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The global cannabidiol oil market, valued at USD 7.22 billion in 2024, is estimated to grow to USD 8.89 billion in 2025 and USD 50.05 billion by 2035, representing a higher CAGR of 18.86% during the forecast period.
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Cannabidiol oil or cannabidiol is gaining attention in healthcare industry as a therapeutic treatment for chronic pain treatment, depression and anxiety. Notably, the cutting-edge extraction technology, such as nanoemulsion and supercritical CO2, helps to increase bioavailability and purity of cannabidiol oil, catering to diverse therapeutic requirements. The market for cannabidiol (CBD) oil has also skyrocketed owing to the expanding legalization of these products for therapeutic purposes by the US FDA. It is important to highlight here that Epidiolex® is the first therapeutic drug that received approval from the US FDA for the treatment of patients suffering with chronic pain, nausea pre / post cancer chemotherapy.
Over the years, there have been launches of various CBD oil products. In June 2024, Now Solutions launched a new product range of hemp-based products, including CBD balm, CBD joint & muscle cream and CBD massage oil. This new range of CBD oil-based products has been formulated by the company to support the patients suffering from joint and muscle pains.
In addition to therapeutic drugs, cannabidiol has been widely adopted in cosmetic industry to develop CBD-oil infused skin care products. It is worth mentioning that These CBD-oil infused products are often recommended by the dermatologist for the treatment of acne and wrinkles, which is anticipated to drive the market. It is important to highlight here that CBD oil has been widely adopted across food & beverage industry, CBD-oil infused supplements and a whole range of CBD-oil infused perfumes. For instance, in April 2024, Bleu Nour announced the launch of Canna Crush (cannabis-based fragrance). Furthermore, in August 2024, Danylo llchakoy introduced 4 RE® (CBD-infused skincare products) that helps to manage stress level in people.
The ongoing launch of diverse range of cannabidiol oil-based products across different industrial range are the key drivers of the market, offering opportunities to industry players for driving innovations in this field. Driven by the growing adoption across various industries, we believe that cannabidiol / CBD oil market is likely to grow at a substantial rate during the forecast period.
The market report provide valuable details on the leading industrial players who are active across various segments as mentioned in the table below.
| Key Report Attributes | Details | |
| Historical Trend | Since 2019 | |
| Forecast Period | Till 2035 | |
| Current Market Size | USD 8.89 Billion | |
| Market Size 2035 | USD 50.05 Billion | |
| CAGR (Till 2035) | 18.86% | |
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| PowerPoint Presentation (Complimentary) |
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| Customization Scope | 15% Free Customization | |
| Excel Data Packs (Complimentary) |
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One of the key objectives of the CBD oil market report was to estimate the current cannabidiol oil market size, opportunity and the market growth potential, over the forecast period, till 2035. We have provided informed estimates on the likely evolution of the market for the forecast period.
The cannabidiol oil market analysis also features the likely distribution of the current and forecasted opportunity within the market across various segments, such as type of source (hemp and marijuana), type of product (original oil and blended oil), type of product category (flavored CBD Oil and unflavored CBD Oil) type of formulation (pills & capsules, creams & roll-ons, transdermal patches, drops and other formulations), type of application (personal care / cosmetics, food & beverages, nutraceuticals, pharmaceuticals and other industrial applications), type of sale (B2B and B2C), type of distribution channel (online distribution channels and offline distribution channels (hospital pharmacies, retail stores and other distribution channels)), geographical region (North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America) and leading players.
In order to account for future uncertainties associated with some of the key parameters and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of industry’s evolution.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. The financial figures mentioned in this market report are in USD, unless otherwise specified.
Based on the type of source, the global cannabidiol oil market is segmented into hemp and marijuana. According to our projection, currently hemp holds the dominant position in the market for cannabidiol oil. This dominance is due the fact that hemp is primary source for CBD oil which is extracted from Cannabis sativa with minimal level of THC (Tetrahydrocannabinol). Hemp derived cannabidiol oil is legal and used for making wide range of products such as cannabidiol oil, capsules, tinctures, concentrates and topical solutions.
