Introduction
The Global Cannabis Market is set to surge from USD xxx Bn in 2023 to a projected USD xxx Bn by 2028, growing at a CAGR of xx%.
Cannabis, encompassing various species like Cannabis sativa, Cannabis indica, and Cannabis ruderalis, is a versatile flowering plant. Its utilization extends from smoking and vaping to incorporating edible forms into food, and it plays a crucial role in creating therapeutic products such as tinctures, topicals, and oils. The primary cannabinoids in cannabis, delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD) offer a spectrum of over 100 chemical components, with CBD gaining importance for its potential medicinal benefits.
An essential driving force propelling the cannabis market is the increasing incorporation of cannabis into medications. Cannabis-based medicines address specific medical conditions, including anxiety disorders, epilepsy, multiple sclerosis, and chronic pain. The market’s expansion is evident as it caters to diverse healthcare needs, meeting the demands of patients with various medical requirements.
The legalization of cannabis emerges as a pivotal factor fueling the growth of the cannabis industry. Legal marketplaces enable firms, entrepreneurs, and investors to engage in a once-illegal sector, fostering economic growth and job creation. The development of novel cannabis products and the widening of the customer base beyond medicinal users further contribute to the industry’s momentum. Medicinal cannabis, available in various forms such as pills, chewing gum, lotions, crystals, flowers, Lozenges, oils, and oro-mucosal sprays, opens new avenues for the cannabis market.
A substantial opportunity in the cannabis sector arises from the increasing recreational use of cannabis. The recent legalization of recreational cannabis in countries such as Thailand, South Africa, Uruguay, Jamaica, Malta, Mexico, Canada, the United States, Germany, and most recently, Rhode Island has broadened the market beyond medicinal users. This shift includes individuals seeking relaxation, stress relief, social enjoyment, or novel experiences. Catering to this broader customer base holds the potential to drive increased sales and demand for cannabis products.
However, the cannabis market faces challenges and constraints related to expensive purchases and the pursuit of premium quality. The quest for top-tier cannabis goods underscores difficulties for both consumers and companies. Achieving premium quality often involves labor-intensive and costly growing techniques, including precise environmental controls, nutrition management, and stringent quality assurance procedures. Consequently, production costs and retail prices may experience an upward trend.
Looking ahead, the consumption of high-dose cannabis and the potential misuse of cannabis pose challenges to the market. Concerns about overdose leading to panic attacks, anxiety, and arrhythmia may contribute to limitations during the forecasting period. Additionally, the intensive water requirements for cannabis cultivation present a noteworthy challenge. The high water consumption, particularly in regions with dry or semi-arid climates, may strain local water resources, highlighting the need for sustainable practices in cannabis cultivation.
Segment Analysis of Global Cannabis Market
The Global Cannabis Market is segmented based on Product Type, Component, Applications, and Geography.
Based on Product Type, the market is segmented into Flowers and Concentrates. During the forecast period, the Concentrates segment is expected to grow at the fastest CAGR. The cannabinoids present in these formulations contribute to addressing sleep disorders and alleviating anxiety, stress, and insomnia.
Additionally, there is a projected surge in demand for oils and tinctures concentrates, driven by a significant preference among patients for these formulations over flowers. This shift attributes to the rising awareness of the potential respiratory issues associated with smoking flowers. Particularly, doctors are now prescribing oils and tinctures instead of flowers to children requiring cannabis derivatives for medical treatment, considering the adverse respiratory effects linked to smoking.
Based on Component, the market is segmented into THC-dominant, Balanced THC and CBD, and CBD-dominant. During the forecasting period, THC-dominant segment is expected to hold the largest market share. This is due to robust consumer demand driven by both psychoactive effects and recreational experiences, along with recognized medical applications.
Consumers actively seek THC-dominant products for their psychoactive properties, contributing to their popularity in recreational contexts. The desire for an enhanced recreational experience propels the demand for products with higher THC concentrations. This aligns with the evolving market landscape, where recreational cannabis is gaining acceptance globally.
