US Cannabinoids Market

U.S. Cannabinoids Market size was valued at USD 14,495.0 million in 2023 and is poised to grow from USD 17,655.3 million in 2024 to USD 65,213.0 million by 2032, growing at a CAGR of 17.9% during the forecast period (2024–2032).

The U.S. cannabinoids market is in a rapid expansion phase, fueled by legalization momentum, evolving consumer preferences, and advancements in cannabinoid science. Since the passing of the 2018 Farm Bill and progressive state-level reforms, the market has seen robust adoption across medical, recreational, and wellness applications. Increased legalization—covering 74% of the U.S. population for medical and/or recreational use—has broadened consumer access, attracting diverse demographics from wellness-focused adults to chronic illness patients.

Tetrahydrocannabinol (THC) dominates the market by compound type, driven by recreational cannabis products such as flower, pre-rolls, vapes, and high-potency edibles. Cannabidiol (CBD) remains a strong second, with wide integration into cosmetics, nutraceuticals, and pharmaceuticals, aided by its non-psychoactive profile and therapeutic positioning. Flower/Buds is the leading product category by value, while Edibles represent the fastest-growing format, backed by rising demand for smoke-free consumption.

Key growth drivers include federal DEA reclassification of cannabis to Schedule III, growing clinical validation for cannabinoids in pain management, neurological disorders, and oncology, expansion of direct-to-consumer e-commerce sales, and product innovation such as minor cannabinoid specialization (CBN, CBC, THCV). Opportunities in functional foods, cannabinoid-infused beverages, and precision therapeutics are emerging as high-margin niches.

Despite growth, the industry faces notable challenges—regulatory fragmentation between federal and state laws, pricing pressure from oversupply, enduring illicit market competition, and barriers to banking and financing. Sustainability trends, biosynthetic cannabinoid production, and strategic alliances between cannabis firms and pharmaceutical, cosmetic, and beverage companies are shaping the market’s next phase.

The competitive landscape is moderately consolidated at the top, with major multi-state operators like Curaleaf Holdings, Trulieve Cannabis, Green Thumb Industries, Verano Holdings, Tilray Brands, and Cresco Labs leveraging vertical integration for efficiency, brand control, and expansion scalability. However, around two-thirds of the market remains highly fragmented, populated by specialized and regional players. Show more