2025 Industry Trends in the CBD Space

2025 Industry Trends in the CBD Space

By KND Labs

2025 Industry Trends in the CBD Space

The CBD industry is poised for phenomenal growth, with projections by Fortune Business Insights suggesting an expansion from $11.16 billion in 2024 to an incredible $202.45 billion by 2032. 2025 is shaping up to be a pivotal year for innovation and growth. With a renewed focus on minor cannabinoids, industry consolidation through co-manufacturing, and a surge in pet health products, companies are stepping up to meet growing demand while delivering enhanced product offerings. KND Labs is one of those companies, focusing on its portfolio of offerings, and expanding with growing demand.

 

Trend #1: Minor Cannabinoids Take Center Stage

CBD may still be the star of the show, but its lesser-known relatives - minor cannabinoids - are finally gaining traction in both consumer and B2B markets. Cannabinoids like THCV, CBC, and CBN are no longer in the shadows. They're being widely adopted for their unique therapeutic benefits and growing consumer interest.

  • THCV (Tetrahydrocannabivarin): Known for its potential appetite-suppressing effects and energy-boosting properties, THCV is quickly becoming popular in wellness products aimed at weight management and focus.

  • CBC (Cannabichromene): Often praised for its potential anti-inflammatory and mood-enhancing benefits, CBC is making its way into topicals and tinctures.

  • CBN (Cannabinol): Widely regarded as the “sleep cannabinoid,” CBN is a go-to ingredient for products designed to promote relaxation and rest.

At KND Labs, we offer a robust portfolio of minor cannabinoids, available in various formats to meet your manufacturing needs. To learn more, check out our comprehensive blog post on minor cannabinoids.

The rise of minor cannabinoids presents an exciting opportunity for brands looking to differentiate their product lines in a competitive market. Whether it's enhancing tinctures or creating targeted solutions, these compounds offer endless possibilities.

 

Trend #2: Consolidation in the Industry and the Rise of Co-Manufacturing

As the CBD market matures, consolidation is becoming a defining characteristic. More brands are outsourcing their production needs to trusted partners, enabling them to focus on sales, marketing, and customer engagement. Co-manufacturing has emerged as a crucial solution for businesses looking to scale without overextending their resources.

For many CBD brands, scaling production in-house often brings a host of challenges, from inconsistent product quality to sky-high operational costs. Maintaining strict regulatory compliance, sourcing reliable raw materials, and managing quality control across large batches can overwhelm smaller or growing businesses. Not to mention, the cost of upgrading equipment or hiring specialized staff can strain resources, leaving brands unable to focus on growth. That’s where KND Labs steps in. With two state-of-the-art facilities in Lakewood, CO, and Arvada, CO, KND Labs is the largest and most respected CBD manufacturer.

By leveraging our state-of-the-art facilities, extensive industry expertise, and vertically integrated supply chain, we take the guesswork out of production. Our co-manufacturing services ensure consistent quality across every batch, all while reducing costs through economies of scale. From custom formulations to white-label solutions, KND Labs empowers brands to bring high-quality CBD products to market quickly and efficiently. Here are some additional details:

  • White-Label Services: Perfect for brands seeking turnkey solutions, our white-label offerings include everything from formulation to packaging.

  • Bulk Tincturing: For brands requiring high-volume production, our state-of-the-art facilities deliver consistent quality and efficiency.

By partnering with KND Labs, companies can streamline their operations while ensuring their products meet the highest standards of safety and efficacy. Consolidation is not just a trend - it’s a strategic move that sets businesses up for long-term success.

 

Trend #3: The Growing Demand for CBD Pet Health Products

The pet wellness industry is experiencing unprecedented growth, and CBD products are at the heart of it. The global CBD pet market size is expected to reach $1.72 billion by 2030, and grow at a lucrative CAGR of 32.47% from 2024 to 2030.

As pet owners look for natural ways to support their furry friends' health, CBD has become a go-to solution for issues like anxiety, joint pain, and overall well-being.

KND Labs is well-equipped to meet the demands of this thriving market. Our powder supplements, CBD-infused treats, and sachet services are designed with pets in mind, offering versatility and convenience for both manufacturers and end consumers.

  • Powder Supplements: Easy to mix into pet food, these supplements provide a simple yet effective way to deliver CBD benefits.

  • CBD-Infused Treats: From calming chews to joint support bites, our treats cater to a variety of pet health needs.

  • Sachet Services: Ideal for single-use servings, sachets offer precise dosing and portability.

Pet wellness is no longer a niche category - it’s a thriving sector within the CBD industry. Brands that invest in high-quality, innovative pet products are well-positioned to capture this growing market. For more insights, check out our blog post on CBD pet industry trends.

 

Looking Ahead

As 2025 unfolds, the CBD industry shows no signs of slowing down. The adoption of minor cannabinoids, the rise of co-manufacturing partnerships, and the surge in pet health products are shaping the future of this dynamic market.

KND Labs remains committed to helping businesses navigate these trends with innovative solutions and top-tier manufacturing services. Whether you’re exploring new formulations, scaling production, or entering the pet wellness space, we’re here to support your growth every step of the way.

Let’s work together to make 2025 a year of innovation and success in the CBD space. Contact the KND Labs sales team here today, or learn more about our other service departments here. We can’t wait to have a conversation and begin a mutually beneficial relationship!