Market Overview and Key Growth Drivers
The cannabidiol (CBD) market is set to expand significantly, driven by an evolving legal landscape, increasing consumer awareness of CBD’s health benefits, and its growing use in medical applications. As legalization continues across various countries and regions, public perception of cannabis is shifting, paving the way for increased adoption of CBD products. Cannabidiol, a non-psychoactive component of the cannabis plant, is being explored for its therapeutic potential, leading to its incorporation in pharmaceuticals, wellness products, pet food, and even beverages. These developments, coupled with increasing demand in emerging markets across Asia-Pacific and Latin America, are creating abundant growth opportunities for stakeholders in the CBD industry.

 

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By Product: CBD Oil to Lead the Market in 2025
Among the different product types, CBD oil is anticipated to dominate the market by 2025. This dominance is attributed to the oil's versatility, allowing it to be consumed directly, added to food and beverages, or applied topically. Its widespread use across therapeutic, personal care, and wellness applications has made it the go-to product for many first-time and repeat users. CBD oil is seen as a more traditional form of cannabidiol and continues to be popular due to ease of dosage control and product familiarity among consumers.

 

By Source: Hemp-Sourced Cannabidiol to Take the Lead
The cannabidiol market is primarily divided based on source into hemp-sourced and marijuana-sourced CBD. In 2025, hemp-derived cannabidiol is projected to hold a larger market share. The rising preference for hemp-sourced CBD stems from its low tetrahydrocannabinol (THC) content, which provides therapeutic benefits without psychoactive effects. Furthermore, the legal framework for hemp is generally more favorable in many regions compared to marijuana, contributing to broader acceptance and market penetration.

Hemp’s adaptability also allows it to be incorporated into a wide variety of products, including food, beverages, cosmetics, and pharmaceuticals. Additionally, the hemp segment is expected to record a higher compound annual growth rate (CAGR) during the forecast period, thanks to increasing demand for natural personal care solutions and health-conscious consumer behavior.

 

By Nature: Non-Organic CBD Products to Dominate
In 2025, non-organic cannabidiol products are forecasted to dominate the market. This trend is largely due to the scalability and affordability of non-organic farming and production practices, which make these products more accessible to a broader consumer base. While organic products are gaining attention, the current dominance of non-organic CBD reflects the market’s focus on cost efficiency and high-volume production to meet rising demand.

 

By End User: Pharmaceuticals to Hold the Largest Market Share
Among the various end-user categories, the pharmaceuticals segment is expected to account for the largest share of the CBD market in 2025. The increasing use of cannabidiol in prescription drugs and clinical research is fueling demand in this sector. One of the most notable examples is the FDA-approved Epidiolex, a CBD-based drug used to treat epilepsy. The therapeutic benefits of CBD for anxiety, pain, inflammation, and sleep disorders are drawing interest from the pharmaceutical industry, which sees cannabidiol as a viable alternative or supplement to traditional medications.

As more clinical trials validate the efficacy of CBD and regulatory frameworks evolve, pharmaceutical applications of cannabidiol are anticipated to expand further, reinforcing its dominance in this segment.

By Distribution Channel: B2B Sales to Outpace B2C
The business-to-business (B2B) segment is projected to hold a larger share of the cannabidiol market in 2025. This trend is driven by the increasing partnerships between CBD manufacturers and pharmaceutical companies, cosmetic brands, food and beverage producers, and wellness product developers. These collaborations are streamlining supply chains and increasing product availability in retail outlets, pharmacies, and e-commerce platforms.

While business-to-consumer (B2C) channels are also growing rapidly, especially through online stores, the B2B model remains dominant due to its efficiency in reaching mass markets and facilitating large-scale product development.

 

Legalization of Cannabis Driving Market Expansion
One of the most significant drivers of the CBD market is the increasing legalization of cannabis for medicinal and recreational use. As of 2025, 24 U.S. states, three territories, and the District of Columbia have legalized recreational cannabis, while 37 states and additional territories have approved it for medical purposes. Internationally, Germany took a major step by approving the controlled use of cannabis in February 2024, allowing adults to possess up to 50 grams privately and up to 25 grams publicly. copyright had already legalized cannabis for both purposes in 2018.

