Cannabis Market

Cannabis Market Overview

The size of the global cannabis market was estimated at USD 44.74 billion in 2022 and is expected to increase at a compound annual growth rate (CAGR) of 20.18% from USD 94.89 billion in 2023 to USD 596.39 billion by 2033. In 2022, North America held an 81.79% market share, dominating the global market. Additionally, the growing legalization of cannabis for both medical and recreational use in several U.S. states is expected to propel the growth of the cannabis market in the United States, which is expected to reach an estimated value of USD 428.22 billion by 2032.

Cannabis is a genus of flowering plants that has been used for thousands of years. Its therapeutic and medicinal properties have led to its widespread use. Its use in social and spiritual contexts is likewise well-established. The three prevalent species are C. sativa, indica, and ruderalis. Today, the majority of cultivars are hybrids, combining traits from two or more of these main species.

Legalization of marijuana is also spreading throughout the world. The main factor behind this momentum is the growing awareness that the substance might have a number of valid therapeutic uses and medical advantages. The United Nations Office on Drugs and Crime (UNODC) claims that it is the most commonly grown, trafficked, and used substance in the world. For example, the Thai government decriminalized the production, sale, distribution, and use of all cannabis plant parts in June 2022. The decriminalization led to the highlight of the medical benefits of marijuana and pushed the economy of the country by using cannabis and hemp as cash crops.

Market Trends:

• Rising Medicinal Advantages of Cannabis

The majority of the cannabis market is made up of medicinal cannabis. Numerous nations have approved the use of cannabis for medical purposes, including Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, Poland, Portugal, Thailand, the United Kingdom, and Uruguay. In June 2022, Thailand's Food and Drug Administration decriminalized marijuana and hemp by removing them from the Category 5 narcotics list. The government hopes that this legal move will eventually make Thailand a "herbal center" in Southeast Asia by allowing Thais to grow and sell marijuana for medical use.

In 2022, cannabis became legal for recreational use in the District of Columbia, two US territories, and nineteen states. The drug's medicinal use has been authorized in 37 states, four US territories, and Washington, DC. Given the high demand for cannabis and its therapeutic benefits, other states are anticipated to follow suit throughout the course of the projected period. The majority of cannabis users in US provinces where it has been legalized are over 50. This demographic profile is anticipated to increase demand for cannabis because to the increased likelihood of chronic diseases after the age of fifty and the effectiveness of cannabis on these disorders.

Cannabis can be used to treat a number of symptoms and conditions, including Alzheimer's disease, anorexia, HIV/AIDS, glaucoma, cancer, arthritis, epilepsy, nausea, pain, cachexia, Crohn's disease, migraines, multiple sclerosis, spasticity, and wasting syndrome, according to the US Government Accountability Office (under State Medical Marijuana Laws). Continuous research and standardization of products for medicinal purposes are expected to increase the popularity and demand for cannabis in the future. Thus, the increasing legalization of cannabis, especially for medicinal purposes, in various countries is anticipated to fuel the growth of the cannabis market during the forecast period.

Driving Factors:

• Product Innovation, Differentiation, and Availability of Hemp-infused Edibles to Drive Market Growth

To satisfy the demands of the "mainstream" marijuana user, sativa consumer product manufacturers and sellers are changing quickly. Customers can now choose from a wider range of items, such as topicals, concentrates, and infused products, rather than just smoking flowers via joints, pipes, or bongs. Consumers turned to freshly created alternatives like edibles and other infused items as a result of COVID-19-related worries. Compared to consuming an edible substance, inhaling the product causes THC to enter the lungs and bloodstream swiftly, resulting in the user experiencing the related mind-altering effects much faster. The shortcomings of edibles, such as the erratic effects of marijuana after intake, are starting to be addressed by advances in scientific research and commercial innovation. Topical or sublingual products that are intended to be absorbed through the skin or under the tongue are examples of more recent types of infusion products.

In the market, hemp-based delicacies including candies, chocolates, and drinks are still very popular. Such delicacies produce a euphoric "high" that lasts longer than that produced by breathing smoke or vapor, but it takes one to two hours to start. However, product innovation and packaging-related changes are anticipated to be crucial in increasing edibles sales sentiments and are anticipated to expand at the quickest rate throughout the course of the forecast year.

