CBD Infused Confectionery Market Size, Share & Industry Analysis, By Category (Gummies, Hard Candies, Chocolates, and Others), By Concentration (THC-Dominant, THC & CBD Balanced, and CBD-Dominant), By Distribution Channel (Offline and Online), and Regional Forecast, 2024-2032

The global CBD infused confectionery market size was valued at USD 3.86 billion in 2023. The market is projected to grow from USD 4.41 billion in 2024 to USD 14.67 billion by 2032, exhibiting a CAGR of 16.21% during the forecast period. North America dominated the CBD Infused confectionery market with a market share of 86.01% in 2023.

CBD or Cannabidiol-infused confectionery are a type of confectionery products, such as gummies, candies, and chocolates, containing cannabidiol extracts, which help to manage anxiety and make users feel more relaxed and calm. The increasing regulatory relaxations, coupled with government approvals to use cannabis for medical and recreational purposes, are primarily driving the market growth. The rising product availability in mass merchandise shops and online retail stores is another supporting factor for the increased CBD infused confectionery sales. Furthermore, increasing consumer awareness toward CBD edible products, coupled with the acceptance of the product, is pushing the market to the next heights.

Moreover, several macroeconomic factors, such as urbanization, increasing spending capacity of youths, and others, also impact the industry's performance. As a result, the global market is anticipated to grow at a lucrative double-digit growth rate throughout the forecast period.

The COVID-19 pandemic positively impacted on the product sales. The issue of lockdown and stay-at-home orders impacted individuals' mental health. Since CBD edible products help to improve mental health by reducing anxiety, adults & youth consumers showed a rapid interest in CBD or Cannabidiol infused confectionery products. According to the National Library of Medicine report published in 2021, cannabis sales in May 2020, including confectioneries and other edibles sales, increased by nearly 62% from the same period in 2019.

CBD Infused Confectionery Market Trends

Increasing Advancements in Products to Drive Industry Growth in the Upcoming Years

Cannabis has a broader spectrum in the pharmaceutical industry, which has gained enormous traction in recent years with increasing interest in treating a range of neuropsychiatric disorders. Numerous evidences are exhibiting that CBD has a higher potential as a remedy for anxiety-related disorders, including panic disorder and social anxiety disorder. Higher acceptance of CBD in medical use creates ample opportunity for the players to improve the product regarding safety and quality. Further, allowing cannabis for recreational use also encourages key players to develop novel products within the confectionery segment, such as gummies, chocolates, and candies.

CBD Infused Confectionery Market Growth Factors

Rising Legalizing Cannabis is to Propel Industry Growth

Over the past decade, numerous countries have legalized cannabis usage for both medical and recreational purposes. The concept of legalizing CBD consumption for recreational use has emerged with certain economic benefits, including additional tax revenue generation and reduced law enforcement expenses. In the early months of 2024, Germany legalized the consumption of cannabis for recreational use. Malta and Luxembourg legalized CBD for recreational use in 2021 and 2023, respectively. The increasing regulatory relaxations on CBD products for recreational use will positively influence the CBD infused confectionery demand.

Industry Players' Collaboration Strategies to Drive Market Growth

Top CBD infused confectionery product manufacturers are increasingly focused on developing varieties that help individuals to achieve relief from stress and anxiety. Major players are increasingly adopting strategies, such as collaborations and partnerships with different industry stakeholders and players, to develop new products by targeting specific consumer groups. For instance, in January 2024, iAnthus Capital Holdings, Inc., one of the leading cannabis product manufacturers, signed a strategic partnership with Gron, a women-owned CBD-infused edible product manufacturing company in New Jersey. The collaboration strategy helps Gron to introduce its new Sugar-Coated Pearl gummies to the market. This partnership also allows the company to expand its market reach across New Jersey. Therefore, the adoption of collaboration and partnership strategies to drive CBD infused confectionery sales to the next heights in the upcoming years.

RESTRAINING FACTORS

Increasing Health Risks Associated with Excess Usage of Cannabis to Hamper Market Growth

CBD infused confectionery products are gaining immense growth in the global space, especially in Western markets. Even though the product has several health benefits, it is difficult to draw a crucial line between safe and unsafe. The excess usage of THC-infused gummies and candies is being sold across the retail shelves, making more easy accessibility of the products to users. It may lead to excess usage of CBD-infused gummies and candies and adversely impact consumers' health. According to the Wall Street Journal report, pediatric hemp poisoning cases have tripled in 2021 over 2017. Thus, increasing such cases associated with excess usage of hemp and cannabis may negatively impact the CBD infused confectionery market growth.

CBD Infused Confectionery Market Segmentation Analysis

By Category Analysis

Abundant Availability of Gummies Boosts Segment Expansion

Based on category, the market is divided into gummies, hard candies, chocolates, and others.

The gummies segment has exhibited a larger share of the global market. The abundant availability of the product across online and offline retail formats is a primary factor in generating higher revenue from the segment. Furthermore, lower technical challenges to produce CBD gummies paired with easy, convenient & good mouthfeel support to opt for gummies over other categories.

The chocolate segment is anticipated to grow at a higher CAGR during the forecast period. Increasing new product launches coupled with health advantages associated with chocolate is to drive product sales in the upcoming years. For instance, in December 2023, Tilray Brands, Inc., a leading global cannabis-based product manufacturer, expanded its cannabis portfolio by launching new CBD-infused chocolate products under its Canadian cannabis edible brand, Chowie Wowie™. The newly launched premium Belgium chocolate products are available in two flavors, Soft Caramel and Crunchy Praline, across Canada, including Ontario, British Columbia, Alberta, and Saskatchewan.

By Concentration Analysis

High Recreational Experience and Health Benefits to Drive the Sales for THC-Dominant Confectioneries 

Based on the concentration, the market is classified into THC-dominant, THC & CBD balanced, and CBD-dominant.

THC-dominant segment is the leading segment which holds the highest revenue share of the global CBD infused confectionery market. A more significant number of individuals, especially adults and youths, prefer THC-dominant edibles, such as gummies, chocolates, and RTD beverages, as they offer a high recreational experience. Furthermore, the THC-dominant confectioneries contain 10 to 30% of Delta9-tetrahydrocannabinol and are effective in providing more mental relaxation.

CBD-dominant confectioneries exhibit promising growth during the forecast period with the rising popularity of the product in various medical applications, including relief from chronic pain, anxiety, and depression.

By Distribution Channel Analysis

Convenience and Accessibility Factors to Drive the Product Sales from Offline Channels

Based on the distribution channel, the market is classified into offline and online.

The offline segment is anticipated to hold a larger share of the global market over the forecast period. CBD infused products, such as gummies and candies, are predominantly available on various offline channels, including specialty stores, supermarkets & hypermarkets, and convenience stores, which offer more convenience and accessibility to users. Furthermore, CBD infused confectionery manufacturers are establishing strategic partnerships with retailers to provide more easy & effective services to their users. It will additionally drive sales from the segment. For instance, in December 2021, Cannaray CBD, a cannabis wellness product manufacturer, partnered with Waitrose, a British retail chain, to offer CBD products, including gummies, oils, and capsules, across its 250 stores in the U.K.

The online segment is anticipated to grow with a higher CAGR during the forecast period. Increasing companies' focus on strengthening their presence in online channels is likely contributing to the sales from the segment. For instance, in September 2021, Charlotte's Web, Inc., a hemp-extracted wellness product manufacturer, launched three new Charlotte's Web™ Gummies - Daily Wellness, THC-Free, and Immunity gummies. These products are available in online stores across the U.S.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, Europe, Asia Pacific, and the rest of the world.

North America stood at USD 3.32 billion in 2023 and accounted for the largest CBD infused confectionery market share. With the presence of multiple established companies, they are actively involved in penetrating the market. Cannabis products are federally legalized for medical purposes in the U.S.; additionally, all 50 state governments, including Washington, D.C., California, and Alaska, fully or conditionally allow cannabis for adult and recreational use. This will support the market growth in the upcoming years in the region. Furthermore, acceptance of CBD infused confectioneries among adults and youths for anxiety relief is primarily supporting the product sales growth in the forthcoming years. According to the Forbes Health Survey of 2,000 U.S. adults, above 62% of consumers aged between 26 to 41 years either use or have tried CBD products, including gummies. The usage of CBD products has been observed to be high, with approximately 90% in above 70 aged consumers, according to the survey. Increasing focus on technological improvements to produce cannabis across North America, including the U.S. and Canada, to create more opportunities for industrial growth in the near future.

