USD 10.99 billion
Cannabis Market Size, Share, Growth Analysis, By Product(Flowers, Concentrates, Edibles, Topicals & Tinctures, Others), Compound(Tetrahydrocannabinol, Cannabidiol, Balanced THC & CBD), Application(Medical, Recreational), and Region - Industry Forecast 2024-2031
Report ID:
SQMIG35I2060 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
88
|Figures:
76
Cannabis Market Insights
Cannabis market was valued at USD 36.4 Billion in 2022 and is poised to grow from USD 42.6 Billion in 2023 to USD 148.4 Billion by 2031, growing at a CAGR of 16.9% during the forecast period (2024-2031).
The global cannabis market is rapidly growing due to the factors such as legalization, availability of medical marijuana as well as an increase in the use of cannabis by consumers. As organic and sustainable farming practices increase in popularity worldwide, consumers pay more attention to environmental issues. Thus, the growing use of cannabis in wellness and health products, including CBD-related products, has a broader market appeal than pure stoners.
Competition in the market has also increased, which has increased the pressure on markets to introduce new products and do better branding. Economically, the commercialization of cannabis has boosted employment opportunities and tax revenues, primarily in areas where the use of cannabis products has been legalized. The medical cannabis segment is especially inundated due to continued research and clinical trials to support the fact that it offers solutions for conditions such as chronic pain, epilepsy, and multiple sclerosis. In summary, the cannabis market is likely to grow rapidly in the coming years due to liberalization of the regulatory environment, technological advancements, and increasing product acceptance, although the market will face several challenges. Unstable regulations and competition in the international market to maintain the pace of development.
US Cannabis Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Recreational
Fastest Growth
Recreational
Growth Rate
22.1% CAGR
Cannabis Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Cannabis Market Segmental Analysis
Global cannabis market is segmented based on product, compound, application, and region. Based on product, the market is segmented into flowers, concentrates, edibles, topicals & tinctures, and other product types. Based on compounds, the market is segmented into Tetrahydrocannabinol, Cannabidiol, and Balanced THC & CBD. Based on application, the market is segmented into medical (pain management, neurological health management, mental health management, other medical applications), and recreational. Based on region, the market is segmented into North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
Cannabis Market Analysis by Product
In 2023, the cannabis market has dominated by flower segment and held the largest share of the market. The dominance of this flower segment is due to its conventional characteristics and extensive approval by both recreational and medicinal consumers. Many users prefer cannabis flowers due to their flexibility. It can be smoked, vaporized, and used to make essences such as blueberry and raspberry. New markets for this segment are also driven by the rising number of countries and states where cannabis is now legal and the widening customer base. Further, craft hemp holds its ground, and more and more people shift to natural unprocessed products, which also sustains the demand for hemp flower.
On the other hand, the edibles segment has been experienced fastest growth within the cannabis market. It is relatively easy for segments to grow because of their subtle use and no inhalation hazards, which makes them suitable for almost every type of users, including the healthy ones. There has been an expansion in the food and beverage industry as well as various consumable products such as edibles like gummies, chocolates, beverages, and baked products among others which has enhanced the reputation.
Cannabis Market Analysis by Compound
By the compound type, the cannabis market is dominated by the Cannabidiol (CBD) segment. In 2023, the segment held the maximum share of the cannabis market. CBD has become the dominant product for many reasons, including the fact that it can be incorporated into numerous verticals such as pharmaceutical, wellness, and beauty. It lacks psychoactive properties, increasing the popularity among consumers looking for a product with medicinal uses. In addition, the growing understanding of CBD’s positive attributes on health, along with the legalization of its medical use in some parts of the world, is another factor that fosters the market’s expansion.
On the other hand, the fastest-growing segment is Balanced THC & CBD Products, that has experienced the fastest growth during recent years. This growth trend is especially precise for recreational cannabis where consumers want a more controlled and repeatable experience. Also, the breeding of cannabis has improved over the years with the ability to encourage straining of specific THC-CBD ratios for the diverse market with customer wants and needs for balanced cannabis.
