Cannabidiol (CBD) Market size was valued at USD 7.64 billion in 2023 and is set to reach USD 50.87 billion by the end of 2036, registering around 15.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of CBD is assessed at USD 8.6 billion.
The growth of the market can be attributed to the medicinal properties of CBD oil, backed by the tremendous ongoing research on benefits of cannabis sativa. CBD oil has various medical uses in curing depression and anxiety, inflammation, and relieving symptoms of cancer. According to a report by the World Health Organization, CBD is proven as an effective treatment for epilepsy, in several clinical trials. Owing to increasing adoption of cannabinoids, especially CBD, in therapeutic and medical science, the market is estimated to grow substantially over the forecast period. Moreover, CBD lacks any kind of psychoactive effects, something very common in other cannabis products, which is estimated to boost the market growth despite the stringent regulations on consumption of cannabis sativa in any other form. Additionally, Increasing R&D activities regarding the advantages and side effects of cannabis, is projected to boost the market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
15.7% |
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Base Year Market Size (2023) |
USD 7.64 billion |
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Forecast Year Market Size (2036) |
USD 50.87 billion |
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Regional Scope |
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The market is segmented by source into hemp, and marijuana, out of which, the hemp segment is anticipated to hold a significant share in the market during the forecast period owing to its higher plantation across the globe. On the basis of application, the market is segmented into medicinal, research, and personal, out of which the research segment is projected to witness highest CAGR over the forecast period on the back of growing research on effects of cannabis on human nervous system and its other uses. Use of CBD oil as a medicine has not gained popularity among the masses yet, but this segment is expected to gain prominence in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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By Source |
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By Application |
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Regionally, the global cannabidiol (CBD) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America industry is likely to account for largest revenue share by 2036, led by health-aware population, rising acceptance of cannabis-based products supported by lenient laws, and growing research on the effects of cannabinoids. The market in the Asia Pacific is projected to grow significantly over the forecast period owing to the growing cultivation of hemp and marijuana in the countries, such as, China, backed by the favorable climatic conditions in the region. China is one of the largest producers of hemp and exports more than 85% of the produce to the U.S., Germany, and other countries. However, illegal trade of cannabis sativa in the region, is expected to hinder the regional market growth. The market in Latin America is estimated to witness moderate growth during the forecast period, owing to the increasing cultivation and trade of hemp and marijuana, backed by flexible government regulation in the underdeveloped nations.
Author Credits: Radhika Pawar
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