Europe is one of the promising markets for CBD infused confectionery products, with increasing acceptance of the product among adults. The CBD confectionery industry remains mired in a legal gray area in several European countries. However, countries including Germany, the U.K., France, and Belgium are removing the legal barriers to consuming CBD confectioneries for adult and recreational usage. Furthermore, key players in the industry are investing in research & development activities to develop CBD infused or CBD oil-infused chocolates on retail shelves. Such factors are anticipated to give a new speed for the industry growth over the foreseeing period.

Asia Pacific is anticipated to exhibit substantial CAGR during the forecast period, with rapidly changing government policies for cannabis in Australia, Thailand, Japan, and other Asian countries. Since the consumer demand for CBD products has increased rapidly in the market, numerous international companies are focusing on entering the Asian market, including Thailand, Japan, and Australia, through collaboration and partnership strategies. It is anticipated to drive the industry growth in Asian markets.

The rest of the world includes Brazil, Zimbabwe, Nigeria, and other countries. The demand for CBD infused confectionery products in these countries is increasing gradually with companies penetrating strategies such as the introduction of new products, expanding geographical presence, and marketing & promotional activities. 

KEY INDUSTRY PLAYERS

Key Players Emphasize New Product Launches to Expand Their Market Shares

The global market is moderately fragmented, with the presence of several large and medium-sized players in the market space, especially from North America. Leading players, such as Green Thumb Industries, Canopy Growth Corporation, Aurora Cannabis, and Tilray Brands, are actively involved in developing new products to grab more attention on retail shelves. It will also allow them to acquire and strengthen their market share by serving a new product range to their clientele. For instance, in July 2023, Green Thumb Industries Inc. launched limited-edition Strawberry Lemahhhnade CBD infused gummies across different states of the U.S., including Illinois, Massachusetts, Ohio, and Rhode Island.

List of Top CBD Infused Confectionery Companies:

• Green Thumb Industries Inc. (U.S.)


• Aurora Cannabis Inc. (Canada)


• Tilray Brands Inc. (U.S.)


• Verano Holdings Corp. (U.S.)


• Cronos Group Inc. (Canada)


• SNDL Inc. (Canada)


• TerrAscend Corp. (Canada)


• Cresco Labs Inc. (U.S.)


• OrganiGram Holdings (Canada)


• Ayr Wellness Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Martha Stewart CBD, an American CBD company, launched its new range of CBD gummies to meet users’ common needs, such as sleep, stress, and soreness. This product is aimed to meet the rising consumer demand for vegan CBD confectioneries.


• October 2023: NextEvo Naturals, a CBD-based supplement product manufacturer, expanded its portfolio by launching Extra Strength Premium CBD Gummies. These gummies contain 20 mg of fast-absorbing, non-GMO, vegan, and THC-free CBD.


• May 2023: Cansortium Inc., a chocolate confectionery manufacturer, launched its new cannabis-infused dark chocolate bar in Florida. This product is available across the retail stores in the state.


• December 2022: Sunderstorm, a California-based cannabis product manufacturer, launched its Kanha Cannabis and Hemp gummies in Thailand. The company signed a strategic agreement with THCG Group Ltd, a Thailand company specializing in producing CBD medical products, to distribute its product across different supply chain stakeholders.


• March 2022: Martha Stewart CBD, a global CBD confectionery company, expanded its product range by adding new Tropical Medley CBD Wellness Gummies to its portfolio. The newly launched products are available in Alphonso Mango, Coconut, and Pineapple flavors.

REPORT COVERAGE

The market research report includes quantitative and qualitative insights into the market. It also offers a detailed regional and global industry analysis of the market size, statistics, regional & global market share, and growth rate for all possible segments. Additionally, it provides various key insights on the market, an overview of related markets, the competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation