Cannabidiol (CBD) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the cannabidiol market size was valued at USD 10.04 billion in 2025 and estimated to grow from USD 11.64 billion in 2026 to reach USD 24.39 billion by 2031, at a CAGR of 15.94% during the forecast period (2026-2031).

This report is Segmented by Source (Hemp and Marijuana), End Use (Pharmaceuticals, Wellness & Personal Use, and More), Product Form (Oils & Tinctures, Capsules & Softgels, and More), Distribution Channel (Hospital & Specialty Pharmacies, Retail Stores, and More), and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, South America). The Market Forecasts are Provided in Terms of Value (USD).

Global Cannabidiol (CBD) Market Trends and Insights

Chronic Pain Management Driving Prescription CBD Uptake

Prescription adoption is climbing as CBD proves effective for refractory neurological disorders. Jazz Pharmaceuticals reported 46-87% median seizure reductions in multiple epilepsy types, and 89% of caregivers intend to continue Epidiolex therapy. Nurses documented seizure declines in 85% of treated cases, and behavioral improvements were observed in patients with tuberous sclerosis complex. These outcomes necessitate broader clinical trials for chronic pain, prompting pharmaceutical investment in cannabinoid research and development. United States rescheduling to Schedule III would facilitate FDA approval and pharmacy distribution, thereby expanding reimbursable access in the cannabidiol market.

Regulatory Pathways Opening for Over-the-Counter CBD in Pharmacy Chains

Japan's December 2024 Cannabis Control Law revision permits medical cannabis products and introduces a tiered cultivation license, ending a decades-long "drug lag".In the United States, the FDA acknowledges that present supplement rules cannot govern CBD, prompting legislative proposals while states enact divergent measures, such as California's emergency ban on hemp foods with detectable THC.Mainstream pharmacy groups are therefore preparing OTC shelves for compliant SKUs once federal clarity emerges, expanding the cannabidiol market.

Strict Regulation on Cannabidiol Products

Japan enforces the world's lowest THC threshold, demanding zero-detectable levels in imported CBD and limiting raw material to mature stalk and seed, thereby tightening supply channels.In the United States, FDA's stance that current supplement rules are "inadequate" sustains a federal vacuum, while California bans retail hemp foods with detectable THC. Unaligned rules raise compliance costs and delay nationwide rollouts.

Other drivers and restraints analyzed in the detailed report include:

1. Adoption of CBD-Infused Functional Foods Among Aged Population
2. Increasing Awareness among Consumers Regarding Health
3. Price Compression from Oversupply of Hemp Biomass

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Hemp-derived products captured 55.12% of 2025 revenue as favorable legislation and established farming supply chains ensured consistent input quality. The CBD market size for hemp formats is projected to expand at a mid-teens CAGR as ingestibles and cosmetics widen consumer reach. Demand for marijuana-derived extracts, however, is forecast to climb 18.35% annually between 2026 and 2031 as the entourage effect gains clinical backing and potential U.S. Schedule III status relaxes research barriers. The CBD market welcomes hybrid extraction methods such as Smokenol that capture smoke-borne terpenes, blurring traditional source distinctions and enabling tailored cannabinoid ratios for formulators.

Hemp's legal clarity supports multinational retailers that require THC-free inventory, especially in Europe and parts of Asia. Marijuana-sourced CBD appeals to prescription channels where trace THC content is permissible under pharmacopoeia standards. As pharmaceutical trials broaden beyond epilepsy to pain and anxiety, vertically integrated cultivators with both hemp and marijuana licenses are best positioned to supply diversified APIs at scale.

Pharmaceutical applications generated 40.91% of 2025 sales, buoyed by Epidiolex's USD 198.7 million Q1 2024 revenue and continued expansion into tuberous sclerosis and Lennox-Gastaut syndrome indications. This dominance translates into the highest CBD market share across end uses, with payers increasingly reimbursing cannabinoid prescriptions. The CBD market size for pet care, however, is forecast to advance at 31.28% CAGR as owners adopt functional chews and oils for arthritis, anxiety, and postoperative recovery in companion animals. Veterinary practitioners cite growing peer-reviewed evidence for canine osteoarthritis pain reduction, underpinning demand for GMP-grade tinctures.

Wellness and personal-use SKUs continue evolving toward targeted benefits. "Stay Asleep" CBN plus CBD gummies address the 67% of adults reporting sleep issues, illustrating how broadened cannabinoid profiles capture additional consumer need states. Such functional diversification boosts category resiliency against raw-material oversupply shocks.

Complete Report Scope:

• By Source
  • Hemp
  • Marijuana
• By End Use
  • Pharmaceuticals
  • Wellness & Personal Use
  • Food & Beverages
  • Cosmetics & Skin Care
  • Pet Care
  • Nutraceuticals & Supplements
• By Product Form
  • Oils & Tinctures
  • Capsules & Softgels
  • Gummies & Confectionery
  • Topicals / Skin Care
  • Vape Products
  • Others
• By Distribution Channel
  • Hospital & Specialty Pharmacies
  • Retail Stores
  • E-commerce
  • Medical Dispensaries
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Rest of South America

Geography Analysis

North America remained the epicenter of the CBD market with 46.55% revenue in 2025. Imminent federal rescheduling is expected to shrink illicit channels, reduce possession arrests, and catalyze double-digit investment in clinical trials. Consolidation is also reshaping the landscape; Cresco Labs' USD 2 billion acquisition of Columbia Care exemplifies scale pursuit under tightening capital markets. Canada remains the hub for GMP-grade cannabinoid research, while Mexico's pending secondary regulations could open Latin America's most populous market.

Asia-Pacific is projected to post a 19.74% CAGR through 2031, propelled by Japan's landmark reforms that legalize medical cannabinoid products. China's beauty sector leads CBD adoption via cross-border e-commerce, with luxury serums commanding premium pricing. Australia's Special Access Scheme facilitates prescription CBD for anxiety and insomnia, building physician familiarity and patient loyalty.

Europe presents sizable upside as Germany moves to decriminalize adult-use cannabis, lifting investor sentiment and reviving Canopy Growth's European restructuring. The European Monitoring Centre for Drugs and Drug Addiction is drafting a harmonized CBD safety framework, addressing current patchworks that hamper trade. The UK emphasizes novel-food authorizations, fostering white-label supply chains. France and Italy accelerate medical-cannabis trials, stimulating pharmaceutical demand for GMP isolate and distillate.

1. Canopy Growth
2. Charlotte's Web Holdings Inc.
3. Jazz Pharmaceuticals plc (GW Pharmaceuticals)
4. Tilray Brands Inc.
5. Aurora Cannabis Inc.
6. CV Sciences
7. Medical Marijuana
8. Elixinol Wellness Ltd.
9. Endoca BV
10. NuLeaf Naturals
11. Pharmahemp d.o.o.
12. Isodiol International Inc.
13. Medterra CBD
14. Green Roads LLC
15. Cannoid
16. Pet Releaf
17. Lazarus Naturals
18. HempMeds Brasil
19. Holistic Hound
20. Kazmira LLC

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support