Cannabidiol Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source Type (Hemp, Marijuana), By Sales Type (B2B, B2C), By End User (Medical {Chronic Pain, Mental Disorder, Cancer, Others}, Personal Use, Pharmaceuticals, Wellness {Food & Beverage, Personal Care & Cosmetics, Nutraceuticals, Others}), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.88 Billion
CAGR (2026-2031)	12.66%
Fastest Growing Segment	Hemp
Largest Market	North America
Market Size (2031)	USD 14.07 Billion

Market Overview

The Global Cannabidiol Market will grow from USD 6.88 Billion in 2025 to USD 14.07 Billion by 2031 at a 12.66% CAGR. Cannabidiol (CBD) is a non-intoxicating phytocannabinoid extracted primarily from the Cannabis sativa plant, widely utilized for its therapeutic applications in pain management, neurology, and wellness formulations. The global market is fundamentally supported by the progressive legalization of cannabis derivatives for medicinal use and a distinct consumer shift toward natural pharmacotherapies as alternatives to synthetic pharmaceuticals. This demand has catalyzed a substantial increase in agricultural output to sustain the extraction supply chain. According to the National Hemp Association, in 2024, the production of floral hemp, which serves as the primary biomass for cannabinoid extraction, surged to 20.8 million pounds.

However, the industry faces a significant challenge regarding the lack of unified regulatory frameworks, particularly concerning the classification of CBD in food and dietary supplements. This legal ambiguity across various jurisdictions creates compliance discrepancies and restricts access to essential banking and retail services, thereby impeding capital investment and the efficiency of international trade.

Key Market Drivers

Progressive Legislative Reforms and Global Decriminalization of Cannabis are reshaping the market by removing trade barriers and stimulating medical access. The reclassification of cannabis in major economies, notably Germany's removal of cannabis from the Narcotics List, has triggered a surge in international trade and patient accessibility. This regulatory shift allows for streamlined prescription processes, incentivizing pharmaceutical imports to meet the newly created legal demand. According to the Federal Institute for Drugs and Medical Devices, August 2025, in the second quarter of 2025, Germany imported 43.257 tonnes of medical cannabis products, a significant increase compared to 11.634 tonnes in the same quarter of the previous year. This modernization rapidly expands the consumer base by facilitating easier entry for patients into the legal system. According to the Bloomwell Group, in 2025, medical cannabis prescriptions in Germany increased by approximately 1,000% between March and December of the prior year following the implementation of the Cannabis Act.

Strategic Investments in Industrial Hemp Cultivation and Processing are simultaneously accelerating to support this expanding commercial ecosystem. Producers are directing capital toward high-value agricultural infrastructure to ensure a consistent supply of cannabinoid-rich biomass for extraction. This focus on maximizing yield and quality is essential for satisfying the rigorous standards of both pharmaceutical and wellness sectors. According to the United States Department of Agriculture, April 2025, in the 'National Hemp Report', the value of floral hemp grown in the open in the United States totaled $386 million in 2024, representing a 43% increase from the prior year. These investments in the upstream supply chain are critical for reducing production costs and ensuring that raw material availability keeps pace with the burgeoning global demand for diverse CBD formulations.

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Key Market Challenges

The most significant obstacle impeding the Global Cannabidiol Market is the lack of unified regulatory frameworks, specifically concerning the classification of CBD in food and dietary supplements. This legal ambiguity compels manufacturers to navigate a disjointed patchwork of state-level rules rather than a single federal standard, creating severe operational inefficiencies. The resulting compliance burden diverts capital away from innovation and restricts access to essential banking and retail services, effectively freezing investment from institutional players who view the sector as too high-risk. Consequently, the industry struggles to establish the reliable supply chains and distribution networks necessary for mass-market adoption.

This uncertain environment directly suppresses market valuation and scalability. According to the Texas Hemp Business Council, in 2024, the ongoing regulatory instability and infrastructure deficits reduced the economic potential of the United States hemp industry by an estimated $20 billion to $25 billion. This data highlights that the absence of clear governance does not merely slow operations but actively prevents the realization of substantial revenue. Without a stable legal foundation to ensure compliance and facilitate interstate commerce, the market remains artificially constricted and unable to capitalize on global consumer demand.

Key Market Trends

The Proliferation of Minor Cannabinoids like CBG and CBN in Product Formulations is fundamentally altering the market as manufacturers move beyond simple CBD isolates to create targeted, condition-specific blends. This trend is driven by consumer demand for sophisticated wellness products that utilize the "entourage effect" to address specific health concerns such as insomnia and inflammation. Brands are increasingly formulating products where minor cannabinoids are the primary active ingredients rather than secondary additives, significantly boosting the efficacy and appeal of edibles and tinctures. According to SFGATE, May 2025, in the article 'New sleep aid jumps 525% in market share in 5 years', the market share of CBN in California's edible products surged from just 4% in 2020 to 25% in 2025, underscoring the rapid consumer adoption of these specialized compounds.

