Cannabidiol (CBD), a non-psychoactive compound from the cannabis plant, is gaining prominence for its therapeutic potential in treating conditions like epilepsy, anxiety, and acne, with products ranging from prescription drugs like Epidiolex to consumer goods. Despite rapid growth and increasing investment in the CBD industry, challenges such as high production costs and dosage inconsistencies hinder its expansion. Precision fermentation, a biomanufacturing innovation, offers a sustainable and efficient solution by producing cannabinoids like CBD and CBG without the need for traditional farming, reducing resource use and ensuring quality. Europe is poised to lead this transition, leveraging its strong biomanufacturing infrastructure, supportive regulatory environment, and significant investment initiatives like the Biobased Industries Consortium. While traditional cannabis farming remains dominant, biomanufacturing could revolutionize the industry, mirroring its success in producing compounds like insulin and food-grade proteins, aligning with global sustainability priorities.