Cannabis Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 29.32 Billion|
|Market Size (2028)||USD 60.01 Billion|
|CAGR (2023 - 2028)||15.40 %|
|Fastest Growing Market||North America|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Cannabis Market Analysis
The Cannabis Market size is estimated at USD 29.32 billion in 2023, and is expected to reach USD 60.01 billion by 2028, growing at a CAGR of 15.40% during the forecast period (2023-2028).
The cannabis industry offers a wide range of items that are divided into recreational and medicinal uses. While medicinal usage is becoming more broadly accepted, the recreational use of cannabis is likely to rise in tandem with increased tolerance and official legalization globally.
- The market's growth has been fueled by the continued adoption of legal medical or recreational cannabis in more countries worldwide, as well as high-profile achievements from some of the industry's emerging top contenders. With the first cannabis-based drug receiving approval from the US Food and Drug Administration (FDA), many investors are starting legal marijuana operations.
- North America dominates the market and is projected to be the fastest-growing region. The cannabis industry has been growing significantly in the United States due to the product's use for medicinal purposes. As a result, the National Cannabis Industry Association (NCIA) is promoting the growth of the legal cannabis industry and providing it with favorable social, economic, and legal conditions in the United States. As a psychoactive drug, cannabis continues to find extensive favor among recreational and medicinal users in the United States.
Cannabis Market Trends
This section covers the major market trends shaping the Cannabis Market according to our research experts:
Increasing Legalization of Cannabis is Driving the Market
Medicinal cannabis accounts for a significant share of the cannabis market. Many countries, such as Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, Poland, Portugal, Thailand, the United Kingdom, and Uruguay, have legalized the use of cannabis for medicinal purposes. Thailand's Food and Drug Administration withdrew marijuana and hemp from the Category 5 narcotics list in June 2022, thereby decriminalizing these drugs. In effect, this change in the legislation allows Thais to produce and sell marijuana for medical purposes, which the government hopes could eventually establish Thailand as a "herbal center" in Southeast Asia. Medical cannabis was authorized in the United Kingdom in November 2018, which means it can be administered if no other approved treatment can benefit the patient. As of 2020, the British populace strongly supports cannabis legalization for medical purposes.
As of 2022, cannabis is legal for recreational use in nineteen states, two US territories, and the District of Columbia. Thirty-seven states, four US territories, and DC have approved the drug's medicinal usage. More states are estimated to follow suit during the forecast period, considering the widespread demand for cannabis and its medicinal properties.
In US provinces where cannabis has been legalized, consumers are mostly aged 50 and above. Owing to the higher risk of chronic diseases post-50 years of age and the effectiveness of cannabis on such conditions, this demographic profile is expected to boost the demand for cannabis in the country. According to the US Government Accountability Office (under State Medical Marijuana Laws), symptoms and conditions that can be treated by cannabis include Alzheimer's disease, anorexia, HIV/AIDS, glaucoma, cancer, arthritis, epilepsy, nausea, pain, cachexia, Crohn's disease, migraines, multiple sclerosis, spasticity, and wasting syndrome. Continuous research and standardization of products for medicinal purposes are expected to increase the popularity and demand for cannabis in the future.
To understand key trends, Download Sample Report
North America Dominates the Market
The North American cannabis market is set to become the major producer of cannabis post the legalization of cannabis in Canada. In May 2021, the US government approved new growers of research marijuana for the first time in more than 50 years, thus, increasing the capacity to study the drug's medical value.
Similarly, the Food and Drug Administration approved some of its derivative compounds for medicinal use. Marinol, Syndros, Cesamet, and Epidolex are cannabinoid drugs that received approval from the FDA. Furthermore, in the United States, ten states have legalized cannabis for recreational use, while 33 states and the District of Columbia have legalized cannabis for medical purposes. Among these states, California, Washington, and Colorado are the leading cannabis sellers. The production levels of cannabis in North America have increased rapidly over the past few years due to the expansion of the major players' production capacities. More states are estimated to follow suit during the forecast period, considering the widespread demand for cannabis and its medicinal properties.
Furthermore, Statistics Canada data showed that compared to April-June 2019, people spent 74% more money on licensed cannabis during the same period in 2020 in the country, just after the World Health Organization declared the COVID-19 pandemic in March. This period saw increased consumption of cannabis and related products in the country.
To understand geography trends, Download Sample Report
Cannabis Industry Overview
The global cannabis market is highly fragmented. Companies leading in the global cannabis market, such as Aphria, Medmen, Jazz Pharmaceuticals Inc., Aurora Cannabis Inc., and Canopy Growth Corp, have created efficient alliances and product launch plans to grow their market reach and client base.
Cannabis Market Leaders
Canopy Growth Corp.
Aurora Cannabis Inc.
Jazz Pharmaceuticals, Inc.
*Disclaimer: Major Players sorted in no particular order
Cannabis Market News
June 2021: Canopy Growth, one of the largest global cannabis companies, announced that it had completed the acquisition of The Supreme Cannabis Company and acquired 100% of the issued and outstanding common shares of Supreme.
March 2021: STADA Arzneimittel AG, one of Germany's largest pharmaceutical firms, entered the medical cannabis space with an agreement with Canadian firm MediPharm Labs to launch two flower products and six more products to follow.
May 2021: TCV Sciences Inc. announced the launch of PLUSCBD calm and sleep gummies, two flavorful gummies that support healthy stress responses and sleep cycles for people returning to their regular routines.
Cannabis Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.4 Other Product Types
5.3 Compound Type
5.3.1 Tetrahydrocannabinol (THC)
5.3.2 Cannabidiol (CBD)
5.3.3 Balanced THC & CBD
5.4.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 Czech Republic
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.4.4 South America
22.214.171.124 Rest of South America
5.4.5 Middle East and Africa
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.2 Canopy Growth Corp.
6.3.3 GW Pharmaceuticals PLC
6.3.4 Aurora Cannabis Inc.
6.3.5 Aphria Inc.
6.3.6 MedReLeaf Corp.
6.3.7 CV Sciences Inc.
6.3.8 Delta 9 Cannabis
6.3.9 Cannimed Therapeutics Inc.
6.3.10 Vivo Cannabis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cannabis Market Research FAQs
How big is the Cannabis Market?
The Cannabis Market size is expected to reach USD 29.32 billion in 2023 and grow at a CAGR of 15.40% to reach USD 60.01 billion by 2028.
What is the current Cannabis Market size?
In 2023, the Cannabis Market size is expected to reach USD 29.32 billion.
Who are the key players in Cannabis Market?
Canopy Growth Corp., Aurora Cannabis Inc., Jazz Pharmaceuticals, Inc., Medmen and Aphria are the major companies operating in the Cannabis Market.
Which is the fastest growing region in Cannabis Market?
North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Cannabis Market?
In 2023, the North America accounts for the largest market share in the Cannabis Market.
Cannabis Industry Report
Statistics for the 2023 Cannabis market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cannabis analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.