• Rising Product Demand for Medical Applications to Augment Industry Expansion

In recent years, medical hemp has drawn a lot of interest from people all around the world. A growing number of nations and governments are allowing the use of C. sativa for particular medical applications, indicating the continued growth in its use and acceptance. Because of its therapeutic benefits, nations like Canada, Finland, Israel, and Germany have taken the risky decision to legalize medical marijuana use. Furthermore, more than 30 U.S. states have legalized marijuana for recreational use. The substance has been effectively utilized by mainstream physicians in Florida and California to treat cancer, anorexia, AIDS, and arthritis. In the upcoming years, the market is anticipated to develop because to the continuous research and clinical studies for a number of marijuana-based treatments.

Restraining Factors:

• Regulations Related to the Use of Hemp in Various Countries to Impede the Market Growth

In several parts of North America, Africa, Australia, Europe, and South America, marijuana is formally recognized and approved for medical usage. However, the majority of Middle Eastern and Asian nations still forbid it. Consuming, possessing, buying, or selling the commodity is illegal in Asian nations like Japan, India, and Korea, where it is considered a crime. Therefore, it is anticipated that the legal environment surrounding the items in these areas will prevent the industry from reaching its maximum potential for expansion. Additionally, adverse effects like cognitive impairment linked to its medication use are anticipated to limit market expansion.

Segmentation Analysis:

By Type Analysis:

The market is separated by type into flowers/buds and concentrates. The market is expected to be dominated by the flowers/buds sector, which is valued highly and is expected to develop significantly over the course of the forecast period. The "bud," or flower, of marijuana is a very common consumable product on the global market.  A "bud" typically has a THC content of 15% to 30%, a CBD content of 0.1% to 1%, and perhaps additional cannabinoids. The temperature at which flowers burn is higher than the boiling point of cannabinoids. Vaporizers, which are growing in popularity all over the world, employ the same idea.

The global (legal) market for concentrates, which mainly include CO2 oil, butane hash oil or "BHO," shatter, wax, live resin, budder, kief, ice water hash, and rosin, is expected to increase at an exponential rate. This is because of favorable demand dynamics, a sizable user base, and increased accessibility and uptake of cannabis products, particularly in Western markets. Due to the widespread perception that eating or vaping concentrates is a healthier way to consume them than smoking, concentrates are also seeing greater consumer popularity. Furthermore, the amount of THC in concentrates that produces a euphoric "high" can surpass 80%. These products offer improved convenience and a discrete eating experience, and they have attained a variety of flavor profiles and compositions.

By Application Analysis:

One major factor propelling the global recreational cannabis market is the growing trend of marijuana legalization and decriminalization on a global scale. Many nations and states have legalized marijuana for recreational use as a result of a significant change in public attitudes and laws during the last ten years. Several states in the United States, Canada, Thailand, and Uruguay have legalized marijuana for recreational use, opening the door for additional legalization initiatives in other areas and generating a sizable market for marijuana goods. Governments also acknowledge the financial advantages of a controlled marijuana industry, which have been strong arguments in favor of legalization. These advantages include significant tax income, company expansion, and employment prospects. Additionally, new players entered the market as a result of the rising demand for cannabis for recreational purposes. For example, Heritage Cannabis Holdings Corp., a Canadian corporation, said in May 2023 that it will be entering the recreational market in New York with the introduction of vape and concentrate goods under the RAD brand.

Topicals, such as lotions, lubricants, creams, and others, make up a very small portion of product applications. These typically contain substances that relieve headaches, cramps, inflammation, and tight muscles. The market demand for marijuana is probably going to be driven by its increasing use in skin pathology and cosmetics applications.

Over the course of the projection period, the medical marijuana market is anticipated to expand at a notable compound annual growth rate. According to market trends, one of the medicinal applications is the addition of cannabinoids or molecules that resemble them to pharmaceutical products. Among the well-known medications made from hemp are Sativex, Marinol, and Cesamet. The substance has been used in the medical field to treat a variety of conditions, including multiple sclerosis, chronic pain, and treatment-resistant epilepsy. The rise of the medical marijuana business and the use of cannabidiol (CBD) in particular have been made easier by the health and wellness movement that is popular in the global economy. An increasing amount of research suggests that CBD may help treat a number of conditions, including as cancer, epilepsy, anxiety, and chronic pain.

