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

The Global CBD Oil Extract Market has been segmented by On-Source Type, Distribution Channel and Geography, on-source type into hemp-derived and marijuana-derived CBD oil extracts. Hemp-derived CBD oil is the most widely used and commercially available type, as it contains less than 0.3% THC (tetrahydrocannabinol), making it legal in many countries and regions. It is primarily used in wellness and healthcare products, including oils, tinctures, edibles, and topical applications. Marijuana-derived CBD oil, on the other hand, has a higher concentration of THC, and its use is subject to stricter regulations. This type of CBD extract is typically used in medical applications and is available in regions where cannabis is legalized for medical or recreational use.

The distribution channel for CBD oil extract is another key segment, divided into online retail, offline retail, and direct sales. Online retail is one of the fastest-growing channels for CBD oil extracts, as consumers increasingly turn to e-commerce platforms for convenience, product variety, and direct-to-consumer access. Offline retail, including pharmacies, health and wellness stores, and specialty stores, also plays a significant role in distributing CBD oil extracts, providing consumers with a more traditional shopping experience. Direct sales through dispensaries and wellness clinics are another growing distribution model, particularly in regions with legalized cannabis markets, allowing consumers to purchase directly from licensed professionals.

Geographically, the Global CBD Oil Extract Market is segmented into regions such as North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America, particularly the United States and Canada, dominates the market due to the legalization of hemp-derived CBD oil across many states and the increasing consumer awareness of its health benefits. Europe is also a significant market, with growing demand for CBD products driven by regulatory changes and increasing health-consciousness. The Asia-Pacific region is witnessing rising interest in CBD oil extracts, although it remains a more regulated market due to varying legal frameworks across different countries. Latin America and the Middle East & Africa are emerging markets, where CBD oil extract consumption is expected to increase as the legal landscape evolves and consumer awareness grows.

Global CBD Oil Extract Segment Analysis

In this report, the Global CBD Oil Extract Market has been segmented by On-Source Type, Distribution Channel and Geography.

Global CBD Oil Extract Market, Segmentation by On-Source Type

The Global CBD Oil Extract Market has been segmented by On-Source Type into Hemp and Marijuana.

Hemp-derived CBD is the most prevalent type in the global market, accounting for a significant share due to its legality and versatility. Derived from hemp plants, which contain less than 0.3% THC, this type of CBD is widely used in a variety of products, including dietary supplements, cosmetics, and wellness items. Its non-psychoactive nature makes it a popular choice for consumers seeking the benefits of CBD without the high associated with THC. The legal status of hemp-derived CBD in many regions has facilitated its widespread adoption and integration into mainstream consumer goods.

Marijuana-derived CBD, extracted from cannabis plants with higher THC content, is another key segment of the market. This type of CBD is often used for its therapeutic properties and is typically found in products intended for specific medical conditions or therapeutic use. The higher THC levels in marijuana-derived CBD can contribute to its efficacy in treating certain ailments, such as chronic pain or severe anxiety. However, the legal status of marijuana-derived CBD varies significantly across different regions, which can impact its availability and market penetration. As regulatory environments evolve, this segment is expected to grow, particularly in areas where medical cannabis is legal.

Global CBD Oil Extract Market, Segmentation by Distribution Channel

The Global CBD Oil Extract Market has been segmented by Distribution Channel into B2B and B2C.

The B2B distribution channel in the global CBD oil extract market involves transactions between businesses, such as manufacturers, wholesalers, distributors, and retailers. In this segment, CBD oil extracts are sold in bulk or large quantities to businesses that either produce finished products or operate retail outlets. B2B sales are crucial for companies involved in large-scale production, supply chain management, and product formulation. This channel typically includes sales to manufacturers of dietary supplements, cosmetics, and other consumer products that incorporate CBD oil extracts. The B2B market is characterized by long-term contracts, bulk orders, and strategic partnerships aimed at maintaining a steady supply of raw materials for production.

The B2C distribution channel refers to direct sales of CBD oil extracts to individual consumers. This segment includes various sales platforms such as online retail stores, physical retail shops, pharmacies, and specialty health stores. B2C sales allow consumers to purchase CBD oil extracts directly for personal use, including products like tinctures, capsules, edibles, topicals, and beverages. The B2C market benefits from the increasing popularity of e-commerce and direct-to-consumer models, which provide convenience and a wide range of product options for end-users. Marketing strategies, brand loyalty, and consumer education play significant roles in driving sales within this segment. The growth of online shopping platforms and increased consumer awareness about the benefits of CBD are key factors contributing to the expansion of the B2C market.

