|Fastest Growing Market:||North America|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The cannabis market is projected to register a CAGR of 15.4% during the forecast period 2022-2027.
Like in every other market, the COVID-19 pandemic had an adverse impact on the cannabis market as well. The imposition of lockdown limited consumers from visiting brick-and-mortar shops. However, many cannabis companies began relying heavily on social media and e-commerce platforms to market to consumers during this period. Cannabis retail outlets, producers, manufacturers, distributors, and warehouses were deemed essential services by the Alberta Government on March 30, 2020. As a result, cannabis businesses and services continued to serve Albertans throughout the COVID-19 pandemic.
The proven medicinal properties of cannabis, legalization of cannabis, active research into genetic development and modification of the plant, and advancements in intellectual property rights of cannabis are expected to be the major drivers of the market. 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.
Scope of the Report
Cannabis is a tall plant with a stiff upright stem, which is used as a drug and is being legalized for its medical usage. The global cannabis market is segmented by product type into capsules, concentrates, edibles, and other product types. Based on application, the market is segmented into medical and recreational, compound type (tetrahydrocannabinol (THC), cannabidiol (CBD), and balanced THC & CBD. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers market size and forecasts for all the above segments in value (USD million).
|Other Product Types|
|Balanced THC & CBD|
Key Market Trends
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, and Uruguay, have legalized the usage of cannabis for medicinal purposes. In March 2017, Germany legalized medicinal cannabis to supply cannabis products to the increasing patient demand. In Germany, medical cannabis products are sold exclusively in pharmacies, and they are prescribed by doctors as a last resort medicine, which means the patient has exhausted all other avenues of treatment. Further, the Croatian parliament allowed the cultivation and production of cannabis for medicinal purposes in the country in 2019.
As of July 2019, 11 states and Washington DC legalized the possession and personal use of marijuana for recreational purposes in the United States. On the other hand, 30 states in the United States legalized the usage of cannabis for medical purposes. 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 years 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.
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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.
Further, Statistics Canada data shows 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.
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The cannabis market is extremely fragmented, with local and regional players occupying significant shares. In the cannabis market, companies are very active and are involved continuously in acquiring shares and developing new products to attract more consumers to their products.
Canopy Growth Corp.
Aurora Cannabis Inc.
Jazz Pharmaceuticals, Inc.
In June 2021, Canopy Growth, one of the world's largest 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.
In 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.
In 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.
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 Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 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
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 Czech Republic
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.4.4 South America
18.104.22.168 Rest of South America
5.4.5 Middle-East and Africa
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
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
8. AN ASSESSMENT OF IMPACT OF COVID-19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Cannabis Market market is studied from 2017 - 2027.
What is the growth rate of Cannabis Market?
The Cannabis Market is growing at a CAGR of 15.4% over the next 5 years.
Which region has highest growth rate in Cannabis Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Cannabis Market?
North America holds highest share in 2021.
Who are the key players in Cannabis Market?
Canopy Growth Corp., Aurora Cannabis Inc., Tilray, Jazz Pharmaceuticals, Inc. , Halo Labs are the major companies operating in Cannabis Market.