Cannabidiol (CBD) Market Size and Share
Cannabidiol (CBD) Market Analysis by Mordor Intelligence
The Cannabidiol Market size is estimated at USD 10.04 billion in 2025, and is expected to reach USD 21.34 billion by 2030, at a CAGR of 16.28% during the forecast period (2025-2030).
Rapid pharmaceutical‐grade innovation is steering the CBD market from niche wellness toward mainstream therapeutic and consumer applications. The pharmaceutical segment led with 41.53% revenue in 2024 as regulators, prescribers, and patients accepted evidence-backed CBD medicines. North America retained a 47.21% revenue lead, but Asia-Pacific is projected to post a 20.32% CAGR on the back of Japan’s and Australia’s regulatory reforms. Imminent U.S. rescheduling of cannabis to Schedule III could unlock FDA-approved cannabinoid drugs for pharmacies, while nanoemulsion and other fast-acting delivery technologies widen the addressable base for ingestibles and topicals. Intensifying consolidation—exemplified by Canopy Growth’s acquisition of Wana and Jetty—signals that brand portfolios and proprietary IP will dictate competitive advantage in the CBD market.
Key Report Takeaways
- By source, hemp accounted for a 55.71% share of the CBD market in 2024, while marijuana-derived CBD is set to grow at an 18.92% CAGR between 2025 and 2030.
- By end use, the pharmaceutical segment captured 41.53% of CBD market share in 2024; pet care is projected to expand at a 32.57% CAGR through 2030.
- By product form, oils & tinctures held 38.11% of CBD market share in 2024; gummies & confectionery are forecast to post a 30.78% CAGR to 2030.
- By distribution channel, retail stores led with a 46.81% revenue share in 2024; e-commerce is advancing at a 22.43% CAGR.
- By geography, North America commanded 47.21% of 2024 revenue, whereas Asia-Pacific is estimated to chart a 20.32% CAGR through 2030.
Global Cannabidiol (CBD) Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Chronic pain management driving prescription CBD uptake | +1.2% | North America; Europe | Medium term (2-4 years) |
Regulatory pathways opening OTC CBD in pharmacy chains | +0.9% | North America; Japan | Short term (≤2 years) |
Adoption of CBD-infused functional foods among aged population | +0.7% | Europe; North America | Medium term (2-4 years) |
Increasing consumer health awareness | +0.5% | Global | Short term (≤2 years) |
Rising integration of CBD in cosmetic and skincare formulations | +0.4% | Asia-Pacific; Europe | Medium term (2-4 years) |
Expansion of online retail platforms and e-commerce penetration | +0.3% | Global | Short term (≤2 years) |
Source: Mordor Intelligence
Chronic Pain Management Driving Prescription CBD Uptake
Prescription adoption is climbing as CBD proves effective for refractory neurological disorders. Jazz Pharmaceuticals reported 46-87% median seizure reductions in multiple epilepsy types, and 89% of caregivers intend to continue Epidiolex therapy. Nurses documented seizure declines in 85% of treated cases, and behavioral improvements were noted in tuberous sclerosis complex. These outcomes compel broader clinical trials for chronic pain, spurring pharma investment in cannabinoid R&D. U.S. rescheduling to Schedule III would authorize FDA approval and pharmacy distribution, expanding reimbursable access.
Regulatory Pathways Opening for Over-the-Counter CBD in Pharmacy Chains
Japan’s December 2024 Cannabis Control Law revision permits medical cannabis products and introduces a tiered cultivation license, ending a decades-long “drug lag”.[1]GR Japan, “Cannabis Law Reform Summary,” grjapan.comIn the U.S., the FDA acknowledges that present supplement rules cannot govern CBD, prompting legislative proposals while states enact divergent measures, such as California’s emergency ban on hemp foods with detectable THC.[2]FDA, “Cannabidiol Product Safety Update,” fda.govMainstream pharmacy groups are therefore preparing OTC shelves for compliant SKUs once federal clarity emerges.
Adoption of CBD-Infused Functional Foods Among Aged Population
Older consumers seek non-pharmaceutical relief for sleep, joint, and inflammatory issues, accelerating demand for functional foods fortified with cannabidiol. Le Herbe’s water-dissolvable powder leverages nanoemulsion to reduce onset to 15–30 minutes and triple shelf life. 3-D-printed tablets allow bespoke dosages, albeit at printer costs above USD 4,000 that limit near-term scaling. Enhanced bioavailability positions CBD beverages and snacks as routine dietary aids.