Moreover, hemp derived cannabidiol oil has anti-aging properties, are rich in antioxidants and inflammatory properties, makes it ideal for developing pharmaceutical drugs, food & beverages, cosmetic products and nutraceuticals. Driven by the widespread adoption, the hemp segment will continue to grow at a higher CAGR during the forecast period.
On the basis of the type of product, the global cannabidiol oil market is segmented into original oil and blended oil. Among these, currently original oil accounts for the highest share (nearly 65%) of the market. This dominance is due to the fact that original oil has high concentration of cannabidiol and rich in components such as flavonoids, terpenes and other cannabinoids. Owing to its therapeutic properties, it offer therapeutic benefits without causing psychoactive effects. Furthermore, the purest form of cannabidiol oil serve as a base for making cosmetic products, edibles and topical products, which has further bolstered the demand across various industries. As the demand for CBD original oil continue to rise for the development of CBD-infused oil products, this segment will continue to grow at a higher CAGR during the forecast period.
The global cannabidiol oil market is distributed across various types of product category, such as flavored CBD oil and unflavored CBD oil. It is worth mentioning here that flavored CBD oil dominate the market and is poised to hold (nearly 60%) share of the market by 2035. Flavored CBD oil is the first preference for manufacturing flavored beverages and aromatic cosmetic products.
By infusing the flavored CBD oil, the overall taste can be improved in a wide variety of products. For instance, in September 2024, Jonny Wilkinson’s One Living launched cold pressed CBD drink, the first cold pressed CBD drink in the major grocer of UK. Earlier, in April 2023, SAPPE launched new CBD water under the brand “SAPPE Keaf” in two flavors (SAPPE CBD Water Vitamin B Complex (Peace Flavored) and SAPPE CBD Water Chamomile). With growing demand for flavored CBD oil in the market, we believe this segment will continue to expand at a substantial CAGR during the forecast period.
Based on the type of formulation, the global market is segmented into pills & capsules, creams & roll-ons, transdermal patches, drops and other formulations. According to our analysis, the pills & capsules holds the highest cannabidiol oil market share (nearly 40%). This dominance is due to the ease of use, convenience to use by consumers and accurate dosing. Moreover, pills & capsules are optimal for ingesting CBD oil to obtain the therapeutic benefit, and pharmaceutical companies are mostly infusing CBD oil into the capsules and pills.
However, it is important to highlight here that transdermal creams & roll-ons will show lucrative growth potential and is expected to grow at a higher CAGR during the forecast period. This is due to the growing usage of CBD oil in the manufacturing of cosmetic products. Furthermore, creams and roll-ons are the primary choice of consumers seeking localized treatment for pain management and skin issues such as acne, anticipated to be a key growth factor for highest CAGR.
This segment highlights the distribution of global cannabidiol oil market based on the type of application into personal care / cosmetics, food & beverages, nutraceuticals, pharmaceuticals and other industrial applications. According to our projection, currently pharmaceuticals account for the highest share of the market. This dominance is due to the fact that cannabidiol oil is rich in anti-inflammatory properties which helps to get relief from pain. Owing to this anti-inflammatory property, CBD oil is widely used for managing pain in patients suffering with chronic conditions.
Furthermore, products, such as topical CBD oil infused creams and original CBD oils are widely adopted by the healthcare industry as pain management products, contributing to the highest growth share of the market. Driven the growing popularity of cannabidiol oil as chronic pain treatment solution this segment is likely to remain dominant during the forecast period.
While pharmaceuticals hold the highest share, personal care / cosmetic application is likely to grow at a higher CAGR during the forecast period. CBD oil is well known for its anti-aging and anti-inflammatory properties, making it ideal for achieving youthful skin. Owing to the growing demand for youthful skin, this segment is likely to grow at a faster rate.
Based on the type of sale, the cannabidiol oil market is categorized into B2B sales and B2C sales. Currently, B2B sales dominate the market, and the trend is likely to remain unchanged during the forecast period. This can be attributed to the presence of large amount of wholesale distributors and retailers who are offering wide range of cannabidiol products including oil and tinctures.
