Cannabis Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

The global cannabis market is expected to grow from US$ 33,692.3 million in 2022 to US$ 1,99,504.9 million by 2031; it is estimated to grow at a CAGR of 34.5% from 2022 to 2031.

Rising research & development activities for medical cannabis acts as a standalone factor driving the overall market. The emerging government policy and regulatory relaxation is expected to provide a lucrative growth opportunity for the overall market.

Rising research & development activities for medical cannabis acts as a standalone factor responsible for driving influential growth of overall market. According to the NORML and The NORML Foundation 2022 report, clinical research intended for the therapeutic value of cannabis has proliferated the understanding that medical cannabis can combat disease. For example, scientists are investigating by researching to detect cannabis's capacity to identify moderate autoimmune disorders such as multiple sclerosis, rheumatoid arthritis, and inflammatory bowel disease. Additionally, scientists are researching to identify the role of medical cannabis consumption in treating neurological disorders such as Alzheimer's disease and amyotrophic lateral sclerosis, i.e., Lou Gehrig’s disease). Further, researchers are also studying the anti-cancer activities of cannabis involved in reducing the spread of cancer cells. Also, various regions like Europe are encouraging the consumption of medical cannabis to advance patient access and improve the health outcomes of patients. For example, The European Medicinal Cannabis Association (EUMCA), registered under the Belgian Code des Sociétés et des Associations and registered on the European Commission Transparency Registry, operates in the research and development, production, and distribution of medical cannabis treatment across the Europe region. Such aforementioned factors are responsible for enhancing the overall consumption of medical cannabis during the analysis period of 2022-2031.

The emerging government policy and regulatory relaxation is expected to provide a lucrative growth opportunity for the overall market. Legal access to medical cannabis products is now increasing by relaxing restrictions. For example, in 2016, the Australian Federal Government legalized access to medical cannabis. Also, more than 100 different cannabis products are now available in Australia to prescribe, the majority involving oral preparations (oils) or capsules containing delta-9-tetrahydrocannabinol or cannabidiol. The majority of the prescriptions are intended for chronic, non-cancer pain, anxiety, cancer-related symptoms, epilepsy, and other neurological disorders. Further, the legalization of cannabis policy provides lucrative opportunities involving therapeutic benefits. For example, in the US, Washington State earmarked cannabis tax revenue to fund a continuous cannabis research program. Additionally, other states, such as New York, reviewed the potential impacts of regulating a recreational cannabis supply chain and health reforms. More efforts with legal access to medical cannabis will provide lucrative opportunities for overall market growth in the forthcoming years.

Regional Overview

North America accounts largest market share for cannabis market. Among North America regional market, the US accounts significant revenue for cannabis. According to the Pew Research Center 2022 published article, Americans support the legalization of cannabis intended for medicinal and recreational use. For example, the US survey conducted on October 2022 reveals that about 88% poll was for the legalization of cannabis. Additionally, the majority of Democrats across all age groups support the legalization of cannabis intended for medicinal and recreational purposes. Furthermore, Los Angeles County Economic Development Corporation 2022 report states that in 2021 sales in America increased by 67% from 2021, and support for the legalization of cannabis intended for recreational purposes hit an all-time high, accounting for 68% in the US in October 2021 with cannabis industry valuation of approx. US$61 billion.  Thus, increasing legalization of cannabis intended for both medicinal and recreational purpose accelerates demand for the product among the patient base expecting to drive the overall market growth during the forecast period.

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Cannabis Market: Strategic Insights

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Product Type Insights

Based on product type, the cannabis market is segmented into flower, concentrates, and others. The flower segment held the largest market share in 2022. This is due to cannabis flowers being resinous whose buds can be processed into pharmaceutical-grade drugs. For example, various pharmaceutical products such as elixirs, tinctures, salves, poultices, and creams can be manufactured through cannabis flowering tops. Additionally, cannabis plants grow quickly that can be harvested by accelerating production (modified cannabis flower), particularly in a controlled agricultural environment. For example, modified cannabis flowers or buds have the most powerful medicinal properties having a positive effect on the human brain on consumption. Such medicinal properties associated with cannabis flowers have an influential segmental growth responsible for dominating the overall market growth during the forecast period.

Companies operating in the cannabis market are adopting the product innovation strategy to meet the evolving customer demands across the world, which also permits them to maintain their brand name in the market.

Cannabis Market – Segmentation

Based on product type, the cannabis market is segmented into flower, concentrates, and others. The flower segment held the largest market share in 2022. Based on application, the cannabis market is bifurcated into medical and recreational. The medical segment held a larger share of the market in 2022. The recreational segment will grow over the forecast period. Based on compound, the global cannabis market is segmented into Tetrahydrocannabinol (THC)-Dominant, Cannabidiol (CBD)-Dominant, and balanced THC and CBD. The Tetrahydrocannabinol (THC)-Dominant segment held the largest share of the market in 2022. The Cannabidiol (CBD)-Dominant segment is expected to grow at the fastest CAGR over the forecast period. Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

Company Profiles

• Tilray Inc.
• Aurora Cannabis
• Cannabis Science Inc.
• Canopy Growth Corporation
• Medical Marijuana, Inc.
• Vivo Cannabis Inc.
• Tikun Olam
• Tilray Brands, Inc.
• The Cronos Group
• HEXO Corp.

Report Scope

Cannabis Market Regional Insights

The regional trends and factors influencing the Cannabis Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Cannabis Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Cannabis Market Report Scope

Cannabis Market Players Density: Understanding Its Impact on Business Dynamics

The Cannabis Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Cannabis Market are:

1. Aphria, Inc.
2. Aurora Cannabis
3. Cannabis Science, INC.
4. Canopy Growth Corporation
5. Medical Marijuana, Inc.

Disclaimer: The companies listed above are not ranked in any particular order.