Cannabis Market size was over USD 14 Billion in 2023 and is expected to cross USD 98.85 Billion by the end of 2036, growing at more than 23% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of cannabis is evaluated at USD 20.5 Billion.
This market expansion is encouraged by the growing consumption of drugs across the globe. The last 30 years have seen a steady rise in the use of cannabis since numerous nations and states have taken steps to decriminalize and even fully legalize these drugs.
As per the World Health Organization (WHO), approximately 147 million individuals, or 2.5% of the global population, use cannabis annually, compared to 0.2% who use cocaine and 0.2% who use opiates.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
23% |
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Base Year Market Size (2023) |
USD 14 Billion |
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Forecast Year Market Size (2036) |
USD 98.85 Billion |
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Regional Scope |
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Type (Flower/Buds, Concentrates)
Flower/buds segment is set to dominate around 55% cannabis market share by the end of 2036. The segment growth can be attributed to the rising number of vapers due to enjoyable flavoring in products such as cannabis.
For instance, there were more than 10 million vapers throughout the globe in 2011, and this figure increased to an estimated 86 persons globally in 2023.
Vaping is one of the two ways to inhale cannabis flowers since it has a higher potency than smoking them and is considered a cheap and safe way for senior citizens to take their medication.
To consume cannabis flowers the plant's terpenes and cannabinoids are released into a breathable vapor by slowly heating the dried buds which are then inhaled by using a vaporizer (or vape) as they are easy to use, less damaging to the lungs, and guarantee that the prescription has the most therapeutic effect possible.
Application (Medical, Recreational, Industrial Hemp)
In the coming years, the recreational segment is expected to register the highest CAGR due to an increase in the young population. More than 23% of people on the planet are under the age of 15, and around 9% are older than 65.
Researchers discovered that youth, between the ages of 12 and 20, had a higher likelihood of using cannabis recreationally, and as a coping mechanism.
Cannabis is a recreational drug that is psychotropic and alters the mind as it typically contains both THC and CBD which seems to reduce anxiety, while at higher concentrations, it seems to increase anxiety.
Component (THC- dominant, Balanced THC and CBD, CBD dominant)
By the end of 2036, the THC-dominant in the cannabis market segment is predicted to have a significant revenue share. The growing prevalence of chronic pain is the primary driver of the segment's growth. Over 15% of adults worldwide are thought to have pain, and more than 5% receive a new diagnosis of chronic pain each year.
One of the numerous cannabinoids found in the cannabis plant is THC, which is used more often to treat pain and sleep disorders. When pain is severe, THC-dominant therapy is more likely to be advised because it produces a higher level of intoxication and is rated more favorably by patients than CBD-dominant concentrate.
Our in-depth analysis of the market includes the following segments:
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Application |
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Distribution Channel |
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Crop Variety |
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Component |
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North American Market Statistics
North America region in cannabis market is set to dominate around 30% revenue share by the end of 2036. The market growth in the region is also expected on account of the legalization of recreational drugs. North America is one of the most progressive regions in the globe because it established some of the first cannabis legislation for both medical and recreational use.
For instance, more than 70% of Americans reside in a state where marijuana is permitted.
Legalizing cannabis has become a popular movement in the United States, which has increased its consumption.
In 2022, almost 21% of people in the United States reported using cannabis in the previous 12 months.
Moreover, sales of recreational cannabis in Canada totaled more than USD 3 billion in 2023, up from 2022. Besides this, thousands of recreational cannabis retail locations may be found in more than 8 provinces and three territories in Canada, a country of over 35 million people.
European Market Analysis
The Europe region will also encounter huge growth for the cannabis market during the forecast period and will hold the second position owing to the increasing consumption of tobacco with cannabis in this region. In Europe, cannabis is often combined with tobacco and smoked to consume a lot of nicotine.
According to a survey in Europe, over 85% of cannabis users smoke it in conjunction with tobacco.
Germany currently has among of the most permissive cannabis legislation in all of Europe, which has led to the creation of private, nonprofit "cannabis clubs" that can cultivate and sell cannabis to their members.
Nowadays, cannabis is allowed for medical use in, Italy, however, there are stringent regulations.
The cannabis market consists of many key players who are launching various strategic initiatives to expand their market position in the industry.
Author Credits: Radhika Pawar
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