Cannabis Market By Compound (%)
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Cannabis Market Regional Insights
In 2023, Asia-Pacific has shown it dominance in the cannabis market. The trends of cannabis market appear to be the most favorable as the medical cannabis usage and the legislative amendments to the cannabis legalization in various countries are constantly evolving at a higher pace. Australia and New Zealand are some of the regions where the legalization of medical cannabis is rapidly growing. Thailand and South Korea are other regions that are aspiring to be growers and researchers in this business. In addition, the population in the region is high, and there is a gradual increase in the disposable income which also plays a factor in the growth of the consumable market and the awareness of the therapeutic effects of cannabis is also high.
On the other hand, North America is experiencing fastest growth in the global cannabis market. The region’s increasing consumer demand further propels the growth in the North America region. The legalization of cannabis in most states of the US has created a strong presence of providers, and the huge demand from consumers in the US and Canada has made North America the fastest growing market for cannabis. Many cannabis users in North America are between the ages of 18-39. The gender split is almost even, with slightly more men than women using cannabis. In addition, the climate in North America is conducive to growing cannabis, and there is a large amount of land available for cultivation.
Cannabis Market By Region
- Largest
- Fastest
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Cannabis Market Dynamics
Cannabis Market Driver
Increasing Legalization of Cannabis
- Our analysis reveals that one of the key factors of cannabis market evolution is legalization and regulation. As more countries and states legalize cannabis for medical and recreational use, the market continues to grow beyond wisdom and comprehension. This shift not only enhance market’s growth for the industry, but it also breaks the barrier in terms of consumer acceptance of cannabis products. Moreover, rules and regulations set the policies and procedures that various enterprises must follow to maintain the quality and safety of products. Overall, the process of legalization and regulation still provides a large and important force pushing the cannabis market forward.
Ongoing Medical Research and Innovation is influencing the cannabis market
- The ongoing advancement in medical research and product development plays a major role in shaping the cannabis market due to the ever-increasing demand medical cannabis products. Consumers rely on cannabis as the treatment for various medical conditions due to advancements in the scientific knowledge about the therapeutic effects of cannabis. Technological improvements in the growth of plants also in the preparation of the products, as well as the methods of administration also increase the effectiveness of medical marijuana and can be used by even a broader range of individuals and including medical practitioners.
Cannabis Market Restraint
Market Saturation and Intense Competition are Emerging as Significant Restraints
- Our analysis reveals that Cannabis is increasingly legal for medical and recreational use in many states and countries; this has led to increased industry saturation with many firms entering the market, largely causing an excess in some regions. The fact that there is currently an oversupply of cannabis products and production is growing exponentially combines with the commoditization threat that drives companies to differentiate themselves by branding, quality, and innovation, which is capital-intensive. However, the illicit market also poses a threat as it operates at a lower price compared to legitimate stores and does not have to bear the cost of regulatory compliance. Such competition hampers the legal market’s viability and its ability to expand by providing illicit services.
Social Stigma and Public Perception Continue to Act as Significant Restraints
- Social stigma and public opinion are still major inhibitors in the cannabis market. While the use and sales of cannabis have become more acceptable in the society and some countries have legalized it, consumers and the plant itself continue to be stigmatized in the society especially among the older generations and the conservative societies. This implies that consumers are hesitant to associate themselves with these products and services, thus limiting the market reach and overall market expansion. People continue to refrain from using cannabis as they used to associate it with the banned substance and the law does not seem to be very friendly towards it.
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Cannabis Market Competitive Landscape
The Cannabis market is characterized by the presence of several key players. These players compete based on factors such as product portfolio, ongoing research, pricing strategies, and market reach. Basically, the market is driven by continuous research and development (R&D) efforts aimed at introducing innovative techniques and enhancing production & usage of cannabis. Market players focus on strategic collaborations, partnerships, and mergers and acquisitions to expand their market presence and gain a competitive edge.