Global CBD Oil Extract Market, Segmentation by Geography

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

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

North America is the leading region in the global CBD oil extract market, driven primarily by the United States and Canada. The region benefits from progressive legalization of hemp-derived CBD, high consumer awareness, and a well-established market presence. The U.S. has seen rapid growth due to the 2018 Farm Bill, which legalized hemp cultivation and the production of CBD. Canada has also been a significant player with nationwide legalization of cannabis, including CBD. The presence of numerous CBD brands, a growing range of product offerings, and robust distribution networks further support market growth in North America.

The Asia Pacific region is emerging as a potential growth market for CBD oil extracts, driven by increasing awareness and evolving regulatory frameworks. Countries like Australia and Japan are at the forefront, with Australia allowing the use of CBD for medical purposes and Japan permitting CBD products as long as they contain no THC. The market in this region is still developing, with varying levels of acceptance and regulatory barriers across different countries. However, the rising trend of natural health products and increasing investments in the CBD sector are expected to drive future growth.

The Middle East and Africa represent a nascent market for CBD oil extracts, with limited but growing interest. The regulatory environment in many countries remains restrictive, impacting the availability and growth of CBD products. However, some countries are beginning to explore the potential benefits of CBD, and there are emerging opportunities in the medical and wellness sectors. The market in this region is characterized by cautious growth, with potential for expansion as regulations evolve and consumer awareness increases.

Latin America is in the early stages of CBD oil extract market development, with gradual progress in regulatory frameworks and consumer acceptance. Countries like Brazil and Colombia are exploring the use of CBD for medical and therapeutic purposes, contributing to the market's growth. The region is seeing increased interest in CBD products as part of the broader wellness trend, although regulatory challenges and limited market penetration currently constrain the market. As regulations become more favorable and consumer awareness improves, Latin America is expected to experience significant growth in the CBD oil extract market.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• Increasing Consumer Awareness
• Legalization of Hemp-Derived CBD
• Growing Demand for Natural Health Products

• Expanding Product Range - Expanding the product range is a significant driver for growth in the global CBD oil extract market. As consumer preferences evolve, companies are diversifying their product offerings to include various forms of CBD-infused products beyond traditional tinctures and capsules.

  The development of new product forms also allows companies to tap into niche markets and address specific health and wellness concerns. For example, CBD-infused skincare products are gaining popularity for their potential anti-inflammatory and anti-aging benefits.

  Expanding the product range can enhance market reach and create new revenue streams. By diversifying their portfolios, companies can enter different retail channels, such as specialty stores, online platforms, and supermarkets, thereby increasing their market presence.

Restraints

• Regulatory Uncertainty
• High Production Costs
• Limited THC Content Restrictions

• Quality Control Issues - Quality control issues are a significant concern in the global CBD oil extract market, affecting product safety, efficacy, and consumer trust. Ensuring that CBD products meet consistent quality standards is crucial given the variability in CBD content and the presence of potential contaminants.

  One major challenge in quality control is the lack of standardized testing procedures across the industry. Variations in testing methods and laboratories can lead to inconsistencies in the reported cannabinoid concentrations and the presence of unwanted substances.

  Additionally, quality control issues can lead to regulatory scrutiny and compliance challenges. As regulations surrounding CBD products become more stringent, companies must navigate complex requirements for product testing, labeling, and safety. Failure to meet these regulations can result in product recalls, legal penalties, and damage to a brand's reputation.

Opportunities

• Expansion into Emerging Markets
• Innovative Product Development
• Growing Medical Applications

• E-commerce Growth - E-commerce growth is a major driver in the expansion of the global CBD oil extract market, offering new opportunities for consumer reach and market penetration. The rise of online shopping has significantly altered consumer purchasing behavior, providing a convenient platform for purchasing CBD products.

  Online platforms also enable CBD brands to engage directly with their customers, fostering better relationships and more personalized experiences. Through e-commerce websites, companies can offer detailed product information, customer reviews, and educational content about CBD’s benefits and uses.

  The growth of e-commerce also facilitates market expansion into new geographical regions. With an online presence, CBD companies can easily enter international markets and overcome local distribution barriers.

Key players in Global CBD Oil Extract Market include;

• Growth Corporation
• Aphria Inc
• Aurora Cannabis
• MARICANN INC
• Tilray
• GW Pharmaceuticals plc
• Tikun Olam
• The Cronos Group
• Kazmira
• FOLIUM BIOSCIENCES
• HempLife Today
• CBD American Shaman
• PharmaHemp
• NuLeaf Naturals
• LLC

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis