United States Cannabis Market – Legalization Trends & Forecast 2025–2033
Description
United States Cannabis Market Size and Forecast 2025-2033
United States Cannabis Market is expected to reach US$ 91.10 billion by 2033 from US$ 36.94 billion in 2024, with a CAGR of 10.55% from 2025 to 2033. Increased state-by-state legalization, an increase in medical applications, consumer acceptance, product innovation, growing retail infrastructure, investment inflows, favorable regulatory reforms, and the transition from illegal to legal markets are some of the major factors propelling the U.S. cannabis market.
United States Cannabis Market Report by Source (Marijuana, Hemp), Derivatives (CBD, THC, Others), End Use (Recreational, Medical, Industrial), States and Company Analysis 2025-2033.
United States Cannabis Market Overview
The psychotropic and therapeutic qualities of cannabis, a genus of plants, are mostly attributed to substances known as cannabinoids, which include THC (tetrahydrocannabinol) and CBD (cannabidiol). While CBD is non-intoxicating and often used medically, THC is psychoactive. This plant is used in many ways-from lotions applied topically, to ingested goods and its use as an oil, to smoking it. It has been known to be used to treat epilepsy and chronic pain, not to mention anxiety, but also simply for fun. For thousands of years, people have cultivated the plant for its medicinal, industrial (hemp), and spiritual uses. Legal status is different across the globe, and its increasing commercialization is due to rising acceptability and legalization.
The US cannabis market is increasing tremendously because of a variety of significant causes. One of the primary drivers is the broadening of legalization for both medical and adult-use in various states. It is also being driven by changing societal attitudes towards cannabis and increasing public acceptability. Product innovation breakthroughs such as beverages, edibles, and health products are attracting a broader base of consumers. Infrastructure and distribution channels are also being enhanced by investments from the institutional and private sectors. Market confidence is also supported by regulatory enhancements and potential federal legalization. Although increasing use for medicinal purposes drives continued interest, making the shift from illicit to legitimate marketplaces creates new revenue.
Growth Drivers for the United States Cannabis Market
Public Acceptance
The US cannabis market is growing enormously because, in large part, public acceptance is driving it. Increasing numbers of Americans find that using cannabis is socially acceptable and medically beneficial as attitudes about it continue to shift. Demand is being created and policy reform is being driven by this shift in culture. Based on merged data for 2022 and 2023, the Gallup Survey approximates that more than half of American adults, of both sexes, all age ranges, and all educational levels, have used marijuana. Such widespread exposure is indicative of greater acceptance of legal cannabis use and stigma loss. More customers are joining the legal market as acceptance grows, which boosts company expansion, draws in investment, and promotes additional legalization across states, all of which hasten market growth.
State-Level Legalization
Legalization at the state level allows more states to create regulated medicinal and recreational cannabis programs, which is a major growth driver for the US cannabis business. This steady growth draws investments, promotes innovation, and makes the market more accessible. Governor Kathy Hochul announced in June 2023 that Chicago Atlantic Admin, LLC would advance social equity applications and foster inclusive industry development by investing up to USD 150 million into the New York State Cannabis Social Equity Investment Fund. In addition, Dutchie, Inc., an Oregon-based cannabis technology company, raised approximately USD 350 million in Series D funding in 2021, as per Reuters, indicating the strong faith investors have in the cannabis sector. These developments indicate how legalization at the state level encourages market growth through the integration of large capital flows, social justice initiatives, and advances in regulations.
Product Innovation
A major growth driver in the U.S. cannabis market is product innovation, driven by businesses developing a variety of products that will meet ever-changing consumer demands. As part of its expansion, Rodedawg International Industries, Inc. added a new product line, Nutrient CBD, in June 2024. Five new products entered the market, namely two CBD oil tinctures and two CBD creams, together with a CBD roll-on. They are produced by proprietary formulas in-house in the company's facilities, ensuring consistency and high quality and attracting health-aware customers.
Challenges in the United States Cannabis Market
Public Health Concerns
One major obstacle facing the US cannabis sector is public health concerns. Experts and authorities are concerned about increased youth access, impaired driving, and possible long-term mental health impacts, especially with high-THC products, as legalization spreads. Particularly when it comes to edibles, inconsistent product testing and labeling can result in unintentional overconsumption. Furthermore, a thorough grasp of cannabis's health effects is hampered by the absence of thorough research because of federal regulations. These worries fuel opposition from lawmakers and health groups, which could impede legislative advancement and alter public opinion, so limiting industry expansion and consumer adoption.
Market Saturation
In the US cannabis business, market saturation is becoming a problem, especially in states where the sector is developed or growing quickly. When the number of authorized producers, dispensaries, and cultivators rises, supply frequently surpasses demand, which lowers wholesale and retail costs. Profit margins are under pressure from this fierce competition, particularly for small and mid-sized enterprises. Oversupply in some areas has resulted in product surpluses and operator financial instability. Price wars and a lack of distinctiveness also hinder the success of new competitors. In the absence of prudent regulation and market equilibrium, saturation could impede long-term expansion and result in company closures and consolidation.
California Cannabis Market
California's cannabis industry, which combines entrepreneurship, wellness, and culture, thrives on variety and innovation. From innovative concentrates to artisanal edibles, the state's changing legal landscape promotes innovative product creation to appeal to a wide range of consumers. Enthusiastic producers and retailers continue to be dedicated to quality and sustainability in spite of legal complexity and competition from unauthorized dealers. By addressing historical injustices, social equity initiatives seek to promote diversity in the sector. Both locals and visitors are drawn to California because of its deeply ingrained cannabis culture. As the market develops, it keeps striking a balance between history and modernity, establishing trends that affect the cannabis industry nationwide.
Texas Cannabis Market
The cannabis industry in Texas is still developing slowly due to stringent laws and conservative attitudes. Although cannabis is not yet legal for recreational use, attitudes are changing as medicinal cannabis and CBD products gain traction. Due to the market's restricted legal access, many customers are being driven to other sources. Advocates and entrepreneurs are actively interacting to shape upcoming legislative changes. Once regulations loosen, Texas' sizable population and robust economy point to substantial market expansion possibilities. Gradual expansion is also aided by growing public awareness and product innovation resulting from hemp. The cannabis environment in Texas is a special fusion of openness, limitations, and continuous discussion.
New York Cannabis Market
The cannabis market in New York is quickly developing into a vibrant, diverse sector. Since legalizing cannabis for adult use, the state has prioritized fostering fair opportunities, awarding a sizable percentage of licenses to members of groups that have been disproportionately affected by cannabis prohibition. The goal of this strategy is to support a locally owned and diverse cannabis industry. The state's dedication to fairness and inclusion keeps its cannabis business moving forward in spite of obstacles including legal barriers and competition from the black market. New York is setting itself up as a model for other states looking to create equitable and long-lasting cannabis marketplaces as the industry develops.
Recent Developments in United States Cannabis Market
• British American Tobacco PLC and botanical medicinal development company AJNA BioSciences PBC established a joint venture with Charlotte's Web, a U.S.-based business, in April 2023. Getting FDA approval for a full spectrum hemp extract botanical medication was the goal of the acquisition.
• CV Sciences, Inc. introduced its +PlusCBD reserve line of extra gummies in April 2023. When severe assistance is needed, the reserve collection product line's blend of full-spectrum cannabinoids can help.
• CV Sciences, Inc. debuted +PlusCBD Daily Balance THC-Free Softgels and Gummies in March 2023. The product is a daily, portable supplement that offers the wellness advantages of CBD.
Market Segmentation
Source
• Marijuana
• Hemp
Derivatives
• CBD
• THC
• Others
End Use
• Recreational
• Medical
• Industrial
States
• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• Washington
• New Jersey
• Rest of United States
All companies have been covered from 5 viewpoints:
• Company Overview
• Key Persons
• Recent Development & Strategies
• SWOT Analysis
• Sales Analysis
Key Players Analysis
• Charlotte's Web, Inc.
• Medical Marijuana, Inc.
• Canopy Growth Corporation
• NuLeaf Naturals, LLC
• CV Sciences, Inc.
• The Cronos Group
• Organigram Holding, Inc.
• Irwin Naturals
• Tilray Brands
• Aurora Cannabis Inc.
United States Cannabis Market is expected to reach US$ 91.10 billion by 2033 from US$ 36.94 billion in 2024, with a CAGR of 10.55% from 2025 to 2033. Increased state-by-state legalization, an increase in medical applications, consumer acceptance, product innovation, growing retail infrastructure, investment inflows, favorable regulatory reforms, and the transition from illegal to legal markets are some of the major factors propelling the U.S. cannabis market.
United States Cannabis Market Report by Source (Marijuana, Hemp), Derivatives (CBD, THC, Others), End Use (Recreational, Medical, Industrial), States and Company Analysis 2025-2033.
