The popularity of CBD and other hemp-derived compounds continues to surge in terms of sales. A new report predicts that the CBD market is poised to surpass $36 billion dollars by 2033.
According to market.us, the global Cannabidiol Market Size was valued at $7.6 billion in 2023 and is predicted to reach approximately $36.6 billion by 2033. During the period ranging from 2024 to 2033, it is projected to undergo 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 for the cultivation and sale of hemp-derived CBD products. Consumer awareness has surged with increasing recognition of CBD’s potential health benefits, contributing to a growing demand for CBD products. Medical acceptance, backed by research on CBD’s therapeutic properties, has further propelled its adoption. The industry’s diverse product offerings, ranging from oils to edibles, cater to varied consumer preferences, fostering market expansion. Accessibility through various distribution channels and retail outlets has played a crucial role in making CBD products widely available.”
Beyond legislative changes, CBD is growing in popularity, driven by the changes in the way it’s perceived.
“Additionally, the CBD industry has benefited from investment influx, supporting research, development, and marketing efforts. Changing attitudes toward cannabis, coupled 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 enhanced consumer confidence. Despite the growth, challenges such as regulatory uncertainties and quality control issues persist, influencing the industry’s trajectory. Ongoing developments in regulations and market dynamics will continue to shape the future of the CBD industry.
The report provided six main takeaways to sum up their predictions in a nutshell:
- Market Growth: The global cannabidiol (CBD) market reached USD 7.6 billion in 2023 and is projected to surge to approximately USD 36.6 billion by 2033, with a remarkable CAGR of 17.5% during 2024-2033.
- Product Types: CBD oil is the most dominant product type, with a market share of over 30%, largely due to its effectiveness in managing chronic pain.
- Source: Hemp represents the most lucrative segment, accounting for over 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.
- Sales Type: B2B holds the largest market share (55.1%) as the B2B transactions typically involve larger quantities of products or services compared to B2C. The segment is also expected to grow in the future as demand for CBD as a raw material is anticipated to increase.
- End-Use: Pharmaceuticals represent the most lucrative segment, accounting for over 37.2% of the market, driven by CBD’s neuroprotective and pain-relieving properties.
- Regional Dominance: North America leads the market, holding a 60% market share, with Europe and Asia-Pacific showing emerging demand.
North America is the world’s largest CBD market, comprising 72.1% market share during the forecast period. This is mostly due to the loosening of regulations on CBD products in countries like the U.S. and Canada. Consumer preferences continue to evolve, as the food, pharmaceutical, and This could change soon however, the report notes, as North America’s dominance could soon be challenged by Europe.
In the Asia Pacific region—covering China, Japan, and India—there is a notable growth in the CBD market, partly due to recent changes in law. The increasing demand for CBD products and continual changes in the legal status and acceptance leads to significant opportunities, the report reads.
The hemp sector emerges as the most profitable CBD-related market, commanding a robust 63.2% share of the global CBD market as of 2023.
A full copy of the report in PDF is available for download here.
Aligning with Other Reports
The hemp and CBD markets generally overlap, and other reports predict a similar rise in hemp sales, driven in part by CBD.
A report in December 2022 arrived at similar predictions. In the “Global Hemp Market by Type” report from Research and Markets, which analyzed the numerous applications of hemp as a textile, food item, construction material, and more, a surge in hemp products is predicted.
The report projects that the next five years will see the industry’s compound annual growth rate (CAGR) of 21.6%, suggesting that this percentage will rise because many other countries have legalized industrial hemp, or will do so in the near future.
Given that hemp accounts as the origin of over 60% of CBD products, the rise in sales are interconnected.