Global Cannabidiol (CBD) Oil Market – Industry Trends and Forecast to 2031

Cannabidiol (CBD) Oil Market Analysis and Size 

Cannabidiol (CBD) Oil Market Analysis and Size

The cannabidiol (CBD) oil market continues to surge, sustained by cutting-edge extraction techniques such as supercritical CO2 and nanoemulsion. Advancements in technology ensure higher purity and bioavailability, catering to diverse consumer needs. With expanding legalization and growing awareness of CBD's therapeutic potential, the market is poised for exponential growth. Insights reveal a shift towards personalized formulations and innovative delivery methods, driving further expansion.

The global cannabidiol (CBD) oil market size was valued at USD 19.03 billion in 2023, is projected to reach USD 263.66 billion by 2031, with a CAGR of 38.9% during the forecast period 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Cannabidiol (CBD) oil is a natural remedy derived from the cannabis plant. It contains CBD, a non-psychoactive compound known for its potential health benefits. CBD oil is commonly used to alleviate pain, reduce anxiety, improve sleep, and alleviate symptoms of various medical conditions. It is available in various forms, including tinctures, capsules, and topical products, and is gaining popularity for its therapeutic properties.

Cannabidiol (CBD) Oil Market Dynamics

Drivers

• Growing Acceptance in Medicinal Use

The global CBD oil market is propelled by a rising recognition of CBD's therapeutic potential. As consumers increasingly turn to natural remedies, demand surges for CBD products known for anxiety and pain management. For instance, a study published in the Journal of Pain Research revealed CBD's efficacy in alleviating chronic pain. This growing acceptance of CBD's medicinal benefits is a key driver fueling the market's expansion and adoption worldwide.

• Rise in Diverse Product Offerings

Diverse product offerings drive the CBD market by attracting a broader consumer base. Beyond traditional oils, the market now includes CBD-infused edibles, beverages, skincare, and pet products. For instance, the popularity of CBD gummies and beverages among wellness enthusiasts and the rise in CBD pet treats for anxiety relief in animals showcase how diversification meets varied consumer needs, fueling market expansion and increased adoption.

Opportunities

• E-commerce and Retail Expansion

The expansion of e-commerce platforms and the increasing availability of CBD products in retail outlets such as pharmacies and supermarkets have significantly broadened consumer access to CBD oil. This convenience has fueled market growth as more individuals can easily purchase CBD products online or during routine shopping trips. For instance, the integration of CBD products into mainstream retailers like Walmart and CVS has contributed to heightened visibility and consumer adoption, driving overall sales.

• Shift in Consumer Preferences

The shift towards natural, organic, and sustainable products, particularly among millennials and Gen Z, fuels demand for CBD oil sourced from organic hemp. Consumers prioritize transparency in production and sourcing, favoring brands with clear ethical practices. For instance, companies such as Charlotte’s Web, known for their commitment to organic farming and transparent supply chains, are thriving as they align with these evolving consumer preferences, thereby driving cannabidiol business growth.

 Restraints/Challenges

• Quality Control and Labeling Issues 

Quality control and labeling issues remain significant challenges in the CBD oil market. Inaccurate labeling and subpar product quality can severely erode consumer trust, deterring potential buyers and negatively impacting overall market growth. This restraint underscores the critical need for stringent standards to ensure product reliability and safety, highlighting a major hurdle for industry advancement.

• Competition among CBD Manufacturers

Competition among CBD manufacturers is fierce due to the rapidly expanding market. New entrants face significant hurdles in establishing themselves and gaining market share, which intensifies the challenge. This crowded and competitive landscape hinders the market, as differentiation and strategic positioning become crucial for survival, making it difficult for smaller or newer companies to thrive.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In April 2023, Kelvion expanded its range of industrial air coolers to support the use of natural refrigerants such as CO2, ammonia, and propane, promoting decarbonization. These air coolers provide environmentally friendly and cost-efficient operation, meeting the rising demand for green refrigerants. The range includes cubic and dual discharge air coolers for use in refrigeration plants, distribution centers, and food processing facilities
• In January 2023, Medical Marijuana, Inc. announced that its subsidiary, HempMeds Brasil, launched two new full-spectrum products in Brazil. These products, available in 30 mL and 60 mL jars, offer concentrations ranging from 3,000 to 6,000 mg, catering to the growing demand for high-quality CBD products in the Brazilian market
• In October 2022, Medical Marijuana, Inc. revealed a collaboration between its subsidiary, HempMeds Mexico, and the Autonomous University of Barcelona, Spain, along with the Meritorious Autonomous University of Puebla, Mexico. The partnership aims to conduct a study on the benefits of CBD in treating Parkinson’s disease, highlighting the potential medical applications of CBD
• In October 2022, High Tide, Inc. announced that its subsidiary, NuLeaf Naturals, launched multi-cannabinoid products in Ontario, Canada. The new offerings include Full Spectrum Hemp Multicannabinoid oil and plant-based softgels featuring delta-9 tetrahydrocannabinol, cannabichromene, cannabidiol, cannabigerol, and cannabinol, expanding the variety of cannabinoid products available to Canadian consumers
• In September 2022, Kannaway, a subsidiary of Medical Marijuana, Inc., announced a distribution agreement with Complete Hemp Technologies (CHT), a long-time partner. The agreement enhances Kannaway’s capabilities in Europe, with CHT adding warehousing and daily operations to the services provided, supporting Kannaway’s expansion and operational efficiency in the region

Cannabidiol (CBD) Oil Market Scope

The market is segmented on the basis of type, product type, product category, application, formulation, and distribution channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• THC Dominant
• CBD Dominant
• Marijuana Based
• Hemp Based

Product Type

• Original
• Blended

Product Category

• Unflavored
• Flavored

Application

• Food and Beverages
• Personal Care/Cosmetics
• Pharma and Nutraceuticals
  • Multiple Sclerosis  
  • Depression and Sleep Disorders  
  • Neurological Pain
  • Other
• Industrial Application

Formulation

• Pills and Capsule
• Creams and Roll-Ons
• Transdermel Patchs
• Drops
• Other

Distribution Channel

• Online
• Offline
  • Hospital Pharmacy
  • Retail Store

Cannabidiol (CBD) Oil Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by type, product type, product category, application, formulation, and distribution channel as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America is expected to dominate the global cannabidiol (CBD) oil market due to its progressive legalization, robust consumer demand, and established CBD industry infrastructure. These factors foster market growth, positioning the region as a leader in CBD innovation and distribution.

Asia-Pacific is expected to show significant growth in the global cannabidiol (CBD) oil market due to rising approval and legalization of CBD utilization in various products. This regulatory shift is driving demand, fostering market expansion, and encouraging new investments and innovations within the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Cannabidiol (CBD) Oil Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• CHARLOTTE’S WEB (U.S.)
•  Kosmic Market (Japan)
•  Green Roads (U.S.)
•  Gaia Botanicals, LLC. (U.S.)
•  Canopy Growth Corporation (Canada)
•  Elixinol (Australia)
•  CBDistillery (U.S.)
•  ENDOCA (Denmark)
•  AURORA CANNABIS INC. (Canada)
•  Etz Hayim Holdings, SPC - Lazarus Naturals (U.S.)
•  Jazz Pharmaceuticals, Inc. (Ireland)
•  Medical Marijuana Inc. (U.S.)
•  Nuleaf Naturals LLC (U.S.)
•  Isodiol International Inc. (U.S.)
•  Folium Biosciences (U.S.)
• Cannoid LLC (U.S.)

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