Home » Food & Beverage » CBD Snacks Market

CBD Snacks Market By Source Type (Marijuana, Hemp); By Type (Bars, Gummies, Cookies, Others); By Flavor Outlook (Berry, Chocolate, Citrus, Others); By End-User (Pharmaceutical, Healthcare, Personal Care, Cosmetics, Others); By Distribution Channel (B2B, B2C); By Region – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Name: CBD Snacks Market - Demand, Size and Competitive Analysis
Creator: Credence Research
Published: 2024-02-17
License: https://www.credenceresearch.com/info/privacy-policy
Keywords: CBD Snacks Market

Summary
Table Of Content

REPORT ATTRIBUTE	DETAILS
Historical Period	2019-2022
Base Year	2023
Forecast Period	2024-2032
CBD Snacks Market Size 2023	USD 815.07 Million
CBD Snacks Market, CAGR	12.99%
CBD Snacks Market Size 2032	USD 2165.14 Million

Market Overview

The cannabidiol (CBD) snack market has emerged as one of the fastest-growing segments within the overall CBD industry. As the legal status and awareness of CBD products expand globally, the market for ingestible CBD in snack formats has witnessed remarkable growth over the past five years. The global CBD snack market was valued at $ 815.07 million in 2023 and is projected to grow at an impressive CAGR of 12.99% to reach $ 2165.14 million by 2032.

The growth in this market is primarily driven by increasing consumer awareness regarding the health and wellness benefits of CBD and its adoption into daily lifestyles. CBD is a non-psychoactive compound extracted from the hemp plant. Snack formats like gummies, chocolates, nuts, dried fruits, protein bars, cookies, and chips infused with CBD have surged in popularity owing to their ease of consumption. The anxiety- and stress-alleviating properties of CBD make it suitable for on-the-go snacking. This has attracted interest from health-conscious consumers looking for functional food options.

North America currently leads the global demand for CBD snacks, holding over 60% of the market in 2022. Early CBD legalization and familiarity with cannabis in the US and Canada have fueled product development and consumer acceptance. However, the market remains largely unregulated, with quality and dosage inconsistencies across brands. Asia-Pacific is expected to expand at the fastest CAGR of above 30% until 2032. Increasing expendable incomes and progressive legislative reforms regarding cannabis use in countries like China, Thailand, and Australia provide major upside for the APAC CBD snack space.

The competitive intensity of this nascent market is anticipated to increase exponentially. Strategic initiatives like innovative flavor introductions, research partnerships, and aggressive marketing campaigns characterize their expansion strategies. New players will need to differentiate themselves on quality certifications, competitive pricing, and strong distribution networks to tap growth opportunities as the market matures over the next decade.

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Key market drivers

Consumer Shift Towards Health and Wellness Products

The growth of the cannabidiol (CBD) snack market is significantly propelled by a global consumer shift towards health and wellness products. This shift is primarily due to an increased awareness of CBD’s health benefits, including its therapeutic properties for pain relief, anxiety and stress reduction, and improved sleep quality. As consumers increasingly seek natural, non-pharmaceutical solutions to manage stress, anxiety, sleep disorders, and inflammation, CBD-infused snacks have emerged as a convenient and appealing option. This demand is bolstered by a growing body of research highlighting CBD’s potential health benefits, such as its anti-inflammatory, analgesic, and neuroprotective properties. The popularity of CBD snacks among health-conscious consumers is evident as they integrate these functional snacks, like gummies and protein bars, into their daily routines or as on-the-go solutions, thereby driving up demand.

