Market Size and Forecast
The CBD-infused products market has been witnessing rapid growth in recent years, fueled by a rising interest in cannabis-based goods. This growth is being driven by an increasing demand for cannabis, along with the expanding legalization of cannabis in various parts of the world. One of the standout trends pushing the market forward is the growing popularity of cannabis-infused edibles.
These products are not only favored for recreational use but also for their medicinal and therapeutic benefits. As the public becomes more aware of the potential health applications of cannabidiol (CBD), demand continues to surge. Despite these favorable trends, the market is not without its challenges. High costs associated with CBD production, coupled with strict regulatory frameworks in certain countries, are acting as limiting factors to market expansion.
Still, there are promising opportunities on the horizon. With more consumers showing interest in cannabis-based pet foods and beverages, the market is expected to benefit significantly in the coming years. On the flip side, concerns about health risks related to the excessive use of CBD remain a hurdle for the industry to overcome.
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CBD-infused Products Market Growth Drivers
Rising Demand and Legalization of Cannabis
Over the past twenty years, major strides have been made in terms of legalizing and regulating cannabis for both medical and recreational purposes across the globe. These regulatory advancements have created a supportive environment for businesses in the CBD sector, leading to increased product availability and a greater variety of offerings.
Cannabis still holds the status of being the most widely cultivated, trafficked, and used illicit drug in the world, but public perception is shifting. Legal reforms are gaining momentum. For example, Canada legalized cannabis for both recreational and medical use in 2018. As of February 2025, 24 U.S. states, along with the District of Columbia and two territories—Guam and the Northern Mariana Islands—have legalized cannabis for adult recreational use.
Public sentiment is also aligning with these changes. According to a 2025 Pew Research Center survey, 88% of U.S. adults support legal cannabis in some form—either solely for medical use (32%) or for both medical and recreational use (57%).
This growing wave of legalization not only boosts market demand but also allows businesses more flexibility to innovate and develop new CBD-based products. With legal cannabis operations on the rise, there’s an increasing push for solid regulatory frameworks to ensure product safety and consumer trust.
Medicinal and Therapeutic Benefits of CBD Products
The medicinal use of cannabis is legally sanctioned in various countries, and many patients use it for treating pain, stress, and even to help with appetite stimulation. CBD, one of the primary compounds in cannabis, is especially known for offering therapeutic effects without the psychoactive high typically associated with THC.
Global demand for CBD oil continues to rise, thanks to its potential to treat a wide range of medical conditions. From managing inflammation to treating symptoms of neurological disorders like Alzheimer’s and epilepsy, the list of potential health applications keeps growing. CBD is also being looked at for treating anxiety, chronic pain, acne, cancer symptoms, and even certain mental health conditions.
Spas are increasingly incorporating CBD into their services, especially in massages. These massages often use CBD-infused creams, balms, and oils, offering relaxation benefits that take effect quickly since the CBD is absorbed directly through the skin.
As people continue to explore CBD as a remedy for both physical and mental ailments, the awareness and demand for cannabis-derived health products are poised to increase dramatically.
CBD-infused Products Market Opportunities
Growing Demand for CBD in Pet Food
An interesting and fast-growing segment of the CBD market is its application in pet care. Pet owners are increasingly turning to CBD as a natural remedy for issues like anxiety, arthritis, digestive disorders, and chronic pain in animals.
A 2023 survey conducted by PETS International and Yummypets across the U.S., Canada, France, and the U.K. found that 72% of pet owners are aware of CBD-based pet products. Out of 944 respondents, 16% had already used such products, and 41% expressed interest in trying them. The most commonly used CBD products for pets include oils (63%), chews (59%), biscuits (22%), sticks (12%), and pastes (9%).
Additionally, data from the American Pet Products Association revealed that U.S. pet owners spent $147.0 billion on their pets in 2023—up by over $10 billion from the previous year. This increasing consumer expenditure underscores the market potential for CBD pet food products.
Rising Demand for Cannabis-infused Beverages
Cannabis-infused beverages are also becoming more popular and are available in a variety of formulations to cater to different consumer tastes and preferences. Brands like CANN, Zentopia, and TRIP have introduced sparkling drinks that blend cannabinoids with flavors designed to promote calmness and wellness.
The shift towards healthier beverage options is also helping this segment grow. Major beverage companies are investing heavily in this space. For example, Heineken launched Hi-Fi Hops, a cannabis-infused beer with both THC and CBD, zero calories, and no carbohydrates, exclusively in California.
The sports nutrition market is another area where CBD is making its mark. Athletes and fitness enthusiasts are beginning to use CBD products as part of their pre-workout routines and for post-workout recovery. This evolving trend points to significant growth opportunities in the beverage sector during the forecast period.
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Key Market Insights and Segment Analysis
Dominance of the Hemp Segment
By source, CBD-infused products are broadly categorized into hemp and marijuana-derived variants. In 2025, hemp-based products are expected to make up around 76.3% of the market. One key reason for this dominance is the lower THC content found in hemp, which minimizes psychoactive effects and makes it ideal for medicinal and therapeutic use.
In addition to being more widely accepted legally, hemp-derived CBD is gaining popularity in the cosmetics and personal care industries for its anti-aging, antioxidant, and anti-inflammatory properties. The hemp segment is forecasted to grow at a CAGR of 32.7% during the prediction period, thanks to its versatility and broad application across different sectors.
CBD Edibles Set to Lead by Type
Among product types, CBD edibles are expected to take the lead in 2025 with a market share of 33.6%. This segment includes CBD-infused foods, baked goods, and confectioneries. The rising popularity of recreational cannabis, along with a shift away from traditional smoking methods, is fueling this trend.
Moreover, CBD edibles are being explored as treatments for various health conditions, including psychiatric and neurological disorders, cancer-related symptoms, and pain management. The edible segment is projected to grow at the fastest rate, with a CAGR of 35.2%.
Offline Stores to Hold the Largest Market Share
When it comes to distribution channels, offline stores—including dispensaries, pharmacies, and health food outlets—are expected to maintain a dominant market share in 2025. Many consumers still prefer in-store shopping to ensure the authenticity and quality of CBD products.
However, online channels are catching up quickly. The convenience of digital shopping platforms and the availability of discounts are making e-commerce an increasingly attractive option for CBD purchases. Personalized online experiences and expanded product ranges are likely to keep pushing this trend upward.
Regional Insights: North America Leads the Way
Geographically, North America is set to dominate the global CBD-infused products market in 2025, accounting for about 59.5% of the market share, with an estimated value of $26.76 billion. This dominance can be credited to factors like widespread accessibility, advanced processing technologies, and a growing base of informed consumers.
The region is also expected to see the highest CAGR of 34.3%, driven by increasing wellness trends, rising R&D investment, and the expansion of online retail. Public perception is steadily moving in favor of CBD, further boosting market potential in this region.
Competitive Landscape and Recent Developments
The CBD-infused products market is home to a number of major players. Key companies include Canopy Growth Corporation, Aurora Cannabis Inc., Maricann Inc., Tilray Brands, GW Pharmaceuticals, MediPharm Labs, Cresco Labs, and others. These companies are heavily investing in product development, geographic expansion, and partnerships to strengthen their market positions.
Recent developments highlight this dynamic environment. For instance, Rare Cannabinoid Company launched THC+THV uplift gummies in December 2023, aimed at enhancing mood and controlling appetite. In May 2022, Curaleaf Holdings introduced Select CBD Bites, while in April 2021, Canopy Growth collaborated with Southern Glazer’s Wine & Spirits to release Quatreau—its first line of CBD beverages in the U.S.
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