Summary

The global cannabidiol market is experiencing significant expansion and The growth is primarily driven by the increasing pace of legalization across various regions. Cannabidiol is a naturally found compound. It is the second most prevalent psychoactive compound in cannabis (marijuana). CBD is a crucial element in medicinal cannabis, which can be derived from hemp, a plant closely related to cannabis, or produced through synthetic methods in the lab. The CBD market is growing due to increased legalization, rising consumer demand for natural health solutions, and the diversification of products like edibles, topicals, and beverages. The National Authority for Medicines and Health Products (NAMHP) reported total sales of 32,558 kg of cannabis in Portugal. The Portuguese cannabis export almost tripled in 2024, covering cultivation, manufacturing, and wholesale trade activities. AI can transform the CBD market by streamlining product development, ensuring consistent manufacturing quality, and optimizing supply chains. It helps businesses analyze consumer data for targeted marketing, improve customer engagement, and stay compliant with changing regulations. AI also speeds up clinical research by identifying patterns and suggesting new areas of exploration. Additionally, AI-powered chatbots provide consumers with personalized information, enhancing their experience and confidence in CBD products. In March 2025, Xebra Brands and BSK Holdings expanded their partnership to launch Elements CBD in the U.S. market. BSK, with a proven record of generating over $100M in revenue, will focus on promoting Elements in the wellness and active lifestyle sectors through its digital marketing expertise and subscription-based model. This move complements Xebra’s leadership in Mexico’s cannabis market. According to the research report "Global Cannabidiol Market Outlook, 2030," published by Bonafide Research, the Global Cannabidiol market was valued at more than USD 9.16 Billion in 2024, and expected to reach a market size of more than USD 21.48 Billion by 2030 with the CAGR of 15.59% from 2025-2030. The global cannabidiol (CBD) market operates under a complex regulatory framework that governs the cultivation, production, distribution, and sale of CBD products. Regulations primarily focus on ensuring consumer safety, maintaining low THC content, and preventing misuse, while also supporting medical and wellness applications. In North America, progressive legislation has allowed the legal cultivation of industrial hemp and the commercialization of hemp-derived CBD products, with regulatory agencies overseeing product quality, labeling, and permissible THC levels. Some of the key players operating in the market include ENDOCA, Cannoid, LLC, Medical Marijuana, Inc., Canopy Growth Corporation and Folium Europe B.V .Canopy Growth Corporation is a world-leading cannabis company focused on unleashing the power of cannabis to improve lives. The third-quarter 2025 revenue was $74.76 million. The Canada cannabis net revenue was $41MM in Q3 FY2025, while that of the international market was $12MM. Large players are acquiring smaller producers or forming strategic partnerships to access new markets, gain production capabilities, and strengthen distribution networks. Such M&A activities are often driven by the need to scale operations, meet regulatory compliance efficiently, and capitalize on growing consumer demand for CBD products. Cannabidiol market is characterized by a high degree of innovation owing to increased R&D activities on the use of cannabis and its medicinal properties, rising product demand due to its health benefits without intoxication, and increasing preference for cannabis extracts such as oils and tinctures. Market Drivers • Growing Awareness of Therapeutic Benefits: The increasing recognition of cannabidiol’s potential health benefits is a major driver for the market. Consumers are becoming more aware of its effectiveness in managing conditions such as anxiety, chronic pain, epilepsy, and insomnia. With scientific studies and media coverage highlighting its therapeutic properties without the psychoactive effects of THC, demand for CBD-based products such as oils, edibles, and capsules continues to rise globally. • Regulatory Formalization: The gradual legalization of hemp-derived CBD in several countries has significantly boosted market growth. Favorable government policies and clearer regulatory frameworks have encouraged investments, new product launches, and the entry of established pharmaceutical and wellness companies. This legalization trend has also improved consumer confidence and expanded retail availability, making CBD products more mainstream. Market Challenges • Inconsistent Quality: One of the key challenges in the CBD market is the absence of consistent product standards and quality testing. Variations in CBD concentration, source purity, and labeling accuracy can lead to consumer distrust and regulatory scrutiny. Without uniform guidelines, manufacturers face difficulties maintaining credibility and ensuring product safety, which hinders market stability. • Regulatory Uncertainty in Emerging Markets: While legalization is growing, many regions still face unclear or restrictive regulations regarding CBD use, sales, and advertising. This uncertainty complicates international trade, supply chain management, and product marketing. Companies operating in such environments must constantly adapt to changing rules, delaying market expansion and innovation. Market Trends • Rising Demand for CBD-Infused Food: A prominent trend in the market is the incorporation of CBD into everyday consumables like coffee, snacks, and drinks. Consumers prefer convenient formats to experience CBD’s calming and stress-relieving