Cannabis - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Cannabis Market Analysis

The cannabis market reached USD 44.6 billion in 2025 and is projected to grow to USD 102.1 billion by 2030, at a CAGR of 18.0% during the forecast period. This growth is driven by potential federal rescheduling in the United States, increased adult-use legalization in Europe, and expanding medical cannabis programs across Asia-Pacific. Investment from consumer packaged goods, beverage, and pharmaceutical companies is accelerating product development, while advanced cultivation technologies improve production efficiency and reduce costs for integrated operators. The oversupply in established North American markets is causing price compression and industry consolidation. Environmental concerns regarding indoor cultivation facilities have led to investments in sustainable operations and efficient climate control systems, which reduce operational costs and enhance market positioning.

Global Cannabis Market Trends and Insights

Wave of Adult-Use Legalization and Schedule-III Rescheduling Momentum

The proposed federal rescheduling of cannabis in the United States has prompted 12 additional jurisdictions to prepare reform bills for 2025. The potential removal of Section 280E taxes would reduce effective tax rates from their current level of over 70%, improving cash flow for licensed operators. Germany's Cannabis Act implementation in April 2024 establishes the country as Europe's largest regulated market and provides a regulatory framework for neighboring countries. Thailand's commitment to decriminalization continues to influence adoption across the Asia-Pacific region, particularly in medical tourism. Improved regulatory clarity reduces lending risk, enabling mainstream banks to participate and allowing multi-state operators to expand using lower-cost debt financing. The expansion of legal access increases the eligible consumer base and enhances long-term revenue prospects for companies serving both recreational and medical markets.

Expansion of National Reimbursement for Cannabis-Based Medicines

Public health insurance in Canada, Germany, and Australia now covers specific cannabidiol and THC formulations, reducing patient expenses for chronic care treatments. Jazz Pharmaceuticals' Epidiolex achieved sales of USD 845.5 million in 2023, with projections indicating USD 972 million in 2024, demonstrating the market potential for prescription cannabinoids. Germany's reclassification of cannabis from the Narcotics Act reduces administrative burden, resulting in annual cost savings of USD 2.29 million (EUR 2 million) for healthcare providers and insurance companies. Phase III clinical trials in pain management, oncology, and neurology continue to strengthen the scientific evidence base, encouraging public health systems to expand their formularies. The standardization of clinical protocols facilitates international trade of pharmaceutical-grade cannabis extracts, with Canada, Colombia, and Portugal emerging as key exporters.

Limited Banking and Capital Access Due to Federal Conflicts

Less than 1.5% of New York banks and credit unions provide services to licensed cannabis operators, compelling these businesses to maintain large cash reserves and pay employees in physical currency. Financial institutions face high compliance costs due to suspicious activity reporting requirements, deterring them from entering the cannabis market. The absence of credit card processing prevents e-commerce subscription services, reducing accessibility for medical patients requiring ongoing treatments. International mergers and acquisitions face challenges as buyers cannot utilize federally insured banks for fund transfers. Despite Schedule III rescheduling, cannabis's status as a controlled substance creates uncertainty regarding eligibility for Small Business Administration loans.

Other drivers and restraints analyzed in the detailed report include:

1. Rising Demand for Cannabidiol Wellness and Functional Products
2. Strategic Cross-Industry Investments from CPG, Pharmaceutical, and Alcohol Majors
3. Chronic Oversupply Driving Price Compression in Mature Markets

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Flower remains the primary revenue driver, accounting for 38% of 2024 revenue, due to established cultivation expertise and consumer familiarity. While the segment benefits from diverse genetics and low entry barriers, oversupply conditions create downward pricing pressure. Beverages are projected to grow at a CAGR of 20.6% during 2025-2030. Major beverage companies, including Constellation Brands and Diageo Ventures, are developing infused sparkling waters, tonics, and elixirs that align with traditional social consumption patterns. Advancements in shelf-stable emulsions and rapid-onset nanoemulsions have resolved previous challenges in dosing consistency and taste, improving consumer accessibility.

Vertically integrated operators reduce exposure to flower price fluctuations by expanding into edibles, concentrates, and topicals. Pre-rolls maintain market share through convenience appeal, while vapes attract experienced consumers seeking high potency and mobility. Edibles gain market acceptance through standardized packaging and laboratory testing that complies with European and Canadian import regulations. The introduction of pet products, nasal sprays, and fast-dissolving films demonstrates the market's expansion into diverse consumer applications. The maturing industry creates opportunities for logistics providers through beverage co-packing and cold-chain distribution services, extending economic benefits beyond cultivation and retail operations.

The Cannabis Market Report is Segmented by Product Type (Flower, Pre-Rolls, Concentrates, and More), by Application (Medicinal, Adult-Use/Recreational, and More), by Compound Type (THC-Dominant, CBD-Dominant, and More), and by Geography (North America, Europe, Asia-Pacific, South America, Middle East, and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

North America generated 65% of 2024 revenue, driven by state programs and potential federal rescheduling that may eliminate 280E tax obligations. U.S. multistate operators expand operations as 12 states prepare adult-use ballots in 2025, while Canadian producers benefit from export opportunities to Germany and Israel. However, mature states face margin pressure from oversupply and compliance costs. The industry continues to face banking restrictions, increasing security expenses, and limiting growth. Mexico awaits Supreme Court guidance on adult-use legislation, though implementation challenges remain.

Europe grows following Germany's Cannabis Act implementation, which increased registered patients from 250,000 in April 2024 to nearly 900,000 by May 2025. Imports supply half of German demand, benefiting Canadian and Portuguese cultivators. The Czech Republic, Luxembourg, and Croatia evaluate adult-use frameworks based on German results. The European Medicines Agency initiates harmonization discussions to address dosing inconsistencies affecting cross-border trade. The United Kingdom emphasizes clinical trials and sustainable production, exemplified by Glass Pharms' anaerobic digestion-powered greenhouse.

Asia-Pacific demonstrates the highest 20.1% CAGR through 2030. Thailand maintains market momentum, targeting a USD 1.2 billion market value by 2025. Australia increases Special Access Scheme approvals, reducing barriers for physicians. Chinese research institutions examine low-THC hemp for industrial and pharmaceutical exports, while domestic adult-use remains restricted. South Korea initiates clinical trials under hospital oversight, indicating progressive policy changes. South America, the Middle East, and Africa present opportunities for cost-effective outdoor cultivation. Morocco's first legal harvest of 294 metric tons in 2023 demonstrates export capabilities, while South Africa's 2024 recreational legalization establishes regional development.

List of Companies Covered in this Report:

1. Canopy Growth Corporation
2. Tilray Brands, Inc.
3. Curaleaf
4. Aurora Cannabis Inc.
5. Jazz Pharmaceuticals plc
6. Green Thumb Industries (GTI)
7. Trulieve
8. Cresco Labs
9. Organigram Global
10. TerrAscend
11. CV Sciences, Inc.
12. Charlotte's Web, Inc.
13. Planet 13 Holdings Inc.
14. Medipharm Labs
15. Delta 9 Cannabis Inc. (Sndl Inc.)
16. Verano
17. AYR Wellness, Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support