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Cannabidiol
Cannabidiol, also known as CBD, is a substance that can be found in marijuana or hemp, which is a specific strain of the Cannabis sativa plant. Given CBD’s relaxing qualities, it is used to create various products, which are sold in many types of stores across the United States. Some of 2019’s best-selling CBD products sold in U.S. convenience stores included CBD vitamins and sleeping remedies.
CBD products for pets
CBD products come in various forms, such as supplements, beauty products, food, and drinks. While it is not the most common use for the substance, in some instances, CBD comes in the form of pet products. In 2019, the most common types of CBD pet products in the United States were treats and chewies. Approximately ** percent of pet owners in the country had bought such CBD products for their pet(s) that year.
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CBD product manufacturers are fresh from a whirlwind five-year stretch that's seen every primary market driver—input prices, consumer demand and regulation—rapidly evolve. Early pandemic anxiety and shifting wellness priorities sparked surging first-time use, feeding a wave of new manufacturers and fueling unprecedented growth. But as the market matured, rising input costs, abrupt regulatory changes and tightening retailer standards ushered in a tougher, more fragmented playbook. Gone are the days when novelty and mass SKU expansion alone could move the needle. Instead, we're seeing an industry marked by heightened operational discipline, defensive pivots into compliant topicals and ingestibles and a sharp shakeout of less resilient brands. Employment is now consolidated among larger, nimble producers with deep channel partnerships, efficient co-manufacturing relationships and the ability to readjust product mixes quickly. Revenue has been expanding at a CAGR of 8.0% over the past five years, bolstered mainly by early-period, double-digit growth. In 2025, revenue fell 2.5%, totalling $1.3 billion. Leading retailers have installed steep onboarding barriers, demanding bulletproof documentation, QA and supply-chain transparency. Many smaller and early-stage manufacturers—unable to invest in new requirements—are either losing placements or exiting altogether. This gating effect has accelerated the concentration of sales among the best-prepared producers, particularly those specializing in pharmacy- or beauty-channel SKUs. Meanwhile, input price volatility remains a thorn in the industry's side, repeatedly forcing producers to recalibrate pricing, delay launches and reduce promotional activity. These dynamics fuel competitive churn: top operators are scaling up with high-efficiency runs and broader channel access, while less adaptable brands face permanent contraction. The stage is set for a strategic transformation led by pharmaceutical-grade integration, AI-driven personalization and consolidation through 2030. Forward-thinking manufacturers will drive industry evolution by investing in clinical-grade manufacturing, robust data systems and flexible, personalized product lines. Market growth should be steadier, if less meteoric, as an expected set of regulatory reforms around over-the-counter access and supply-chain traceability further favor scalable, compliant leaders. The emergence of a handful of platform-scale producers—armed with the infrastructure to secure premium contracts, rapid manufacturing runs and national retail access—isn't just likely, it's fast becoming a prerequisite for industry dominance. Those able to blend pharmaceutical credibility, operational agility and regulatory foresight are expected to command the lion's share of revenue moving forward. Revenue is forecast to expand at a CAGR of 6.5% over the next five years, reaching $1.7 billion in 2030.
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TwitterIt is expected that U.S. consumer sales of cannabidiol (CBD) will reach around 1.8 billion U.S. dollars by 2022, which would represent a significant increase from around half a billion U.S. dollars in 2018. Following a similar trajectory, sales of legal cannabis in the U.S. are projected to hit 23 billion U.S. dollars in 2025.
What are the benefits of CBD? Cannabidiol is a naturally occurring substance found in cannabis. However, CBD does not cause any of the psychoactive effects that come from another active ingredient found in the plant: tetrahydrocannabinol (THC). The health benefits of the plant extract continue to be examined, and the World Health Organization states that CBD exhibits no effects indicative of any abuse or dependence potential. The CBD retail industry is already flourishing, with a wide range of products marketed as treatments for chronic pain, anxiety, and depression.