United States Cannabis Market Overview
The psychotropic and therapeutic qualities of cannabis, a genus of plants, are mostly attributed to substances known as cannabinoids, which include THC (tetrahydrocannabinol) and CBD (cannabidiol). While CBD is non-intoxicating and often used medically, THC is psychoactive. This plant is used in many ways-from lotions applied topically, to ingested goods and its use as an oil, to smoking it. It has been known to be used to treat epilepsy and chronic pain, not to mention anxiety, but also simply for fun. For thousands of years, people have cultivated the plant for its medicinal, industrial (hemp), and spiritual uses. Legal status is different across the globe, and its increasing commercialization is due to rising acceptability and legalization.
The US cannabis market is increasing tremendously because of a variety of significant causes. One of the primary drivers is the broadening of legalization for both medical and adult-use in various states. It is also being driven by changing societal attitudes towards cannabis and increasing public acceptability. Product innovation breakthroughs such as beverages, edibles, and health products are attracting a broader base of consumers. Infrastructure and distribution channels are also being enhanced by investments from the institutional and private sectors. Market confidence is also supported by regulatory enhancements and potential federal legalization. Although increasing use for medicinal purposes drives continued interest, making the shift from illicit to legitimate marketplaces creates new revenue.
Growth Drivers for the United States Cannabis Market
Public Acceptance
The US cannabis market is growing enormously because, in large part, public acceptance is driving it. Increasing numbers of Americans find that using cannabis is socially acceptable and medically beneficial as attitudes about it continue to shift. Demand is being created and policy reform is being driven by this shift in culture. Based on merged data for 2022 and 2023, the Gallup Survey approximates that more than half of American adults, of both sexes, all age ranges, and all educational levels, have used marijuana. Such widespread exposure is indicative of greater acceptance of legal cannabis use and stigma loss. More customers are joining the legal market as acceptance grows, which boosts company expansion, draws in investment, and promotes additional legalization across states, all of which hasten market growth.
State-Level Legalization
Legalization at the state level allows more states to create regulated medicinal and recreational cannabis programs, which is a major growth driver for the US cannabis business. This steady growth draws investments, promotes innovation, and makes the market more accessible. Governor Kathy Hochul announced in June 2023 that Chicago Atlantic Admin, LLC would advance social equity applications and foster inclusive industry development by investing up to USD 150 million into the New York State Cannabis Social Equity Investment Fund. In addition, Dutchie, Inc., an Oregon-based cannabis technology company, raised approximately USD 350 million in Series D funding in 2021, as per Reuters, indicating the strong faith investors have in the cannabis sector. These developments indicate how legalization at the state level encourages market growth through the integration of large capital flows, social justice initiatives, and advances in regulations.
Product Innovation
A major growth driver in the U.S. cannabis market is product innovation, driven by businesses developing a variety of products that will meet ever-changing consumer demands. As part of its expansion, Rodedawg International Industries, Inc. added a new product line, Nutrient CBD, in June 2024. Five new products entered the market, namely two CBD oil tinctures and two CBD creams, together with a CBD roll-on. They are produced by proprietary formulas in-house in the company's facilities, ensuring consistency and high quality and attracting health-aware customers.
Challenges in the United States Cannabis Market
Public Health Concerns
One major obstacle facing the US cannabis sector is public health concerns. Experts and authorities are concerned about increased youth access, impaired driving, and possible long-term mental health impacts, especially with high-THC products, as legalization spreads. Particularly when it comes to edibles, inconsistent product testing and labeling can result in unintentional overconsumption. Furthermore, a thorough grasp of cannabis's health effects is hampered by the absence of thorough research because of federal regulations. These worries fuel opposition from lawmakers and health groups, which could impede legislative advancement and alter public opinion, so limiting industry expansion and consumer adoption.
Market Saturation
In the US cannabis business, market saturation is becoming a problem, especially in states where the sector is developed or growing quickly. When the number of authorized producers, dispensaries, and cultivators rises, supply frequently surpasses demand, which lowers wholesale and retail costs. Profit margins are under pressure from this fierce competition, particularly for small and mid-sized enterprises. Oversupply in some areas has resulted in product surpluses and operator financial instability. Price wars and a lack of distinctiveness also hinder the success of new competitors. In the absence of prudent regulation and market equilibrium, saturation could impede long-term expansion and result in company closures and consolidation.
California Cannabis Market
California's cannabis industry, which combines entrepreneurship, wellness, and culture, thrives on variety and innovation. From innovative concentrates to artisanal edibles, the state's changing legal landscape promotes innovative product creation to appeal to a wide range of consumers. Enthusiastic producers and retailers continue to be dedicated to quality and sustainability in spite of legal complexity and competition from unauthorized dealers. By addressing historical injustices, social equity initiatives seek to promote diversity in the sector. Both locals and visitors are drawn to California because of its deeply ingrained cannabis culture. As the market develops, it keeps striking a balance between history and modernity, establishing trends that affect the cannabis industry nationwide.
