Europe CBD Oil Market

Europe CBD Oil Market Size:

The Europe CBD oil market size reached US$ 721 Million in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 3,451.2 Million by ​2032​, exhibiting a growth rate (CAGR) of 18.65% during 2024-2032. The increasing awareness of the health benefits of CBD, the rising use of CBD in wellness products, favorable regulatory changes in the region, the growing demand for natural and plant-based products, and the rising acceptance of CBD for pain management, anxiety, and sleep disorders are propelling the market growth across the region.

Europe CBD Oil Market Analysis:

• Major Market Drivers: The rising consumer interest in natural health and wellness products represents the major driver of the market. As awareness of CBD's potential benefits for pain management, anxiety relief, and sleep disorders grows, the demand has increased significantly. Regulatory changes across Europe, such as the legislation of CBD products in several countries have opened new markets and attracted investment.
• Key Market Trends: The growing shift toward high-quality, full-spectrum products that offer a wider range of cannabinoids and terpenes, enhancing therapeutic effects represents the key trend of the market. The market is also witnessing increased product diversification, with CBD being integrated into edibles, beverages, and skin care products. According to the Europe CBD oil industry overview, e-commerce platforms are becoming crucial distribution channels, offering consumers greater accessibility and variety.
• Competitive Landscape: Some of the major market players in the Europe CBD oil industry include Aurora Cannabis, Diamond CBD Inc., ENDOCA, APHRIA Inc., ConnOils LLC, Elixinol Global Limited, Emblem CANNABIS, NuLeaf Naturals, LLC, CBD Ultra Limited and The Original Alternative Limited, among many others.
• Challenges and Opportunities: The market faces several challenges including strict and varying regulations across countries, which create market entry barriers and complicate compliance for manufacturers. However, the market also faces various opportunities including the growing demand for natural wellness products and research increasingly supports CBD’s therapeutic benefits.

Europe CBD Oil Market Trends:

Increasing Consumer Awareness and Demand for Natural Health Products

Consumers are becoming more aware of the potential health benefits of CBD oil for managing pain, anxiety, inflammation, and sleep disorders. For instance, in May 2024, the second edition of the Cannabis Breakfast on the regulation of industrial hemp in Spain was held in Madrid. It was a session organized by the CannabisHub and the 21st Century Drug Chair, to promote education, responsible regulation, and innovation around the cannabis sector for the development of an ethical and sustainable industry. The regulation of hemp has gained special relevance in Spain in recent days due to the favorable comments by the president of the Community of Madrid regarding the sale of CBD. This is leading to an increase in the demand for natural and alternative health products, including CBD oil, as part of wellness and self-care routines, thus driving the demand for CBD oil in Europe.

Rising Favorable Regulatory Changes

Recent regulatory shifts across Europe, including the legalization and reclassification of CBD as a non-narcotic substance in several countries, have created a more supportive environment for CBD oil sales and distribution. For instance, in April 2024, Germany became the biggest EU country to legalize recreational cannabis, despite fierce objections from opposition politicians and medical associations. Under the first step in the much-debated new law, adults over 18 are now allowed to carry 25 grams of dried cannabis and cultivate up to three marijuana plants at home. These changes are further opening new markets and encouraging investment from both local and international companies, which is expected to boost the Europe CBD oil market scope over the coming years.

Expansion of Product Offerings and Distribution Channels

The market is experiencing growth due to the increased availability of diverse CBD oil products, such as tinctures, edibles, capsules, and skincare products. For instance, Dr. Hemp Me in Germany provides quick and efficient delivery of quality CBD products. Using their courier partners all orders are shipped the same day, once ordered before 2.30 pm and a business day. Delivery within Germany takes up to 3 business days typically in total. Furthermore, according to industry reports, Barcelona’s old city has been overrun by outlets selling cannabis paraphernalia that are getting around tight zoning restrictions by registering as florists. In recent years, so-called weed shops have sprung up all over the city but are mainly concentrated in Ciutat Vella, the oldest part of the city and the area most popular with tourists. Additionally, the rise of e-commerce and specialized retail stores has made CBD oil more accessible to a broader range of consumers, thus further driving the Europe CBD oil market growth.

Europe CBD Oil Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on source, product type, product category, application, and distribution channel.

Breakup by Source:

• Marijuana Based
• Hemp Based
   

Marijuana based accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the source. This includes marijuana based and hemp based. According to the report, marijuana based represented the largest segment.

The demand for marijuana-based CBD oil in the Europe market is driven by increasing legalization and regulatory acceptance of cannabis for medicinal use. The consumer demand for natural remedies for pain, anxiety, and sleep disorders also fuels growth. Additionally, advancements in cultivation and extraction technologies have improved product quality and consistency. The growing awareness and acceptance among healthcare professionals and patients further aid in expanding the market scope, as does the growth in product offerings and improved accessibility through e-commerce and specialized retailers.

Breakup by Product Type:

• Inorganic
• Organic
   

A detailed breakup and analysis of the market based on the product type have also been provided in the report. This includes inorganic and organic.

