India Cannabidiol Market Overview,2030

India’s relationship with cannabis dates back thousands of years, where it was traditionally used in Ayurveda and spiritual rituals, primarily in forms such as bhang and charas. However, the modern cannabidiol industry began evolving only recently, as regulatory clarity slowly emerged. Early commercialization efforts are attributed to companies like Kaya Limited and Hempstreet, which started introducing CBD oils and wellness products focused on isolated CBD, since Indian law under the Narcotic Drugs and Psychotropic Substances Act restricts THC content rigorously. The extraction landscape in India has gradually advanced from solvent-based techniques towards more refined CO2 extraction methods pioneered by firms like Good Extracts. While full-spectrum CBD products are still rare due to THC restrictions, isolate CBD dominates the market, with some experimentation in broad-spectrum offerings by startups such as Cannacure. Packaging innovations include tamper-evident seals and sustainable, biodegradable containers, reflecting increasing environmental awareness among Indian consumers. Despite international trends towards legalization, India remains conservative, with the Food Safety and Standards Authority of India (FSSAI) yet to formally approve CBD as a food ingredient, limiting its use mainly to topicals and supplements. Certification plays a critical role, with third-party testing laboratories like Cure Labs gaining prominence for ensuring purity and safety amidst concerns of contaminants like heavy metals from unregulated hemp cultivation. The fragmented regulatory environment poses challenges for businesses, delaying widespread adoption and causing hesitance in launching ingestible products. Health research institutions such as the All India Institute of Medical Sciences (AIIMS) have initiated studies on long-term CBD safety and therapeutic potential, especially for elderly and pediatric applications. Collaborations with healthcare providers, including clinical trials with AIIMS, aim to establish credibility and open doors for medical applications. The rise of ethical consumerism shapes sourcing, with a focus on organic hemp farming and sustainable practices led by organizations like Indian Hemp and Natural Products Association.

According to the research report, ""India Cannabidiol Market Overview, 2030,"" published by Bonafide Research, the India Cannabidiol market is anticipated to grow at more than 18.84% CAGR from 2025 to 2030.Within India’s cannabidiol space, the market is witnessing dynamic shifts marked by increasing online sales and growing interest from wellness-focused consumers. Leading players have harnessed e-commerce platforms including Nykaa and Amazon India to reach wider audiences, supported by strategic social media campaigns from influencers who help demystify CBD’s benefits while navigating strict advertising bans on social media platforms. Offline, select organic and wellness stores in metropolitan areas like Mumbai and Bengaluru stock CBD-infused skincare and personal care lines, with brands like Soulflower expanding their retail footprint. Multi-channel marketing blends digital presence with educational outreach, featuring webinars and expert endorsements to combat persistent stigma linking CBD to recreational cannabis. Supply chain complexities arise from reliance on imported hemp from countries like Nepal and parts of Europe, creating logistical hurdles and affecting raw material consistency. Innovation in product formats is apparent, with Indian startups exploring nanoemulsion technology to improve bioavailability and developing blends combining CBD with Ayurvedic herbs for enhanced wellness effects. Industry consolidation is underway as companies such as Kottaram Agro and Pharma firm Medibino engage in strategic partnerships to expand product portfolios and scale operations. Cross-sector collaborations with beauty and fitness brands are emerging, promoting CBD-infused wellness regimens. Automation in packaging and production, led by contract manufacturers such as Cure Solutions, improves efficiency while maintaining compliance with Good Manufacturing Practices.

In India, the legality of CBD oil also hinges on its production process and regulatory approval. For CBD oil to be legally sold, it must be manufactured under a license issued by the Drugs and Cosmetics Act of 1940. Companies are required to obtain approvals from state-level drug authorities and adhere to quality standards. While CBD oil manufactured in compliance with the Drugs and Cosmetics Act can be legally used for medicinal purposes, not all brands in India meet these stringent requirements. To avoid legal issues, consumers should purchase CBD oil only from reputable brands that provide transparency about their manufacturing process, licensing, and ingredient quality. The consumption of CBD oil with THC levels exceeding 0.3% is restricted to patients with a prescription from a licensed medical practitioner. CBD oils with a THC concentration below 0.3% are generally considered safe and do not induce psychoactive effects. These products are allowed for medical use when they are produced under the guidelines of the Drugs and Cosmetics Act. The Central Drugs Standard Control Organization (CDSCO) must approve cannabis-based medicinal products before they are available on the market. CBD oil that complies with these guidelines and has CDSCO approval can be legally sold and consumed for therapeutic purposes.


