Cannabis Market by Product Type (Flowers, Concentrates, Edibles, Topicals & Tinctures), Compound (THC-Dominant, CBD-Dominant, and Balanced THC & CBD), Application (Medical and Recreational), and Region (North America, South America, Europe and RoW) - Global Forecast to 2027
The global cannabis market size is estimated to be valued at USD 27.7 billion in 2022 and is projected to reach USD 82.3 billion by 2027, recording a CAGR of 24.3% in terms of value. The cannabis market is driven by the rise in the use of cannabis for recreational and medical use. Moreover, there has been an increased legalization of cannabis in the US in states like Virginia in 2021 and Rhode Island in 2022 and in other countries like in Malta in 2021, and Thailand in 2018.
The cannabis industry is growing rapidly and witnessing a double-digit growth rate globally. There are several major companies operating in the cannabis segment that dominate their respective markets. Thus, companies are competing to gain a significant market share. The leading players in the cannabis market and medical industry are undertaking inorganic growth strategies, such as expansions & investments and acquisitions—to increase their profits and market shares. For instance, in May 2020, Aurora Cannabis Inc. completed the acquisition of Reliva LLC (US), a leader in the sales of hemp-derived CBD products in the US. The acquisition took place for USD 40 million of Aurora's common shares. This acquisition would enable the company to strengthen its position in the market and increase profitability.
“By application, the recreational segment is projected to grow at the highest CAGR during the forecast period.”
Recreational cannabis demand is increasing continuously driven by Gen Z consumers. A small but encouraging portion of cannabis products are being sold to women due to a shift in public opinion, and this percentage is predicted to increase over time. Moreover, legalization has have led to a trend toward cannabis-related tourism, with locations producing novel holiday items to entice clients and increasing travel bookings to cannabis-legal destinations.
“By compound, the THC-dominant segment is estimated to account for the largest share.”
THC strain is used for both medical and recreational applications, which increases its demand among manufacturers as well as consumers. Growing Together Research Inc., an Indiana-based biotechnology business, has created a new technique for genetically regulating the expression of Delta-9-THC in cannabis, including the capacity to boost cannabinoid levels in marijuana varieties grown for recreational or medical purposes. Moreover, other forms of THC, such as delta-8-THC, are gaining popularity in addition to the conventional version.
“The Europe region is projected to grow at the highest CAGR during the forecast period”
The market in Europe is majorly driven by the awareness of medical benefits of cannabis in the region coupled with the healthcare system present in several European countries that covers the health expenditure of most patients in these regions. As the legalization of cannabis in European countries is at a nascent stage, this creates a considerable opportunity for companies to establish themselves in the region. Since the beginning of 2019, the European cannabis market has witnessed multiple mergers and acquisitions involving companies focused on medical cannabis. Like in the starting of 2021 medical cannabis firm GW Pharmaceutical was acquired by Jazz Pharmaceutical for USD 6.15 Billion.
Break-up of Primaries:
By Value Chain Side: Demand Side-59%, Supply Side-41%
By Designation: CXOs-31%, Managers – 24%, D-Level- 30%, and Executives- 45%
By Region: Europe - 25%, Asia Pacific – 15%, North America - 45%, RoW – 5%, South America-10%
Leading players profiled in this report:
Canopy Growth Corporation (Canada)
Aurora Cannabis Inc. (Canada)
Medmen Enterprise Inc. (US)
Tilray Inc. (US)
Unrivaled Brand Inc. (US)
VIVO Cannabis Inc. (Canada)
The Cronos Group (Canada)
Medical Marijuana Inc. (US)
Organigrams Holding Inc. (Canada)
Cresco Labs (US)
Maricann Group Inc. (Canada)
Hexo Corp. (Canada)
Ecofibre Limited (Australia)
Curaleaf Holdings Inc. (US)
Harvest Health and Recreation (US)
Green Thumb Industries (US)
The report segments the cannabis market on the basis on product type, application, compound, and region. In terms of insights, this report has focused on various levels of analyses—the competitive landscape, end-use analysis, and company profiles, which together comprise and discuss views on the emerging & high-growth segments of the global cannabis, high-growth regions, countries, government initiatives, drivers, restraints, opportunities, and challenges.
Reasons to buy this report:
To get a comprehensive overview of the cannabis market
To gain wide-ranging information about the top players in this industry, their product portfolios, and key strategies adopted by them
To gain insights about the major countries/regions in which the cannabis market is flourishing
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