By Component Analysis:

The main chemical component that gives the product its euphoric effects is THC (delta-9-tetrahydrocannabinol), which is primarily utilized for recreational purposes. Since THC is the most prevalent cannabinoid, it predominates in most cannabis strains. Delta-9-Tetrahydrocannabinol often makes up 10% to 30% of the THC-dominant product. The substance produces a variety of emotions, ranging from pleasurable relaxation to unpleasant feelings like worry and paranoia.

Additionally, THC may be used to treat a number of ailments, including glaucoma, muscle stiffness, and reduced appetite. Since THC is now legal in many places and the demand for cannabis-infused food and drink is rising, producers have created cutting-edge goods for the market. For example, the American employee-owned brewery Harpoon Brewery introduced its first THC-based beverage, Rec, in February 2023. Weed.

The CBD-dominant segment is expected to grow at a high CAGR in the forecast period. It is a non-intoxicating compound and is popularly used in various medical applications such as seizures, anxiety, and pain.

By Region Analysis:

In 2022, North America held a dominant market share of USD 35.76 billion. Colorado and Washington were the first two states to legalize its recreational use in the United States, marking the beginning of the legalization process. It is allowed for recreational use in 19 states, two territories, and the District of Columbia as of May 2022. Every state's medical hemp legislation in the United States acknowledge it as a treatment or medication for ailments like cancer, Alzheimer's disease, anorexia, arthritis, chronic pain, epilepsy, and PTSD. By spearheading the global legalization of marijuana, Canada has just become a flag-bearer nation. Additionally, there are now a lot more farmers in the United States, which increases its use and consumption. This is predicted to grow its sales and opens up new income avenues for companies in the region.

Due to progressive laws and the increasing usage of medical cannabis, Europe is the second-largest market. Medical marijuana has shown promise in trials conducted in European nations. Legally, it is being utilized in medical settings to treat everything from cancer to AIDS-related syndrome patients' hunger stimulants. Additionally, it is anticipated that changes in government policy will result in a sharp rise in product demand. The pertinent laws are relatively new in many nations. The European Monitoring Centre for Drugs and Drug Addiction reports that no European national government is in favor of legalizing the sale of cannabis or its derivatives for recreational purposes. Sales in the region are anticipated to increase as a result of the product's expanding medical use in various nations.

Due to rapidly shifting governmental regulations and the legalization of cannabis in a number of Asian nations, Asia Pacific is anticipated to experience significant growth. Thailand's legalization of marijuana growing is expected to increase marijuana and hemp consumption, which could have a beneficial effect on the growth of the regional industry. Additionally, it is anticipated that the expanding pharmaceutical sector study will demonstrate the potential medical benefits of cannabis in the area.

Key Companies:

• Aurora Cannabis Inc.
• Tilary, Inc.
• Canopy Growth Corporation
• CannTrust Holdings Inc
• VIVO Cannabis Inc.
• Cronos Group Inc.
• Jazz Pharmaceuticals
• OrganiGram Holdings
• Lexaria Corp.
• ABcann Medicinals, Inc

Industry Developments:

• May 2023 - Toast, a multi-state-operating brand, partnered with the Nirvana Group, a premier diversified cannabis company. The partnership would bring innovative new offerings to patients and consumers in Oklahoma and New Mexico.

• April 2023 - Hello Juice & Smoothie, a local juice and smoothie shop in the U.S., collaborated with The Beleaf Co. to launch a new product line of CBD-infused juice shots.

• April 2023 - PharmaCielo, a Canadian cultivator and producer of dried flower and medicinal-grade cannabis extracts, partnered with CANNPRISMA - PHARMA, a Portuguese Contract Manufacturing Organization. The deal was focused on supplying high-quality EU-GMP1-certified medicinal cannabis flowers to the European market.

• May 2022 - Canopy Growth Corporation introduced new flavors for its cannabis-infused carbonated drinks. The two new flavors were orange and grape.

• March 2021 – In Mexico, lawmakers passed a bill to legalize the use of recreational marijuana. This is a turning point for the country amid challenges faced due to drugs, and the country has the potential to become the largest global market for cannabis. The step would permit adults in the country to not only smoke marijuana but also to grow a limited number of cannabis plants at home with legal permits. Moreover, it will also grant cannabis licenses to the plant cultivators and manufacturers for selling the crop.

Report Segmentations:

By Type

• Flowers/Buds
• Concentrates

By Application

• Medical
• Recreational (Edibles and Topicals)
• Industrial Hemp

By Component

• THC-Dominant
• Balanced THC & CBD
• CBD Dominant

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Cannabis Market Report Scope:-