Inorganic CBD oil refers to products made from hemp that have been cultivated using conventional farming methods, often involving synthetic fertilizers, pesticides, and herbicides. These practices aim to increase yield and control pests but may introduce chemical residues. In the European market, inorganic CBD oils are generally less expensive but are not certified organic, impacting their appeal to health-conscious consumers.

Organic CBD oil is derived from hemp grown without synthetic chemicals, pesticides, or genetically modified organisms (GMOs). Certified organic farming practices ensure a natural cultivation process, often enhancing the purity and quality of the final product. In the European market, organic CBD oils are preferred by consumers seeking more natural, environmentally friendly options and products free from harmful residues.

Breakup by Product Category:

• Flavoured
• Unflavoured
   

Unflavoured represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the product category. This includes flavoured and unflavoured. According to the report, unflavoured represented the largest segment.

The demand for unflavoured CBD oil in the Europe market is driven by consumers seeking a pure, natural product without additives or artificial flavors. Many prefer unflavoured CBD oil for its versatility, which allows them to add it to food and beverages without altering taste. Additionally, health-conscious consumers often choose unflavored products to avoid allergens or ingredients that may cause sensitivity. The preference for a more authentic hemp experience contributes to the popularity of unflavored CBD oils.

Breakup by Application:

• Food and Beverages
• Personal Care
• Healthcare
• Nutraceuticals
• Others
   

Nutraceuticals exhibits a clear dominance in the market

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes food and beverages, personal care, healthcare, nutraceuticals, and others. According to the report, nutraceuticals accounted for the largest market share.

The growth of CBD oil in nutraceuticals across Europe is driven by the increasing consumer demand for natural health supplements and wellness products. CBD oil's perceived benefits, such as reducing anxiety, alleviating pain, and improving sleep, appeal to health-conscious consumers seeking alternative therapies. Additionally, the expanding body of scientific research supporting CBD's therapeutic effects enhances its credibility in the nutraceutical sector. Regulatory acceptance and the rising popularity of plant-based supplements also play a crucial role in shaping the Europe CBD oil market dynamics.

Breakup by Distribution Channel:

• Direct
• Indirect
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes direct and indirect.

One of the major factors driving the growth of direct distribution channels in the market is manufacturers seeking greater control over branding, pricing, and customer experience. Direct channels enable companies to establish direct consumer relationships, gather valuable feedback, and respond swiftly to market trends. The increasing use of e-commerce platforms also facilitates broader reach and convenience for customers.

The rising need for wider market access and distribution efficiency is one of the major factors driving the growth of indirect distribution channels in the market. Collaborating with wholesalers, distributors, and retailers helps manufacturers penetrate various market segments and regions. Established networks of intermediaries provide credibility, enhance brand visibility, and reach consumers through trusted retail outlets, including pharmacies and health stores.

Breakup by Country:

• Germany
• Spain
• Italy
• France
• United Kingdom
• Russia
• Rest of Europe
   

France leads the market, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major markets in the region/country, which include Germany, Spain, Italy, France, the United Kingdom, Russia, and the rest of Europe. According to the report, France was the largest market for CBD oil in Europe.

The increasing consumer awareness of CBD’s health benefits, such as reducing anxiety, pain relief, and improving sleep is driving the Europe CBD oil market, particularly in France. The growing acceptance of natural wellness products and favorable regulatory changes have boosted market demand. In line with this, the expansion of distribution channels, including pharmacies and specialized health stores, has made CBD oil more accessible to consumers. The rising trend of holistic health and wellness further supports the growth of the CBD oil market in France.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided. Some of the major market players in the Europe CBD oil industry include Aurora Cannabis, Diamond CBD Inc., ENDOCA, APHRIA Inc., ConnOils LLC, Elixinol Global Limited, Emblem CANNABIS, NuLeaf Naturals, LLC, CBD Ultra Limited and The Original Alternative Limited, among many others.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The Europe CBD oil market is highly competitive, with numerous local and international players vying for market share. Key companies such as Canopy Growth, Aurora Cannabis, and Elixinol are prominent, leveraging their global presence and extensive product portfolios. Local brands like Cibdol and Love Hemp focus on high-quality, full-spectrum products and cater to niche markets. The competitive landscape is shaped by stringent regulatory standards, pushing companies to innovate and ensure product quality and transparency. Emerging brands are increasingly targeting specific customer needs, such as wellness and skin care, while established companies are expanding distribution channels through e-commerce and retail partnerships to enhance market reach. For instance, in May 2024, Curaleaf International announced its official partnership as a founding member of a groundbreaking task force aimed at positioning the UK as a global leader in cannabis and cannabinoid research.

Europe CBD Oil Market News:

• In August 2024, Dalgety, one of the UK's leading medical cannabis cultivators, achieved a significant milestone by securing a Home Office license to supply medical cannabis within the UK.
• In December 2023, The Association for the Cannabinoid Industry (ACI) formed the Green Bridge Gateway, composed of the Global Regulatory Services (GRS), ADSL, Shweed and US-based Chem ID. The network of service providers will pool its global cannabinoid (CBD) expertise to benefit the UK and EU CBD markets.

Europe CBD Oil Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe CBD oil market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Europe CBD oil market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe CBD oil industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.