Global Cannabis Oil Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In April 2023, Kelvion expanded its range of industrial air coolers to support the use of natural refrigerants such as CO2, ammonia, and propane, promoting decarbonization. These air coolers provide environmentally friendly and cost-efficient operation, meeting the rising demand for green refrigerants. The range includes cubic and dual discharge air coolers for use in refrigeration plants, distribution centers, and food processing facilities

• In January 2023, Medical Marijuana, Inc. announced that its subsidiary, HempMeds Brasil, launched two new full-spectrum products in Brazil. These products, available in 30 mL and 60 mL jars, offer concentrations ranging from 3,000 to 6,000 mg, catering to the growing demand for high-quality CBD products in the Brazilian market

By Type, the market is categorized into THC-dominant, CBD-dominant, and balanced cannabis oils. THC-dominant oils are primarily utilized for recreational purposes and for managing chronic pain and appetite stimulation. CBD-dominant oils, known for their non-psychoactive properties, are widely used in therapeutic applications, including anxiety management and epilepsy treatment. Balanced oils, containing a mixture of THC and CBD, offer a blend of therapeutic and psychoactive effects, making them suitable for holistic treatment approaches.

The segmentation by Form includes raw, processed, and isolate cannabis oils. Raw oils retain a full spectrum of cannabinoids and terpenes, delivering an "entourage effect" for enhanced benefits. Processed oils are refined to remove impurities and undesirable compounds while preserving active ingredients, making them versatile for consumer products. Isolate oils, the purest form, contain a single cannabinoid, such as CBD or THC, and are ideal for precision-targeted applications, particularly in pharmaceuticals.

By Application, the market is divided into food and beverages, cosmetics and personal care, pharmaceuticals, and others. In food and beverages, cannabis oil is infused into edibles and beverages, appealing to health-conscious consumers seeking functional benefits. The cosmetics and personal care segment uses cannabis oil for its anti-inflammatory and moisturizing properties, making it a popular ingredient in skincare and haircare products. The pharmaceutical sector leverages cannabis oil for its therapeutic potential in managing conditions like chronic pain, epilepsy, and anxiety. Other applications include pet care products and wellness therapies, showcasing the versatility of cannabis oil.

The segmentation by Geography spans North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America leads the market, driven by widespread legalization and high consumer awareness. Europe follows with a growing focus on medical cannabis and regulatory advancements. Asia-Pacific is an emerging market, with increasing adoption of cannabis-based products for therapeutic use. Latin America and the Middle East & Africa present untapped opportunities, fueled by evolving regulations and expanding access to cannabis oil products.

Global Cannabis Oil Segment Analysis

In this report, the Global Cannabis Oil Market has been segmented by Type, Form, Application, and Geography.

Global Cannabis Oil Market, Segmentation by Type

The Global Cannabis Oil Market has been segmented by Type into Organic Cannabis Oil, and Non-Organic Cannabis Oil.

The Global Cannabis Oil Market has undergone significant segmentation based on the type of oil available, primarily categorized into Organic Cannabis Oil and Non-Organic Cannabis Oil. This classification reflects a growing consumer emphasis on product quality, purity, and environmental sustainability. Organic Cannabis Oil, derived from organically grown cannabis plants without the use of synthetic pesticides or fertilizers, has witnessed a surge in demand owing to consumers' preference for natural and chemical-free products. This segment caters to health-conscious individuals who prioritize holistic well-being and seek products cultivated in harmony with nature.

The Non-Organic Cannabis Oil segment addresses a broader market spectrum, including consumers who prioritize affordability and accessibility over organic certification. While non-organic oils may contain traces of synthetic chemicals used in cultivation, they remain popular among a diverse range of consumers seeking cannabis-derived products for both recreational and medicinal purposes. This segment's appeal lies in its competitive pricing and wider availability, catering to various consumer demographics and preferences.

The segmentation of the Global Cannabis Oil Market into Organic and Non-Organic categories underscores the industry's efforts to meet the evolving demands of discerning consumers. As regulatory frameworks continue to evolve, and awareness of sustainable practices grows, the market is poised for further expansion and innovation in both segments. Balancing consumer preferences, regulatory compliance, and sustainability considerations will be critical for industry stakeholders seeking to capitalize on the burgeoning opportunities within the global cannabis oil market.

Global Cannabis Oil Market, Segmentation by Form

The Global Cannabis Oil Market has been segmented by Form into Process Oil, Distillate, and Isolate.

Process Oil is the least refined form of CBD oil, retaining a broad spectrum of cannabinoids, terpenes, and other natural compounds found in the hemp plant. This form is popular among consumers seeking the "entourage effect," where multiple plant components work synergistically to enhance therapeutic benefits. Process oil is commonly used in full-spectrum CBD products, such as tinctures, topicals, and edibles, offering holistic wellness solutions.