Increasing Awareness among Consumers Regarding Health
Convenience-store surveys show the majority of shoppers recognize CBD benefits even though trial rates lag. Education campaigns stress correct dosage and COA verification, a strategy reinforced by Tilray’s hemp-derived delta-9 THC beverage roll-out as an alcohol alternative across large U.S. markets. National beverage chains stocking THC seltzers underscore the normalization of cannabinoid consumption.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Strict regulation on cannabidiol products | −1.4% | Japan; United States | Short term (≤2 years) |
Price compression from oversupply of hemp biomass | −0.8% | North America | Short term (≤2 years) |
Banking & insurance restrictions on CBD start-ups in developing countries | −0.5% | Latin America; Africa | Medium term (2-4 years) |
Lack of uniform global regulatory frameworks and labeling standards | −0.4% | Global | Long term (≥4 years) |
Source: Mordor Intelligence
Strict Regulation on Cannabidiol Products
Japan enforces the world’s lowest THC threshold, demanding zero-detectable levels in imported CBD and limiting raw material to mature stalk and seed, thereby tightening supply channels.[3]USDA FAS, “Japan Hemp Market Report,” usda.govIn the U.S., FDA’s stance that current supplement rules are “inadequate” sustains a federal vacuum, while California bans retail hemp foods with detectable THC. Unaligned rules raise compliance costs and delay nationwide rollouts.
Price Compression from Oversupply of Hemp Biomass
Hemp acreage planted boom still feeds inventories, forcing isolate prices downward and cutting brand counts from 4,000 to roughly 2,000. Charlotte’s Web responded by debuting CBN-led “Stay Asleep” gummies to capture premium sleep-aid demand. Ultrasonic and pressurized-liquid extraction allow purity gains that justify higher margins, yet processors without IP or scale exit the CBD market.
Segment Analysis
By Source: Hemp Commands Volume While Marijuana Gains Value Momentum
Hemp-derived products captured 55.71% of 2024 revenue as favorable legislation and established farming supply chains ensured consistent input quality. The CBD market size for hemp formats is projected to expand at a mid-teens CAGR as ingestibles and cosmetics widen consumer reach. Demand for marijuana-derived extracts, however, is forecast to climb 18.92% annually between 2025 and 2030 as the entourage effect gains clinical backing and potential U.S. Schedule III status relaxes research barriers. The CBD market welcomes hybrid extraction methods such as Smokenol™ that capture smoke-borne terpenes, blurring traditional source distinctions and enabling tailored cannabinoid ratios for formulators.
Hemp’s legal clarity supports multinational retailers that require THC-free inventory, especially in Europe and parts of Asia. Marijuana-sourced CBD appeals to prescription channels where trace THC content is permissible under pharmacopoeia standards. As pharmaceutical trials broaden beyond epilepsy to pain and anxiety, vertically integrated cultivators with both hemp and marijuana licenses are best positioned to supply diversified APIs at scale.
Note: Segment shares of all individual segments available upon report purchase
By End Use: Pharmaceuticals Lead Revenue; Pet Care Races Ahead
Pharmaceutical applications generated 41.53% of 2024 sales, buoyed by Epidiolex’s USD 198.7 million Q1 2024 revenue and continued expansion into tuberous sclerosis and Lennox-Gastaut syndrome indications. This dominance translates into the highest CBD market share across end uses, with payers increasingly reimbursing cannabinoid prescriptions. The CBD market size for pet care, however, is forecast to advance at 32.57% CAGR as owners adopt functional chews and oils for arthritis, anxiety, and postoperative recovery in companion animals. Veterinary practitioners cite growing peer-reviewed evidence for canine osteoarthritis pain reduction, underpinning demand for GMP-grade tinctures.
Wellness and personal-use SKUs continue evolving toward targeted benefits. “Stay Asleep” CBN plus CBD gummies address the 67% of adults reporting sleep issues, illustrating how broadened cannabinoid profiles capture additional consumer need states. Such functional diversification boosts category resiliency against raw-material oversupply shocks.
