USD 11.5 Billion
U.S. Cannabinoids Market Size, Share, Growth Analysis, By Product(Cannabidiol (CBD), Cannabigerol (CBG)), By Application(Inflammation, Pain Management) - Industry Forecast 2024-2031
Report ID:
SQMIG30H2136 |
Region:
Global |
Published Date: March, 2024
Pages:
198
|
Tables:
67 |
Figures:
70
U.S. Cannabinoids Market Insights
U.S. Cannabinoids Market size was valued at USD 11.5 Billion in 2021 and is poised to grow from USD 13.80 Billion in 2022 to USD 59.34 Billion by 2030, at a CAGR of 20% during the forecast period (2023-2030).
The U.S. Cannabinoids Market have gained significant attention due to their potential therapeutic benefits and increasing legalization of cannabis for medicinal and recreational purposes. It is driven by factors such as expanding acceptance of cannabis for medical applications, growing consumer awareness about the potential health benefits of cannabinoids, and the emergence of various product categories. These product categories include CBD (cannabidiol) oils, tinctures, capsules, topicals, edibles, and more. One key driver of the U.S. cannabinoids market is the increasing demand for CBD products. CBD, a non-psychoactive compound found in cannabis, has gained popularity for its potential therapeutic effects, such as pain relief, anxiety reduction, and anti-inflammatory properties. The market for CBD products has expanded across various sectors, including healthcare, wellness, personal care, and pet care. Furthermore, the U.S. cannabinoids market is influenced by the regulatory landscape surrounding cannabis. While cannabis remains federally illegal in the United States, there has been a wave of legalization at the state level, with a growing number of states legalizing cannabis for medical or recreational use. This changing regulatory environment has created opportunities for cannabis companies to operate and expand their businesses, driving market growth. The market is also characterized by the presence of numerous players, including both established companies and startups. These companies are actively engaged in research and development, product innovation, strategic partnerships, and mergers and acquisitions to gain a competitive edge and expand their market share. As the U.S. cannabinoids market continues to evolve, market participants are closely monitoring legislative developments, consumer preferences, and scientific research to capitalize on emerging trends and opportunities. The market is expected to witness continued growth in the coming years, fueled by factors such as increasing consumer acceptance, product diversification, and further legalization efforts at both state and federal levels.
US Cannabinoids Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2023-2030
Global Market Size
Largest Segment
CBD
Fastest Growth
CBD
Growth Rate
20% CAGR
Global U.S. Cannabinoids Equipment Market ($ Bn)
Country Share for North America Region (%)
Global U.S. Cannabinoids Market By Derivative ($ Bn)
Global U.S. Cannabinoids Market By Derivative (%)
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U.S. Cannabinoids Market Segmental Analysis
The U.S. cannabinoids market is segmented on the basis of end use, derivative, and region. By end use, the market is segmented into medical, recreational, and industrial. In terms of derivatives, the market is segmented into CBD, THC and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Cannabinoids Market Analysis By Derivative
The CBD segment dominated the market in 2022. This can be attributed to the widespread acceptance of CBD products due to their medicinal properties and non-psychoactive effects. CBD is commonly used to treat various conditions such as anxiety, depression, stress, and seizures. The FDA-approved prescription CBD drug, Epidiolex, has been effective in managing seizures associated with Lennox-Gastaut Syndrome. Additionally, the high demand for CBD for health and wellness purposes contributes to the segment's dominance.
The legalization of CBD in select U.S. states has created substantial growth opportunities for the segment. Favorable government regulations have facilitated the entry of numerous players into the market, further fueling its expansion.
However, the other segment is expected to exhibit the fastest growth rate. This can be attributed to the increasing number of research studies highlighting the benefits of minor cannabinoids such as CBC, CBG, and CBDa. Furthermore, the growing awareness of the health benefits offered by minor cannabinoids and the rising number of players offering products containing these cannabinoids are expected to drive the growth of the other segment in the coming years.
Cannabinoids Market Analysis By End user
The medical segment emerged as the dominant revenue generator capturing a significant market share. This can be attributed to the increasing acceptance of cannabis for the treatment of various chronic conditions such as cancer, depression and anxiety, diabetes, arthritis, and epilepsy. The approval of drugs specifically designed to address these conditions also contributes to the segment's growth. For example, FDA-approved drugs like Marinol and Syndros are used to alleviate the side effects of chemotherapy, including nausea and vomiting.
On the other hand, the recreational segment is expected to witness the fastest growth rate. This growth is driven by its use in the treatment of various health conditions and the fact that recreational cannabis products can be sold without a prescription, thus fueling demand. Additionally, the legalization of cannabis for recreational purposes further bolsters the growth of this segment. Notably, several states in the U.S., including Colorado, Washington, California, Alaska, Oregon, and Michigan, have already legalized the use of cannabis for recreational purposes.
Global U.S. Cannabinoids Market By Derivative, 2021 (%)
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U.S. Cannabinoids Market Regional Insights
The U.S. cannabinoids market is a thriving industry that encompasses the production, distribution, and consumption of various cannabinoid-based products, including CBD (cannabidiol) and THC (tetrahydrocannabinol) derivatives. While the market is rapidly growing nationwide, two regions stand out as dominating and experiencing the fastest growth rate.
California, the Golden State, shines as the dominating region in the U.S. cannabinoids market. Known for its progressive stance towards cannabis legalization, California boasts a robust infrastructure and a well-established ecosystem of cultivators, manufacturers, and retailers. The region's vast consumer base, coupled with a flourishing cannabis culture, contributes to its dominance in the market. With a plethora of innovative companies and a strong retail presence, California captures a significant market share, leading the way in shaping trends and driving cannabinoid product innovation.