effects. This trend reflects the shift toward wellness-oriented lifestyles and the growing acceptance of CBD as part of daily routines. • Expansion of E-Commerce Sales: With the rapid growth of digital retail, CBD brands are leveraging online platforms to reach a wider audience. E-commerce enables better consumer education, product transparency, and personalized recommendations. This trend not only boosts accessibility but also supports small and emerging brands in building customer loyalty through direct engagement. Oils and tinctures dominate the global cannabidiol market because they offer high bioavailability, dosage flexibility, and versatile usage across wellness, therapeutic, and personal care applications. Oils and tinctures have emerged as the largest product segment in the global cannabidiol market primarily due to their superior bioavailability, versatility, and ease of use, which make them the preferred choice among both new and experienced consumers. These formulations provide a convenient and efficient way to deliver CBD into the body, ensuring faster absorption and more controlled dosing compared to other formats such as capsules, edibles, or topicals. One of the key reasons behind their dominance is high bioavailability, meaning that a larger portion of the CBD consumed actually enters the bloodstream and produces an effect. When CBD oil or tincture is placed under the tongue, it is absorbed directly through the mucous membranes, bypassing the digestive system and liver metabolism. This allows for quicker onset of effects typically within 15–45 minutes making it especially attractive for individuals seeking relief from anxiety, pain, or insomnia. Oils and tinctures allow users to precisely control their intake by adjusting the number of drops consumed, unlike pre-dosed edibles or capsules. This makes it easier for individuals to personalize their dosage according to their specific needs, tolerance levels, and health goals. Whether for mild relaxation, chronic pain relief, or improved sleep, consumers can titrate their dosage gradually until they achieve the desired effects. From a commercial perspective, ease of production and distribution further enhances their market share. CBD oils and tinctures require relatively simple manufacturing processes compared to other product types, such as gummies or skincare items, which involve additional ingredients and regulatory compliance. The pharmaceutical sector dominates the global cannabidiol market due to increasing medical acceptance of CBD's therapeutic potential. The pharmaceutical segment holds the largest share in the global cannabidiol (CBD) market primarily due to the growing medical acceptance and clinical validation of CBD as a therapeutic compound. Over the past decade, CBD has transitioned from a niche wellness product to a scientifically backed medical ingredient with proven efficacy in treating several chronic and neurological disorders. One of the major reasons for the pharmaceutical sector’s dominance is the rising prevalence of chronic diseases such as arthritis, epilepsy, anxiety, and multiple sclerosis. Traditional medications often come with significant side effects or limited effectiveness, leading healthcare professionals and patients to seek safer, plant-based alternatives. Cannabidiol, being a non-psychoactive compound derived from the cannabis plant, offers therapeutic benefits without the intoxicating effects of THC. The pharmaceutical industry has also benefited from increased research and clinical trials validating the safety and efficacy of CBD. For example, the U.S. Food and Drug Administration approved Epidiolex a CBD-based oral solution for the treatment of rare epileptic disorders such as Dravet syndrome and Lennox-Gastaut syndrome. This marked a significant milestone in the industry, encouraging other pharmaceutical companies to invest in CBD drug development. Governments are recognizing the therapeutic value of cannabinoids and implementing frameworks that allow their controlled medical use. This favorable regulatory environment enables pharmaceutical companies to conduct clinical research, develop standardized formulations, and ensure product safety and quality. Retail stores dominate the global cannabidiol market because they offer consumers easy accessibility and personalized purchasing experiences, which build trust and confidence in CBD products especially among first-time and wellness-focused buyers. Retail stores hold the largest share in the global cannabidiol market primarily due to their ability to provide accessibility, credibility, and consumer engagement factors that are crucial in a market still developing trust and awareness. Unlike other channels such as online or direct-to-consumer sales, retail outlets allow customers to physically examine products, consult knowledgeable staff, and make informed decisions before purchase. CBD products are now widely available in pharmacies, health stores, supermarkets, and even convenience outlets. This widespread retail presence normalizes CBD consumption and removes the stigma once associated with cannabis-derived products. As CBD moves from niche wellness shops to mainstream retail chains, it reaches a broader audience including older consumers and those unfamiliar with online shopping. Consumer trust and education also play a key role in the success of retail stores. Many consumers, especially first-time buyers, are cautious about CBD’s effects, ingredients, and legal status. Retail staff can offer personalized guidance, explaining dosage, usage methods, and benefits in real time. This one-on-one interaction helps demystify the product and strengthens brand reliability. Another significant reason for the dominance of retail channels is the growing partnerships