Texas Cannabis Market
The cannabis industry in Texas is still developing slowly due to stringent laws and conservative attitudes. Although cannabis is not yet legal for recreational use, attitudes are changing as medicinal cannabis and CBD products gain traction. Due to the market's restricted legal access, many customers are being driven to other sources. Advocates and entrepreneurs are actively interacting to shape upcoming legislative changes. Once regulations loosen, Texas' sizable population and robust economy point to substantial market expansion possibilities. Gradual expansion is also aided by growing public awareness and product innovation resulting from hemp. The cannabis environment in Texas is a special fusion of openness, limitations, and continuous discussion.
New York Cannabis Market
The cannabis market in New York is quickly developing into a vibrant, diverse sector. Since legalizing cannabis for adult use, the state has prioritized fostering fair opportunities, awarding a sizable percentage of licenses to members of groups that have been disproportionately affected by cannabis prohibition. The goal of this strategy is to support a locally owned and diverse cannabis industry. The state's dedication to fairness and inclusion keeps its cannabis business moving forward in spite of obstacles including legal barriers and competition from the black market. New York is setting itself up as a model for other states looking to create equitable and long-lasting cannabis marketplaces as the industry develops.
Recent Developments in United States Cannabis Market
• British American Tobacco PLC and botanical medicinal development company AJNA BioSciences PBC established a joint venture with Charlotte's Web, a U.S.-based business, in April 2023. Getting FDA approval for a full spectrum hemp extract botanical medication was the goal of the acquisition.
• CV Sciences, Inc. introduced its +PlusCBD reserve line of extra gummies in April 2023. When severe assistance is needed, the reserve collection product line's blend of full-spectrum cannabinoids can help.
• CV Sciences, Inc. debuted +PlusCBD Daily Balance THC-Free Softgels and Gummies in March 2023. The product is a daily, portable supplement that offers the wellness advantages of CBD.
Market Segmentation
Source
• Marijuana
• Hemp
Derivatives
• CBD
• THC
• Others
End Use
• Recreational
• Medical
• Industrial
States
• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• Washington
• New Jersey
• Rest of United States
All companies have been covered from 5 viewpoints:
• Company Overview
• Key Persons
• Recent Development & Strategies
• SWOT Analysis
• Sales Analysis
Key Players Analysis
• Charlotte's Web, Inc.
• Medical Marijuana, Inc.
• Canopy Growth Corporation
• NuLeaf Naturals, LLC
• CV Sciences, Inc.
• The Cronos Group
• Organigram Holding, Inc.
• Irwin Naturals
• Tilray Brands
• Aurora Cannabis Inc.
Table of Contents
200 Pages
- 1. Introduction
- 2. Research & Methodology
- 2.1 Data Source
- 2.1.1 Primary Sources
- 2.1.2 Secondary Sources
- 2.2 Research Approach
- 2.2.1 Top-Down Approach
- 2.2.2 Bottom-Up Approach
- 2.3 Forecast Projection Methodology
- 3. Executive Summary
- 4. Market Dynamics
- 4.1 Growth Drivers
- 4.2 Challenges
- 5. United States Cannabis Market
- 5.1 Historical Market Trends
- 5.2 Market Forecast
- 6. Market Share Analysis
- 6.1 By Source
- 6.2 By Derivatives
- 6.3 By End Use
- 6.4 By States
- 7. Source
- 7.1 Marijuana
- 7.1.1 Market Analysis
- 7.1.2 Market Size & Forecast
- 7.2 Hemp
- 7.2.1 Market Analysis
- 7.2.2 Market Size & Forecast
- 8. Derivatives
- 8.1 CBD
- 8.1.1 Market Analysis
- 8.1.2 Market Size & Forecast
