Ask Our Experts: The European Market for CBD

 

Q: How big is the market for CBD in Europe?

 

By William Sumner, Hemp Content Manager, New Frontier Data

A: While the market and demand for CBD in Europe remain nascent, it is demonstrably an industry poised for strong growth over the next five years. As detailed in New Frontier Data’s latest release, EU CBD Consumer Report Series: Market Size & Demand, consumers in the European Union are projected to spend around €8.3 billion (USD$9.85 billion) for CBD in 2020. Over the next five years, that spending is projected to grow at a combined annual growth rate (CAGR) of 10.4%, to reach €13.6 billion (USD$16.14 billion) by 2025.

The two biggest markets for CBD are Germany and the United Kingdom (U.K.), representing around €1.83 billion (USD$2.17 billion) and €1.71 billion (USD$2.03 billion), respectively, in annual spending for 2020. By 2025, spending in those markets is expected to grow by over €1 billion apiece, to €3.01 billion (USD$3.57 billion) in Germany and €2.80 billion (USD$3.32 billion) in the U.K.

While the EU CBD market is poised for growth, market forces are equally poised to disrupt its growth. The European Food Safety Authority (EFSA) is debating whether to declare hemp flower-derived CBD  for classification as a narcotic. Such an extreme response would devastate the EU CBD market, and severely limit any growth in the market. Pending that regulatory outcome, the EU CBD market is held in sway at a critical turning point, making for perilous times both for CBD brands their consumers.

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