Cannabis Market: Industry Analysis and Forecast (2023-2029) Trends, Statistics, Dynamics, Segmentation by Type, Application and Region
Cannabis Market size was valued at US$ 49.27 Bn. in 2022 and the total revenue is expected to grow at CAGR of 32.04% through 2023 to 2029, reaching nearly US$ 344.76 Bn. by 2029
Format : PDF | Report ID : SMR_552
Cannabis Market Definition/ Overview
Cannabis is a psychotropic substance generated from the Cannabaceae family's cannabis plant. Ancient Indian, Chinese, Egyptian, and Islamic cultures all employed it medicinally. Cancer, chronic pain, depression, arthritis, diabetes, glaucoma, migraines, epilepsy, multiple sclerosis, acquired immunodeficiency syndrome (AIDS), amyotrophic lateral sclerosis (ALS), Alzheimer's, post-traumatic stress disorder (PTSD), Parkinson's, and Tourette's are among the diseases and symptoms for which cannabis is used. Cannabis has been approved for medical usage in a number of nations because to its therapeutic effects, with varied degrees of legal restrictions.
Cannabis Market report examines the market's growth drivers as well as its segments. Data has been provided by market participants, and regions (North America, APAC, Europe, MEA, and South America). This market study takes an in-depth look at all of the significant advancements that are currently occurring across all industry sectors. To provide key data analysis for the historical period (2017-2020), statistics, and presentations are used. The report examines the Cannabis markets, Drivers, Restraints, Opportunities, and Challenges. This SMR report includes investor recommendations based on a detailed analysis of the current competitive landscape of the Cannabis market.
Cannabis Market Dynamics
Cannabis Market Drivers
- Cannabis is safer and has less side-effects in comparison to other treatment options - In comparison to other therapy choices, cannabis is safer and has less severe negative effects. It's also used in conjunction with other medicines, either to improve their efficacy or to mitigate negative side effects. It works wonders in lowering nausea and increasing appetite in chemotherapy patients, for example. It's also used in tandem with standard opioid medicines, allowing patients to lessen their opioid dosage and frequency while still getting better pain relief. This is one of the major drivers of the Cannabis Market.
- Increasing aging population and illness - Geriatric people are more likely to develop chronic illnesses like cancer, arthritis, migraine, epilepsy and require more physician visits, so the world's ageing population has played a big role in raising demand for medicinal cannabis. This growing demand for medicinal cannabis has the one of the greatest drivers for the Cannabis Market.
- Increasing demand in Agriculture sector – Recreational cannabis can be very useful for agriculture sector as it can be used to make pesticides which is less harmful than the other conventional pesticides in the market and will not harm the agricultural products to that extent. This wholesome use of cannabis is also driving the growth of Cannabis Market.
- Increasing disposable incomes - Although health-care spending is less affected by changes in disposable income, medical cannabis use is affected by changes in disposable income due to its unconventional character. As a result, rising disposable incomes are expected to have a beneficial effect on medical cannabis demand. This is also driving the growth of Cannabis Market.
Cannabis Market Restraints
- Strict Regulations related to Cannabis in many parts of the world – Cannabis is nominally identified and authorized in certain regions of North America, Europe, Africa, and South America but it is still prohibited in most middle eastern and Asian countries like Japan, India, Korea, etc. the consumption, possession, purchase or sale are still prohibited by law and are considered as a criminal act. Thus, this is one of the biggest restraints in the Cannabis Market.
- Addictive nature – Excess use of cannabis or marijuana for any purpose whether it is medicinal or personal can lead to addiction of it and can harm the person very much in the long-term. The doctors have to use it very carefully and in optimum quantity. Some Governments are also banning cannabis because it is addictive and can be harmful for their people. This might be one of the restraints to Cannabis Market.
- Side effects – Some side effects od cannabis like cognitive impairment associated with its use as a medicine can also be one restraint to the market growth of Cannabis Market.
Cannabis Market Opportunities
- Emergence of Cannabis legalization in Asia Pacific - Because most nations in North America, Europe, and South America have legalised cannabis, the Asia Pacific area has a significant possibility for cannabis legalisation. China, which is already a big market for industrial hemp, is anticipated to become a major market for industrial cannabis in the near future. Many significant participants in the business are waiting for legislative changes in the Asia Pacific area, which they expect to open up huge opportunities. Several countries in the region have the potential to be low-cost producers with large capacity. This is one of the best opportunities for the Cannabis Market in coming years.
Cannabis Market Segment Analysis
By Type, the Cannabis Market is segmented as Flowers and Concentrates. Flowers dominate the Cannabis Market with the market share of 57% in the year of 2021. Marijuana flowers contain 15% - 30% of THC, about 0% - 1% of CBD and nominal levels of other cannabinoids. These level of concentrates in this proportion are very useful in making medicines majorly for pains and migraines and can further be used to make medicines for some major and more dangerous illnesses like Cancer and Arthritis and hance such a huge market. Also, the Flowers or the buds are natural and are grown naturally so it has fewer side effects than concentrates. Concentrates on the other hand held the market share of 42% in 2021 as they need to be extracted and primarily include CO2 oil, butane hash oil, shatter, wax, live resin, kief, ice water hash and rosin. This is mainly used for recreational purposes and for medicinal purposes it might be a little too harmful but one positive for concentrates is that it is less addictive. The market of concentrates is rising because of diverse flavour profiles, can be vaporized that is healthier than smoking flower.
