Cannabis - Industry - Global Market, Share and Trends 2023-2028

Summary of Cannabis

The global cannabis market size is projected to grow from $53 billion in 2023 to $143.6 billion by 2029, at a CAGR of 17.34% during the forecast period.

The use of Cannabis dates back to thousands of years, wherein its consumption is recognized and used for therapeutic and medicinal use. Cannabis is a genus of flowering plants where the dominant species include C. sativa, indica and ruderalis. Most of the cannabis varieties grown today exhibit features of two or more of these species.

The legalization of the use of marijuana is gaining momentum across the globe for purposes other than medical use. This moment is primarily due to broader acceptance in the medical and general populace about the medical benefits and its purpose for therapeutic use. Although its consumption is still largely illegal and thus its production and distribution are highly regulated and restricted. According to the United Nations Office on Drugs and Crime (UNDOC), it is the most widely cultivated trafficked and consumed drug worldwide.

As the acceptance of cannabis increases, the companies involved in them are competing to gain a significant market share. They are using inorganic growth strategies, such as expansion & investments and acquisition to increase their market share and profits.

Recent Trends and Insights

The recreational segment is projected to grow at the highest rate during the projected forecast period. Gen Z consumers are the ones primarily driving up the demand for the products. Traditionally, cannabis growers were mainly focused on minimal processing of the plan as technological investment in the field was negligible. But as more of the countries are legalizing cannabis use, technological innovation is being adopted by the growers, with more focus on manufacturing edibles, capsules, oils for vaping and gummies.

The global cannabis market is also classified into THC-dominant, CBD-dominant, and balanced THC & and CBD. The THC-dominant segment is projected to expand at the fastest rate in the global cannabis market during the forecast period. The growth could be attributed to cannabis’s long-standing popularity and cultural association with psychoactive effects.

Product Insights

There are numerous types of products that are nowadays available, which include buds, oils, tinctures and others. In 2022 the largest revenue share was through oils and tinctures comprising of over 50% of revenue accounting for more than $14.49 billion of the market size in 2023 expected to grow at a CAGR of 20.3%. With recent legalization in countries and accepted medical benefits of cannabis products, oils extracted from cannabis are used for treating vomiting and nausea due to cancer.

With the scope of use of these products expanding, the growth rate for the oil & and tincture segment is the highest. Since the cannabinoids that are present in the oils help in improving sleep disorders and are known to alleviate stress and anxiety, thus number of patients prefer oils as compared to flowers hence the higher growth rate.

Apart from medical usage, candies, chocolates and beverages have emerged as popular hemp-based edibles in the market. The cannabis-infused edible products market size is expected to grow from USD 9.68 billion in 2023 to USD 20.60 billion by 2028, at a CAGR of 16.30% during the forecast period.
Although the effect of the so-called euphoric “high” takes longer to set in, the effects last longer without the adverse effect of inhaling smoke or vapor. Supplemented by innovative marketing and packaging the sales and sentiments towards edibles are bound to increase.

Key Companies

Some major players within this vast domain of industry are

• Canopy Growth Corporation (Canada)
• Aurora Cannabis Inc. (Canada)
• Medmen Enterprise Inc. (US)
• Tilray Inc. (US)
• Unrivaled Brand Inc. (US)
• VIVO Cannabis Inc. (Canada)
• The Cronos Group (Canada)
• Medical Marijuana Inc. (US)
• Stenocare (Denmark)
• Trulieve (US)

Regional Analysis

North America dominated the market due to use in several therapies for medical conditions including anorexia, arthritis, chronic pain, epilepsy, post-traumatic stress disorder and cancer. Furthermore, several industry players are focusing on the advancement of cannabis which will further boost the growth of the cannabis market in the region during the forecast period.

The revenue share of North America was about $20 billion this is primarily supported by the rapid legalization of cannabis for both medical and adult use or recreational use of marijuana. This is further strengthened by the presence of the majority of the big players in the cannabis market. With more than two-thirds of the U.S. falling under the legal territory for cannabis, the demand and supply both have increased in the region.

Europe is the second largest market due to the progressive decriminalizing policies of various European nations. Medical marijuana is widely used in Europe, treating conditions ranging from cancer to appetite stimulants in patients with AIDS-related syndrome.

Although most of the European governments aren’t in Favor of legalizing the recreational use of marijuana, Europe is projected to observe a significant amount of growth in the cannabis market due to a shift in the lifestyle of people. Moreover, the strong demand and supply of cannabis are further anticipated to propel the growth of the cannabis market in the region in the coming years.

Asia Pacific cannabis is also expected to grow in the coming years due to changes in sentiments among the public and government policies are expected to follow suit as the demand from people increases. The consumption of hemp and marijuana is projected to grow substantially in Thailand owing to the legalization of marijuana cultivation. Furthermore, the growing research in the pharmaceutical industry is expected to show the potential for medical capabilities of cannabis in the region.

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 Sub-Sector:

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

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the global 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.