- 8.2 THC
- 8.2.1 Market Analysis
- 8.2.2 Market Size & Forecast
- 8.3 Others
- 8.3.1 Market Analysis
- 8.3.2 Market Size & Forecast
- 9. End Use
- 9.1 Recreational
- 9.1.1 Market Analysis
- 9.1.2 Market Size & Forecast
- 9.2 Medical
- 9.2.1 Market Analysis
- 9.2.2 Market Size & Forecast
- 9.3 Industrial
- 9.3.1 Market Analysis
- 9.3.2 Market Size & Forecast
- 10. Countries
- 10.1 California
- 10.1.1 Market Analysis
- 10.1.2 Market Size & Forecast
- 10.2 Texas
- 10.2.1 Market Analysis
- 10.2.2 Market Size & Forecast
- 10.3 New York
- 10.3.1 Market Analysis
- 10.3.2 Market Size & Forecast
- 10.4 Florida
- 10.4.1 Market Analysis
- 10.4.2 Market Size & Forecast
- 10.5 Illinois
- 10.5.1 Market Analysis
- 10.5.2 Market Size & Forecast
- 10.6 Pennsylvania
- 10.6.1 Market Analysis
- 10.6.2 Market Size & Forecast
- 10.7 Ohio
- 10.7.1 Market Analysis
- 10.7.2 Market Size & Forecast
- 10.8 Georgia
- 10.8.1 Market Analysis
- 10.8.2 Market Size & Forecast
- 10.9 Washington
- 10.9.1 Market Analysis
- 10.9.2 Market Size & Forecast
- 10.10 New Jersey
- 10.10.1 Market Analysis
- 10.10.2 Market Size & Forecast
- 10.11 Rest of United States
- 10.11.1 Market Analysis
- 10.11.2 Market Size & Forecast
- 11. Value Chain Analysis
- 12. Regulatory Scenario
- 13. Licensing Scenario in the United States
- 14. Government Policy Designing Cannabis Guidelines
- 14.1 Federal Cannabis Policy
- 14.2 Policy Challenges and Opportunities
- 15. Reimbursement Policies in the United States
- 16. Taxation Policies in the United States
- 17. Porter's Five Forces Analysis
- 17.1 Bargaining Power of Buyers
- 17.2 Bargaining Power of Suppliers
- 17.3 Degree of Competition
- 17.4 Threat of New Entrants
- 17.5 Threat of Substitutes
- 18. SWOT Analysis
- 18.1 Strength
- 18.2 Weakness
- 18.3 Opportunity
- 18.4 Threats
- 19. Pricing Benchmark Analysis
- 19.1 Charlotte's Web, Inc.
- 19.2 Medical Marijuana, Inc.
- 19.3 Canopy Growth Corporation
- 19.4 NuLeaf Naturals, LLC
- 19.5 CV Sciences, Inc.
- 19.6 The Cronos Group
- 19.7 Organigram Holding, Inc.
- 19.8 Irwin Naturals
- 19.9 Tilray Brands
- 19.10 Aurora Cannabis Inc.
- 20. Key Players Analysis
- 20.1 Charlotte's Web, Inc.
- 20.1.1 Overviews
- 20.1.2 Key Person
- 20.1.3 Recent Developments
- 20.1.4 SWOT Analysis
- 20.1.5 Revenue Analysis
- 20.2 Medical Marijuana, Inc.
- 20.2.1 Overviews
- 20.2.2 Key Person
- 20.2.3 Recent Developments
- 20.2.4 SWOT Analysis
- 20.2.5 Revenue Analysis
- 20.3 Canopy Growth Corporation
- 20.3.1 Overviews
- 20.3.2 Key Person
- 20.3.3 Recent Developments
- 20.3.4 SWOT Analysis
- 20.3.5 Revenue Analysis
- 20.4 NuLeaf Naturals, LLC
- 20.4.1 Overviews
- 20.4.2 Key Person
- 20.4.3 Recent Developments
- 20.4.4 SWOT Analysis
- 20.4.5 Revenue Analysis
- 20.5 CV Sciences, Inc.
- 20.5.1 Overviews
- 20.5.2 Key Person
- 20.5.3 Recent Developments
- 20.5.4 SWOT Analysis
- 20.5.5 Revenue Analysis
- 20.6 The Cronos Group
- 20.6.1 Overviews
- 20.6.2 Key Person
- 20.6.3 Recent Developments
- 20.6.4 SWOT Analysis
- 20.6.5 Revenue Analysis
- 20.7 Organigram Holding, Inc.
- 20.7.1 Overviews
- 20.7.2 Key Person
- 20.7.3 Recent Developments
- 20.7.4 SWOT Analysis
- 20.7.5 Revenue Analysis
- 20.8 Irwin Naturals
- 20.8.1 Overviews
- 20.8.2 Key Person
- 20.8.3 Recent Developments
- 20.8.4 SWOT Analysis
- 20.8.5 Revenue Analysis
- 20.9 Tilray Brands
- 20.9.1 Overviews
- 20.9.2 Key Person
- 20.9.3 Recent Developments
- 20.9.4 SWOT Analysis
- 20.9.5 Revenue Analysis
- 20.10 Aurora Cannabis Inc.
- 20.10.1 Overviews
- 20.10.2 Key Person
- 20.10.3 Recent Developments
- 20.10.4 SWOT Analysis
- 20.10.5 Revenue Analysis
Pricing
Currency Rates
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