Cannabis - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Cannabis - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Cannabis Market size is estimated at USD 33.84 billion in 2024, and is expected to reach USD 69.25 billion by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).

Key Highlights

• The cannabis industry offers various items divided into recreational and medicinal uses. While medicinal usage is becoming more broadly accepted, the recreational use of cannabis is likely to rise in tandem with increased tolerance and official legalization globally.
• The market growth has been fueled by the continued adoption of legal medical or recreational cannabis in more countries worldwide and high-profile achievements from some of the industry's emerging top contenders. With the first cannabis-based drug receiving approval from the US Food and Drug Administration (FDA), many investors are starting legal marijuana operations.​
• North America dominates the market and is projected to be the fastest-growing region. The cannabis industry has been growing significantly in the United States due to the increased use of cannabis for medicinal purposes. As a result, the National Cannabis Industry Association (NCIA) is promoting the growth of the legal cannabis industry and providing it with favorable social, economic, and legal conditions in the United States. As a psychoactive drug, cannabis continues to find extensive favor among recreational and medicinal users in the United States.

Cannabis Market Trends

Legalization of Cannabis

• Medicinal cannabis accounts for a significant share of the cannabis market. Many countries, such as Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, Poland, Portugal, Thailand, the United Kingdom, and Uruguay, have legalized the use of cannabis for medicinal purposes. Thailand's Food and Drug Administration withdrew marijuana and hemp from the Category 5 narcotics list in June 2022, decriminalizing these drugs. In effect, this change in the legislation allows Thais to produce and sell marijuana for medical purposes, which the government hopes could eventually establish Thailand as an "herbal center" in Southeast Asia.
• As of 2022, cannabis is legal for recreational use in nineteen states, two US territories, and the District of Columbia. Thirty-seven states, four US territories, and DC have approved the drug's medicinal usage. More states are estimated to follow suit during the forecast period, considering the widespread demand for cannabis and its medicinal properties. In US provinces where cannabis has been legalized, consumers are mostly aged 50 and above. Owing to the higher risk of chronic diseases post-50 years of age and the effectiveness of cannabis on such conditions, this demographic profile is expected to boost the demand for cannabis in the country.
• According to the US Government Accountability Office (under State Medical Marijuana Laws), symptoms and conditions that can be treated by cannabis include Alzheimer’s disease, anorexia, HIV/AIDS, glaucoma, cancer, arthritis, epilepsy, nausea, pain, cachexia, Crohn's disease, migraines, multiple sclerosis, spasticity, and wasting syndrome. Continuous research and standardization of products for medicinal purposes are expected to increase the popularity and demand for cannabis in the future.

North America Dominates the Market

• The North American cannabis market is set to become the primary producer of cannabis after the legalization of cannabis in Canada. In May 2021, the US government approved new growers of research marijuana for the first time in more than 50 years, thus increasing the capacity to study the drug’s medical value.
• Similarly, the Food and Drug Administration (FDA) approved some of its derivative compounds for medicinal use. Marinol, Syndros, Cesamet, and Epidolex are cannabinoid drugs that received approval from the FDA. Furthermore, in the United States, ten states have legalized cannabis for recreational use, while 33 states and the District of Columbia have legalized cannabis for medical purposes.
• Among these states, California, Washington, and Colorado are the leading cannabis sellers. The production levels of cannabis in North America have increased rapidly over the past few years due to the expansion of the major players' production capacities. More states are estimated to follow suit during the forecast period, considering the widespread demand for cannabis and its medicinal properties. ​

Cannabis Industry Overview

The global cannabis market is highly fragmented. Companies leading in the global cannabis market, such as Aphria, Medmen, Jazz Pharmaceuticals Inc., Aurora Cannabis Inc., and Canopy Growth Corp, have created efficient alliances and product launch plans to grow their market reach and client base.

Additional Benefits:

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