Cannabis Market Top Player's Company Profiles
- Canopy Growth Corporation (Canada)
- Aurora Cannabis Inc. (Canada)
- Aphria Inc. (Canada)
- Tilray, Inc. (Canada/USA)
- Cronos Group Inc. (Canada)
- GW Pharmaceuticals plc (UK)
- Hexo Corp. (Canada)
- Green Thumb Industries Inc. (GTI) (USA)
- Cresco Labs Inc. (USA)
- Curaleaf Holdings, Inc. (USA)
- Trulieve Cannabis Corp. (USA)
- MedMen Enterprises Inc. (USA)
- Columbia Care Inc. (USA)
- Harvest Health & Recreation Inc. (USA)
- Akerna Corp. (USA)
- Village Farms International, Inc. (Canada)
- Charlotte's Web Holdings, Inc. (USA)
- Elixinol Global Limited (Australia)
- Hemp, Inc. (USA)
- The Green Organic Dutchman Holdings Ltd. (TGOD) (Canada)
Cannabis Market Recent Developments
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In June 2024, NOW launched a new line of THC-free CBD topical products. The NOW Solutions' additions include a CBD Balm, CBD Massage Oil, and CBD Joint & Muscle Cream, which are formulated with broad-spectrum hemp as well as a range of botanical ingredients that support muscles, joints, and skin.
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In April 2024, Avicanna launched a new version of its proprietary oral cannabidiol (CBD) formulation, called RHO Phyto Micro Drop 10, in Canada. The oral CBD formulation is found in Trunerox, an add-on treatment for seizures in people with Dravet syndrome and Lennox-Gastaut syndrome (LGS) that’s approved in Colombia.
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In January 2024, Akumentis Healthcare Ltd launched a cannabis plant-based medicine in the market to treat seizures in toddlers. Akumentis said its Clasepi drug has tetrahydrocannabinol (THC) content below 0.1% and clinical studies have demonstrated its efficacy in reducing seizures, especially in cases where conventional antiseizure medications have proven ineffective. THC is an active ingredient of cannabis.
Cannabis Key Market Trends
- Expansion of Product Offerings and Innovation: A key trend that we find out from our analysis is that there has been a continuous growth in the number of products offered in the cannabis market and diversification in ways. With changing customer tastes and development of requirements, enterprises are now raising capital for the creation of innovative products apart from flowers and oils. These include the ones that are ingestible such as candies and chocolates, the drinks such as tea and coffee, the ones that are applied externally such as balm and lotions and the ones that are highly concentrated among others. Technological improvements in the growth methods like indoor and greenhouse farming and technological advancements in extraction of cannabinoids are also contributing to product innovation.
Cannabis Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest’s analysis, the cannabis market is continuously experiencing rapid growth. Our study reveals that the cannabis market significantly promising due to several factors including legalization, innovation, and product adoption. Another huge factor that has boosted employment opportunities and tax collections has been the liberalization of the regulatory structures in the different parts of the world. Specifically, competition in the market has been realized to have increased, thereby forcing the companies to seek new ways of differentiation and improve branding. The medical cannabis segment, in specific, receives the advantage of continuous research and clinical research that demonstrate the beneficial impact of cannabis in condition including chronic pain, epilepsy, multiple sclerosis among others. Our study identifies that legalization and regulation are essential factors, which continue to chip away barriers and guarantee product quality and safety, accordingly, the company will maintain the dynamic progress of the cannabis market.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 36.4 Billion |
| Market size value in 2031 | USD 148.4 Billion |
| Growth Rate | 16.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Cannabis Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Cannabis Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Cannabis Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cannabis Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cannabis Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cannabis Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Cannabis Market Report Snapshots
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