Cannabis Market Size, Share, Growth, and Industry Analysis, By Type (Flowers and Leaves, Concentrates), By Application (Medical Use, Recreational Use), and Regional Forecast to 2032

CANNABIS MARKET OVERVIEW

The global Cannabis Market size was USD 11.64 billion in 2023 and is projected to touch USD 50.90 billion by 2032, exhibiting a CAGR of 17.4% during the forecast period.

Cannabis is used in the pharmaceutical, cosmetic, and food & beverage sectors. Due to the ever-growing approval of its use for medical purposes and the increasing legalization of cannabis, the market is experiencing a growth trajectory. Enhanced research activities on the use of cannabis and its medicinal properties have created more applications in treating multiple chronic conditions. Cannabis is effective in the management of chronic pain and nausea resulting from chemotherapy. Also, due to the growing legalization of medical cannabis, market size is increasing. For example, the FDA approved the use of cannabis-derived drugs- products such as Epidiolex, Cesamet, etc.- for the treatment of seizures and chemo-induced side effects. The penetration of cannabis is increasing significantly due to the positive attitude of consumers towards the consumption of cannabinoid (CBD) based products. The industry is booming because of the adoption of cannabis for both medical as well as recreational use. Also, the price of legal marijuana is relatively less than the medical marijuana. Nevertheless, taxes can be levied on marijuana after its legalization. Thus, the focus of cultivators is on the production in tax-exempted areas.

GLOBAL CRISES IMPACTING CANNABIS MARKETCOVID-19 IMPACT 

The cannabis market Had both Negative and Positive effects due to supply chain disruption during the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The lockdowns that occurred during the COVID-19 pandemic affected the cannabis market, locking in many challenges and opportunities. In most regional states, during lockdowns, cannabis is seen to be an essential product that brings dispensaries through for operation, especially for medical users who rely on cannabis to reduce symptoms. Therefore, in a few markets, particularly in North America, steady demand was ensured, considering the rise in delivery and online ordering because of lockdowns. However, those disruptions caused in the supply chain, affected the production and delivery schedules while further slowing licensing procedures for new dispensaries. Despite the latter, this pandemic increased trends toward e-commerce and contactless purchases, integral aspects of cannabis businesses in the new normal. With wellness remaining atop the agenda due to the effects of COVID-19, customers are becoming increasingly interested in using cannabis products, specifically CBD, for stress management and health purposes, hence preparing the market for consistent growth as the world recovers.

LATEST TREND

"Growing Medicinal Benefits of Cannabis"

The cannabis industry is growing rapidly, and along with it comes numerous key trends in transforming consumer preferences and how the market operates. Perhaps the most significant of these trends is that demand for CBD products is increasing because consumers are seeking the therapeutic benefits of the non-intoxicating cannabidiol (CBD) to find relief from pain, relaxation, and deeper sleep without the high of intoxication. Moreover, interest is still up for edibles, drinks, and other infused products attractive, smoke-free alternatives for customers. To Grow Cannabis the role of technology is also changing the landscape in which cannabis is cultivated. For example, techniques such as precision agriculture and indoor farming improve the quality and yield of products. More so, with increased medical studies regarding using cannabis for afflictions such as chronic pain and anxiety, the light generated will increase support from doctors and patients. Along with these trends, sustainability has come to the fore, including corporate practices such as organic farming and waste reduction to woo green consumers, thus together they point to a dynamic growth and diversification within the cannabis market.

CANNABIS MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Flowers and Leaves and Concentrates

• Flowers and Leaves: This type contains the traditional cannabis plant parts which are flowers and leaves. These are preferred by consumers who like to smoke or vape, and they require immediate effects. Demand for flowers and leaves increases highly in the recreational market as these will be natural, unprocessed cannabis. It is the choice of many users because it will allow them to use the whole plant with all the different cannabinoids and terpenes.
• Concentrates: These are the most concentrated cannabis extracts. They can include oils, waxes, or tinctures. Due to their potency, they are largely taken up by mature or experienced users who are medical patients as well, requiring dosing at high levels. Concentrates are versatile in terms of how they may be inhaled through vaping, applied to edibles, or even made into tinctures to achieve targeted effects from fewer quantities than with flowers.

BY APPLICATION

Based on application, the global market can be categorized into Medical Use and Recreational Use

• Medical Use: Medical cannabis is primarily used in treating conditions including chronic pain, anxiety, epilepsy, and many other health conditions. The medical segment is growing with increasing research on the therapeutic benefits of cannabis. Most healthcare providers are now considering cannabis for patients requiring alternative treatments, especially where traditional medications are limited in effectiveness or cause severe side effects.
• Recreational Use:Recreational cannabis markets are growing rapidly in areas where they are legal. Recreational users consume the drug for aesthetic enjoyment, to relax, and as a social habit. This product category is incredibly diversified, ranging from pre-rolled joints and vapes to edibles and beverages, accommodating consumer preferences for one over another. The broad options in consumption methods make it accessible and appealing to adult consumers of many types.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges stating the market conditions.                   