The Northeast region of the United States emerges as the fastest growing market for cannabinoids. Comprising states such as New York, Massachusetts, and New Jersey, this region has witnessed significant legislative shifts towards cannabis legalization and the rapid expansion of medical and adult-use markets. With the recent legalization of recreational cannabis in key states, the Northeast is experiencing an influx of investment, consumer demand, and product innovation. The region's densely populated urban centers, coupled with a growing acceptance of cannabinoids, fuel the market's accelerated growth. As more dispensaries, wellness brands, and ancillary businesses establish a foothold, the Northeast is set to capture an increasing share of the U.S. cannabinoids market.
Global U.S. Cannabinoids Market By Region, 2023-2030
- Largest
- Fastest
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U.S. Cannabinoids Market Dynamics
Cannabinoids Market Drivers
Increased Use of Cannabis in Medicines:
- Medicinal cannabis, derived from cannabis plants, has demonstrated its potential to alleviate symptoms associated with specific medical conditions and mitigate side effects resulting from certain treatments. One of the primary applications of medicinal cannabis is in pain management. Over time, an increasing number of countries have legalized cannabis for various indications, contributing to the gradual acceptance and utilization of medicinal cannabis. The FDA has approved the use of medical cannabis for three rare and severe forms of epilepsy, namely Dravet syndrome and Lennox-Gastaut syndrome. Additionally, it has been approved to address spasticity in Multiple Sclerosis (MS). In addition to the approved drugs, there is growing interest in two key cannabinoids: delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). THC has demonstrated potential in improving appetite, reducing fatigue, and managing issues related to muscle function. On the other hand, CBD has shown effectiveness in managing epileptic seizures, treating psychiatric illnesses, and reducing inflammation. These cannabinoids have garnered significant attention for their therapeutic properties and their potential applications in various medical conditions.
Cannabinoids Market Restraints
High-cost Purchasing and Rush for Premium Quality
- The manufacturing and purchasing of medical cannabis devices can incur significant expenses, alongside high procedure costs due to specialized equipment and training requirements. This can create barriers to access medical cannabis treatments for patients and healthcare facilities, particularly in lower-income regions. Furthermore, the elevated costs associated with medical cannabis devices and procedures may discourage certain patients from opting for these treatments, particularly if they are required to bear the expenses themselves. Additionally, insurance coverage for medical cannabis treatments is often limited, further impeding their adoption. Consequently, the high costs associated with medical cannabis devices and procedures pose a substantial hindrance to market growth, particularly in regions where cost plays a pivotal role. However, as technology progresses, there is a possibility of cost reduction in these devices and procedures, potentially enhancing accessibility for patients and healthcare facilities. The complexity of medical cannabis devices and the exorbitant costs of medical cannabis treatments are projected to impede market expansion.
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U.S. Cannabinoids Market Competitive Landscape
The U.S. Cannabinoids Market is characterized by intense competition among a wide range of players. Key drivers of competition include product innovation, pricing strategies, brand recognition, and distribution networks. Partnerships, mergers and acquisitions, and regulatory compliance are important factors shaping the competitive landscape. Consumer preferences and brand reputation play a significant role in determining market share. As the market continues to grow, companies strive to differentiate themselves and capture the expanding demand for cannabinoids-based products.
Cannabinoids Market Top Player’s Company Profile
- Aphria Inc. (Canada)
- Tilray Inc. (Canada)
- Cronos Group Inc. (Canada)
- OrganiGram Holding Inc. (Canada)
- VIVO marijuana Inc. (Canada)
- Tikun Olam Ltd. (Israel)
- The Green Organic Dutchman Holdings Ltd. (Canada)
- Terra Tech Corp. (U.S.)
- Medical Cannabis Inc. (U.S.)
- Stenocare A/S (Denmark)
- Cannabis Science Inc. (U.S.)
- HEXO Corp. (Canada).
Cannabinoids Market Recent Developments
- In June 2021, Canopy Growth, a prominent multinational cannabis company, declared the successful completion of its acquisition of The Supreme Cannabis Company. As part of this acquisition, Canopy Growth has obtained full ownership of all the common shares of Supreme, including those that have been issued and are currently outstanding.
- In May 2021, TCV Sciences Inc. introduced a new product called PLUSCBD calm and sleep gummies. These tasty gummies are designed to assist individuals in managing stress and improving their sleep patterns as they transition back to their normal daily routines.
U.S. Cannabinoids Key Market Trends
- Diversification of Product Offerings: The market is witnessing a diversification of product offerings beyond traditional CBD oils and tinctures. Companies are introducing a wide range of cannabinoid-infused products such as edibles, beverages, topicals, skincare products, pet products, and more. This diversification caters to different consumer preferences and expands the market reach of cannabinoids.
U.S. Cannabinoids Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our U.S. cannabinoids market analysis, the United States serves as the dominant region, benefiting from extensive cannabis legalization and a well-established industry. On the other hand, Europe emerges as the fastest-growing region, driven by progressive cannabis regulations and a rising acceptance of cannabinoids for medical applications. As the market continues to expand, North America maintains its dominant position, while Europe demonstrates substantial growth potential. These regions play pivotal roles in shaping the U.S. Cannabinoids Market, paving the way for continued market development and innovation.
| Report Metric | Details |
|---|---|
| Market size value in 2021 | USD 11.5 Billion |
| Market size value in 2030 | USD 59.34 Billion |
| Growth Rate | 20% |
| Base year | 2023 |
| Forecast period | 2023-2030 |
| 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 U.S. Cannabinoids 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 U.S. Cannabinoids 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 U.S. Cannabinoids 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 U.S. Cannabinoids 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 U.S. Cannabinoids Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the U.S. Cannabinoids 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.
U.S. Cannabinoids Market Report Snapshots
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