Legalization and regulatory changes

Another pivotal factor driving the CBD snack market is the ongoing legalization and regulatory changes surrounding cannabis and its derivatives. The legal landscape for CBD is progressively becoming more favorable worldwide, thereby expanding access and encouraging manufacturers to introduce snack products infused with CBD. Notable regulatory milestones, such as the 2018 US Farm Bill, have played a crucial role in distinguishing between marijuana and industrial hemp (the primary source of CBD), catalyzing market growth by providing a legal framework that supports investment in product development, retail distribution, and consumer marketing. Countries like Canada, certain US states, the UK, parts of the EU, Australia, and New Zealand now permit CBD in specified food formulations, subject to composition and labeling norms. These changes have not only increased the availability of CBD snacks but have also spurred innovation in snack types, flavors, certifications, and dosage variations, allowing companies to differentiate their offerings and solidify their presence in the market. As regulations continue to evolve, the industry is poised for an influx of innovative CBD-infused snack products, further stimulating consumer interest and market expansion.

Key market restraints

The automotive industry faces several notable market restraints that have the potential to hinder growth and progress. One major restraint is the ongoing global semiconductor chip shortage, which has severely disrupted automotive manufacturing and resulted in diminished inventories at dealerships. This chip crisis emerged due to the COVID-19 pandemic and a surge in consumer demand for electronics. It has forced many automakers to cut production as they cannot obtain enough semiconductors to produce vehicles according to plan. Until the supply of chips normalizes, the automotive market will face suppressed inventory levels unable to adequately meet vigorous consumer demand.

Another considerable market restraint involves rising raw material and supply chain costs in the wake of the pandemic and geopolitical tensions. Prices have surged for essential automotive materials like steel, aluminum, and plastic resins. Additionally, the war in Ukraine has strained access to necessary wiring harnesses supplied from the region. At the same time, transportation and labor expenses have mounted. Automakers have struggled to manage escalating overall production costs as a result. To maintain profit margins, most OEMs have had no choice but to raise new vehicle asking prices considerably—a trend that risks diminishing market demand among cost-conscious buyers.

Market Opportunities

Expansion into New Geographies: As more countries legalize CBD, there’s a significant opportunity for market players to expand into new geographies, tapping into untapped consumer bases.
Product Innovation and Diversification: There’s a continuous demand for innovative and diversified products. Companies can explore various flavors, formats, and CBD dosages to cater to different consumer preferences.
Strategic Partnerships: Forming partnerships with existing food and beverage companies can offer CBD snack brands better distribution networks and increased brand credibility.
Educational Marketing: By investing in educational marketing, companies can demystify CBD’s health benefits, addressing consumer skepticism and promoting informed purchase decisions.
Sustainability and Ethical Sourcing: Emphasizing sustainable and ethical sourcing of CBD and other ingredients can appeal to environmentally conscious consumers.
Subscription Services: Subscription models can build brand loyalty and provide consumers with convenient, regular deliveries of their favorite CBD snacks.
Tailored Products for Specific Health Concerns: Developing products tailored to specific health concerns (e.g., sleep, anxiety, pain relief) can attract a niche but highly engaged customer segment.

Interesting Facts About the Market

CBD snacks have shown higher consumer retention rates compared to traditional snacks, attributed to their perceived health benefits.
Recognizable names in the food and beverage industry are starting to invest in CBD-infused products, signaling confidence in the market’s growth potential.
There’s a notable increase in vegan and gluten-free CBD snacks, aligning with broader dietary trends.
Online sales of CBD snacks have skyrocketed, thanks to the convenience and discrete nature of purchasing such products.
Companies are investing in innovative, child-proof, and sustainable packaging solutions to differentiate their products.
Several celebrities have endorsed CBD snacks, significantly boosting their popularity and market entry.
There’s a growing trend towards locally sourced ingredients for CBD snacks, enhancing product appeal through authenticity and sustainability.
CBD-infused beverages are becoming increasingly popular as a complement to solid snacks, offering hydration with the benefits of CBD.
Events like the COVID-19 pandemic have accelerated market growth, with more consumers seeking products that offer stress relief and wellness benefits.
Many companies are launching educational platforms and campaigns to inform consumers about the benefits and safety of CBD snacks.