Distillate represents a more refined form of CBD oil, typically containing high concentrations of CBD and a selective profile of cannabinoids and terpenes, while removing most impurities and unwanted compounds like THC (if necessary). This form is versatile and widely used in various applications, including vape products, skincare formulations, and dietary supplements. Its balance between potency and purity makes it an attractive option for consumers seeking targeted benefits with reduced risk of psychoactive effects.

Isolate is the purest form of CBD, containing 99% or more cannabidiol with no detectable levels of THC, terpenes, or other plant compounds. This crystalline or powder-like form is ideal for those seeking CBD’s benefits without any risk of interference from other cannabinoids. Isolate is commonly used in pharmaceutical formulations, precise dosage products, and for individuals with sensitivities to other hemp compounds.

Global Cannabis Oil Market, Segmentation by Application

The Global Cannabis Oil Market has been segmented by Application into Food and Beverages, Cosmetics and Personal Care, Pharmaceuticals, and Others.

In the Food and Beverages sector, CBD oil is increasingly incorporated into products such as infused beverages, snacks, and dietary supplements. The demand in this segment is driven by consumer interest in functional foods that promote relaxation, stress relief, and overall well-being. CBD-infused drinks, including teas, coffees, and sparkling waters, are particularly popular among younger demographics seeking innovative and health-conscious consumption options.

The Cosmetics and Personal Care industry has embraced CBD oil for its purported anti-inflammatory, antioxidant, and hydrating properties. It is a key ingredient in skincare products such as creams, serums, and masks, targeting issues like acne, redness, and dryness. Additionally, CBD oil is used in hair care products for its nourishing benefits. This segment benefits from the clean beauty trend, as consumers increasingly prefer natural and plant-based formulations.

In Pharmaceuticals, CBD oil is recognized for its therapeutic potential in managing conditions such as epilepsy, chronic pain, anxiety, and sleep disorders. It is a critical component in prescription drugs like Epidiolex, as well as non-prescription therapeutic products. The pharmaceutical application of CBD oil is supported by ongoing research and clinical trials, further solidifying its role in medical treatments.

The Others segment encompasses applications such as pet care products, where CBD oil is used to manage stress, anxiety, and joint pain in animals. It also includes industrial uses, such as in wellness therapies and aromatherapy products. This segment highlights the versatility of CBD oil beyond mainstream consumer and medical markets.

Global Cannabis Oil Market, Segmentation by Geography

In this report, the Global Cannabis Oil Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Global Cannabis Oil Market Share (%), by Geographical Region, 2024

The Global Cannabis Oil Market by geography into five distinct regions offers valuable insights into regional trends, regulatory frameworks, and market dynamics shaping the industry landscape. North America stands out as a frontrunner in the global cannabis oil market, driven by progressive legalization efforts across various states and the widespread acceptance of cannabis for both recreational and medical purposes. With a mature market infrastructure and a robust regulatory framework in place, North America continues to serve as a key hub for cannabis oil production, innovation, and consumption.

In Europe, the cannabis oil market is witnessing rapid expansion fueled by evolving regulatory landscapes and increasing consumer awareness of the therapeutic benefits of cannabis-derived products. While regulatory frameworks vary across European countries, a growing number of nations are moving towards legalization or decriminalization, paving the way for market growth and investment opportunities. As the European market matures, stakeholders are navigating complex regulatory challenges while capitalizing on the continent's sizable consumer base and burgeoning demand for cannabis oil products.

The Asia Pacific, Middle East, and Africa, and Latin America regions present unique opportunities and challenges in the global cannabis oil market. In the Asia Pacific, increasing acceptance of cannabis for medical use, coupled with shifting cultural attitudes towards recreational consumption, is driving market growth. However, regulatory hurdles and cultural stigmas surrounding cannabis pose challenges for industry players seeking to capitalize on the region's market potential. Similarly, in the Middle East and Africa, where cannabis has a long history of traditional use, evolving regulatory frameworks and increasing acceptance of medical cannabis are driving market expansion despite ongoing legal and cultural barriers. In Latin America, countries such as Uruguay and Colombia have emerged as key players in the global cannabis market, leveraging favorable regulatory environments to attract investment and drive market growth.

