revenue opportunities for numerous market suppliers and affect growth opportunities for upcoming players.
• Further, inconsistent regulations on the allowance of tetrahydrocannabinol (THC) concentration in medical and recreational products in different countries are expected to hinder the legal approval of certain market products which restricts market growth.

CBD Oil Market Segmentation Analysis

Source Insights

The hemp category dominates the market with a market share of 60% in 2024 and it is also growing with highest CAGR in the coming years. This growth is mainly due to the mushrooming demand for hemp in the pharmaceutical industry and surging awareness among consumers of health and fitness, along with the increasing consumer income and legalization of cannabis. Furthermore, industrial hemp seeds contain protein, calories, and other nutrients. People use it mainly for diet purposes, eczema, constipation, and other purposes. Many industries, such as personal care & cosmetics and food & beverages, are using these seeds to develop products for fitness, health, and wellness.

The marijuana category is also exhibiting the healthy growth rate in the near future. The increasing adoption of purified CBD products and the growing legalization of marijuana and marijuana-derived products for several medical and research purposes are the key driving factors for the category. For example, ancient Indian Ayurvedic practices utilized cannabis as an active ingredient in medicine, to improve digestion and blood pressure. Medical marijuana is a widely used drug for various purposes, and after its legalization, it has grabbed the attention of many growers, manufacturers, and researchers.

Further, two types of sources are included in the report:

• Hemp (Larger and Faster-Growing Category)
• Marijuana

Sales Insights

The business-to-business category is the largest shareholder as well as growing with the highest CAGR during the forecast period. This is due to the rising number of wholesalers, investors, and manufacturers of CBD oil products. The demand is also increasing because cannabidiol products need are growing in many sectors, such as food and additives, cosmetics sectors, and health and wellness, and the pharmaceuticals sector which has increased the demand for businesses to procure cannabidiol raw material or precursor material for their item in bulk.

Further, two-thirds of the U.S. states have legalized such seeds for medical purposes, and others are considered doing the same. Moreover, many key players in the medical sector are directly working with big farmers for these products.

This segment comprises of two categories:

• B2B (Larger and Faster-Growing Category)
  • By End-use
    • Pharmaceuticals
    • Wellness
• B2C
  • By Sales channel
    • Hospital Pharmacies
    • Online
    • Retail stores
  • By End-use
    • Medical
    • Personal use

End Use Insights

The pharmaceuticals category dominates the market with the largest share and it is fastest-growing category too in the near future. Numerous pharmaceutical companies are performing trials to examine the effect of cannabidiol oil on certain health conditions and its pros and cons on the human body. Additionally, companies are making CBD tinctures, gummies, capsules, and other products, for numerous conditions.

Furthermore, the rapid change in the usage of cannabidiol from herbal preparations to pharmaceutical drugs is also propelling the growth of the market, along with the increasing awareness on the medical benefits of this oil, including its healing properties. This is driving the demand for products containing this ingredient in the pharmaceutical industry.

Further, these end uses are covered in the report:

• Medical
  • Chronic pain
  • Mental disorders
  • Cancer
• Personal Use
• Pharmaceutical (Largest and Fastest-Growing Category)
• Wellness
  • Food & beverages
  • Personal care & cosmetics
  • Nutraceuticals
  • Others

CBD Oil Market Geographical Analysis

Globally, North America region is the largest region with a market share of 40% in 2024 and will remain the largest during the forecast period. This is because of the legalization of cannabidiol for medical and research purposes in the continent. The status of the product as a natural phytocompound, its strong promotion by firms as a wellness and lifestyle product, the launch of cannabidiol-based pharmaceuticals, including Epidiolex and Sativex, and the wide availability of various products containing this compound are further expected to propel the sale of cannabidiol oil in the region in the coming years.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Larger and Faster-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • South Africa (Largest and Fastest-Growing Country Market)
  • Nigeria
  • Ethiopia
  • Egypt
  • Tanzania
  • Kenya
  • Rest of MEA

CBD Oil Market Competitive Landscape

The CBD oil market is consolidated in nature since few key players are holding the dominant position in the market. This is attributed to their established distribution networks, robust brand recognition, and extensive product portfolios. Regulations are becoming more standardized and high consumer demand may bring opportunities for smaller and niche players.

CBD Oil Market News & Updates

• in february 2024, jublee cbd launched many cbd skincare lines such as bath salts and body butters.
• in january 2024, aurora cannabis inc. introduced cannabis-infused ready-to-drink product manufactured by vacay and versus.
• in january 2024, ease labs pharma secured approval from the brazilian health regulatory agency for its locally produced cannabis sativa extract. this extract comprises up to 0.2% thc, 750 mg (25 mg/ml) of cbd, and other cannabinoids.
• in april 2023, aurora Cannabis Inc. partnered up with MedReleaf Australia to launch IndiMed Tempo 26 which is new dried cannabis products with higher THC content for eligible patients.