between CBD brands and established retail chains. Major wellness and pharmacy outlets such as CVS Health, Walgreens, and Boots have introduced CBD-based wellness products on their shelves, lending credibility to the market. These collaborations enhance brand exposure and make it easier for customers to integrate CBD into their regular health and beauty routines. Hemp is the largest source segment in the global cannabidiol market because of its high CBD concentration and minimal tetrahydrocannabinol. Hemp has become the dominant source in the global cannabidiol market primarily due to its high CBD yield, low THC content, and favorable legal status, which together make it the most practical and commercially viable option for large-scale CBD production. Unlike marijuana, hemp is rich in cannabidiol but contains less than 0.3% THC, the psychoactive compound responsible for the high associated with cannabis. Since hemp plants are selectively bred to maximize CBD content, producers can obtain higher yields per acre compared to marijuana-derived sources. This efficiency reduces production costs and makes hemp-based CBD more affordable for end users. Another major advantage is hemp’s low THC content, which aligns with regulatory requirements in most markets. Many countries that restrict or ban marijuana-derived CBD allow hemp-derived products because they do not produce intoxicating effects. This legal distinction has accelerated the expansion of hemp cultivation and trade under industrial hemp programs. The 2018 U.S. Farm Bill, for example, legalized hemp cultivation and removed it from the Controlled Substances Act, paving the way for massive growth in the CBD industry. Consumers often associate hemp-derived CBD with natural wellness and non-psychoactive therapeutic benefits, which makes it appealing to a broader audience including those new to cannabis products. Hemp-derived CBD is widely used in health supplements, skincare, food and beverages, and even pet products, thanks to its reputation for being safe, gentle, and effective. North America dominates the global cannabidiol market because of early legalization, strong regulatory support which have encouraged large-scale production and commercial acceptance across industries. North America, particularly the United States and Canada, has been at the forefront of the global cannabis reform movement, creating a structured environment that supports research, innovation, and large-scale market expansion. This regulatory head start has allowed North American companies to establish dominance in CBD production, product diversification, and international trade. The legalization of hemp cultivation was a turning point for the region’s CBD industry. The passage of the U.S. Farm Bill in 2018 legalized industrial hemp and hemp-derived products with less than 0.3% THC content. This legislation removed hemp from the list of controlled substances, opening the door for farmers, manufacturers, and retailers to enter the CBD market legally. Canada, too, legalized cannabis for both medical and recreational use, creating an even broader regulatory base for CBD innovation. Consumer awareness and acceptance have also been instrumental in driving market growth in North America. The region has a strong culture of wellness and natural health, where consumers are increasingly seeking plant-based alternatives for pain relief, anxiety management, and sleep improvement. The non-psychoactive nature of CBD has made it widely accepted among a variety of demographic groups, from young adults to seniors. North America is home to some of the largest and most established CBD companies in the world, such as Charlotte’s Web, CV Sciences, and Canopy Growth. These companies have invested heavily in research, product innovation, and marketing, leading to a diversified range of CBD offerings ranging from oils, tinctures, and edibles to skincare and pet care products. • March 2025: researchers from the University of South Australia developed a phospholipid complex of cannabidiol to increase the solubility of cannabidiol by up to 6 times and improve its absorption in the GI tract. The complex improves the effectiveness of cannabidiol to treat epilepsy, multiple sclerosis, and other neurodegenerative diseases. • March 2025: the Food and Drug Administration (FDA) approved the first-ever prescription CBD drug, Epidiolex, for the treatment of tuberous sclerosis complex, further legitimizing the use of CBD in the pharmaceutical industry (FDA Press Release). • April 2025: new research presented at the 2025 European Congress of Psychiatry demonstrated the use of cannabidiol in improving the behavior of children and adolescents with autism spectrum disorder (ASD). The meta-analysis of randomized, placebo-controlled trials showed notable reductions in disruptive behaviors and anxiety, improving sleep quality. • November 2024: Tilray announced the launch of first Grown in Germany commercial medical cannabis product (flowers) through its Aphria RX facility. • In August 2024, Aurora Cannabis entered into a strategic collaboration with Cogent International Manufacturing (a wholly-owned subsidiary of Vectura Fertin Pharma. • November 2024: Canopy Growth Corporation, a global cannabis company, raised USD300 million in a senior secured convertible debenture financing. The funds will be used to support the company's strategic initiatives, including CBD product development and international expansion. • July 2024: Curaleaf Holdings, a major cannabis operator, entered into a strategic partnership with GW Pharmaceuticals, a leading pharmaceutical cannabinoid company. This collaboration focused on co-developing and commercializing CBD-based therapeutic products, expanding Curaleaf's presence in the pharmaceutical sector.