The global cannabis market size was valued at $24.4 billion in 2021, and is projected to reach $ 90.9 billion by 2031, growing at a CAGR of 24.3% from 2022 to 2031.
Cannabis, commonly known as marijuana, is a herbal medicine made from the plant of the cannabis species and used to treat a variety of conditions and ailments, including cancer, chronic pain, and mental disorders. Cannabis is made up of over 120 compounds known as cannabinoids. The two main medicinal cannabinoids extracted from plant are tetrahydrocannabinol (THC) and cannabidiol (CBD). Due to its versatility and usefulness, cannabis has been introduced into all kinds of industries and products, especially the medical field.
The medical and recreational cannabis market is currently at the center of the legalization pandemonium around the world. The North American region has dominated the global cannabis market due to the increasing trend of legalization in most states in the United States and the increasing use of cannabis for recreational purposes. In addition, increasing medical use of cannabis, growing social acceptance of cannabis, adoption of new technologies, and increasing research and development and innovation are expected to drive the global cannabis market over the forecast period.
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Technical involvement is also becoming an important part of cannabis development as more and more countries seek to legalize the medical use of cannabis. Traditionally, cannabis breeders primarily focus on minimal processing of the plant. However, due to technological innovation, breeders are now focusing on producing edibles, capsules, vaping oils, and gummies. Technologies such as artificial intelligence and genetic engineering are revolutionizing the cannabis industry. Al allows growers to optimize for environmental changes and even manipulate product varieties. They can also tune to desired CBD levels and alter the genetic make-up of plants to produce strains of the best-selling varieties. Al also assists in efficient and timely delivery of crops. Moreover, many start-ups are exploring ways to use AI technology to improve their ability to ship products nationwide. For instance, company Cannabase, uses analytics to help companies predict cannabis market trends, price changes, and volume fluctuations. Prices in the cannabis industry are likely to fall as competition intensifies, with companies using big data to gain insight into their competitors, choose the right sales tactics, and target the right markets.
Product Type Insights
In 2021, marijuana is expected to account for the largest revenue share of over 70.0%, witnessing the fastest growth rate during the forecast period. The growth of marijuana segment can be attributed to the increasing rate of legalization worldwide. Both recreational and medical marijuana have seen a surge in acceptance and legalization since the pandemic. Many countries allow medical marijuana use, including the United States, Canada, Italy, the Czech Republic, Croatia, and Australia. Many countries have legalized the production and domestic use of marijuana. Ecuador, for example, has now legalized cannabis production. The growing consumer base of cannabis and the legal purchase of marijuana and other cannabis products has made possession and sale in regulated quantities far more decriminalized.
Application Insights
The medical segment had the largest revenue share of 75.32% in 2022. Several studies have been conducted to determine the potency and effectiveness of cannabis and its derivatives for treating various medical conditions. Medical uses include the incorporation of cannabinoids or cannabinoid-like compounds into pharmaceuticals. Sativex, Marinol, and Cesamet are some of the well-known hemp-based drugs. Some of the products documented and actually used in the medical field for the treatment of chronic pain, multiple sclerosis, treatment-resistant epilepsy, etc. Health and wellness trends resonating in the global market are driving the growth of the cannabis market, especially the use of cannabidiol (CBD).
Regional Insights
North America dominated the market in 2020, valued at $21.58 billion. Recreational legalization in the United States began in 2012, with Colorado and Washington being the first two states to legalize recreational use. As of July 2019, 11 states and the District of Columbia have legalized recreational use. In the United States, cannabis is recognized by all state medical marijuana laws as a treatment or form of medicine for conditions such as Alzheimer’s disease, anorexia, arthritis, chronic pain, epilepsy, post-traumatic stress disorder, and even cancer. Canada has recently emerged as a flag-bearer, playing a leading role in the global legalization of marijuana. Additionally, U.S. producers have increased significantly, driving up consumption and use. This is expected to increase sales and open up new revenue streams for local businesses.
Europe is the second largest market due to increased medical cannabis use and legislation. In European countries, medical marijuana is effective in research and is legally used in medical facilities to treat a variety of ailments, from cancer to an appetite stimulant for AIDS patients. In addition, the demand for cannabis is expected to increase rapidly due to changes in government policy. The Greek government approved the legalization of medical marijuana in 2018, the same year as the UK. Therefore, increasing medical use of the cannabis in the region is expected to boost sales in the region.
Key Companies Insights
Key players are developing various strategic initiatives to expand their business footprints and gain competitive advantage. They are also focus on strategic initiatives such as mergers and acquisitions, collaborations, partnerships, fundraising and investments, and innovative product development and launches to expand expertise and product portfolio. Moreover, competition in the global market is increasing as companies focus on expanding their product offerings, entering new markets, and acquiring new customers. Moreover, the market is growing rapidly as many European and Asian countries legalize the medical use of marijuana. The market pioneer is expected to benefit from expanding its footprint in the region and strengthening its market share. Various regulations, quality and price standards also affect cross-border trade. Some of the key players operating in the global cannabis market include:
- Canopy Growth Corporation
- Aurora Cannabis
- Aphria, Inc.
- Tilray
- ABcann Medicinals, Inc.
- The Cronos Group
- Maricann Group, Inc.
- Organigram Holding, Inc.
- Lexaria Corp.
- GW Pharmaceuticals
- United Cannabis Corporation
- Tikun Olam, Ltd.
- Other Players
Segments
By Product Type
- Flowers/Marijuana Flower
- Concentrates
- Edibles
- Topicals and Tinctures
- Others
By Application
- Medical
- Recreational
- Industrial Hemp
Global Cannabis Market: Regional Analysis
The countries covered in the regional analysis of the Global Cannabis market report are U.S., Canada, and Mexico in North America, Germany, France, U.K., Russia, Italy, Spain, Turkey, Netherlands, Switzerland, Belgium, and Rest of Europe in Europe, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, China, Japan, India, South Korea, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), and Argentina, Brazil, and Rest of South America as part of South America.
Key Benefits:
• The analysis provides an overview of the factors driving and limiting the growth of the market including trends, structure and others.
• Market estimation for type and geographic segments is derived from the current market scenario and expected market trends.
• Porter’s Five Force Model and SWOT analysis are used to study the global Cannabis market and would help stakeholders make strategic decisions.
• The analysis assists in understanding the strategies adopted by the companies for the growth of this market.
• In-depth analysis of the types of Cannabis would help in identifying future applications in this market.
Reasons to Purchase this Report:
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support
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Objectives of the Study:
• To provide with an exhaustive analysis on the Cannabis Market by Product, By Application, By End User and by Region.
• To cater comprehensive information on factors impacting market growth (drivers, restraints, opportunities, and industry-specific restraints)
• To evaluate and forecast micro-markets and the overall market
• To predict the market size, in key regions— North America, Europe, Asia Pacific, Latin America and Middle East and Africa.
• To record and evaluate competitive landscape mapping- product launches, technological advancements, mergers and expansions