DRIVING FACTORS

"Legalization and Regulatory Support"

 The cannabis industry has the most significant driving force in the form of increasing legalization of medical and recreational cannabis across different parts of the world. As more countries and states legalize cannabis use, consumers' accessibility increases, thus enhancing the base of the market. Companies can now operate in a regulatory environment while stigma reduces thus making adoption more relaxed.

"Increasing Demand for Health and Wellness Products"

There is a growing need for wellness around the world, which means there is an increasing demand for cannabis products, especially the non-psychoactive portion, CBD. Today, many consumers have begun to opt for CBD products as a way to treat stress, pain, and sleep disorders. In this way, this has helped support growth in the medical cannabis segment. In recent times, there have been more health-conscious requirements, where health-conscious people are seeking products that offer natural, therapeutic effects, and cannabis is gradually becoming more mainstream.

RESTRAINING FACTOR

"The complexity of the regulatory landscape"

In some regions, its legitimacy comes with a particularly complex and inconsistent global level of regulation. While it is legitimate in certain regions, the varying restrictions set on each county and state make it very difficult for businesses to operate cohesively across borders. There are legal challenges and constrained growth for companies that are operating within regions where cannabis is illegal or highly regulated. Overly restrictive regulations can also be expensive in terms of time and effort, especially for small businesses looking to penetrate the market.

OPPORTUNITY

"Expanding on the Medical Research"

There is still growing scientific interest in the medical benefits attributed to cannabis. Today, conditions like epilepsy, multiple sclerosis, chronic pain, and anxiety among others remain very common and require much research. Further research in this aspect has been able to confirm the therapeutic benefits of cannabis and slowly gaining approvals in the medical community. As this research expands, consumers and healthcare providers are likely to be more confident and interested in cannabis-based products, which may open up new markets, especially for patients who have unmet medical needs.

CHALLENGE

"Excessive Competition and Market Overcrowding"

 With the increasing dimension of the cannabis market growth, more and more people are entering this market. The competition among various players is now gaining a relatively aggressive sentiment, especially in areas that have legalized cannabis. All kinds of companies, whether it is new start-ups or alternative health brands, are going to fight to capture a market share. Thus, the competition becomes so fierce that businesses need to innovate constantly to get in the differentials. A saturated market can be seen mainly in the U.S. and Canada where small companies are not in a good position to compete with the major players who have much more business and marketing resources and carry out much stronger research.

CANNABIS MARKET REGIONAL INSIGHTS

• North America 

North America dominated the market for revenue share. There is seen a strong momentum in the rate at which the government is decriminalizing cannabis for both medical and adult use or recreational use of marijuana. Such factors are driving the regional market even further. Further to this are the presence of a majority of market players in the cannabis market and a structured regulatory framework. For instance, The United States Cannabis Market recently issued specific guidance on cannabis and cannabis-derived compounds for the development of drugs for human use. With two-thirds of it within this legal territory for cannabis, demand and supply have increased and further boosted North America's position.

• Europe

Medical cannabis is slowly gaining acceptance in Europe. Germany and the UK are two of the leading countries in its lawful adoption. Europe is relatively less advanced in the adoption of recreational cannabis, but there is a recent movement to legalize it. The European Union is working on the framework for medical cannabis, with the potential to spur growth in the market.

• Asia-Pacific

Asia-Pacific is an emerging opportunity where, for instance, Thailand and South Korea are moving toward the legalization of cannabis, essentially for medical use. The region is still broadly conservative, but changing attitudes to government-sponsored research into the medicinal use of cannabis will accelerate growth soon.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The global cannabis market share is highly fragmented and has diversity in the presence of a considerable number of key players that continue to command a substantial market share together, start-ups and small producers have renewed the market with new product offerings and niche solutions with quality control based on strict regulatory compliance, and brand strategies witnessed an upsurge in this competitive arena with mergers and acquisition strategic partnerships

LIST OF TOP CANNABIS MARKET COMPANIES

• Canopy Growth [Canada]
• Aurora Cannabis [Canada]
• Cannabis Science Inc [US]
• Aphria Inc [Canada]
• Medical Marijuana Inc [US]
• Mentor Capital [US]
• CBD American Shaman [US]
• CV Sciences [US]
• Folium Biosciences [US]
• Irie CBD [US]
• PharmaHemp [Slovenia]
• Terra Tech [US]
• NuLeaf Naturals [US]
• Manitoba Harvest [Canada]
• Charlotte's Web [US]
• Endoca [Netherlands]

KEY INDUSTRY DEVELOPMENT

January 2024:  Village Farms International, Inc. revealed two cannabis brands launching in the United Kingdom, Pure Sunfarms and The Original Fraser Valley Weed Co. (Fraser Valley). These brands will be distributed by 4C LABS, a UK-based medical cannabis company.

REPORT COVERAGE

This report covers an overview of the cannabis market, which is further detailed by size, segmentation, trends, dynamics, and regional growth patterns. The report is further supported by the analysis of the key players and strategies implemented to sustain their place in this market, along with the latest developments in this industry. This report further provides answers to common FAQs related to this industry on the value scenarios, product innovations, and future growth projections.