CBD in the USA: sales by state With estimated sales of around 730 million U.S. dollars, California had the biggest CBD market in the United States in 2019. Regulations concerning the use of cannabidiols are yet to be clearly defined, and state authorities are having to answer numerous questions about its legality. It is, however, currently illegal under U.S. law to market CBD by adding it to a food or labeling it as a dietary supplement. As of March 2020, the FDA has approved only one CBD product: Epidiolex. The prescription drug is used to treat two rare and severe forms of epilepsy.
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Market Size statistics on the CBD Product Manufacturing industry in the US
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Cannabidiol (CBD) Market Size 2025-2029
The cannabidiol (CBD) market size is forecast to increase by USD 56.5 billion, at a CAGR of 24.8% between 2024 and 2029.
The CBD market is experiencing significant growth, driven primarily by the ongoing legalization and regulatory changes surrounding cannabidiol. This evolving regulatory landscape presents both opportunities and challenges for market participants. On the one hand, increasing legalization allows for broader market access, fostering growth in various end-use industries such as food and beverages, cosmetics, and pharmaceuticals. On the other hand, the high cost of CBD products poses a significant challenge for consumer adoption and market penetration. The e-commerce industry plays a crucial role in the CBD market's growth, enabling brands to reach a wider audience and offering consumers the convenience of purchasing products online.
However, the high cost of CBD products, largely due to production and extraction expenses, may limit market expansion and create barriers for smaller players. To capitalize on market opportunities and navigate challenges effectively, companies must focus on optimizing production costs, exploring alternative extraction methods, and developing innovative, competitively priced products. By addressing these challenges and leveraging the growing demand for CBD, businesses can position themselves for success in this dynamic and rapidly evolving market.
What will be the Size of the Cannabidiol (CBD) Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The CBD market continues to evolve at an unprecedented pace, with new developments and trends emerging constantly. One of the most significant areas of growth is product differentiation, as companies strive to distinguish themselves in a crowded marketplace. CBD for inflammation is a popular application, with many brands offering various forms of CBD, including capsules, gummies, and topicals. Cannabis-derived CBD and hemp-derived CBD are two distinct categories, each with its unique advantages and challenges. The legal framework surrounding CBD is also a dynamic factor, with regulations evolving to accommodate the growing industry. Bioavailability is another critical aspect, with brands investing in research to improve the efficacy of their products through advanced formulation and delivery methods.
Consumer education is essential as the market becomes more complex, with various CBD types, such as broad spectrum and full spectrum, and different extraction methods, such as CO2 and ethanol. Brand awareness and loyalty are also crucial, with companies focusing on sustainable practices, transparency, and competitive pricing strategies to attract and retain customers. CBD's applications extend beyond human health, with the pet market showing significant growth. Pricing strategies vary, with some brands adopting a direct-to-consumer model, while others rely on retail channels and wholesale distribution. Regulations continue to shape the industry, with a focus on ensuring safety and quality, particularly in the areas of labeling, clinical trials, and intellectual property.
The CBD market's continuous evolution reflects the ongoing research and innovation in this field. From CBD oil to CBD vape products, CBD for anxiety to CBD for athletes, the potential applications of CBD are vast and ever-expanding. As the industry matures, it is essential to stay informed about the latest trends, regulations, and consumer preferences to remain competitive and succeed in this dynamic market.
How is this Cannabidiol (CBD) Industry segmented?
The cannabidiol (CBD) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
Source
Marijuana
Hemp
Distribution Channel
Offline
Online
End-user
Medical
Personal use
Wellness
Geography
North America
US
Canada
Mexico
Europe
France
Germany
UK
APAC
China
India
Japan
South Korea
Rest of World (ROW)
.
By Source Insights
The marijuana segment is estimated to witness significant growth during the forecast period.
CBD, a non-psychoactive compound derived from the cannabis plant, has gained significant attention in the health and wellness industry due to its potential therapeutic benefits. Different forms of CBD products cater to various consumer preferences, including capsules, oils, topicals, edibles, vape products, and tinctures. The market for CBD continues to grow rapidly, driven by increasing consumer awareness and acceptance, favorable legal frameworks, and expanding product innovation.
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TwitterNutraceuticals are projected to be the biggest category of cannabidiol (CBD) sales in the United States by 2025. Nutraceuticals are substances such as tinctures and dietary supplement pills.
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The global market size for Cannabidiol (CBD) foods in 2023 is estimated to be $2.1 billion, with an expected growth to $12.9 billion by 2032, reflecting a robust CAGR of 21.1%. This growth is fueled by increasing consumer awareness of the potential health benefits of CBD, as well as the expanding legalization and acceptance of CBD products across various regions globally.
One of the primary factors contributing to the growth of the CBD foods market is the rising awareness about the potential health benefits of CBD. Consumers are increasingly turning to CBD-infused products as an alternative to traditional pharmaceutical solutions for various health issues, including anxiety, chronic pain, and sleep disorders. This growing demand is further amplified by a plethora of studies and anecdotal evidence supporting the efficacy of CBD in promoting overall well-being, thereby driving the market forward.
Another significant growth driver is the evolving regulatory landscape regarding CBD products. Governments worldwide are progressively legalizing and regulating CBD, which has led to an increase in consumer confidence and market penetration. For instance, the Farm Bill in the United States, which legalized hemp-derived CBD, has been a critical milestone in the industry. This legislative encouragement has not only opened new markets but also attracted investments from significant players in the food and beverage industry, thereby boosting market growth.
Furthermore, the innovation and diversification in product offerings are also playing a crucial role in market expansion. Manufacturers are continuously developing new and innovative CBD-infused food products to cater to the varying tastes and preferences of consumers. From beverages and snacks to bakery products and confectionery, the extensive range of CBD-infused products available in the market ensures that there is something for everyone, thus broadening the consumer base and driving sales.
Regionally, North America is expected to lead the market due to the widespread legalization of CBD products and high consumer awareness. Europe also shows significant potential, with countries like the UK and Germany taking progressive steps toward the acceptance and regulation of CBD. The Asia Pacific region, although currently at a nascent stage, is anticipated to witness substantial growth owing to increasing investments and easing regulations. Latin America and the Middle East & Africa are gradually catching up, driven by improved healthcare infrastructure and growing urbanization.
Within the CBD foods market, the product type segment is highly diverse, comprising CBD-infused beverages, snacks, bakery products, confectionery, and others. CBD-infused beverages are one of the most prominent categories, driven by the rising consumer preference for functional beverages that offer health benefits. These beverages, which include everything from water and tea to soft drinks and alcoholic beverages, provide a convenient and enjoyable way for consumers to incorporate CBD into their daily routines. The versatility of CBD beverages makes them appealing to a broad demographic, from health-conscious millennials to older adults seeking natural remedies.
CBD-infused snacks are another significant category, gaining traction particularly among younger consumers and those with busy lifestyles. These snacks, which include items such as gummies, bars, and chips, offer a quick and tasty way to consume CBD. The convenience factor, combined with the growing trend of snacking between meals, makes CBD-infused snacks a popular choice. Additionally, the ability to easily integrate CBD into familiar products like snacks helps to normalize its use, further driving market growth.
The CBD-infused bakery products segment is also experiencing remarkable growth. Products such as bread, cookies, and pastries infused with CBD are becoming increasingly popular, particularly among consumers looking for natural and healthier alternatives to traditional baked goods. The appeal of CBD bakery products lies in their ability to combine indulgence with potential health benefits, making them a hit among both health-conscious individuals and those looking to explore new flavors and experiences.
CBD-infused confectionery, including chocolates and candies, represents another lucrative segment. These products are not only delicious but also provide a discreet and enjoyable way to consume CBD. The confectionery segment is particularly
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According to our latest research, the global CBD market size in 2024 stands at USD 8.2 billion, reflecting robust expansion driven by increasing consumer acceptance and adoption of cannabidiol-based products. The industry is experiencing a strong compound annual growth rate (CAGR) of 21.5% from 2025 to 2033. By the end of 2033, the CBD market is forecasted to reach a value of USD 57.1 billion. This impressive growth trajectory is primarily fueled by the rising demand for natural wellness products, expanding legalization across several countries, and ongoing research supporting the therapeutic benefits of CBD.
One of the key growth factors propelling the CBD market is the increasing awareness and acceptance of CBDÂ’s potential health benefits among consumers. As scientific research continues to validate the efficacy of CBD in managing various health conditions such as anxiety, chronic pain, inflammation, and epilepsy, consumers are increasingly turning to CBD as an alternative or complementary therapy. This shift in consumer behavior is further supported by educational initiatives from both governmental and private organizations, which are dispelling myths and misconceptions about CBD, leading to greater mainstream adoption. Additionally, the proliferation of information through digital platforms and social media has played a pivotal role in educating consumers about the safe and effective use of CBD products, thereby expanding the addressable market.
Another significant driver of the CBD market is the evolving regulatory landscape, particularly the gradual legalization and decriminalization of hemp-derived CBD products across major markets such as North America and Europe. The passage of the 2018 Farm Bill in the United States, which legalized the cultivation of industrial hemp and the extraction of hemp-derived CBD, has been a watershed moment for the industry. This regulatory shift has encouraged a wave of investments, innovation, and new product launches, as businesses seek to capitalize on the burgeoning demand for CBD-infused products. Moreover, the increasing clarity and harmonization of CBD regulations across regions are reducing barriers to entry, fostering cross-border trade, and enabling multinational companies to expand their footprint in the global CBD market.
The diversification of product offerings and the entry of established players from adjacent industries are also catalyzing market growth. The CBD market has evolved beyond traditional oils and tinctures to encompass a wide array of formats, including edibles, topicals, beverages, capsules, and even pet products. This product innovation is attracting a broader consumer base, including those who may have been hesitant to try CBD in its original forms. Furthermore, collaborations between CBD manufacturers and companies in the food, beverage, cosmetics, and pharmaceutical sectors are resulting in the development of novel products with enhanced efficacy and appeal. As a result, the CBD market is not only expanding in terms of volume but also in terms of consumer demographics and use cases, driving sustained growth over the forecast period.
From a regional perspective, North America continues to dominate the global CBD market, accounting for the largest share in terms of revenue and product innovation. The United States, in particular, is at the forefront, benefiting from a favorable regulatory environment, high consumer awareness, and a thriving ecosystem of manufacturers and distributors. Europe follows as the second-largest market, with countries such as the United Kingdom, Germany, and Switzerland witnessing increased legalization and consumer acceptance. Meanwhile, the Asia Pacific region is emerging as a high-growth market, driven by changing regulations, rising health consciousness, and increasing investments in research and development. Latin America and the Middle East & Africa are also showing promising growth potential, albeit from a smaller base, as regulatory frameworks evolve and consumer interest in natural wellness products rises.
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According to Cognitive Market Research, the global cannabidiol (CBD) hemp oil market size was USD 10.3 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 39.8% from 2023 to 2030. Growing Awareness of Health Benefits to Provide Viable Market Output
Cannabidiol (CBD) hemp oil's potential health advantages are becoming more widely recognized, a key factor in the market's expansion. The therapeutic benefits of (CBD) have been highlighted by scientific studies and anecdotal data, including its capacity to ease pain, lessen anxiety, and promote sleep. This increased awareness has sparked a boom in consumer interest, especially among those looking for alternative and natural treatments. (CBD) hemp oil is a viable choice as people become more health-conscious and look for natural wellness methods. The market has grown due to the trend toward preventative healthcare and the desire to use less conventional drugs. Customers are more likely to investigate (CBD) as a non-intoxicating and helpful addition to their wellness regimens.
Market Dynamics of Cannabinoid Hemp Oil
Lack of Regulatory Clarity and Standardization to Hinder Market Growth
Uncertainty is caused by the absence of uniform laws and standards governing (CBD) products for customers and business owners. It can be challenging to understand the complicated regulatory environment resulting from the many ways different nations and regions have adopted to regulate (CBD). While some regions have accepted (CBD) as a wellness product and imposed particular restrictions on its sale and consumption, others continue to impose tougher rules or even outright bans.
Impact of COVID–19 on the Cannabidiol (CBD) Hemp Oil Market
The market for cannabidiol (CBD) hemp oil was affected by the COVID-19 epidemic in different ways. Initially, product availability difficulties were caused by supply chain and retail channel disruptions. However, demand for wellness and stress-relieving items increased during lockdowns, especially (CBD) oil. Direct-to-consumer business strategies and online sales gained popularity. Introduction of Cannabinoid Hemp Oil
Several factors impact the market for hemp oil containing cannabidiol (CBD). The demand is fuelled by growing knowledge of the potential health advantages of (CBD) oil, including its alleged capacity for pain relief and anxiety reduction. Furthermore, market expansion is influenced by legal or decriminalization modifications to (CBD) in various jurisdictions. The expanding trend toward holistic well-being and natural cures also fuels its popularity. The quality of the final product is improved through technological advances in extraction methods. Additionally, the expansion of e-commerce and the accessibility of products broaden market reach. Research into novel applications helps to fuel market expansion. Overall, the market for (CBD) hemp oil is driven by a convergence of legal, consumer, health, and technology reasons.
These developments empower businesses to offer better-tailored solutions and services, which, in turn, contribute to the growth of the Cannabidiol (CBD) Hemp Oil industry.
The use of (CBD) hemp oil is permitted in different nations. As of the most recent news, numerous nations, including the United States, Canada, and several European nations, have legalized (CBD) derived from hemp with less than 0.3% THC (the psychoactive component in cannabis).
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The global food grade CBD beverage market size is poised for significant growth, with expectations to rise from approximately $2.5 billion in 2023 to an estimated $8.9 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of around 15.2% over the forecast period. This impressive growth trajectory is fueled by several key factors, including increasing consumer awareness and acceptance of CBD products, ongoing legalization and regulatory support across various regions, and the rising demand for functional and health-oriented beverages. As consumers become more health-conscious, they are increasingly seeking out beverages that not only quench thirst but also provide additional health benefits, thus propelling the demand for CBD-infused drinks.
A prominent growth factor in the food grade CBD beverage market is the expanding legal acceptance of CBD products across numerous countries. As regulatory frameworks evolve, particularly in North America and Europe, these markets are witnessing a surge in CBD-infused product availability. This regulatory shift has led to the destigmatization of CBD, making it more palatable for mainstream consumers. As a result, companies are investing heavily in the development and marketing of CBD beverages, recognizing that these products appeal not only to traditional cannabis consumers but also to a broader audience seeking wellness benefits. Furthermore, the legal landscape's evolution has enhanced consumers' confidence in CBD products, thereby positively influencing market demand.
Another significant growth driver is the increasing consumer interest in functional beverages, which offer health benefits beyond basic nutrition. CBD-infused beverages are perceived as functional due to their potential health benefits, such as stress relief, improved sleep, and anti-inflammatory properties. This perception is further supported by a growing body of research that highlights CBD's therapeutic potential, thus encouraging more consumers to explore these products. Manufacturers are capitalizing on this trend by innovating and expanding their product portfolios to include a wide range of flavors and formulations, thus catering to diverse consumer preferences and further stimulating market growth.
Technological advancements in beverage processing and formulation also contribute to this market's growth. Companies are investing in research and development to improve the bioavailability and taste profile of CBD beverages, making them more appealing to consumers. Innovations such as nano-emulsification technology are being employed to enhance CBD's absorption in the body, thus ensuring consumers receive the full benefits of these products. These technological enhancements not only improve product efficacy but also broaden the scope of potential applications for CBD beverages, thereby attracting a wider consumer base.
Regionally, the North American market dominates the global landscape, driven by the United States and Canada's progressive stance on cannabis legalization and a high level of consumer awareness. Europe follows closely, with increasing legalization efforts and a burgeoning health and wellness trend that favors the adoption of CBD products. The Asia Pacific region, while currently smaller in market size, presents significant growth opportunities due to its large population base and the gradual adoption of more liberal cannabis policies. Meanwhile, Latin America and the Middle East & Africa are emerging markets, poised for growth as regulatory barriers diminish and consumer acceptance rises.
Cannabidiol(CBD) Living Water is emerging as a popular choice among consumers looking for a refreshing and health-enhancing beverage. This innovative product combines the hydrating benefits of water with the potential therapeutic effects of CBD, offering a unique drinking experience. As consumers become more aware of the benefits associated with CBD, products like CBD Living Water are gaining traction in the market. The convenience and simplicity of this product make it an attractive option for those seeking to incorporate CBD into their daily routines without altering their lifestyle significantly. With its growing popularity, CBD Living Water is poised to become a staple in the functional beverage market, appealing to a wide range of health-conscious consumers.
CBD Water is a burgeoning segment within the food grade C
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The global market size for plant-based cannabidiol (CBD) nutraceuticals was valued at approximately $5.3 billion in 2023 and is expected to reach a valuation of $22.3 billion by 2032, exhibiting a promising compound annual growth rate (CAGR) of 17.2% over the forecast period. This robust growth trajectory is primarily driven by the increasing consumer demand for natural and plant-based health supplements, coupled with the expanding awareness about the potential health benefits of CBD. The rising inclination towards alternative and complementary medicine, as well as the growing acceptance of CBD products across various demographics, further fuel the market's expansion.
The surge in interest in plant-based CBD nutraceuticals is largely attributed to the rising awareness regarding the therapeutic benefits of cannabidiol. As consumers become more educated about the potential health advantages of CBD, such as its anti-inflammatory, analgesic, and anxiolytic properties, there is a significant increase in its use for both preventive and remedial health purposes. The shift towards natural and organic products, driven by the global wellness trend, has further accelerated the market's growth. Consumers are actively seeking out products that align with their preferences for sustainable and eco-friendly options, creating lucrative growth opportunities for businesses operating in the CBD nutraceuticals sector.
Another critical growth factor for the plant-based CBD nutraceuticals market is the evolving regulatory landscape. In recent years, many countries have taken steps to legalize or decriminalize CBD products, recognizing their potential health benefits and the economic advantages of a regulated CBD industry. This regulatory shift has not only opened up new markets but has also facilitated the entry of new players, thereby increasing the availability of a wide range of CBD-infused products. Furthermore, the investment in research and development within this sector has led to innovative product formulations, enhancing product efficacy and consumer trust.
The growing application of plant-based CBD nutraceuticals in the field of health and wellness is also a significant driver of market growth. CBD products are increasingly being used to manage a variety of health conditions, including chronic pain, anxiety, sleep disorders, and general wellness. The demographic shifts, such as the ageing population and growing health consciousness among adults, have further fueled demand. As consumers seek out natural alternatives to traditional pharmaceuticals, CBD nutraceuticals are positioned as an appealing option for those looking for safer, more natural remedies.
Regionally, North America holds a dominant position in the plant-based CBD nutraceuticals market, owing to the progressive legalization of cannabis-derived products and the presence of a large health-conscious consumer base. The region's mature market, coupled with a robust distribution network and high investment in marketing and product development, supports its continued growth. In the Asia Pacific region, the market is gaining traction due to increasing disposable incomes and rapid urbanization, along with the gradual acceptance of CBD products. Meanwhile, Europe is witnessing steady growth driven by supportive government policies and rising awareness of CBDÂ’s benefits. In Latin America and the Middle East & Africa, growth is more gradual, influenced by changing regulatory standards and growing consumer interest.
The product type segment in the plant-based CBD nutraceuticals market is diverse, comprising oils, capsules, gummies, and other innovative formats. CBD oils have established themselves as a staple in the nutraceutical market due to their versatility and ease of use. They can be consumed directly or added to food and beverages, making them an attractive option for consumers seeking flexibility in their CBD intake. The high bioavailability of oils also means that they are quickly absorbed into the bloodstream, offering rapid relief and making them a preferred choice for pain management and anxiety relief. The market for CBD oils continues to grow as companies innovate with new formulations and flavors to meet consumer demand.
Capsules represent another significant segment within the plant-based CBD nutraceuticals market, appealing to consumers seeking precise dosing and convenience. Capsules are particularly popular among consumers who are new to CBD, as they offer a familiar and straightforward method of consump
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