By Product Form: Oils & Tinctures Retain Pole Position While Gummies Surge
Consumers gravitate toward oils and tinctures for dosage flexibility, granting the format 38.11% revenue in 2024. Precise droppers and minimal excipients appeal to medically supervised regimens, sustaining trust among health-care providers. Gummies and confectionery, projected to grow 30.78% annually to 2030, attract first-time users who prefer familiar snack formats and tastemasked profiles. Alcohol-replacement trends further energize the CBD market size for gummies; Australian consumers cite cannabis gummies’ hangover-free benefit when choosing them over beer.
Advanced nanoemulsion shortens edible onset to under 30 minutes and boosts bioavailability, eroding oils’ speed advantage and expanding gummies’ evening-winding-down occasions. Topicals are likewise adopting water-soluble nano-drops to lift dermal absorption, underpinning the premiumization of cosmetic SKUs.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Brick-and-Mortar Still Commands Trust; E-Commerce Accelerates
Retail stores controlled 46.81% of 2024 revenue as shoppers value live staff guidance and instant product access. Pharmacies, wellness chains, and grocery banners broaden shelf space following clearer local statutes. Nonetheless, e-commerce is on a 22.43% CAGR trajectory. One-click replenishment and discrete delivery resonate with chronic-condition patients wary of stigma. ChatCBDW AI bots replicate dispensary expertise, resolving dosage and interaction questions and lifting conversion rates.
Convenience retailers like Circle K expand pilot kiosks stocked with broad-spectrum gummies and seltzers, while Yesway’s Feel Good Shop+ curates impulse-purchase SKUs adjacent to energy drinks. Potential U.S. Schedule III rescheduling would channel FDA-approved cannabinoid drugs into hospital and specialty pharmacies, cementing medical supply chains that align with payer reimbursement and physician prescribing workflows.
Geography Analysis
North America remained the epicenter of the CBD market with 47.21% revenue in 2024. Imminent federal rescheduling is expected to shrink illicit channels, reduce possession arrests, and catalyze double-digit investment in clinical trials. Consolidation is also reshaping the landscape; Cresco Labs’ USD 2 billion acquisition of Columbia Care exemplifies scale pursuit under tightening capital markets. Canada remains the hub for GMP-grade cannabinoid research, while Mexico’s pending secondary regulations could open Latin America’s most populous market.
Asia-Pacific is projected to post a 20.32% CAGR through 2030, propelled by Japan’s landmark reforms that legalize medical cannabinoid products. China’s beauty sector leads CBD adoption via cross-border e-commerce, with luxury serums commanding premium pricing. Australia’s Special Access Scheme facilitates prescription CBD for anxiety and insomnia, building physician familiarity and patient loyalty.
Europe presents sizable upside as Germany moves to decriminalize adult-use cannabis, lifting investor sentiment and reviving Canopy Growth’s European restructuring. The European Monitoring Centre for Drugs and Drug Addiction is drafting a harmonized CBD safety framework, addressing current patchworks that hamper trade. The UK emphasizes novel-food authorizations, fostering white-label supply chains. France and Italy accelerate medical-cannabis trials, stimulating pharmaceutical demand for GMP isolate and distillate.

Competitive Landscape
The CBD market shows moderate concentration; top multinationals pursue vertical integration to control genetics, extraction, and branded distribution. Canopy Growth’s 2024 purchase of Wana and Jetty refocuses its U.S. strategy on high-margin edibles and solventless concentrates. CV Sciences’ USD 1.4 million acquisition of Extract Labs brings in-house manufacturing and CBD-isolate supply, improving gross margin resilience.
Pharma players anchor the prescription segment: Jazz Pharmaceuticals leverages GW’s IP estate to defend Epidiolex exclusivity while exploring cannabidiol combinations with standard anti-epileptics. Patents for novel delivery, including Real Isolates’ Smokenol, signal rising R&D intensity and potential litigation barriers to late entrants. Meanwhile, Radicle Science and Open Book Extracts co-develop rigorously tested consumer products, responding to retailer and consumer calls for transparency.
