Cannabis - Industry - North America Market, Share and Trends 2023-2028

Summary of Cannabis

As more countries and states legalize cannabis for medical and recreational use, North America’s legal cannabis industry is experiencing unprecedented growth. Canada became the first major economy to fully legalize cannabis in 2018, while the United States is seeing more states regulate medical and adult-use programs each year. This presents substantial opportunities for businesses across the cannabis supply chain – from cultivation and manufacturing to retail and ancillary services.

Continued legalization progress and maturing regulations across North America will attract more mainstream CPG and pharmaceutical companies to the space. First movers should explore opportunities in medical research partnerships, retail franchising models, and infused product manufacturing to build reputable brands for the long term. With responsible growth, this industry has potential for decades of socioeconomic benefits across the continent.

The North American legal cannabis market is projected to grow steadily with a compound annual growth rate, with the recreational segment anticipated to register the fastest growth rate of 19.5%. The recreational use of cannabis has been allowed in Canada and some states in the United States– which is projected to boost market expansion. The COVID-19 outbreak has significantly hampered the cannabis supply chain, leading to a decline in the supply of cannabis in dispensaries.

North America dominated the global cannabis market in 2022 and is expected to hold the highest share in the global market over the forecast period. The edible segment of recreational marijuana is expected to grow at the fastest pace during the forecast period. Enabling policy and regulatory relaxation across the globe is a key trend in the market. North America’s regional industry market size is projected to grow from $24.12 billion in 2023 to $66.58 billion by 2029, at a CAGR of 18.21% during the forecast period.

Recent Trends and Insights

The U.S. cannabis market is projected to exceed $30 billion by 2025 as new state programs launch. Over a third of Americans now have access to legal cannabis. Consumer acceptance of cannabis is rising along with preference for higher quality, consistent products and form factors like edibles and beverages.

Canada’s national cannabis program has stabilized the legal industry and is driving consolidation among licensed producers. Medical cannabis exports are gaining momentum.

The wider legalization status of recreational cannabis is expected to boost market growth. North America is expected to hold a major share attributed to the widespread use of marijuana and marijuana legalization trends in most of the states in the US.

The global cannabis extract market size was valued at USD 3.5 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 20.0%. The oils segment is expected to be the leading segment in the global market during the forecast period. The medical use of cannabis is expected to drive the growth of the market.

These understandings highlight the dynamic and growing nature of the cannabis market in North America – emphasizing the need for advanced infrastructure, efficient supply chains and technology-driven logistics solutions to support the growing demand for cannabis products.

Product Insights

Recently the concentrates and edibles market has shown a surge in utility. This percentage increased to 24% overall. The states with even more interest in concentrates are – Nevada, Colorado and California. States with less popularity are Oklahoma, Alaska, Maine and Montana.

The most obvious “why” is that concentrates are more popular in established cannabis markets, perhaps due to the fact that beginners are more likely to stick with familiar products like edibles and flower.

Now for edibles– which include cannabis chocolates, gummies, and beverages. The overall average over the past 3 years was 9% of all sales. Recent highlights indicate that the edibles made up 11% of sales — a 2% increase.

Vape oils have gained popularity in recent years – particularly in markets where cannabis products are legally available. They are a concentrated form of cannabis that can be used in vaping devices.

The Edibles component which are made up of cannabis-infused foods like chocolates, gummies and beverages – have become increasingly popular among cannabis consumers. In 2021– edibles made up 11% of sales, a 2% increase from previous years.

Cannabis-infused beverages – such as cannabis-infused sodas and coffee – are gaining traction in the market. They offer a discreet and enjoyable way to consume cannabis. Concentrates – which include products like cannabis wax and shatter – are popular among experienced cannabis users seeking more potent effects. They are also more popular in established cannabis markets.

Key Companies

Some major players within this vast domain of industry are

• Curaleaf
• Innovative Industrial
• Green Thumb Industries
• Verano Holdings
• Trulieve Cannabis
• Cresco Labs
• Insys Therapeutics, Inc.
• SUNDIAL
• Cara Therapeutics
• Tilray
• Aurora Cannabis

Regional Analysis

The large scale growth need for advanced infrastructure, efficient supply chains and technology-driven logistics solutions to support the growing demand for cannabis products across North America. As the legal cannabis industry continues to evolve rapidly – logistics providers will play a crucial role in facilitating the movement and distribution of goods throughout highly regulated supply chains. Some areas where logistics can make meaningful contributions include:

Temperature-controlled transportation and specialized facilities for storage of perishable medical cannabis products. Secure, compliant packaging and labeling solutions to meet requirements in each state/province and prevent diversion.

Inventory tracking and traceability systems using RFID, blockchain or other technologies to satisfy regulatory tracking from seed to sale. Delivery management platforms to optimize routes and ensure safe, compliant delivery of products directly to dispensaries and patients.

Data analytics to gain insights into demand patterns and help shape supply planning across diverse regional programs. As the industry matures and more mainstream companies enter the space, strategic investments in logistics infrastructure and innovative solutions will be important to support the long-term growth and accessibility of legal cannabis in North America.

Market Segmentation

By Type:

• Medical cannabis
• Recreational cannabis
• Hemp-derived products (CBD, fiber, seeds, etc.)
• Cannabis-infused products (edibles, beverages, topicals, etc.)
•  

By End User:

• Patients seeking medical treatment.
• Adult consumers for recreational use
• Industrial users (hemp-based products for various industries)
• Wellness and lifestyle consumers (CBD products)
•  

By Vertical:

• Cultivation and growing operations
• Processing and extraction facilities
• Retail and dispensaries
• Ancillary services (consulting, software, packaging, etc.)
• Research and development

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of north america’s regional cannabis market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.