By Application, the Cannabis Market is segmented as Medicinal Application and Recreational Application. Medicinal applications dominate the Cannabis Market with the market share of 65% in the year of 2021 as cannabis is legal in most of the world only for medicinal purposes like medications for small and serious illnesses. Sativex, Marinol, and Cesamet are some of the well-known cannabis-based medicines. The medicinal applications are expected to rise at a higher rate in the forecasted period as the Asia Pacific region which has stringent rules against use of cannabis is making its laws a little firm towards use of cannabis and can allow the medicinal use of cannabis in their regions. Recreational applications have the market share of 35% in 2021 as it is not legal to make products using cannabis or marijuana in many parts of the world except North America and Europe. Cannabis is used for making lotions, lubricants, creams, and many more to rectify some problems like muscle soreness, cramping etc and for agriculture sector too so the market is expected to grow in the forecast period.
Cannabis Market Regional Insights
North America dominates the market with the market share of 37% in the year of 2021 as the rules and regulations towards cannabis use are very less and also the presence of many cannabis product manufacturers make it the market leader. Europe comes second with the market share of 31% in 2021 as it also has very firm rules towards cannabis use and people can use it without any fear od law in Europe. South America has the market share of 21% in 2021 as in some country’s rules are strict but is some other countries of this region the rules are firm. Asia Pacific has the market share of 7% as the countries in this region don’t legally allow the use of marijuana or cannabis for any purpose and is a criminal act to consume, possess, or transact these items in this region. But it is expected that Asia Pacific will grow at the fastest rate as the laws can become firmer in future and also the presence of cultivators of Cannabis in countries like Afghanistan and Pakistan. Middle East & Africa has the least market share of 4%.
The objective of the report is to present a comprehensive analysis of the Cannabis market to the stakeholders in the industry. The report provides trends that are most dominant in the Cannabis market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Cannabis Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.
The qualitative and quantitative data provided in the Cannabis market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Cannabis market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Cannabis market.
The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Cannabis market. The report also analyses if the Cannabis market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.
The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Cannabis market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Cannabis market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Cannabis market is aided by legal factors
Cannabis Market Scope
Cannabis Market Scope
Market Size in 2022
USD 49.27 Bn.
Market Size in 2029
USD 344.76 Bn.
North America- United States, Canada, and Mexico
Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe
Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC
Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa
South America – Brazil, Argentina, Rest of South America
Cannabis Market Key Players
- Canopy Growth Corporation (Canada)
- Aurora Cannabis Inc. (Canada)
- MedMen (US)
- Terra Tech Corp. (US)
- Aphria Inc. (Canada)
- VIVO Cannabis Inc. (Canada)
- The Cronos Group (Canada)
- Medical Marijuana Inc. (US)
- STENOCARE (Denmark)
- Tikun Olam (Israel)
- Organigram Holdings Inc. (Canada)
- Cresco Labs (US)
- Indiva (Canada)
- Curaleaf Holding Inc. (US)
- HEXO Corp. (Canada)
- Ecofibre Limited (Australia)
- Harvest Health & Recreation (US)
- Green Thumb Industries (US)
- Maricann Group Inc. (Canada)
- TerrAscend (Canada)
Frequently Asked Questions
The segments covered in the Cannabis Market report are based on Type and Application.
The North America is expected to hold the highest share in the Cannabis Market.
The market size of the Cannabis Market by 2029 is expected to reach at US$ 344.76 Bn.
The forecast period for the Cannabis Market is 2023-2029.
The market size of the Cannabis Market in 2022 was valued at US$ 49.27 Bn.
1. Scope of the Report
2. Research Methodology
- Research Process
- Cannabis Market: Target Audience
- Cannabis Market: Primary Research (As per Client Requirement)
- Cannabis Market: Secondary Research
3. Executive Summary
4. Competitive Landscape
- Market Share Analysis by Region in 2022(%)
- North America
- Asia Pacific
- Middle East and Africa
- South America
- Stellar Competition matrix
- Global Stellar Competition Matrix
- North America Stellar Competition Matrix
- Europe Stellar Competition Matrix
- Asia Pacific Stellar Competition Matrix
- South America Stellar Competition Matrix
- Middle East and Africa Stellar Competition Matrix
- Key Players Benchmarking: - by Product, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
- Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
- Market Dynamics
- Market Drivers
- Market Restraints
- Market Opportunities
- Market Challenges
- PESTLE Analysis
- PORTERS Five Force Analysis
- Value Chain Analysis
5. Global Cannabis Market Segmentation
- Global Cannabis Market, by Region (2022-2029)
- North America
- Middle East & Africa
- South America
- Global Cannabis Market, by Type (2022-2029)
- Global Cannabis Market, by Application (2022-2029)
- Medicinal Application
- Recreational Application
6. North America Cannabis Market Segmentation
- North America Cannabis Market, by Type (2022-2029)
- North America Cannabis Market, by Application (2022-2029)
- Medicinal Application
- Recreational Application
- North America Cannabis Market, by Country (2022-2029)
- United States
7. Europe Cannabis Market Segmentation
- Europe Cannabis Market, by Type (2022-2029)
- Europe Cannabis Market, by Application (2022-2029)
- Europe Cannabis Market, by Country (2022-2029)
8. Asia Pacific Cannabis Market Segmentation
- Asia Pacific Cannabis Market, by Type (2022-2029)
- Asia Pacific Cannabis Market, by Application (2022-2029)
- Asia Pacific Cannabis Market, by Country (2022-2029)
9. Middle East and Africa Cannabis Market Segmentation
- Middle East and Africa Cannabis Market, by Type (2022-2029)
- Middle East and Africa Cannabis Market, by Application (2022-2029)
- Middle East and Africa Cannabis Market, by Country (2022-2029)
10. South America Cannabis Market Segmentation
- South America Cannabis Market, by Type (2022-2029)
- South America Cannabis Market, by Application (2022-2029)
- South America Cannabis Market, by Country (2022-2029)