Moreover, the increasing demand for cannabidiol oil as a raw material across various industries such as, pharmaceuticals. cosmetic and skincare products has supported the high B2B sales over the years. Furthermore, the legalization of cannabidiol oil-based products across different countries by the government organizations has provided a favorable B2B sales environment. Given the growing B2B sales, this segment will continue to grow at a higher CAGR during the forecast period.
The global market is segmented based on the distribution channel into online distribution channels and offline distribution channels (hospital pharmacies, retail stores and other distribution channels). Currently, offline distribution channels dominate the market and is poised to capture 56% of overall cannabidiol oil market share by 2035. This dominance is due to the convenience and affordability of purchasing cannabidiol oil-based products. Offline distributors such as hospital pharmacies and retail stores serve as a primary distributor of CBD oil based therapeutic drugs and dermatologist-based products, estimated to be the key reason for the highest share of the market. Driven by high preferences for offline distributors, this segment will continue to grow at a higher CAGR during the forecast period.
The global cannabidiol oil market is distributed across various geographical regions, such as North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America. According to our projection. North America occupies the largest share (~50%) of the overall market. North America has favorable regulatory environment for the cultivation of cannabidiol. Moreover, the increasing acceptance of cannabidiol oil-based products in therapeutic drugs and dermatological products are contributing to the highest share of this region. With increasing awareness about therapeutic efficiency of cannabidiol drugs among North American citizens has further heightened the market growth in this region.
However, the market for cannabidiol in Asia-Pacific region is expected to grow at higher CAGR during the forecast period. This lucrative growth is anticipated due to the fact that CBD oil is gaining popularity among consumers for managing chronic pain and epilepsy in this region. It is important to highlight here that the governments of Asian countries such as China and India offer supportive regulatory framework for using cannabidiol oil-based products, which is likely to boost the manufacturing of these products in this region.
The “Cannabidiol Oil Market: Industry Trends and Global Forecasts, till 2035” market research report also features an in-depth analysis, highlighting the capabilities of various industry stakeholders engaged in this market. Key takeaways of the cannabidiol market analysis are briefly discussed below.
Currently, the global market landscape of cannabidiol oil is witnessing the presence of several well-established industrial leaders who are currently engaged for manufacturing wide range of products. With increasing acceptance of CBD oil as therapeutic product, the market is continually gaining. Some examples of the leading players in the market who are presently emphasizing on the product portfolio enhancement include (in alphabetical order) Aurora Cannabis, Medical Marijuana, and Medtera.
In order to leverage the competitive edge, several industrial leaders are taking strategic initiatives such as collaborations and partnerships with an aim of expanding technological innovations and product development. For instance, in February 2024, dsm-firmenich and Zerion Pharma signed a partnership for the development of patient centric CBD formulations. Under this partnership, dsm-firmenich will use latter company’s Dispersome technology in order to enhance the bioavailability of oral CBD in comparison to CBD oil.
Overall, the market will remain competitive featuring several small, mid-sized and large industry players who are currently active across different segments of industry.
Cannabidiol oil or CBD oil is extracted from cannabis, it is non-psychoactive compound rich is anti-inflammatory and antioxidant effects. It act as an antidepressant, anticonvulsant and antipsychotic to reduce pain, stress, anxiety and mind relaxation. Owing to its medicinal benefits, cannabidiol oil has been approved by the USFDA for medicinal usage, expecting to be a key driver for the market.
Furthermore, the cannabidiol (CBD) oil is attracting a broad range of customer base for different industrial verticals. Beyond medicine, CBD oil is widely used in skincare products, dietary supplements and CBD oil infused beverages and pet products has contributed to the growth of cannabidiol (CBD) oil market. It is important to highlight here that in June 2024, the government in Morocco legalized the sale of cannabis-based products and dietary supplements in pharmacies. This strategic initiative has been taken after receiving authorization from the government for the cultivation and processing of cannabis.
The primary products that will reach out to the pharmacies included ten cosmetic items and nine dietary supplements (registered by the Directorate of Medicine and Pharmacy). Similar to cosmetic range, various industry players are launching new category of perfumes with a pinch of cannabis extracts and oils.
