Cannabis Market Size, Share, Growth Analysis, By Product (Flowers, Edibles), Compound (Cannabidiol, Balanced THC & CBD), Application (Medical, Recreational), and Region - Industry Forecast 2024-2031

Cannabis market was valued at USD 36.4 Billion in 2022 and is poised to grow from USD 42.6 Billion in 2023 to USD 148.4 Billion by 2031, growing at a CAGR of 16.9% during the forecast period (2024-2031).

The global cannabis market is experiencing rapid growth driven by factors such as legalization, the expanding availability of medical marijuana, and increased consumer use. With a rising global focus on organic and sustainable farming, consumers are becoming more aware of environmental issues, leading to a broader appeal for cannabis in wellness and health products, including CBD-related items, beyond traditional cannabis users. The market is becoming more competitive, intensifying the need for companies to innovate and enhance their branding efforts. Economically, the commercialization of cannabis has created job opportunities and increased tax revenues, particularly in regions where cannabis use has been legalized. The medical cannabis sector is seeing significant activity due to ongoing research and clinical trials, which aim to validate its effectiveness in treating conditions such as chronic pain, epilepsy, and multiple sclerosis. Overall, the cannabis market is poised for substantial growth in the coming years, fueled by regulatory changes, technological advancements, and growing product acceptance, although it will face challenges such as fluctuating regulations and intense international competition.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Cannabis market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Cannabis Market Segmental Analysis

Global cannabis market is segmented based on product, compound, application, and region. Based on product, the market is segmented into flowers, concentrates, edibles, topicals & tinctures, and other product types. Based on compounds, the market is segmented into Tetrahydrocannabinol, Cannabidiol, and Balanced THC & CBD. Based on application, the market is segmented into medical (pain management, neurological health management, mental health management, other medical applications), and recreational. Based on region, the market is segmented into North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.

Drivers of the Global Cannabis Market

Our analysis indicates that legalization and regulation are pivotal factors in the evolution of the cannabis market. As an increasing number of countries and states legalize cannabis for both medical and recreational purposes, the market is expanding beyond previous expectations. This shift not only drives industry growth but also improves consumer acceptance of cannabis products. Additionally, regulations establish the guidelines and standards that businesses must adhere to, ensuring product quality and safety. In summary, the ongoing process of legalization and regulation remains a significant force propelling the cannabis market forward.

Restraints in the Global Cannabis Market

Our analysis shows that as cannabis becomes increasingly legal for medical and recreational use in numerous states and countries, the industry is experiencing heightened saturation with many new entrants. This has led to an oversupply of cannabis products in certain regions, exacerbated by the rapid growth in production. The threat of commoditization pushes companies to invest heavily in branding, quality, and innovation to stand out, which can be capital-intensive. Additionally, the illicit market poses a significant challenge, operating at lower prices without the burden of regulatory compliance costs. This competition undermines the viability of the legal market and hampers its expansion by offering cheaper, unregulated alternatives.

Market Trends of the Global Cannabis Market

Our analysis highlights a significant trend in the cannabis market: a steady increase in the variety of products available and their modes of consumption. As consumer preferences evolve, companies are securing investment to develop innovative products beyond traditional flowers and oils. This includes ingestible items like candies and chocolates, beverages such as tea and coffee, topical applications like balms and lotions, and highly concentrated forms. Technological advancements in cultivation methods, including indoor and greenhouse farming, along with improvements in cannabinoid extraction techniques, are also driving product innovation.