Europe Cannabidiol (CBD) Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Sales Type (B2B, B2C), By End-use (Medical, Personal Use), By Region, And Segment- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The europe cannabidiol (CBD) market size was estimated at USD 409.90 million in 2023 and is projected to hit around USD 4,101.43 million by 2033, growing at a CAGR of 25.9% during the forecast period from 2024 to 2033.

Key Takeaways:

• The European CBD market is expected to record lucrative growth with a CAGR of 25.9% over the forecast period
• In 2023, hemp dominated the market and generated 56.16% of the revenue.
• In B2B end-use, pharmaceuticals accounted for the largest revenue share of 74.19% in 2023.
• B2B segment dominated the market and accounted for the largest revenue share of 56.12% in 2023.
• The hospital pharmacies sub-segment within B2C is predicted to see substantial growth in the future.

Market Overview

The Europe Cannabidiol (CBD) market is evolving rapidly, emerging as one of the most dynamic consumer health and wellness sectors on the continent. Driven by regulatory liberalization, heightened consumer awareness, and innovations in formulation and application, the market has entered a new phase of maturity and diversification. CBD, a non-psychoactive compound derived from cannabis plants, is increasingly recognized for its therapeutic benefits in areas such as chronic pain, anxiety, inflammation, sleep disorders, epilepsy, and skincare.

Europe, with its patchwork of regulatory frameworks and diverse consumer bases, presents both challenges and opportunities for CBD businesses. Countries like the UK, Germany, and Switzerland are leading the way in terms of market size and progressive regulation, while other nations are slowly adapting their legislation to align with evolving EU standards. The European Food Safety Authority (EFSA) has played a crucial role in evaluating CBD as a novel food, providing a pathway for food and beverage products containing CBD to enter the legal market.

Companies across the value chain from cultivators and extractors to pharmaceutical firms, cosmetic brands, and nutraceutical startups are exploring CBD’s potential in functional wellness, personal care, and medical formulations. The growing inclusion of CBD in mainstream retail and pharmacy chains, coupled with an explosion in online sales, reflects its growing normalization in the European consumer mindset.

Major Trends in the Market

• Normalization of CBD in Consumer Wellness: CBD is increasingly positioned alongside vitamins and adaptogens in wellness aisles and e-commerce platforms.

• Pharmaceutical Expansion and Medical Research: Growing clinical trials and regulatory approvals are helping reposition CBD as a medically viable therapeutic.

• Shift Toward Hemp-Derived CBD: Legal clarity and EU agricultural policies are favoring hemp as the preferred source for compliant CBD production.

• Rise of B2C E-commerce Channels: Direct-to-consumer (DTC) brands are dominating with subscription models, influencer marketing, and personalized wellness solutions.

• Product Innovation in Edibles and Beverages: Companies are launching CBD-infused gummies, sparkling waters, protein bars, and tinctures with enhanced bioavailability.

• Focus on Sustainability and Organic Certification: Consumers are demanding transparency in sourcing and production, driving organic hemp farming and clean label CBD products.

• Market Consolidation and Cross-Sector Partnerships: Traditional pharma, FMCG, and cosmetics players are entering the CBD space through acquisitions and joint ventures.

Europe Cannabidiol (CBD) Market Report Scope

Key Market Driver: Expanding Applications in Wellness and Pharmaceuticals

One of the most influential drivers of the Europe CBD market is the broadening scope of application across both wellness and pharmaceutical domains. Initially introduced through oils and tinctures for general well-being, CBD products are now found in food and beverage aisles, skincare shelves, fitness recovery kits, and even prescription counters.

For example, GW Pharmaceuticals’ Epidiolex, a CBD-based drug approved by both the U.S. FDA and European Medicines Agency (EMA) for epilepsy, has legitimized the medical use of cannabidiol. Simultaneously, wellness-focused consumers are turning to CBD to manage anxiety, muscle soreness, and insomnia especially in the wake of the COVID-19 pandemic which heightened interest in mental and immune health.

The dual utility of CBD backed by scientific research and consumer testimonials has created a robust demand curve that appeals to medical professionals, alternative health seekers, and mainstream consumers alike.

Key Market Restraint: Fragmented Regulatory Landscape

Despite growing momentum, a significant restraint in the European CBD market is the lack of regulatory uniformity across member states, which complicates market entry and scale for businesses. While the European Union classifies CBD as a novel food, each country has discretion in how to implement and enforce this policy.

For example, France banned CBD flowers, while Italy and Germany allow them under certain conditions. The UK, post-Brexit, introduced its own “CBD Novel Food List,” creating further compliance hurdles for exporters and manufacturers. These disparities affect everything from packaging and marketing to dosage limits and point-of-sale legality.

For companies operating across multiple countries, this means navigating a maze of licensing, labelling, testing, and enforcement variations raising operational costs and legal risks, especially for startups and SMEs.

Key Market Opportunity: Rise of Functional Foods and Beverages

A major opportunity lies in the intersection of CBD with the functional food and beverage market, which is expected to experience exponential growth over the next decade. As health-conscious consumers look for ways to manage stress, inflammation, and digestion through diet, CBD-infused consumables offer a compelling solution.

Innovations include CBD-infused herbal teas, sparkling waters, chocolates, granola bars, and non-alcoholic beverages, marketed as part of a healthy daily ritual. In Germany and the UK, retailers are already placing CBD beverages alongside natural health products, while in the Netherlands and Switzerland, local bars and cafés serve CBD-enhanced cocktails and lattes.