Startups exploit white spaces in pet wellness, beauty, and sleep aid niches. Capital inflows favor firms with differentiated technology or proprietary genetics, leaving commodity tincture sellers vulnerable amid raw-material price compression. As branding dictates shelf impact, marketing spend shifts toward clinical substantiation and QR-code traceability to reassure cautious shoppers.
Cannabidiol (CBD) Industry Leaders
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Cannoid LLC
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Medical Marijuana, Inc
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Nuleaf Naturals LLC
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Elixinol Wellness Ltd.
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Aurora Cannabis Inc.
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- January 2025: Tilray Brands reported a 9% year-over-year increase in net revenue for Q2 2025, reaching USD 211 million, with a gross profit increase of 29% to USD 61 million.
- January 2025: Canopy Growth reported a 54% reduction in Adjusted EBITDA loss to USD 6 million and improved free cash flow by 16%, despite a 9% year-over-year decline in net revenue to USD 63.0 million.
- December 2024: Charlotte's Web provided an update on DeFloria's Phase 1 clinical trial results for AJA001, a multi-compound hemp extract developed for treating autism spectrum disorder, demonstrating safety and tolerability.
- December 2024: Vireo Growth Inc. announced a USD 397 million merger with Proper Brands and three other cannabis companies, expanding its operations across several states, including Missouri, Nevada, and Utah.
Global Cannabidiol (CBD) Market Report Scope
As per the scope of this report, Cannabidiol (CBD) is a chemical compound obtained from marijuana and hemp plants and is commonly used for medical purposes. The Cannabidiol (CBD) Market is segmented by Source (Hemp and Marijuana ), Application (Anxiety/ Stress, Neurological Conditions, Skin Care, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The Market report also covers the estimated market sizes and trends of 17 countries across major regions globally. The report offers values (in USD million) for the above segments.
By Source | Hemp | ||
Marijuana | |||
By End Use | Pharmaceuticals | ||
Wellness & Personal Use | |||
Food & Beverages | |||
Cosmetics & Skin Care | |||
Pet Care | |||
Nutraceuticals & Supplements | |||
By Product Form | Oils & Tinctures | ||
Capsules & Softgels | |||
Gummies & Confectionery | |||
Topicals / Skin Care | |||
Vape Products | |||
Others | |||
By Distribution Channel | Hospital & Specialty Pharmacies | ||
Retail Stores | |||
E-commerce | |||
Medical Dispensaries | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
Australia | |||
South Korea | |||
Rest of Asia-Pacific | |||
Middle East & Africa | GCC | ||
South Africa | |||
Rest of Middle East & Africa | |||
South America | Brazil | ||
Argentina | |||
Rest of South America |
Hemp |
Marijuana |
Pharmaceuticals |
Wellness & Personal Use |
Food & Beverages |
Cosmetics & Skin Care |
Pet Care |
Nutraceuticals & Supplements |
Oils & Tinctures |
Capsules & Softgels |
Gummies & Confectionery |
Topicals / Skin Care |
Vape Products |
Others |
Hospital & Specialty Pharmacies |
Retail Stores |
E-commerce |
Medical Dispensaries |
North America | United States |
Canada | |
Mexico | |
Europe | Germany |
United Kingdom | |
France | |
Italy | |
Spain | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
Australia | |
South Korea | |
Rest of Asia-Pacific | |
Middle East & Africa | GCC |
South Africa | |
Rest of Middle East & Africa | |
South America | Brazil |
Argentina | |
Rest of South America |
Key Questions Answered in the Report
What is the current global CBD market size?
The CBD market size stands at USD 10.04 billion in 2025.
What is the forecast compound annual growth rate (CAGR) for the CBD market to 2030?
The market is projected to expand at a 16.28% CAGR and reach USD 21.34 billion by 2030.
Which application segment holds the largest CBD market share?
The pharmaceutical segment led with 41.53% revenue share in 2024.
Which geographic region is expected to grow fastest through 2030?
Asia-Pacific is forecast to post a 20.32% CAGR, the highest among all regions.
What technology is improving CBD product bioavailability and onset time?
Nanoemulsion technology shortens onset to 15–30 minutes and boosts absorption.
How could U.S. Schedule III rescheduling affect CBD pharmaceuticals?
Rescheduling would allow FDA approval of cannabinoid drugs for pharmacies, expanding prescription access and accelerating R&D investment.
Page last updated on: July 15, 2025