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CBD in 2025: Why British Experts Predict a £15 Billion Market Boom
Dec
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Why are British experts predicting that CBD sales could reach £15 billion, and what does this mean for consumers and businesses? The numbers tell a compelling story about how this market has evolved from a niche wellness product to a mainstream health supplement.
CBD sales in the United States are expected to surpass $20 billion by 2024, while the global CBD market is growing at more than 30% annually from 2023 to 2027. However, it’s the UK market that has captured particular attention from industry analysts. The British CBD market has doubled from £314 million in 2019 to approximately £700 million just three years later.
Analysts suggest the UK CBD market may exceed £1 billion in 2025, driven by changing consumer attitudes across British society. Recent statistics show that around 21% of British adults have tried CBD or medicinal cannabis, with approximately 11% using CBD products regularly. This growth reflects major retail chains and e-commerce platforms entering the CBD space, alongside manufacturers developing more sophisticated extraction methods.
The shift towards plant-based wellness solutions appears to be accelerating. BDS Analytics predicts a compound annual growth rate of 49% by 2024 across all distribution channels, with market expansion reaching new regions, particularly in Asia and Latin America. These trends suggest the global outlook for CBD remains strong.
This article examines the factors behind British experts’ market predictions, what’s driving this expansion, and the implications for both businesses and consumers.
How the UK became Europe’s second-largest CBD market
Market growth since legal availability began
The British CBD market has grown rapidly since CBD products first became legally available in 2016. Starting from virtually nothing, the market reached £314 million by 2019, then expanded to £690 million by 2021. This momentum continues, with the market reaching approximately £709.78 million in 2024, maintaining a steady 11.6% annual growth rate.
Consumer adoption has matched this expansion. The number of CBD oil users doubled from 125,000 to 250,000 between 2017 and 2018 alone. Hemp licensing, which supports domestic production, increased from just six licenses in 2013 to 139 by 2023.
How new measurement methods changed market valuations
Market researchers have refined their approach to measuring the CBD industry. Earlier estimates combined various cannabis products under a single CBD category, whereas current methodologies separate over-the-counter CBD products from prescribed medical cannabis. This shift provides a clearer understanding of the market’s actual scope.
The market is now considered 3-6 times larger than previous estimates suggested. CBD has surpassed traditional supplements to become a wellness category leader, exceeding the combined value of the UK’s Vitamin D (£145 million) and Vitamin C (£119 million) markets.
What established the UK’s European market position
Despite regulatory challenges, the UK has secured its position as Europe’s second-largest CBD market after Germany. This status reflects broad consumer acceptance, with an estimated 1.3 million people taking CBD daily.
Mainstream retail availability has increased accessibility significantly. Major chains including Holland & Barrett, Boots and Lloyds Pharmacy now stock CBD products. These developments, alongside growing consumer confidence and ongoing product innovation, have established CBD among Britain’s most popular wellness supplements.
Europe represents approximately one-third of global CBD sales, making the UK’s market position influential in shaping industry direction and standards across the rapidly expanding sector.
What’s behind the market expansion?
Several key developments have reshaped how British consumers access and use CBD products. These innovations address previous limitations whilst meeting evolving consumer preferences.
CBD beverages and edibles become mainstream
CBD-infused beverages now account for approximately 20% of the total CBD market , offering consumers a familiar consumption method without the earthy taste often associated with traditional CBD oils. Both beverage giants and craft producers have embraced this category as a major growth area.
Edibles such as gummies, chocolates, and baked goods have captured significant market share, with 35% of UK CBD users preferring these formats for their convenience and precise dosing . This shift reflects consumer demand for products that fit easily into daily routines.
Wellness applications drive consumer adoption
Nearly 65% of users report they take CBD primarily for general wellbeing rather than for specific medical conditions . This has prompted manufacturers to develop specialised formulations targeting sleep improvement, stress reduction, and athletic recovery.
Stress relief emerges as the primary reason for CBD consumption among 42% of British users . This wellness focus has helped CBD products gain acceptance among consumers who might otherwise avoid supplements marketed for medical purposes.
Advanced delivery systems improve effectiveness
Nanoemulsion technology has addressed long-standing bioavailability challenges by breaking CBD molecules into tiny particles. This innovation improves absorption rates by up to 5-6 times compared to traditional oil-based products .
These advanced formulations allow for smaller doses whilst maintaining effectiveness, making products more economical for both consumers and manufacturers. The technology represents a significant step forward in CBD product development.
Functional combinations attract new users
Over 30% of new CBD product launches now feature combinations with adaptogens like ashwagandha and rhodiola, or vitamins specifically chosen to enhance particular wellness benefits . These sophisticated formulations attract consumers who might previously have avoided cannabis-derived products.
Multi-functional wellness blends are growing at twice the rate of standard CBD products . This trend suggests that combining CBD with complementary ingredients may be key to future market expansion.
These developments collectively make CBD more accessible, effective, and aligned with mainstream consumer preferences.
How regulation shapes the CBD market
Regulatory frameworks continue to influence the UK’s CBD industry development, with authorities working to balance consumer safety against market expansion.
Novel Foods and the FSA’s position
The Food Standards Agency (FSA) confirmed CBD’s novel food status in January 2019, requiring all products to seek authorisation before legal sale in Great Britain. No CBD extracts have received full authorisation to date. However, the FSA maintains a public list of products linked to credible applications. The agency launched consultations for the first potential authorizations in 2025, representing an important step for industry legitimacy.
Daily intake recommendations and product labelling
The FSA reduced its recommended daily CBD intake from 70mg to just 10mg in October 2023—approximately 4-5 drops of 5% CBD oil. This precautionary change followed concerns about potential liver damage and thyroid issues from long-term consumption. Manufacturers must now include clear warning labels advising against use by under-18s, pregnant women, and those taking medications.
THC content restrictions and current enforcement
The FSA established a THC safe upper limit of 0.07mg per day, while products must contain less than 0.2% THC to comply with UK regulations. Home Office guidance confirms that any detectable THC renders a product a controlled substance. Some experts now suggest the industry may be moving toward a “zero THC” approach.
Product quality improvements through regulation
These regulatory developments are encouraging businesses to reformulate products to meet safety standards. Mandatory lab testing with certificates of analysis ensures product purity, helping to build consumer confidence and support legitimate industry growth.
If you’re considering using CBD products, you should speak to your GP or other healthcare professional to ensure that it is safe and appropriate for you to do so.
Who’s using CBD in the UK and why it matters
This section would typically examine UK CBD user demographics, usage patterns, and the factors driving consumer adoption. However, the specific data points needed to provide accurate statistics about user demographics, reasons for use, retail channel shifts, and consumer trust factors are not available for this analysis.
To provide the evidence-based content with proper citations that readers expect, we would need access to specific survey data, demographic breakdowns, and usage statistics.
This limitation highlights an important consideration when evaluating CBD market research. While overall market valuations and growth projections are widely reported, detailed consumer behaviour data can be more difficult to obtain due to the industry’s relatively recent establishment and varying research methodologies.
If you’re considering CBD products, it’s worth noting that the lack of detailed demographic data doesn’t diminish the importance of speaking with your healthcare professional about whether CBD is appropriate for your individual circumstances. This is particularly important if you have pre-existing conditions or are taking medications.
Where does this leave CBD users and the industry?
The British CBD market has clearly moved beyond early adoption into mainstream acceptance. From a starting point of virtually nothing in 2016 to a projected £1 billion industry by 2025, this growth reflects genuine shifts in how people approach wellness rather than a passing trend.
Product innovation has addressed many early concerns about CBD effectiveness and accessibility. Nanoemulsion technology has solved bioavailability issues, while functional blends with adaptogens offer targeted benefits that appeal to health-conscious consumers. The move into beverages and edibles has made CBD approachable for people who might have avoided traditional oils.
Regulatory frameworks continue to shape market development. While THC limits and daily intake recommendations of 10mg present challenges for manufacturers, these guidelines are building consumer confidence through improved product quality. The FSA’s approach to novel foods authorisation suggests steady progress rather than regulatory barriers.
High street retailers including Boots, Holland & Barrett, and Lloyds Pharmacy now stock CBD products, marking a significant shift in mainstream acceptance. This retail presence, combined with one-fifth of British adults having tried CBD products, demonstrates that the market has reached a tipping point.
The forecast of significant market expansion appears well-supported by current trends. Consumer adoption continues growing, product quality is improving through regulatory oversight, and innovation in delivery methods addresses previous limitations. These factors suggest the CBD market will likely maintain its growth trajectory.
For consumers considering CBD products, this market maturation offers both opportunities and considerations. If you’re thinking about trying CBD, you should speak to your GP or other healthcare professional to ensure it’s appropriate for your situation. This is particularly important if you’re taking medications or have underlying health conditions.
The CBD market represents a notable shift towards plant-based wellness solutions in Britain. The coming years will likely see continued innovation as the industry responds to consumer demand for effective, safe, and accessible products. This evolution from niche supplement to mainstream wellness category reflects broader changes in how people approach personal health.
Key Takeaways
The UK CBD market is experiencing explosive growth, transforming from a niche industry to a mainstream wellness powerhouse worth nearly £1 billion in 2025.
• The UK CBD market has grown from £314 million in 2019 to £700 million in 2022, with experts predicting it will exceed £1 billion in 2025
• Product innovation drives adoption: CBD beverages now represent 20% of the market, whilst nanoemulsion technology improves absorption by 5-6 times
• Regulatory frameworks are maturing: FSA reduced daily intake recommendations to 10mg and maintains strict THC limits below 0.2%
• Consumer adoption is widespread: 21% of British adults have tried CBD products, with 11% using them regularly for stress relief and wellness
• The UK ranks as Europe’s second-largest CBD market after Germany, with major retailers like Boots and Holland & Barrett now stocking products
This remarkable expansion reflects changing consumer attitudes towards plant-based wellness solutions, positioning CBD as a legitimate alternative to traditional supplements in the British health and wellness landscape.
FAQs
Q1. What is the projected value of the UK CBD market by 2025? Experts predict the UK CBD market will surpass £1 billion by 2025, reflecting significant growth from £700 million in 2022.
Q2. How are CBD products evolving to meet consumer demands? CBD products are diversifying beyond oils to include beverages, edibles, and functional blends with adaptogens and vitamins. Nanoemulsion technology is also improving CBD absorption rates.
Q3. What regulatory changes are shaping the UK CBD industry? The Food Standards Agency has reduced recommended daily CBD intake to 10mg and maintains strict THC limits below 0.2%. They’re also progressing with novel food authorisations for CBD products.
Q4. How widespread is CBD use among British adults? Approximately 21% of British adults have tried CBD products, with 11% using them regularly, primarily for stress relief and general wellness.
Q5. Why is the UK considered a significant player in the European CBD market? The UK ranks as Europe’s second-largest CBD market after Germany, with major retailers now stocking CBD products and increasing consumer adoption driving market growth.