This convergence with established consumer behaviors offers a powerful scalability path for CBD companies, especially when paired with other functional ingredients like turmeric, magnesium, melatonin, and probiotics.

Segments Insights:

By Source Type

Hemp-derived CBD dominates the European market due to its favorable regulatory status, non-psychoactive profile, and agricultural incentives under the EU’s Common Agricultural Policy (CAP). Since hemp contains less than 0.2% THC (tetrahydrocannabinol), it meets the legal thresholds in most countries, making it the go-to source for CBD manufacturers. Hemp cultivation is supported in countries like France, Poland, and the Netherlands, leading to a stable and scalable supply chain.

Marijuana-derived CBD is growing, particularly in the medical segment where higher THC concentrations are permitted under prescription use. Countries such as Germany and the Czech Republic allow marijuana-derived cannabinoids for specific indications, but these products are tightly regulated, limiting their commercial reach in B2C markets. However, with ongoing trials and pilot programs, this segment may see expansion in the pharmaceutical and therapeutic sectors.

By Sales Type

B2C channels dominate the CBD market, especially through online and retail stores targeting wellness and personal care consumers. Online platforms have become a critical distribution point, enabling brands to directly engage customers with educational content, reviews, and subscription offers. Retail pharmacies and wellness boutiques also contribute significantly, offering CBD oils, skincare, and supplements alongside traditional products.

B2B sales are the fastest-growing, driven by partnerships between CBD producers and end-use industries such as pharmaceuticals, cosmetics, nutraceuticals, and food & beverage manufacturers. Ingredient-level sales of CBD isolates and full-spectrum extracts are enabling mass-market product formulation, especially in personal care and functional food brands seeking differentiation through plant-based health claims.

By End-use

Medical applications dominate, including treatment for chronic pain, mental health conditions, and neurological disorders. CBD's anti-inflammatory and neuroprotective effects have led to increased prescription and clinical use, particularly in Germany, where over 100,000 patients are estimated to use CBD therapeutically. Clinical trials continue to evaluate its impact on epilepsy, cancer-related pain, and PTSD, further reinforcing its legitimacy in medical use.

Wellness is the fastest-growing segment, especially in personal care, food & beverages, and nutraceuticals. Consumers are embracing CBD for its calming effects, anti-aging potential, and ability to support holistic health. Beauty brands across France and the UK have launched full CBD skincare lines, while Dutch bakeries, cafés, and health bars include CBD in daily menus. As demand for non-invasive, preventive care grows, wellness use of CBD is expected to outpace medical and pharmaceutical categories.

Country-Level Analysis: United Kingdom, Germany, Netherlands, Switzerland, Italy, France, Poland, Czech Republic, Croatia

United Kingdom

The UK is a key CBD market leader, having implemented a structured novel food application process post-Brexit. As of 2025, over 900 CBD products were awaiting approval from the Food Standards Agency (FSA), giving the market a clearer path than most EU countries. British consumers are also more accepting of CBD, especially in the wellness and beauty sectors. Domestic startups like Cannaray and CBDfx UK are driving innovation in branding and distribution.

Germany

Germany has the most advanced medical CBD infrastructure in Europe. The legal framework for cannabis-based medicines allows pharmacies to dispense CBD under prescription for chronic illnesses. Reimbursement policies and a well-organized health insurance system further support market stability. Additionally, Germany is likely to drive legislative reform for broader CBD commercialization, especially in light of ongoing adult-use cannabis legalization discussions.

Recent Developments

• April 2025 – Canopy Growth launched a new line of CBD beverages in the UK in partnership with BioSteel, targeting sports and recovery markets.

• March 2025 – Aurora Europe GmbH received approval to supply pharmaceutical-grade CBD oil to German pharmacies for epilepsy and palliative care use.

• February 2025 – HemPoland (a subsidiary of The Green Organic Dutchman) expanded its CBD production facility in Poland to increase B2B supply capacity.

• January 2025 – Cibdol, a Swiss CBD brand, introduced its first AI-enabled online diagnostic tool to help customers select CBD products based on health goals.

• December 2024 – KannaSwiss collaborated with a French cosmetic company to co-launch a premium CBD-infused skincare line for European markets.

Key Europe CBD Companies:

The following are the leading companies in the Europe cannabidiol market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these Europe cannabidiol companies are analyzed to map the supply network.

• Jazz Pharmaceuticals
• Canopy Growth Corporation
• Tilray
• Aurora Cannabis
• Maricann, Inc.
• Organigram Holding, Inc.
• Isodiol International, Inc.
• Medical Marijuana, Inc.
• Elixinol
• NuLeaf Naturals, LLC
• Cannoid, LLC
• CV Sceiences, Inc.
• CHARLOTTE’S WEB.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the Europe Cannabidiol (CBD) market.

By Source Type 

• Hemp
• Marijuana

By  Sales Type 

• B2B
  • By End-use
    • Pharmaceuticals
    • Wellness
      • Food & Beverages
      • Personal Care & Cosmetics
      • Nutraceuticals
      • Others
• B2C
  • By Sales Channel
    • Hospital Pharmacies
    • Online
    • Retail Stores
  • By End-use
    • Medical
      • Chronic Pain
      • Mental Disorders
      • Cancer
      • Others
    • Personal Use

By End-use 

• Medical
  • Chronic Pain
  • Mental Disorders
  • Cancer
  • Others
• Personal Use
• Pharmaceuticals
• Wellness
  • Food & Beverages
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

By Regional 

• Europe
  • UK
  • Germany
  • Netherlands
  • Switzerland
  • Italy
  • France
  • Poland
  • Czech Republic
  • Croatia