Top Leading Players

The CBD snack market features a mix of startups and established companies, including:

Weller
cbdMD
PureKana
Diamond CBD
Green Gorilla
PlusCBD Oil
Medterra
Joy Organics
Elixinol
JustCBD
Koi CBD
Charlotte’s Web
Verma Farms
CBDfx
Lord Jones
Sun State Hemp
Green Roads
Kiva Confections
Hemp Bombs
CBDFx

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Competitive Landscape

The CBD snack market is highly competitive, with companies vying for market share through product innovation, quality, branding, and consumer education. The market is characterized by a blend of CBD-specific brands and traditional food and beverage companies entering the space. Competitive strategies include collaborations with influencers, investment in quality certifications, and leveraging online platforms for direct-to-consumer sales.

Segmentations:

Source Types

Marijuana
Hemp

Types

Bars
Gummies
Cookies
Others

Flavor Outlook

Berry
Chocolate
Citrus
Others

End-users

Pharmaceutical
Healthcare
Personal Care
Cosmetics
Others

Distribution Channels

By Region

North America
- The U.S.
- Canada
- Mexico
Europe
- Germany
- France
- The U.K.
- Italy
- Spain
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
Latin America
- Brazil
- Argentina
- Rest of Latin America
Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa

The largest market share in the CBD industry is held by health and wellness consumers. This broad category includes individuals seeking natural remedies for pain management, anxiety and stress reduction, sleep improvement, and general wellness. The appeal of CBD products, including snacks, to this demographic is largely due to their perceived health benefits and the growing consumer preference for natural, plant-based supplements over pharmaceuticals.

Regional Analysis

The CBD snack market has witnessed substantial growth in recent years, owing to the increasing awareness of CBD’s health and wellness benefits. However, demand has varied notably across different regions. North America holds the highest share of the global CBD snack market presently. The legalization of cannabis products across Canada and many US states has enabled the proliferation of CBD-infused snacks. Major players have established production facilities in these regions to capitalize on the growing consumer appetite for CBD as a functional food ingredient. The North American CBD snack market is poised for a 7.8% CAGR over the next six years.

The European CBD snack market follows North America in terms of market value. Countries like the UK, Germany, and Austria have led the way in releasing CBD food regulations that allow the addition of CBD to snacks. Younger demographics across Europe have especially shown interest in CBD snacks as instant energy providers and stress relievers. However, the current ambiguity around EU-wide CBD regulations has restrained European market growth. Asia Pacific presents expanding opportunities as countries like China and India explore regulating CBD. Significant upticks in consumer expendable incomes and snacking culture hold strong growth potential if regulatory roadblocks can be navigated.

Latin American countries also display notability within the CBD snack market for early-adopted legalization policies. Mexico has emerged as an ideal launching point for hemp cultivation and CBD food research investments in Central and South America. Brazil legalized CBD-based products in 2015, while Peru, Argentina, and Chile have cultivated lucrative consumer CBD snack markets. Advantageous farming conditions for hemp crops also spotlight their potential across Latin American countries. As regulations advance to promote trade, the Latin America region will offer lucrative incentives for global CBD snack brands.

Future Outlook

Regulatory Clarity: Improved regulatory frameworks will likely enhance market stability and growth.
Global Expansion: As more countries legalize CBD, international expansion will become a key growth vector.
Consumer Education: Continued investment in consumer education will be crucial for dispelling myths and promoting informed choices.
Innovation in Formulations: New and improved formulations that enhance the bioavailability and efficacy of CBD in snacks are expected.
Integration of Technology: The use of blockchain for transparency and AI for consumer insights could revolutionize product development and marketing.
Focus on Mental Health: With rising awareness of mental health, CBD snacks aimed at stress relief and relaxation will see increased demand.
Collaborations with Healthcare: Partnerships with healthcare providers could open new avenues for medically endorsed CBD snack products.
Sustainability Practices: The emphasis on sustainable production and packaging will become increasingly important to consumers.
Expansion of Product Range: Beyond snacks, the integration of CBD into a broader range of food and beverage products is anticipated.
Customization and Personalization: Tailored CBD snack options based on individual health needs and preferences will likely gain traction.

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