Simultaneously, the Expansion of the Functional CBD-Infused Beverage Market is reshaping consumption habits by positioning hemp-derived drinks as socially acceptable alternatives to alcohol. This sector is capitalizing on advancements in water-soluble technology and nano-emulsification, which allow for faster onset times and improved taste profiles, solving historical issues with palatability and bioavailability. The growth is further accelerated by state-level regulatory experiments that have allowed these products to flourish in mainstream retail channels, creating a blueprint for national distribution. According to CSP Daily News, September 2025, in the article 'How Minnesota became the gold standard for hemp-THC sales', the hemp-derived beverage sector in Minnesota alone has grown into a $200 million industry, demonstrating the immense economic scalability of drinkable cannabinoids.

Segmental Insights

The hemp segment currently represents the fastest-growing category within the global cannabidiol market, driven primarily by favorable legislative shifts. The enactment of the Agriculture Improvement Act of 2018 in the United States played a pivotal role by legally distinguishing hemp from marijuana, thereby facilitating authorized cultivation and commercial distribution. Furthermore, the naturally low tetrahydrocannabinol content in hemp aligns with safety standards set by the U.S. Food and Drug Administration, prompting manufacturers to prioritize hemp-derived extracts for pharmaceutical and wellness applications that require non-psychoactive formulations.

Regional Insights

North America maintains a dominant position in the global cannabidiol market, driven primarily by favorable legislative developments and widespread consumer acceptance. The enactment of the Agriculture Improvement Act of 2018 in the United States proved pivotal by legalizing the cultivation of industrial hemp, which significantly expanded the supply chain for hemp-derived extracts. Additionally, the presence of established distribution channels and a strong cultural shift toward health and wellness products supports market expansion. Ongoing oversight by the U.S. Food and Drug Administration further influences industry standards, ensuring a structured environment for product development and consumer safety.

Recent Developments

• In December 2025, Charlotte’s Web Holdings, Inc. was selected as a premier cannabidiol partner for a landmark pilot program initiated by the Center for Medicare and Medicaid Innovation. This strategic collaboration aimed to support the treatment of senior oncology patients by providing access to science-backed CBD products with reimbursement coverage through Medicare and Medicaid. The initiative was described as a transformative moment for senior healthcare policy, prioritizing affordability and personalization in care. The company planned to supply these tailored products through a secure online healthcare portal, expanding its medical channel business.
• In September 2024, Aurora Cannabis Inc. and Vectura Fertin Pharma, Inc. announced the launch of the Luo CBD lozenge, a novel medical cannabis product, on the Canadian market. This development marked the first product introduction under the commercial collaboration between the two entities, leveraging Aurora Cannabis Inc.’s patient platform for distribution. The lozenge, manufactured by a subsidiary of Vectura Fertin Pharma, was designed with a dissolvable format to provide precise dosing for patients. This launch represented a significant step in the companies' strategy to address unmet medical needs through science-backed innovation in the global cannabidiol market.
• In June 2024, NOW Health Group, Inc. expanded its presence in the personal care sector by launching a new line of THC-free CBD topical products under its NOW Solutions brand. The product range included a CBD Joint & Muscle Cream, a CBD Balm, and a CBD Massage Oil, all formulated with broad-spectrum hemp extract and botanical ingredients. The company emphasized that this launch followed years of preparation to ensure compliance with legal guidelines and safety standards. This move was aimed at consumers seeking supportive topical solutions for muscle and skin health within the growing natural products market.
• In January 2024, cbdMD, Inc. announced a significant retail expansion by launching its premium CBD gummies into Sprouts Farmers Market locations nationwide. This collaboration introduced the company’s Apple Cider Vinegar and Immunity Gummy Pouches to 175 stores, aligning with the grocery chain’s focus on high-quality, healthy natural products. The partnership was highlighted as a major milestone for cbdMD, Inc., reinforcing its brand reputation and increasing the accessibility of its NSF Certified for Sport and broad-spectrum formulations to health-conscious consumers across the United States.

Key Market Players

• Eden Partners LLC
• Isodiol International, Inc.
• Medical Marijuana, Inc.
• Cannoid, LLC
• Elixinol Wellness Ltd.
• Folium Food Science Limited
• NuLeaf Naturals, LLC
• Pharmahemp d.o.o.
• Holistic Hemp Scotland Ltd.

By Source Type	By Sales Type	By End User	By Region
Hemp Marijuana	B2B B2C	Medical {Chronic Pain Mental Disorder Cancer Others} Personal Use Pharmaceuticals Wellness {Food & Beverage Personal Care & Cosmetics Nutraceuticals Others}	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cannabidiol Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cannabidiol Market, By Source Type:

• Hemp
• Marijuana

• Cannabidiol Market, By Sales Type:

• B2B
• B2C

• Cannabidiol Market, By End User:

• Medical {Chronic Pain
• Mental Disorder
• Cancer
• Others}
• Personal Use
• Pharmaceuticals
• Wellness {Food & Beverage
• Personal Care & Cosmetics
• Nutraceuticals
• Others}

• Cannabidiol Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE