The CBD market - France

CBD (cannabidiol) is a molecule naturally present in hemp (Cannabis sativa), and differs from THC in thatit has no psychotropic effect. In Europe and France, only hemp containing less than 0.3% THC is authorized for cultivation. This plant is therefore the main source of legal CBD on the European market. Once extracted, CBD is used to manufacture a variety of products: oils, e-liquids, infusions, cosmetics, food products, as well as flowers and resins, which are still the most widely consumed forms in France (74% of purchases). globally, the CBD market is booming, with an estimated CAGR of 15.8% between 2024 and 2030. This growth is being driven by the gradual easing of regulations, but also by the development of a therapeutic segment (CBD-based medicines), seen as a major area of expansion in the medium term [Greeneo]. In France, market development remains more mixed. Long held back by an unstable legal framework, marked by specific bans on the sale of raw flowers or the presence of THC, the sector experienced a turning point in november 2020, when the Court of Justice of the European Union (CJEU ) ruled that the French ban on CBD did not comply with European law. This ruling strengthened legal certainty for distributors and initiated a structuring of the market. France, Europe's leading producer of industrial hemp, is now in a position to develop a coherent national industry [Interchanvre]. The structuring of the market can also be observed through distribution channels and the evolution of the offer. E-commerce accounts for 61.9% of sales, well ahead of physical outlets. Specialized brands have expanded rapidly: CBD'eau has 172 boutiques, High Society 170, and several franchise networks are vying for the city centers of major metropolises. At the same time, the range of products on offer has expanded: 88% of sites still sell products for inhalation (flowers, resins, e-liquids), but 76% also offer infusions, 52% cosmetics, 48% food, and 36% pet products. This diversification reflects an evolution towards a wellness range integrated into lifestyle hygiene. The market also boasts a loyal customer base. In 2023, 49% of consumers said they had been using CBD for 3 to 5 years, and 10.5% for more than 5 years. conversely, only 1.1% to 1.7% were very recent users. This length of time in use indicates a degree of maturity and long-term adoption. At the same time, awareness of the product is high: in 2022, 71% of French people said they had already heard of CBD. This base of recognition fuels the product's social legitimization and supports the arrival of new formats. Uses are varied, but strongly focused on well-being: 29.8% of consumers use it as a substitute for THC, 26% for pain relief, and 84% report daily consumption. This focus on relaxation or chronic ailments is helping to integrate CBD into regular routines, as a health supplement. The average shopping basket is also indicative of regular use: 35.9% of consumers spend between €50 and €100 per month, and 21% between €100 and €200. conversely, only 13.8% spend less than €30, proving that CBD is becoming a significant budget item, particularly for the working classes. Finally, the market continues to face structural obstacles. The main one is legal: France has zero tolerance for any trace of THC at the wheel. However, even legal CBD products can result in a positive saliva test, punishable by a €4,500 fine, 2 years' imprisonment, 6 points deducted and suspension of license. This uncertainty heavily penalizes working people and professional drivers, who are a strategic target. What's more, young people dominate consumption, while senior citizens (aged 65-75) account for just 4% of users, which raises the question of how to broaden the target audience to include less aware generations. Thus, despite a still restrictive environment, the French CBD market today appears structured, diversified and in a consolidation phase, with many growth drivers yet to be activated, both in terms of uses and consumer profiles.