This report provides an in depth analysis of various factors that impact the dynamics of Global Cannabis Oil Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Growing Acceptance
• Medical Applications

• Consumer Awareness - Consumer awareness plays a pivotal role in shaping the dynamics of the global cannabis oil market. As information about the potential health benefits and diverse applications of cannabis oil becomes more accessible, consumer awareness is on the rise. This heightened awareness is driving increased demand for cannabis oil products, particularly among health-conscious consumers seeking natural alternatives to conventional medications. Moreover, as consumers become more educated about the differences between various cannabis oil products, including extraction methods and cannabinoid profiles, they are increasingly discerning in their purchasing decisions, favoring products that align with their specific needs and preferences.

  In addition to driving demand, consumer awareness also influences market trends and product development within the cannabis oil industry. Manufacturers and retailers are responding to heightened consumer awareness by investing in transparent labeling, educational campaigns, and product innovation. By providing clear information about the benefits, usage, and potential risks associated with cannabis oil products, companies can build trust with consumers and differentiate themselves in a competitive market landscape. Furthermore, as consumer preferences evolve and new research emerges, companies have the opportunity to adapt their product offerings and marketing strategies to meet changing consumer needs and preferences, driving further market growth and innovation.

  Consumer awareness is likely to continue playing a central role in shaping the global cannabis oil market. As regulatory frameworks evolve and public perception of cannabis evolves, companies will need to prioritize education, transparency, and consumer engagement to foster trust and loyalty among consumers. By staying attuned to consumer preferences and investing in initiatives that promote understanding and awareness of cannabis oil products, industry stakeholders can capitalize on the growing market opportunity and drive sustainable growth in the years to come.

Restraints:

• Quality Control
• Supply Chain Challenges

• Legal Uncertainty - Legal uncertainty poses a significant challenge to the dynamics of the global cannabis oil market, impacting industry players across the supply chain. In many regions, cannabis laws and regulations remain complex, inconsistent, and subject to change, creating a challenging operating environment for businesses. This uncertainty can hinder investment, impede market growth, and deter potential consumers from engaging with cannabis oil products. Moreover, legal ambiguity can lead to compliance issues, regulatory hurdles, and enforcement risks for businesses operating in the cannabis sector, undermining investor confidence and hindering industry development.

  The lack of clarity surrounding cannabis laws and regulations also presents challenges for market expansion and international trade. Varying legal frameworks and divergent approaches to cannabis regulation among countries and jurisdictions create barriers to market entry and hinder cross-border commerce. Additionally, legal uncertainty can create challenges for research and development efforts, limiting scientific advancements and innovation within the cannabis industry. As a result, industry stakeholders must navigate a complex landscape of legal and regulatory requirements, often requiring significant resources and expertise to ensure compliance and mitigate legal risks.

  Despite these challenges, legal uncertainty also presents opportunities for industry stakeholders to advocate for regulatory reform, shape public policy, and drive positive change within the cannabis sector. By engaging with policymakers, regulatory authorities, and other stakeholders, businesses can work towards creating more transparent, coherent, and conducive legal frameworks for the production, distribution, and consumption of cannabis oil products. Additionally, as legalization efforts continue to progress in various regions, businesses can position themselves to capitalize on emerging market opportunities and drive growth in a rapidly evolving industry landscape.

Opportunities:

• Product Diversification
• Research & Development

• Sustainable Practices - Sustainable practices are increasingly becoming a focal point in the global cannabis oil market as environmental and social concerns gain prominence among consumers and industry stakeholders alike. With the growing recognition of the environmental impact of industrial activities, including cannabis cultivation and oil extraction, there is a heightened emphasis on adopting sustainable practices throughout the cannabis supply chain. This includes initiatives to minimize water and energy usage, reduce greenhouse gas emissions, and implement responsible waste management strategies. By prioritizing sustainability, companies can not only mitigate their environmental footprint but also enhance their reputation, attract environmentally conscious consumers, and differentiate themselves in a competitive market landscape.

  Sustainable practices extend beyond environmental considerations to encompass social and ethical dimensions, including labor practices, community engagement, and equity in the cannabis industry. As the industry matures, there is a growing recognition of the importance of fostering inclusivity, diversity, and social responsibility within the cannabis ecosystem. Companies are increasingly embracing initiatives to support local communities, promote workforce diversity, and advocate for social justice reforms, thereby contributing to positive social impact and earning the trust and loyalty of consumers who prioritize ethical business practices.

  Sustainable practices in the cannabis oil market present opportunities for innovation, collaboration, and market differentiation. From organic cultivation methods and regenerative agriculture techniques to eco-friendly packaging and carbon-neutral operations, there is a wide range of sustainable practices that companies can adopt to reduce their environmental footprint and enhance their competitive advantage. By embracing sustainability as a core business value and integrating it into their operations, companies can not only contribute to a more sustainable future but also position themselves for long-term success in a rapidly evolving industry landscape characterized by shifting consumer preferences and regulatory imperatives.