The market for cannabidiol (CBD) oil is currently experiencing several challenges that may hinder its wider acceptance. Some of the potential challenges include complex regulatory guidelines and lack of awareness among population about therapeutic efficacy of cannabidiol oil. It is important to highlight here that regulatory agencies, such as the USFDA and EMA has strict guidelines for using cannabidiol in pharmaceutical products as its frequent dosing can cause several consequences and addiction.
For instance, THC (tetrahydrocannabinol), is a psychoactive compound, which can cause psychoactive effects, upon consumption in in high quantity. Therefore, strict regulatory guidelines for the approval of cannabidiol based drugs may create challenges for the industry players, wherein the reliability on cannabis testing companies increases.
Moreover, the extraction of CBD oil is a complex process as it requires multiple filtration and filter paper changes. This complex process may create scalability challenges, market players may find it difficult to produce CBD oil on a large scale. Additionally, the low bioavailability of cannabidiol oil-based therapeutics may impact its therapeutic efficacy, creating a significant challenge in widespread adoption.
Beyond therapeutic drugs, CBD oil market is continually growing at an exponential rate owing to the ongoing clinical research and shift towards full-spectrum (CBD) oil-based products. It is worth highlighting here that the full-spectrum CBD oil products such as terpenes, cannabinoids, and other derivate compounds that are found in the hemp are gaining traction due to the therapeutic effects. Therapeutic drugs made with full spectrum (CBD) oil helps to reduce neuropathic pain, anxiety, relieving post-traumatic stress disorder symptoms, depression and seizures.
A research study published in February 2024 by University of Colorado Boulder highlighted that cannabis-based products or CBD oil that are high in non-intoxicating compound can alleviate anxiety and stress better than THC-dominated products without causing any side effects. Thus, ongoing clinical studies on cannabidiol oil has further solidify the market growth during the forecast period. In addition to increasing research, Additionally, the growing focus on sustainability and organic CBD products is the key trend that is anticipated to be robust CBD oil market growth factor.
Currently, the market for cannabidiol (CBD) oil is growing exponentially in North America due to the supportive regulatory framework for cultivation and drug development. Additionally, the robust demand for CBD based products by consumers and well-established CBD products manufacturing industry infrastructure has further supported the growth of the CBD oil market in this region.
Moreover, several industrial players established in this region are expanding their product portfolio, launching new products to mark a robust presence in this industry. For instance, in October 2024, Tilray Brands announced the launch of new Charlotte’s Web (CBD gummies) in Canada, designed specifically for the CBD consumers to attain wellness . As more industrial players continue to enhance their product portfolio, the market of cannabidiol oil will continue to grow in North America during the forecast period.
The global cannabidiol (CBD) oil market is estimated to be valued at USD 8.89 billion in 2025, and is poised to reach USD 50.05 billion by 2035. This lucrative growth is likely to be the result of growing adoption of cannabidiol oil across various industrial sectors particularly in pharmaceutical and cosmetic industries. Notably, the growing penetration of industrial players for exploring wide applications of cannabidiol oil beyond therapeutic drugs, is likely to be the key factor for unprecedented growth. For instance, in June 2024, Avextra signed a strategic partnership with SynQube for the development of therapeutic drugs with cannabinoids, and other psychotropic substances. The growing usage across various industrial verticals is expected to drive the market at a CAGR of 18.86% during the forecast period.
Examples of key companies who are currently engaged in the CBD oil market (which have also been profiled in this market report; the complete list of items is available in the full report) include Aurora Cannabis, Bluebird Botanicals, BIOTA Biosciences, Canopy Growth, CV Sciences, Endoca, Elixinol, Evora Worldwide, Folium Biosciences, Gaia Herbs, GW Pharmaceuticals, Hempstrol, Isodiol International, Medical Marijuana, Medterra, NuLeaf Naturals, Tilray and Vapen CBD. This cannabidiol (CBD) oil market report includes an easily searchable excel database of all the protein engineering companies worldwide.
Several recent developments have taken place in the field of cannabidiol oil. We have outlined some of these recent initiatives below.