CBD Market Size & Trends 2023-2024
The cannabidiol (CBD) market has experienced massive growth over the past few years, with no signs of slowing down. CBD, a non-psychoactive compound derived from hemp and cannabis plants, is increasingly used for its therapeutic benefits in treating various health conditions. Here is an in-depth look at the size of the CBD market and growth projections for 2023-2024.
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Market Size in 2022
The global CBD market was valued at $13.5 billion in 2022, representing an impressive growth of 36% from 2021, according to data from New Frontier Data. The US accounts for the largest share of the global CBD market, valued at $5.3 billion in 2022. Europe comes second with $2 billion.
| Category | Value |
|---|---|
| Global CBD Market Size | $18.3 billion |
| Growth Rate (from 2022) | 35% |
| Regional Breakdown | |
| – North America (Primarily US) | $6.7 billion |
| – Europe | $2.2 billion |
| Product Segmentation | |
| – CBD Oils | 27% |
| – CBD Edibles | 22% |
| – CBD Topicals | 19% |
| – Vapes/E-Liquids | 11% |
| – Other Products | 21% |
| Distribution Channels | |
| – Online Sales | 61% |
| – Physical Retailers | 39% |
Several factors have fueled the rapid growth of CBD including increased awareness of its health benefits, legalization in many countries, and product innovation by companies. CBD is now widely used for pain relief, anxiety, sleep disorders, neurological conditions, and more. Mainstream retailers like pharmacy chains are now stocking CBD products on their shelves.
Key CBD Market Segments
The CBD market can be segmented based on product type and distribution channel:
- CBD Oils: This was the largest product segment in 2022, accounting for 27% of the total CBD sales. CBD oils are used sublingually and come in various concentrations.
- CBD Edibles: With a market share of 22%, edibles like gummies are a popular way to consume CBD thanks to their tasty flavors.
- CBD Topicals: Lotions, balms, and creams make up 19% of the market. They provide localized pain relief.
- Vapes/E-Liquids: Pre-filled vape cartridges and liquids for vaping devices hold an 11% market share. Inhalation provides fast absorption.
- Other Products: Capsules, beverages, pet products, and more comprise the remaining 21% share.
- Online Sales: In 2022, around 61% of CBD products were sold through ecommerce channels like brand websites and online marketplaces.
- Physical Retailers: 39% of CBD sales occurred through natural health stores, pharmacies, convenience stores, and other brick-and-mortar retailers.
Market Outlook for 2023-2024
The CBD juggernaut shows no signs of slowing down. Here are the predictions for CBD market size over the next two years:
2023 Projections
- The global CBD market will reach $18.3 billion in 2023, a growth of 35% over 2022 sales.
- The US will remain the largest market, growing to $6.7 billion. Increased legalization at the state level will drive growth.
- New product launches will expand the appeal of CBD to casual users. Convenience formats like ready-to-drink beverages will gain share.
- Mainstream retailers and pharmacies will dedicate increased shelf space to CBD, improving product accessibility.
- Regulatory uncertainty will remain a challenge in countries like the UK and parts of the EU. The FDA is also yet to issue final guidelines for CBD.
2024 Projections
- In 2024, the global CBD market is forecast to hit $24.7 billion, up 35% from 2023. Strong growth will continue across North America and Europe.
- Pharmacy chains like Walgreens, CVS and Rite Aid will significantly expand their CBD offerings, especially topicals.
- Beverages and edibles will each account for over 25% of total CBD sales, driven by product innovation and consumer preference for convenience.
- The Asia-Pacific market will start to realize its enormous potential towards the second half of 2024 after regulatory obstacles are reduced.
- The FDA will likely issue its formal rules for CBD by 2024, paving the way for CBD pharmaceuticals to potentially enter the market.
Key Growth Drivers
What factors will fuel the continued growth of the thriving CBD market in 2023-2024?
Increasing Legalization
The legal status of CBD remains complex globally but is trending towards greater acceptance. As more governments legalize CBD, new companies and consumers will enter the market.
Consumer Education
Misconceptions about CBD due to its link with cannabis are being rapidly dispelled thanks to education on its non-intoxicating nature and health benefits.
Product Innovation
Brands are launching innovative CBD formats like dissolvable strips, luxury beauty products, and functional beverages to attract new demographics.
Mainstream Retail Presence
The availability of CBD at major retail chains instead of just specialized stores makes it accessible to wider audiences.
Health & Wellness Trends
CBD aligns well with rising wellness trends like natural health supplements, holistic medicine, and anxiety/pain relief.
Scientific Validation
While more research is needed, early clinical studies validating various benefits of CBD will further boost consumer confidence.
Investor Interest
Major investments are flowing into the CBD industry from venture capital and private equity firms who see the huge potential.
FAQs About the CBD Market
Q: What was the global CBD market size in 2022?
A: The value of the total global CBD market in 2022 was $13.5 billion.
Q: Which region accounts for the largest share of the CBD market currently?
A: North America, primarily the United States, accounts for over 50% of the global CBD market presently.
Q: What’s predicted to be the fastest growing CBD product segment?
A: Beverages and edibles are expected to be the fastest growing CBD product segments, with each commanding over 25% market share by 2024.
Q: Is CBD legal worldwide?
A: No, the legal status of CBD remains complex and varies by country. CBD is federally legal in places like the US, UK, and most of the EU. Other parts of the world still have restrictions.
Q: How big could the CBD market become in the next 5-10 years?
A: With rising awareness and legalization, some forecasts predict the global CBD market could reach $100 billion by 2028. However, $50-60 billion by 2025 seems a more realistic estimate.
Q: Are any major retailers selling CBD now?
A: Yes, major pharmacy retailers like CVS, Walgreens and Rite Aid have started selling CBD topicals and other products on their shelves across many US states.
Q: Which consumers use CBD the most today?
A: Currently, the majority of CBD users are wellness-focused adult consumers between the ages of 35-65. However, CBD is going mainstream and appealing to wider demographics.
Outlook
Driven by its therapeutic versatility and growing consumer acceptance worldwide, the CBD market is poised for over 30%+ compound annual growth in the next few years. With proper regulation and innovation, CBD could disrupt the pharmaceutical industry and permeate consumer product sectors like food and beverage. The possibilities seem endless for CBD as a beneficial supplement for improving health and quality of life.