Moreover, the medical utility of THC plays a pivotal role in its market significance. THC is employed in medical treatments for various conditions, such as nausea, chronic pain, and muscle spasms. The demand for THC-dominant products in the medical sector underscores their effectiveness in addressing specific health concerns.
Regional Analysis of Global Cannabis Market
Americas region dominates the Global Cannabis Market owing to the progressive legalization of cannabis across various regions within the continent. Countries like the United States and Canada have led this movement, paving the way for a legal cannabis industry. This regulatory shift has not only dismantled consumer barriers but has also provided a lucrative platform for businesses to grow.
The cannabis market in the United States is thriving due to its strong legal framework that has paved the way for a rapidly growing industry. The country has widely adopted legalization, resulting in markets catering to both medical and recreational users. The approach of legalizing cannabis has helped in understanding consumer preferences and has enabled targeted product offerings to serve the needs of consumers better.
In addition, Canada’s early adoption of nationwide cannabis legalization further increases the Americas’ dominance in the global market. The country’s clear rules have helped set up a well-organized industry that includes growing, distributing, and selling cannabis. Canadian companies have expanded their footprint globally, contributing significantly to the region’s market share. For instance,
in 2023, the Cronos Group initiated the delivery of medical cannabis to its German distribution partner, Cansativa GmbH. Furthermore, in January 2024, the company expanded its presence in the Australian cannabis market by sending its inaugural shipment of cannabis flowers to Vitura Health Limited.
Moreover, the Americas’ market leadership is fortified by the cultural shift towards cannabis acceptance. Evolving societal attitudes and increased awareness of the plant’s potential benefits have surge in consumer demand. Consumers are not confining this demand to recreational use; instead, they are increasingly recognizing the therapeutic properties of cannabis, driving the consumption of medicinal products.
The robust infrastructure and technological advancements in the Americas also play a pivotal role in maintaining their market dominance. From state-of-the-art facilities to advanced extraction methods, the region’s cannabis industry operates at the leading position of innovation. This technological edge ensures product quality and enables the development of diverse cannabis derivatives to meet evolving consumer preferences.
List of Companies
The report provides profiles of the key companies, outlining their history, business segments, product overview, and company financials. Some companies from competitive analysis are Canopy Growth Corporation, Aurora Cannabis Inc., Cronos Group Inc., Tilray, Inc., etc.
Key Developments of Global Cannabis Market
Tilray Brands, Inc. acquired Truss Beverage Co. Solidifing Tilray’s Leadership Position in Cannabis Beverages – Jan 2024
Stash Ventures acquired Cloud Cannabis Co. 11 dispensaries in Michigan. The acquisition of Cloud gives Stash Ventures the ability to more widely distribute its High Minded and High Minded Creations marijuana products in Southeast Michigan. – Feb 2024
Frequently Asked Questions
How Much Is The Global Cannabis Market Size?
The Global Cannabis Market is set to surge from USD xxx Bn in 2023 to a projected USD xxx Bn by 2028, growing at a CAGR of xxx%.
What Is The Major Global Cannabis Market Driver?
-
Increased Use of Cannabis In Medicines and Food & Beverages
-
Legalization of Cannabis
What are the Major Global Cannabis Market Opportunities?
-
Increased Adoption of Cannabis for Recreational Purposes
-
Novel Product Development with Increasing R&D Activities
Which Region Held The Highest Share of the Global Cannabis Market?
America dominates the market due to the increasing legalization of cannabis and rising acceptance of its use for medical applications. Additionally, the growing research on the use of cannabis and its therapeutic properties has led to its increased use to treat various chronic conditions, which has further escalated the market growth in the Americas region.
Who Are The Global Cannabis Market Players?
Canopy Growth Corporation, Aurora Cannabis Inc., Cronos Group Inc., Tilray, Inc., etc
