Sleep Is Broken, And New Wave Of Companies Wants To Fix It: Inside Cannabis’ Billion-Dollar Wellness Opportunity

As sleep disorders have become a public health epidemic with sleep problems such as insomnia, sleep apnea, and restless leg syndrome, according to the U.S. Centers for Disease Control and Prevention (CDC), it’s no surprise that sleep has become a big business.

The Sleep Economy Is Becoming A Multi-Billion-Dollar Opportunity

Consulting firm Frost & Sullivan estimated in 2020 that the global sleep economy would reach nearly $585 billion by 2024, as per SEC filings. According to the same forecasts, the U.S. sleep economy was projected to increase from $79 billion to $95 billion over the same period, reflecting a 3.6% CAGR.

Grand View Research’s data showed the global market for sleep aids was worth $49.1 billion in 2025. That market is projected to grow to $95.2 billion by 2033. North America’s chunk of the market was the largest in 2025, accounting for 36.4% of sales worldwide.

In the meantime, a 2024 review in the Journal of the International Society of Sports Nutrition found that almost 70 million adults in the U.S. experience poor sleep quality. That translates to nearly one in five using a sleep aid.

Melatonin and magnesium as sleep supplements are most studied, while other popular ingredients also include zinc, vitamin D, L-theanine, and nitrates.

As part of the broader wellness and supplement industry, sleep supplements have emerged as a roughly $8 to $9 billion global category, data from Fortune Business Insights suggest.

How Cannabis Companies Are Positioning Sleep Products

That said, a growing number of wellness brands are also leveraging cannabinoids such as CBD, CBN, and THC alongside traditional sleep ingredients.

Several cannabis businesses, including Charlotte’s Web Inc. (TSX: CWEB) (OTCQX: CWBHF), Papa & Barkley, Plus Products, Wyld, Wana Brands, Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ), Green Thumb Industries Inc (OTCQX:GTBIF), cbdMD, Inc. (NYSE American: YCBD) and Kiva Confections, to name a few, have also launched dedicated sleep-focused brands and product lines targeting consumers seeking alternative sleep solutions.

Why CBN Is Emerging As Cannabis’ Sleep Cannabinoid

While CBD has become widely recognized first due to being easier to produce, not creating a high, and gaining popularity through wellness products, CBN is attracting attention because it fills a more specific sleep market niche.

Cannabis businesses are seeing CBN as an opportunity to compete with products like melatonin by positioning it as a cannabis-derived alternative for people seeking better rest, as per Marijuana Business Daily’s Andrew Long. New production methods have made it easier and cheaper to manufacture. Moreover, CBN’s sedative effects enhance when paired with THC.

What The Research Says About Cannabis And Sleep

A Sleep Foundation survey found that roughly 77% of men and 64% of women between 21 and 64 have used cannabis to sleep, as it increases a chemical called adenosine that makes a person feel sleepy and calms brain activity.

However, does cannabis improve sleep?

A 2025 systematic review and meta-analysis published in Sleep Medicine Reviews by Rob Velzeboer and colleagues found that cannabis use does not consistently change overall sleep time, how quickly people fall asleep, how much they wake during the night, or the different stages of sleep.

Cannabis And REM Sleep: What Scientists Know

Earlier studies suggested cannabis might reduce REM sleep, which is the stage linked with dreaming. Research suggests cannabis can alter sleep quality and reduce dreaming. When someone stops using cannabis, vivid dreams may return as the brain adjusts, showing how much cannabis can affect sleep and the way the brain works during rest.

However, newer studies have shown mixed results, have important limitations, and overall there is not enough strong evidence to say that cannabis consistently changes REM sleep.