US CBD Oil Market Research Report: By Source (Hemp, Marijuana) and By Sales (B2B, B2C) - Forecast to 2035

US CBD Oil Market Overview

As per MRFR analysis, the US CBD Oil Market Size was estimated at 1.49 (USD Billion) in 2023. The US CBD Oil Market Industry is expected to grow from 1.68(USD Billion) in 2024 to 3.54 (USD Billion) by 2035. The US CBD Oil Market CAGR (growth rate) is expected to be around 7.011% during the forecast period (2025 - 2035).

Key US CBD Oil Market Trends Highlighted

The US CBD oil market is experiencing significant growth driven by increasing consumer awareness and acceptance of CBD products for health and wellness purposes. Major factors behind this trend include the rising prevalence of chronic diseases and health issues such as anxiety, pain, and sleep disorders, encouraging individuals to seek alternative treatments. Legislation changes at the federal level have also played a crucial role, as the 2018 Farm Bill legalized hemp-derived CBD, making it more accessible to consumers across various states.

The expanding range of applications for CBD oil, including its incorporation into food and beverages, beauty products, and pet care, further drives interest and demand. Opportunities in the US CBD oil market remain abundant, particularly in the areas of product innovation and diversification. Manufacturers are exploring new formulation methods and delivery systems that cater to the diverse preferences of consumers. This includes enhancing bioavailability or offering unique flavorings and blends, thus appealing to a broader audience.

Moreover, as more states legalize cannabis products, companies stand to gain by developing region-specific products that align with local regulations and cultural preferences. In recent times, market trends have indicated a shift toward sustainability and transparency. Consumers are increasingly favoring brands that provide clear information regarding sourcing, extraction processes, and potency testing. This has led to a rise in demand for organic and non-GMO products.

Additionally, the popularity of e-commerce has surged, with more consumers opting to purchase CBD oil online, creating a need for strategic digital marketing efforts by companies in the space. As awareness increases, informed consumers are looking for high-quality, reliable products, driving the industry toward higher standards.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US CBD Oil Market Drivers

Increasing Acceptance and Legalization of CBD Products

The increasing acceptance and legalization of Cannabidiol (CBD) products across the United States is driving significant growth in the US CBD Oil Market Industry. Legislative changes at both state and federal levels have led to a boom in CBD oil applications for therapeutic and recreational use. For instance, the U.S. Farm Bill passed in 2018 legalized hemp-derived CBD products containing less than 0.3% tetrahydrocannabinol (THC).

According to a report by the National Conference of State Legislatures, as of 2021, 47 states have enacted laws allowing for some form of medical and/or recreational marijuana use, paving the way for greater acceptance of CBD oil. The potential for a wider consumer base will likely lead to a market expansion with projected growth reaching billions by the mid-2030s, as consumer awareness continues to rise.

Rising Health Consciousness Among Consumers

The growing health awareness among consumers is significantly fueling the US CBD Oil Market Industry. Many individuals are turning to natural alternatives for wellness and health, seeking benefits such as relief from anxiety, pain, and insomnia. A survey conducted by the Pew Research Center indicated that about 35% of Americans aged 18 and older have tried CBD products, reflecting an increasing trend towards holistic health solutions.

This consumer shift towards natural remedies is expected to drive demand for CBD oil, as evidenced by a surge in product offerings by established health retail chains across the country.

Expanding Applications in Various Industries

The expanding applications of CBD oil across various industries, including food and beverage, cosmetics, and pharmaceuticals, present a major driver for the US CBD Oil Market Industry. Industries are increasingly incorporating CBD oil into products to meet the growing consumer demand for innovative and health-conscious options. The Food and Drug Administration (FDA) has started to explore regulatory pathways for the inclusion of CBD in food and beverages, which is anticipated to open up a significant market segment.

More than 25% of new product launches in the food and beverage space are now incorporating CBD, illustrating the trend towards diverse applications of CBD oil.

US CBD Oil Market Segment Insights

CBD Oil Market Source Insights

The US CBD Oil Market has seen remarkable growth influenced by a variety of sources, primarily Hemp and Marijuana, which have emerged as critical components in the market dynamics. The Source aspect is fundamental as it directly impacts the quality, legality, and overall consumer perception of CBD products. Hemp, known for its lower THC content, has been a game changer in the market, with numerous states in the US facilitating its cultivation and allowing for broad commercial use of CBD extracts derived from it.

This has made Hemp a widely accepted option, appealing to health-conscious consumers and businesses seeking compliance with regulations focusing on THC limits. Distinctly, the Marijuana segment offers a higher concentration of CBD and THC, attracting a diverse demographic interested in the potential therapeutic benefits of cannabis. The legalization of Marijuana in various states has fueled a rise in demand and exploration into more specialized formulations, particularly in relation to pain relief, anxiety, and other health issues.

As consumer acceptance grows, the segmentation of the US CBD Oil Market around sources is likely to deepen, with Hemp holding a significant foothold due to its versatility and its status as an agricultural product. On the other hand, the Marijuana source is cementing itself as an important player not just for its pharmaceutical-grade CBD applications, but also for the growing interest in recreational use. This growing segmentation is driven by evolving legislation, consumer preferences for natural products, and increasing awareness of the benefits associated with CBD oils.

The US continually prioritizes Research and Development in this sector, ensuring that scientific and consumer insights guide the expansion of Hemp and Marijuana usage in various applications, from wellness to beauty products. Consumer trends are leaning towards ethical sourcing and sustainability, prompting businesses to invest in these sources that align with such values. As the market continues to evolve, insights into the performance of these sources within the US CBD Oil Market will enhance understanding, allowing new companies to effectively navigate challenges and leverage opportunities within this rapidly developing landscape.

With a firm grasp of these source dynamics, stakeholders can anticipate shifts in market trends while also addressing potential regulatory challenges posed by state laws and consumer safety standards, thus ensuring a robust understanding of the prevailing market landscape surrounding CBD products in the US. This knowledge is paramount for businesses aiming to carve a niche in an increasingly competitive arena fueled by consumer curiosity and legislative changes.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

CBD Oil Market Sales Insights

The US CBD Oil Market has been experiencing notable growth in its Sales segment, fueled by an increasing consumer demand for CBD products across various applications. The segmentation of the market primarily includes Business to Business (B2B) and Business to Consumer (B2C) channels, each contributing uniquely to the overall market landscape. The B2B sector, focusing on supplying retailers and wellness providers with bulk CBD oil, plays a vital role in expanding product availability and generating significant revenues through wholesale transactions.

Meanwhile, the B2C segment taps directly into the end-user market, where consumers are increasingly purchasing CBD oil for personal wellness, beauty, and culinary uses, highlighting the product's versatility and relevance in daily life. This dynamic market environment is driven by rising awareness of CBD's potential health benefits, regulatory developments that are gradually favoring hemp-derived products, and a growing trend toward natural and organic alternatives in the health sector. The US CBD Oil Market statistics indicate a favorable outlook as these trends continue to influence buying behavior, thus enhancing the overall market growth trajectory.

Companies operating in both the B2B and B2C spaces recognize that an emphasis on quality, transparency, and education surrounding CBD products will be crucial in capturing market share and building consumer trust.

US CBD Oil Market Key Players and Competitive Insights

The US CBD Oil Market has seen considerable growth, driven by a surge in consumer demand for natural wellness products. Competitive insights reveal a market characterized by a diverse range of players, each striving to capture market share through innovative product offerings and marketing strategies. Regulatory shifts and increased public awareness of the potential benefits of CBD have created favorable conditions for companies in this sector.

Players are not only focusing on the quality and efficacy of their products but are also enhancing their branding to differentiate themselves in a crowded marketplace. This environment encourages ongoing improvements in product formulations and expansive distribution channels, defining the competitive landscape of the US CBD Oil market. Focusing on PureKana within the US CBD Oil Market, the company has established a robust presence through its commitment to high-quality, natural products derived from organic hemp.

PureKana offers a range of CBD oil products, including tinctures, capsules, and topicals, all designed to meet varying consumer needs. The strength of PureKana lies in its strong brand reputation and customer-centric approach, which is evident through positive customer testimonials and high satisfaction rates. The company emphasizes third-party testing to assure customers of product quality and safety, further enhancing consumer trust. This commitment to transparency and premium product offerings positions PureKana as a formidable competitor in the US market, effectively appealing to health-conscious consumers looking for trustworthy cannabis-derived solutions.

Medterra has carved a significant niche in the US CBD Oil Market, providing a variety of high-quality CBD products that include tinctures, capsules, and topical applications, all made from non-GMO hemp. With a focus on sustainability and ethical sourcing, Medterra has built a reputation for delivering effective, reliable, and safe products to its consumers. The company has been proactive in establishing its market presence, utilizing strategic marketing campaigns that resonate with health and wellness trends.

Medterra's strengths are augmented by its investment in research and development, which has led to innovative product formulations tailored to specific consumer needs. Moreover, recent partnerships and collaboration in the form of mergers and acquisitions have enabled Medterra to expand its distribution network, enhancing its accessibility in the competitive US market landscape. Through its strong customer service and educational initiatives about CBD usage, Medterra continues to foster a loyal consumer base while promoting the overall wellness of its customers.

Key Companies in the US CBD Oil Market Include

• PureKana


• Medterra


• Palm Organix


• Sunday Scaries


• Kushco Holdings


• Endoca


• Veritas Farms


• Infinite CBD


• Curaleaf


• CV Sciences


• Green Roads


• HempBombs


• Joy Organics


• Charlotte's Web

US CBD Oil Market Industry Developments

Recent developments in the US CBD Oil market have been marked by significant growth and increasing consumer interest. Companies like PureKana, Medterra, and Sunday Scaries have expanded their product lines to include innovative offerings tailored to various consumer needs. The market has seen a steady rise in valuations, attributed to the growing acceptance of CBD products, with estimates indicating the market's worth could surpass $20 billion by 2025.

In addition, PureKana and Medterra reported substantial sales increases in 2023, directly correlating with the expanding consumer base. Notably, recent acquisitions have also shaped the landscape; for instance, Kushco Holdings announced acquiring a product line from a leading competitor in March 2023, enhancing its market position and product diversity.

Charlotte's Web has also pursued strategic partnerships to amplify its reach, tapping into new distribution channels. Over the last few years, the regulatory environment has evolved, with the introduction of clearer guidelines for CBD products in the US, leading to a more stable market atmosphere. This has fostered trust among consumers, further driving demand for high-quality CBD products from brands like Green Roads, Joy Organics, and CV Sciences.

US CBD Oil Market Segmentation Insights

CBD Oil Market Source Outlook

• Hemp


• Marijuana

CBD Oil Market Sales Outlook

• B2B


• B2C

 

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	1.49(USD Billion)
MARKET SIZE 2024	1.68(USD Billion)
MARKET SIZE 2035	3.54(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.011% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	PureKana, Medterra, Palm Organix, Sunday Scaries, Kushco Holdings, Endoca, Veritas Farms, Infinite CBD, Curaleaf, CV Sciences, Green Roads, HempBombs, Joy Organics, Charlotte's Web
SEGMENTS COVERED	Source, Sales
KEY MARKET OPPORTUNITIES	Rising demand for wellness products, Expansion in e-commerce sales, Increasing interest in health benefits, Growing acceptance of cannabis laws, Product innovation and diversification
KEY MARKET DYNAMICS	regulatory changes, consumer health awareness, product innovations, competitive pricing, distribution channel expansion
COUNTRIES COVERED	US