This progressive regulatory environment has opened the door for CBD products to enter mainstream markets, helping to reduce stigma and attract a broader consumer base. With increasing public education about CBD’s benefits, products like oils, tinctures, skincare items, and edibles are seeing wider adoption, even among consumers previously hesitant to use cannabis-related products.

 

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Health Benefits of Cannabidiol-Infused Products
The health and wellness potential of CBD is a major reason behind its growing popularity. Cannabidiol has shown promise in addressing a range of health issues, including anxiety, chronic pain, inflammation, and sleep disorders. It is increasingly being recognized for its ability to interact with the endocannabinoid system, which helps regulate mood, sleep, and immune response.

CBD is particularly appealing to consumers seeking natural and holistic alternatives to pharmaceuticals. It is known for having fewer side effects than many traditional drugs, making it a preferred option for long-term use. CBD’s neuroprotective properties are also under investigation for managing epilepsy and other neurological disorders. The approval of Epidiolex is a testament to its clinical potential.

As interest in wellness grows, consumers are adopting CBD not just for medical conditions but also for enhancing everyday health. Oils, capsules, edibles, and topical creams infused with CBD are now a part of many people’s daily routines.

 

Trend Spotlight: Rise of CBD-Infused Beverages
CBD-infused beverages are emerging as a major trend, reflecting consumer interest in functional drinks that provide both refreshment and health benefits. In recent years, several companies have introduced innovative CBD drinks targeting wellness-conscious consumers. For instance, in September 2025, U.K.-based One Living (3BW Ltd) launched cold-pressed CBD beverages in mint & lime and wild berry flavors. Similarly, SKIP BRANDS LTD (U.K.) unveiled sparkling drinks with flavors such as peach & ginger, elderflower & mint, and lemon & basil, each infused with 5mg of active CBD.

In North America, Aurora Cannabis Inc. released new cannabis-infused beverages for medical patients in January 2025, available in flavors like neon rush, strawberry pineapple tropical fizz, and pineapple coconut fizz.

These beverages reflect a larger consumer movement toward natural and multi-functional products. The focus on cold-pressed CBD and botanical ingredients highlights the growing demand for clean-label and health-conscious drink alternatives.

 

Geographical Insights: North America Leads the Global CBD Market
In terms of regional performance, North America is projected to lead the cannabidiol market in 2025. The region’s dominance can be attributed to strong consumer demand, established presence of key industry players, favorable legalization trends, and growing awareness about the health benefits of CBD. The U.S., in particular, is expected to account for the majority of the regional market share, driven by its robust retail infrastructure, rising incidence of chronic diseases, and growing public acceptance of CBD-based products.

Moreover, North America is forecasted to experience the highest CAGR through 2032. This is due to continued innovation, increased investments in research and development, and the rapid evolution of health and wellness trends. Advances in cannabidiol extraction and product formulation technologies are also contributing to the region’s market leadership.

 

Key Companies and Recent Industry Developments
The cannabidiol market includes several prominent companies that are shaping its direction through product innovation and strategic partnerships. Major players include Aurora Cannabis Inc. (copyright), Cannoid, LLC (U.S.), NuLeaf Naturals, LLC (U.S.), Medical Marijuana, Inc. (U.S.), PharmaHemp d.o.o. (Slovenia), Water for Living LLC (U.S.), Elixinol Global Limited (Australia), Isodiol International Inc. (U.S.), Tilray Brands, Inc. (copyright), Tweedle Farms (U.S.), Endoca LLC (U.S.), and CV Sciences, Inc. (U.S.).

Recent developments include Aurora Cannabis’s January 2025 launch of new CBD beverages and HealthyTOKYO K.K.'s July 2024 release of highly concentrated CBD oil in Japan. In April 2021, Canopy Growth Corporation (copyright) partnered with Southern Glazer’s Wine & Spirits to distribute its Quatreau line of CBD-infused beverages in the U.S.

 

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