The cannabidiol market has witnessed significant growth over the past few years owing to the various medical benefits offered by cannabidiol (CBD). CBD is one of the naturally occurring cannabinoids found in the cannabis plant. It is known to provide relief from aches and pains, neurological conditions such as epilepsy and multiple sclerosis, and several other medical conditions. The market has been expanding rapidly with increasing legalization of cannabis for both medical and recreational uses across various countries.

The Global cannabidiol market is estimated to be valued at US$ 323.23 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.

Key Takeaways

Key players: Key players operating in the cannabidiol market are Canopy Growth Corporation, Aphria Inc., Aurora Cannabis, Tilray, GW Pharmaceuticals plc, VIVO Cannabis Inc., CannTrust Holdings, INC., and Medical Marijuana, INC.

Key opportunities: Increasing legalization of medical cannabis across various countries presents significant opportunities for market players to expand their product offerings. Moreover, growing consumer awareness about the therapeutic benefits of CBD is expected to boost market demand over the forecast period.

Global expansion: Leading players in the market are focusing on strategic acquisitions and partnerships to strengthen their market presence globally. Companies are also investing in clinical trials to develop new formulations and treatment options using CBD.

Market drivers: The main market driver is increasing legalization of cannabis across various countries. Between 2018 to 2022, over 19 countries have legalized medical cannabis including US, Canada, Germany, Italy, Thailand and Australia which has expanded the potential consumer base boosting market growth.

PEST Analysis for Cannabidiol Market

Political: Cannabidiol or CBD is derived from hemp, a type of cannabis plant that contains very low levels of THC. Some countries and states have legalized hemp and hemp-derived CBD products while others maintain restrictions. There is ongoing debate around further deregulating laws governing CBD use.

Economic: The global cannabidiol market is expected to have a CAGR of 4% through 2030 indicating sustained economic growth potential. Rising healthcare costs are driving interest in alternative treatment options that may reduce reliance on pharmaceutical drugs.

Social: Growing social acceptability of cannabidiol as a natural wellness product is boosting the market. Many consumers are opting for CBD due to perceived health benefits for issues like pain relief, anxiety, and sleep disorders. Increasing preference for herbal and plant-based ingredients is favorable.

Technological: Extraction techniques and product formulations are advanced, enabling production of high-quality standardized CBD concentrates and isolates. This supports new product development across industries like food & beverage, personal care and increasing commercialization.

The cannabidiol market in the United States represents the most significant geographical region in terms of value, estimated at $323.23 million in 2024. Factors like relatively relaxed laws governing CBD, research and media coverage of potential health benefits, and high discretionary spending support market growth.

Europe has emerged as the fastest growing regional market for cannabidiol due to increasing acceptance of CBD products and rising adoption in countries allowing medical use.