Cannabis Market

Global Cannabis Market Size (2023 to 2028)

The size of the global cannabis market is forecasted to be growing at a CAGR of 18.84% from 2023 to 2028 and will be worth USD 63.85 billion by 2028 from USD 26.94 billion in 2023.

The COVID-19 pandemic had a short-term negative impact on the cannabis market due to the imposition of lockdown, the decline in consumer product demand, limited operations in most industries, less funding for research and academic institutes, and a disrupted supply chain. A few cannabis companies depended on social media and e-commerce platforms to promote their products to consumers during this era. Because of the COVID-19 pandemic, extended social isolation has less impact on marijuana usage, which could explain the drug's continued demand during the outbreak. Medical marijuana has now become legal. The number of patients using cannabis as a medication is rising due to the number of diseases requiring cannabis treatment, which is anticipated to open opportunities for the cannabis market growth during the forecast period.

MARKET DRIVERS:

The legalization of cannabis, growing product innovation, fewer side effects, and availability of a variety of edible products are majorly propelling the growth of the global cannabis market.

Compared to other treatment options, cannabis is safer and has few side effects. It is also used with other treatments to enhance their efficacy. For example, chemotherapy patients use it to reduce nausea and increase appetite. Similarly, it is also used in combination with traditional opioid painkillers, which enables patients to reduce the dosage and frequency of opioids significantly and gives more significant pain relief.

The HEROES Act and the SAFE Banking Act were passed by the House of Representatives in 2020 and forwarded to the Senate for consideration. This law allows banks to offer services to marijuana companies in states. More than fifty nations have laws governing the drug's growth, creation, or distribution and its derivatives for medical use. Many governments have created legal frameworks for adult non-medical usage for social, religious, and cultural reasons. Additionally, the actions associated with the product's cultivation, manufacture, and trading in a legal market would make it easier for consumers to acquire information and consume the product, which is predicted to create opportunities for the cannabis market growth.

C. Sativa consumer product companies and retailers are rapidly shifting to meet the needs of the “mainstream” marijuana consumer. There is an increasing variety of products such as edible and other induced products and limited to smoking flowers with joints and pipes. Candies, chocolates, and beverages are popular hemp-based edibles in the market. Product innovation and packaging-related modification are expected to expand at the highest rate over the projection period. They are expected to play an essential role in boosting the sales of edibles.

Legalization of cannabis, developments in cannabis intellectual property rights, ongoing research into the genetic development and modification of the plant, adoption of legal medical or recreational cannabis in more countries worldwide, as well as high-profile achievements, increasing aging population across the globe and proven medical qualities of cannabis, rise in awareness among consumers regarding health benefits of cannabis and its growing medical application including cancer, chronic pain,  diabetes, glaucoma, migraines, epilepsy, depression, arthritis multiple sclerosis, acquired immunodeficiency syndrome (AIDS), amyotrophic lateral sclerosis (ALS), Alzheimer’s, post-traumatic stress disorder (PTSD), Parkinson’s, and Tourette’s are anticipated to be the other primary growth drivers of the cannabis market. In addition, in recent years, banks and other financial institutions have become more interested in cannabinoid-based businesses. This is partly caused by the fact that cannabis businesses typically adhere to banking laws. This has made many finance and revenue-growth opportunities for cannabis enterprises possible.

MARKET RESTRAINTS:

The complex regulatory structure for the usage of cannabis and the lack of a skilled workforce hampers the growth of the cannabis market. In addition, social stigma related to cannabis and a lack of acceptance as a medical therapists because of their negative assumption is a challenge for the market growth.

REPORT COVERAGE:

This research report on the global cannabis market has been segmented and sub-segmented into type, application, end-user, and region.

Cannabis Market – By Type:

• Flowers
• Concentrates

The concentrates segment accounted for the largest share of the global cannabis market in 2022. It includes CO2 oil, butane hash oil, live resin, budder, shatter, wax, kief, ice water hash, and rosin. This is due to the favorable demand dynamics, huge consumer base, and higher availability and penetration of marijuana products. In addition, due to the belief that vaporizing or ingesting concentrates are healthier consumption method than smoking, concentrates also observe more significant consumer acceptance.

Cannabis Market – By Application:

• Medical
• Recreational

Based on the application, the medical segment led the cannabis market worldwide in 2022. Some of the medications are Sativex, Marinol, and Cesamet. These utilize Cannabidiol (CBD) medicine, and health and wellness trends have facilitated the Cannabis market forward. Much research is growing on cannabis for its potential benefits in treating chronic diseases.

Cannabis Market – By End-User:

• Pharmaceutical Industry
• Research and Development Centers

Based on the end-user, the pharmaceutical segment accounted for the largest share of the global cannabis market in 2022, owing to the rise in the use of cannabis in the pharmaceutical industry, the rise in investments by pharma companies in CBD, and the rising health benefits of cannabis.

Cannabis Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Geographically, the North American region had the major share in the cannabis market worldwide in 2022, and the domination is anticipated to continue throughout the forecast period. National Cannabis Industry Association (NCIA) is supporting the growth of the legal cannabis market and providing it with favorable social, economic, and legal conditions in the United States. Some of its derivative compounds for medicinal use have been approved by Food and Drug Administration. Cannabinoid drugs such as Marinol, Syndros, Cesamet, and Epidolex received approval from the FDA. Colorado and Washington were the first two states to legalize marijuana for recreational use in the United States in 2012. Recently, Canada has been recognized as a flag-bearer nation. The number of farmers in the U.S. has supported its use and consumption. 

Europe held the second largest share in the global cannabis market in 2022, owing to the growing use of medical cannabis and progressive legislation. Medical marijuana is used in Europe to treat conditions and diseases ranging from cancer to appetite stimulants in patients with ALDS-related syndrome. Germany is one of the more advanced medicinal cannabis markets in Europe. This is being driven by factors such as the mixture of legislation becoming more developing and medical evidence continuing to support appropriate prescribed medicinal applications. Thailand is the country to deal with the legalization of cannabis. The Thai government announced that it would legalize and regulate the production, sale, and medical use of cannabis.

Asia is expected to have the fastest-growing regional market in the coming years. This is due to the increased acceptance of cannabis across the region. Recreational use of marijuana and medicinal and industrial use of marijuana is gaining popularity in the region. Clinical trials for CBD compounds have been approved in Japan, and with the growing geriatric population, Japan is set to become a substantial consumer of medicinal cannabis. China has also been growing cannabis plants to make fibers and it is frequently used in beauty products.

TOP COMPANIES IN THIS MARKET:

Companies playing a key role in the global cannabis market are Canopy Growth Corporation, GW Pharmaceuticals, PLC, Aurora Cannabis, Inc., Aphria, Inc., MedReleaf Corporation, Insys Therapeutics, Inc., CanniMed Therapeutics, Inc., Cara Therapeutics, Inc., and United Cannabis Corporation.

RECENT MARKET HAPPENINGS IN THIS MARKET:

• Canopy Growth completed the acquisition of Supreme Cannabis in June 2021.

• In 2020, a partnership for the exclusive supply of medical cannabis between MediPharm Labs and the European pharmaceutical company STADA.
• Leader in hemp-derived cannabidiol (CBD) products, CV Sciences, Inc., announced the release of PlusCBD Calm and Sleep in 2021. These two gummies help sound stress responses and sleep cycles for people returning to their regular routines.