In India, oils and tinctures are becoming increasingly popular in major urban centers such as New Delhi, Mumbai, and Bangalore, where consumers are seeking natural alternatives for stress relief and overall wellness. CBD oils are available in a variety of concentrations, and they are typically consumed sublingually or added to food and beverages. Due to their versatility and effectiveness in managing anxiety, pain, and insomnia, these products are gaining significant traction. Capsules and softgels also see considerable demand in India, particularly among individuals who prefer a more measured and convenient way to consume CBD. In cities like Hyderabad and Pune, these products are marketed to health-conscious consumers looking for a precise dosage. CBD capsules and softgels are becoming a preferred choice for people seeking therapeutic benefits such as pain relief or anti-inflammatory effects. Gummies and confectionery infused with CBD are entering the Indian market with increasing frequency, especially among younger demographics who view these products as a more enjoyable way to experience the potential benefits of CBD. These gummies, available in flavors such as mango and strawberry, are typically sold in health food stores or online platforms, with a growing interest in wellness-conscious areas like Goa. The rise of topicals and skin care products in India is also evident, particularly in beauty hubs such as Mumbai, Delhi, and Bangalore. CBD-infused creams, lotions, and balms are promoted for their skin-soothing properties, with claims of reducing inflammation, acne, and promoting general skin health. Vape products are less common but are gaining some popularity in select cities, particularly among individuals looking for faster absorption of CBD. While vaping culture is not as widespread as in the West, it is gradually finding a niche market in more cosmopolitan cities. The other CBD products such as beverages and snacks are emerging, especially in wellness-driven regions like Rishikesh and Auroville, where people are looking for ways to incorporate CBD into their daily diets in more diverse forms.

The wellness and personal use segment generates the demand for cannabidiol products in India, especially in urban areas like Delhi, Mumbai, and Bangalore, where people are more inclined to incorporate CBD into their wellness routines. Individuals are increasingly turning to CBD oils, capsules, and tinctures to manage stress, anxiety, and sleep disorders in a country where mental health concerns are rising. This growing awareness around mental wellness is driving CBD consumption in cities with large professional populations. The nutraceuticals and supplements sector is also gaining momentum, with many Indians using CBD as a natural supplement to boost their immune systems, alleviate chronic pain, or promote better sleep. These products, particularly in the form of capsules and softgels, are marketed by wellness brands in both urban and semi-urban regions. The pet care market for CBD in India is still in its early stages but is expanding in metropolitan areas where pet ownership is on the rise. Urban centers like Bangalore and Pune are witnessing an increase in demand for CBD products aimed at improving the well-being of pets, including anxiety-reducing treats and oils for joint health. Cosmetics and skin care products with CBD are becoming a part of India’s growing beauty industry, particularly in markets like Mumbai and Delhi, where CBD-infused creams, oils, and balms are touted for their anti-inflammatory and skin-soothing benefits. The pharmaceuticals industry, although more cautious, is gradually acknowledging the therapeutic potential of CBD, particularly for chronic pain, arthritis, and neurological disorders. Several clinics in cities like Chennai and New Delhi are exploring CBD as part of clinical trials for medicinal use. The food and beverages sector is witnessing early experimentation with CBD-infused products, especially in urban wellness hubs such as Goa and Rishikesh, where CBD smoothies, teas, and chocolates are being marketed to health-conscious consumers looking for natural, plant-based alternatives.
In India, the marijuana-derived CBD market is extremely limited due to the country’s stringent laws regarding the use and cultivation of cannabis. Cannabis, including marijuana, is heavily regulated under the Narcotic Drugs and Psychotropic Substances Act, making marijuana-derived CBD products largely inaccessible to the general public. The legal status of cannabis in India remains complex, with marijuana being illegal for recreational use and CBD products derived from marijuana facing numerous legal barriers. Hemp-derived CBD products dominate the Indian cannabidiol market. India’s legal framework permits the cultivation of hemp under specific regulations, especially for industrial purposes. The state of Uttarakhand is one of the leading regions in hemp cultivation, and various initiatives are underway to establish hemp as a commercial crop. Hemp-derived CBD products, including oils, tinctures, and topicals, are sold by companies that have navigated the regulatory landscape, ensuring that their products meet legal requirements. Given that hemp contains minimal THC, it is the preferred source of CBD in India, where THC content is a significant regulatory concern. The demand for hemp-derived CBD products is growing, particularly in urban markets like Delhi, Mumbai, and Bangalore, where consumers are becoming more health-conscious and open to the benefits of natural wellness solutions. These products are also available online, with e-commerce platforms acting as key distributors.  

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Cannabidiol Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Form
• Oils & Tinctures
• Capsules & Softgels
• Gummies & Confectionery
• Topicals / Skin Care
• Vape Products
• Others

By End Use
• Wellness & Personal Use
• Nutraceuticals & Supplements
• Pet Care
• Cosmetics & Skin Care
• Pharmaceuticals
• Food & Beverages

By Source
• Marijuana
• Hemp Show more