Market Size and Forecast
The CBD-infused products market is growing at a remarkable pace, largely driven by the rising demand for cannabis and its derivatives. One of the most significant factors contributing to this surge is the increasing legalization of cannabis in many countries. This has opened the door for wider acceptance and availability of CBD products.
Among the most sought-after products in this market are cannabis-infused edibles. These items have gained popularity not only for their recreational use but also because of their perceived therapeutic and medicinal value. As consumers become more health-conscious and curious about alternative wellness options, CBD-based products have found a broader appeal.
Despite the optimism, the market faces a few critical challenges. The high cost of CBD extraction and processing continues to hinder scalability, while stringent legal regulations in certain regions slow down the introduction of new products and innovation. Nevertheless, the future holds considerable promise. With consumers showing increasing interest in products like cannabis-infused pet foods and beverages, new opportunities are emerging. However, it’s important to note that concerns regarding potential health risks associated with excessive CBD consumption still pose a challenge to be addressed.
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CBD-infused Products Market Growth Drivers
Rising Demand and Legalization of Cannabis
One of the primary drivers of the CBD-infused products market is the worldwide trend toward cannabis legalization. Over the past two decades, numerous countries have either legalized or decriminalized cannabis use for both medical and recreational purposes. This progressive shift has led to a growing acceptance of CBD in various forms.
Cannabis continues to be the most widely used illicit drug globally, but legal changes are reshaping this landscape. Canada, for instance, legalized cannabis for both recreational and medicinal use in 2018. In the United States, as of February 2025, 24 states, along with the District of Columbia and two U.S. territories—Guam and the Northern Mariana Islands—have legalized adult recreational use of cannabis.
Public sentiment is also in favor of legalization. A 2025 Pew Research Center survey found that 88% of U.S. adults support legal cannabis use, with 32% backing it solely for medical purposes and 57% supporting it for both medical and recreational use. This wide support further bolsters the market and encourages businesses to expand their CBD product offerings.
The growing legalization also demands more structured regulatory frameworks to ensure product safety and standardization. As governments and organizations work to establish these frameworks, the path for market growth becomes smoother and more sustainable.
Medicinal and Therapeutic Benefits of CBD Products
CBD is increasingly being recognized for its therapeutic benefits, which is another key reason behind the rising popularity of CBD-infused products. Many countries have legalized cannabis for medicinal use, and consumers frequently use it to manage pain, reduce stress, and stimulate appetite.
CBD oil in particular is gaining attention for its wide range of health applications. Research and anecdotal evidence suggest that CBD may help treat conditions such as inflammation, neurological disorders like epilepsy and Alzheimer’s, anxiety, chronic pain, acne, and even certain mental health conditions.
In wellness settings, CBD is being integrated into spa treatments such as massages. These massages often use oils, creams, or balms infused with CBD, allowing the compound to be absorbed directly into the skin. Users report that CBD massage therapy helps reduce tension, inflammation, and discomfort, enhancing the relaxation experience.
As more consumers seek out natural remedies and alternatives to traditional pharmaceuticals, CBD’s reputation as a health-supporting product continues to strengthen, further fueling demand.
CBD-infused Products Market Opportunities
Growing Demand for CBD in Pet Food
The pet care sector is emerging as one of the most promising growth areas for CBD-infused products. Pet owners are becoming increasingly aware of the potential benefits of CBD for managing conditions like arthritis, anxiety, digestive problems, and chronic pain in animals.
A 2023 survey by PETS International and Yummypets, covering pet owners in the U.S., Canada, France, and the U.K., revealed that 72% were aware of CBD products for pets. Among the 944 participants, 16% had already tried them, and 41% expressed interest in doing so. The most commonly used pet CBD products were oils (63%), chews (59%), biscuits (22%), sticks (12%), and pastes (9%).
According to the American Pet Products Association, American pet owners spent $147.0 billion on their pets in 2023, a $10 billion increase over the previous year. This growing investment in pet wellness is creating a strong market for CBD pet products.
Rising Demand for Cannabis-infused Beverages
CBD-infused beverages are another fast-growing segment within the market. These drinks are available in a variety of types and flavors to cater to different consumer preferences. Brands like CANN, Zentopia, and TRIP have introduced CBD sparkling beverages that are designed to promote relaxation and calmness.
As more consumers shift away from sugary and alcoholic beverages toward healthier alternatives, CBD drinks are becoming increasingly attractive. Big names in the beverage industry are also getting involved. For instance, Heineken launched Hi-Fi Hops, a cannabis-infused beer available in California that contains both THC and CBD, is alcohol-free, and has zero calories and carbs.
CBD beverages are also gaining traction in the fitness and wellness sectors. Athletes and gym-goers are using CBD-infused drinks as part of their pre- and post-workout routines. This growing interest in functional beverages is expected to be a major driver for market expansion.
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Key Market Insights and Segment Analysis
Dominance of the Hemp Segment
CBD products are primarily derived from either marijuana or hemp. In 2025, hemp-based CBD products are expected to dominate the market, making up about 76.3% of the overall share. This is due to hemp’s low THC content, which makes it more suitable for health and wellness products without the psychoactive effects of marijuana.
Hemp-derived CBD is also being used widely in cosmetics and skincare due to its anti-aging, antioxidant, and anti-inflammatory properties. As more consumers become aware of these benefits, the hemp segment is projected to grow at a CAGR of 32.7% over the forecast period.
CBD Edibles Set to Lead by Type
Among all product types, CBD edibles are expected to account for the largest market share in 2025, with a projected 33.6%. These products include a wide variety of foods such as baked goods, gummies, and other confectionery items.
As recreational use of cannabis becomes more common, edibles offer a more accessible and appealing way for consumers to try CBD without smoking. CBD edibles are also being developed to help manage a range of health issues, including pain, inflammation, cancer-related symptoms, and neurological conditions. The edible segment is forecast to grow at a CAGR of 35.2%, making it the fastest-growing category.
Offline Stores to Hold the Largest Market Share
In terms of distribution, offline channels like pharmacies, health stores, and licensed dispensaries continue to hold the majority share of the market. Consumers often prefer to purchase CBD products in person to verify authenticity, receive expert advice, and avoid counterfeit items.
However, e-commerce is quickly catching up. Online stores offer convenience, a broader selection of products, and attractive discounts. With increasing consumer comfort in shopping online and more brands expanding their digital presence, online sales are expected to grow rapidly in the coming years.
Regional Insights: North America Dominates the Market
North America is projected to be the dominant region in the CBD-infused products market in 2025, accounting for roughly 59.5% of the global share, or around $26.76 billion. Several factors contribute to this, including well-established cannabis processing capabilities, rising demand for wellness products, and increasing consumer awareness.
The region is also expected to post the highest growth rate, with a CAGR of 34.3%. The presence of major companies, the ongoing legalization efforts, and expanding e-commerce channels are all driving factors behind this growth.
Competitive Landscape and Recent Developments
The CBD-infused products market includes numerous established and emerging players. Key companies include Canopy Growth Corporation, Aurora Cannabis Inc., Maricann Inc., Tilray Brands, GW Pharmaceuticals, MediPharm Labs, and Cresco Labs. These organizations are actively engaging in research, product innovation, and strategic partnerships to capture market share.
Notable recent developments include the launch of THC+THV uplift gummies by Rare Cannabinoid Company in December 2023. In May 2022, Curaleaf Holdings introduced Select CBD Bites, while Canopy Growth entered the U.S. CBD beverage market in April 2021 through a partnership with Southern Glazer’s Wine & Spirits, launching a line of products under the Quatreau brand.
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