The popularity of CBD and other hemp-derived compounds continues to increase in terms of sales. A new report predicts that the CBD market is poised to top $36 billion by 2033.
According to market.us, the global cannabidiol market size was valued at USD 7.6 billion in 2023 and is expected to reach approximately USD 36.6 billion by 2033. During the period from 2024 to 2033, it is expected to experience the highest compound annual growth rate (CAGR) of 17.5%.
“The cannabidiol (CBD) industry has witnessed remarkable growth driven by several key factors,” market.us announced in a press release. “Legalization and regulatory changes have removed barriers, allowing the cultivation and sale of hemp-derived CBD products. Consumer awareness has increased with growing recognition of the potential health benefits of CBD, contributing to growing demand of CBD products. Medical acceptance, supported by research into the therapeutic properties of CBD, has further fueled its adoption. The industry’s diverse product offerings, ranging from oils to edibles, cater to the various consumer preferences, encouraging market expansion. Accessibility through multiple distribution channels and outlets has played a crucial role in making CBD products widely available.”
Beyond legislative changes, CBD is growing in popularity, driven by changes in how it is perceived.
“In addition, the CBD industry has benefited from an influx of investment, supporting research, development and marketing efforts. Changing attitudes towards cannabis, along with the globalization of the market, have expanded opportunities on a global scale. The industry’s response to quality concerns, with the establishment of standards and certification, has improved consumer confidence. Despite growth, challenges such as regulatory uncertainties and control issues persist quality, which influence the trajectory of the industry Ongoing developments in regulations and market dynamics will continue to shape the future of the CBD industry.
The report offered six main findings to summarize its predictions in a nutshell:
- Market Growth: The global cannabidiol (CBD) market reached USD 7.6 billion in 2023 and is projected to increase to USD 36.6 billion by 2033, at a remarkable CAGR of 17.5% during 2024-2033.
- Product Type: CBD oil is the most dominant product type, with over 30% market share, largely due to its effectiveness in chronic pain management.
- Source: Hemp represents the most lucrative segment, accounting for more than 63.2% of the market, driven by the fact that hemp contains high levels of CBD and very low levels of THC (tetrahydrocannabinol), which is the psychoactive compound responsible for the “high” associated with marijuana.
- Type of sales: B2B has the largest market share (55.1%) as B2B transactions typically involve larger quantities of products or services compared to B2C. The segment is also expected to grow in the future as the demand for CBD as a raw material is expected to increase.
- End Use: Pharmaceuticals represent the most lucrative segment, accounting for more than 37.2% of the market, driven by CBD’s neuroprotective and analgesic properties.
- Regional dominance: North America leads the market, with a 60% market share, with Europe and Asia-Pacific showing emerging demand.
North America is the largest CBD market in the world, with a market share of 72.1% during the forecast period. This is mainly due to the loosening of regulations on CBD products in countries such as the United States and Canada. Consumer preferences continue to evolve in food, pharmaceuticals and that could soon change, the report notes, as North America’s dominance could soon be challenged by Europe.
In the Asia Pacific region, which covers China, Japan and India, there is notable growth in the CBD market, partly due to recent law changes. Growing demand for CBD products and ongoing changes in legal status and acceptance lead to significant opportunities, the report says.
The hemp sector emerges as the most profitable CBD-related market, with a robust 63.2% share of the global CBD market as of 2023.
A full PDF copy of the report can be downloaded here.
Alignment with other reports
The hemp and CBD markets generally overlap, and other reports predict a similar increase in hemp sales, driven in part by CBD.
A December 2022 report reached similar predictions. Research and Markets’ “Global Hemp Market by Type” report, which looked at hemp’s many applications as textiles, food, building materials and more, predicts an increase in hemp products.
The report predicts that the next five years will see the industry’s compound annual growth rate (CAGR) of 21.6%, suggesting that this percentage will increase as many other countries have legalized industrial hemp, or will do so in a near future.
Since hemp is the source of more than 60% of CBD products, the increase in sales is interconnected.
