Global CBD API Market is Expected to Grow at a CAGR of 26.4% over the Forecast Period (2024 – 2034): A Report by TNR, The Niche Research

Wilmington, Delaware, July 04, 2024 (GLOBE NEWSWIRE) — CBD API stands for Cannabidiol Active Pharmaceutical Ingredient. It refers to the pure form of cannabidiol, a compound derived from the cannabis plant. In pharmaceutical contexts, an API (Active Pharmaceutical Ingredient) is the substance responsible for the therapeutic effects of a drug. Therefore, CBD API specifically denotes the isolated form of cannabidiol that is used as a primary ingredient in pharmaceutical formulations. CBD API is utilized in various medicinal and therapeutic products due to its potential health benefits, which include pain relief, anti-inflammatory properties, and potential neuroprotective effects, among others. It differs from other forms of CBD products, such as dietary supplements or cosmetics, by its pharmaceutical-grade purity and intended use in regulated pharmaceutical formulations.

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The global CBD API market has experienced rapid growth in recent years, driven by increasing acceptance of CBD-based products for medical and wellness purposes. CBD, or cannabidiol, derived from the cannabis plant, has gained traction for its potential therapeutic benefits without the psychoactive effects of THC. This market encompasses the production and distribution of CBD in its purest form, often used as an ingredient in pharmaceuticals, nutraceuticals, and personal care products.

Global CBD API Market: Key Datapoints

Advertisement Market Value in 2023	US$ 10.5 Bn
Market Value Forecast by 2034 Advertisement	US$ 137.6 Bn
Growth Rate   Advertisement	26.4%
Historical Data   Advertisement	2016 – 2022
Base Year   Advertisement	2023
Forecast Data   Advertisement	2024 – 2034

Evolving regulations worldwide, particularly in North America and Europe, are facilitating market growth by creating a clearer path for CBD API integration into mainstream products. Rising consumer demand for CBD-infused products like oils, capsules, and topical solutions is diversifying the market. This trend is fueled by growing awareness of CBD’s potential health benefits, including pain relief, anxiety management, and skincare. Ongoing research into the therapeutic properties of CBD is expanding the market’s potential applications. Pharmaceutical companies are exploring CBD’s efficacy in treating conditions ranging from epilepsy to chronic pain management.

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Rising consumer interest in natural and alternative healthcare solutions is driving demand for CBD-based products, creating opportunities for new market entrants and product innovation. Emerging markets in Asia-Pacific and Latin America are becoming increasingly receptive to CBD products, presenting untapped opportunities for market penetration and expansion. Streamlining supply chain processes, from cultivation to extraction and distribution, offers opportunities for cost reduction and market competitiveness.

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Growing acceptance of CBD among consumers and healthcare professionals for therapeutic purposes is expanding the market’s consumer base. Significant investments in CBD research, production facilities, and marketing initiatives are fueling market growth, attracting both venture capital and corporate investments. Collaborations between pharmaceutical companies, research institutions, and CBD manufacturers are accelerating product development and regulatory approvals. For instance, in October 2019, Botanix announced a significant API supply agreement with Purisys. Under this agreement, Purisys will meet Botanix’s increasing demand for synthetic cannabidiol and provide for future commercial supplies as well. This partnership ensures Botanix’s access to the necessary synthetic cannabidiol to support its operational needs and future growth in the market.

The COVID-19 pandemic had a mixed impact on the CBD API market. Disruptions in global supply chains, particularly in regions dependent on CBD imports, initially hindered market growth. However, increased consumer interest in wellness products during the pandemic boosted demand for CBD-based supplements and skincare products, offsetting some supply chain challenges. Some regions accelerated regulatory approvals for CBD products in response to the pandemic, facilitating market expansion despite initial setbacks.

Key Takeaways of the Report: 

• Full spectrum CBD segment by type is expected to grow at a CAGR of 7.4% in the CBD API market due to its effectiveness in leveraging the entourage effect, where various cannabinoids work synergistically to enhance therapeutic benefits. This holistic approach appeals to consumers seeking comprehensive health benefits beyond isolated CBD compounds, driving demand across medical and wellness applications.
• Topicals by dosage form dominated the CBD API market with a substantial revenue share of 19.9% due to their localized application for pain relief, skincare, and inflammation management. These products offer targeted delivery of CBD directly to affected areas, enhancing efficacy and consumer convenience. Increasing consumer preference for non-invasive treatment options and the expanding availability of CBD-infused skincare products further drive the demand for topicals.
• Synthetic segment in the CBD API market is anticipated to be the second largest with a revenue share of 34.3% in 2023 due to scalability, consistency in quality, and regulatory compliance advantages over natural sources. Synthetic CBD offers controlled production processes, ensuring purity and reliability, which are crucial factors for pharmaceutical applications requiring standardized formulations and reliable supply chains.
• Multiple sclerosis segment by indication is anticipated to grow fastest over the forecast period due to CBD’s potential neuroprotective and anti-inflammatory properties, which are beneficial for managing symptoms such as muscle spasms, pain, and cognitive impairment associated with the disease. Growing clinical evidence supporting CBD’s efficacy in neurological conditions is driving increased adoption and research into its therapeutic applications for multiple sclerosis.
• By end user, academic and research institutes segment is anticipated as second leading segment with revenue share of 26.8% due to its pivotal role in advancing CBD research and development. These institutions drive innovation through clinical trials, pharmacological studies, and therapeutic efficacy assessments, fostering a deeper understanding of CBD’s potential applications across various medical conditions. Their contributions are critical in shaping regulatory frameworks and expanding the market for CBD API products.
• In 2023, Europe is anticipated as second leading region in the global CBD API market due to increasing regulatory acceptance and consumer demand for CBD-infused products. Robust healthcare infrastructure supports clinical research and pharmaceutical development, driving market growth. Additionally, rising awareness of CBD’s therapeutic benefits and a proactive approach to cannabis legalization in several European countries further bolster the region’s position in the CBD API market.

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Following are the major companies active within the CBD API market:

• Averix Bio Llc
• Bedrocan
• Biosyyd Uab
• Biovectra Inc
• Brains
• Cannatrek
• Colombian Golden
• Endopure
• Eurofins
• Gvb Biopharma
• Jordan Process
• Knd Labs
• Purisys 
• Recipharm AB
• Vantage Hemp
• Other Industry Participants

Global CBD API Market

By Type

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• Full spectrum CBD
• Broad-spectrum CBD
• CBD isolate

By Dosage form

• Oils and Tinctures
• Capsules
• Topicals
  • Balm
  • Creams
  • Lotion
  • Salves
• Vapes and Smoking Flower
• Gummies and Other Edibles
• Sublingually 
• Spray
• Others

By Origin

• Natural
• Synthetic

By Indication

• Alzheimer’s Disease
• Autism
• Cancer
• Chronic Pain
• Epilepsy
• Migraine
• Multiple Sclerosis
• Schizophrenia
• Others

By End User

• Pharmaceutical Industry
• Academic and Research Institutes
• Others 

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)  

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Jay Reynolds

The Niche Research

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