Cannabis Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

Coverage: Cannabis Market covers analysis By Product Type (Flower, Concentrates, and Others), Application (Medical and Recreational), and Compound [Tetrahydrocannabinol (THC)-Dominant, Cannabidiol (CBD)-Dominant, Balanced THC and CBD], and Geography (North America, Europe, Asia Pacific, and South and Central America)

Publication Month : Feb 2024

  • Report Code : TIPRE00003973
  • Category : Pharmaceuticals
  • Status : Upcoming
  • No. of Pages : 215
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The global cannabis market is expected to grow from US$ 33,692.3 million in 2022 to US$ 1,99,504.9 million by 2028; it is estimated to grow at a CAGR of 34.5% from 2022 to 2028.

Rising research & development activities for medical cannabis acts as a standalone factor driving the overall market. The emerging government policy and regulatory relaxation is expected to provide a lucrative growth opportunity for the overall market.

Rising research & development activities for medical cannabis acts as a standalone factor responsible for driving influential growth of overall market. According to the NORML and The NORML Foundation 2022 report, clinical research intended for the therapeutic value of cannabis has proliferated the understanding that medical cannabis can combat disease. For example, scientists are investigating by researching to detect cannabis's capacity to identify moderate autoimmune disorders such as multiple sclerosis, rheumatoid arthritis, and inflammatory bowel disease. Additionally, scientists are researching to identify the role of medical cannabis consumption in treating neurological disorders such as Alzheimer's disease and amyotrophic lateral sclerosis, i.e., Lou Gehrig’s disease). Further, researchers are also studying the anti-cancer activities of cannabis involved in reducing the spread of cancer cells. Also, various regions like Europe are encouraging the consumption of medical cannabis to advance patient access and improve the health outcomes of patients. For example, The European Medicinal Cannabis Association (EUMCA), registered under the Belgian Code des Sociétés et des Associations and registered on the European Commission Transparency Registry, operates in the research and development, production, and distribution of medical cannabis treatment across the Europe region. Such aforementioned factors are responsible for enhancing the overall consumption of medical cannabis during the analysis period of 2022-2028.

The emerging government policy and regulatory relaxation is expected to provide a lucrative growth opportunity for the overall market. Legal access to medical cannabis products is now increasing by relaxing restrictions. For example, in 2016, the Australian Federal Government legalized access to medical cannabis. Also, more than 100 different cannabis products are now available in Australia to prescribe, the majority involving oral preparations (oils) or capsules containing delta-9-tetrahydrocannabinol or cannabidiol. The majority of the prescriptions are intended for chronic, non-cancer pain, anxiety, cancer-related symptoms, epilepsy, and other neurological disorders. Further, the legalization of cannabis policy provides lucrative opportunities involving therapeutic benefits. For example, in the US, Washington State earmarked cannabis tax revenue to fund a continuous cannabis research program. Additionally, other states, such as New York, reviewed the potential impacts of regulating a recreational cannabis supply chain and health reforms. More efforts with legal access to medical cannabis will provide lucrative opportunities for overall market growth in the forthcoming years.

Regional Overview

North America accounts largest market share for cannabis market. Among North America regional market, the US accounts significant revenue for cannabis. According to the Pew Research Center 2022 published article, Americans support the legalization of cannabis intended for medicinal and recreational use. For example, the US survey conducted on October 2022 reveals that about 88% poll was for the legalization of cannabis. Additionally, the majority of Democrats across all age groups support the legalization of cannabis intended for medicinal and recreational purposes. Furthermore, Los Angeles County Economic Development Corporation 2022 report states that in 2020 sales in America increased by 67% from 2019, and support for the legalization of cannabis intended for recreational purposes hit an all-time high, accounting for 68% in the US in October 2021 with cannabis industry valuation of approx. US$61 billion.  Thus, increasing legalization of cannabis intended for both medicinal and recreational purpose accelerates demand for the product among the patient base expecting to drive the overall market growth during the forecast period.

Strategic Insights

Product Type Insights

Based on product type, the cannabis market is segmented into flower, concentrates, and others. The flower segment held the largest market share in 2022. This is due to cannabis flowers being resinous whose buds can be processed into pharmaceutical-grade drugs. For example, various pharmaceutical products such as elixirs, tinctures, salves, poultices, and creams can be manufactured through cannabis flowering tops. Additionally, cannabis plants grow quickly that can be harvested by accelerating production (modified cannabis flower), particularly in a controlled agricultural environment. For example, modified cannabis flowers or buds have the most powerful medicinal properties having a positive effect on the human brain on consumption. Such medicinal properties associated with cannabis flowers have an influential segmental growth responsible for dominating the overall market growth during the forecast period.

Cannabis Market, by Product Type – 2022 and 2028

Cannabis Market, by Product Type – 2022 and 2028Companies operating in the cannabis market are adopting the product innovation strategy to meet the evolving customer demands across the world, which also permits them to maintain their brand name in the market.

Cannabis Market – Segmentation

Based on product type, the cannabis market is segmented into flower, concentrates, and others. The flower segment held the largest market share in 2022. Based on application, the cannabis market is bifurcated into medical and recreational. The medical segment held a larger share of the market in 2022. The recreational segment will grow over the forecast period. Based on compound, the global cannabis market is segmented into Tetrahydrocannabinol (THC)-Dominant, Cannabidiol (CBD)-Dominant, and balanced THC and CBD. The Tetrahydrocannabinol (THC)-Dominant segment held the largest share of the market in 2022. The Cannabidiol (CBD)-Dominant segment is expected to grow at the fastest CAGR over the forecast period. Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.

Company Profiles

  • Tilray Inc.
  • Aurora Cannabis
  • Cannabis Science Inc.
  • Canopy Growth Corporation
  • Medical Marijuana, Inc.
  • Vivo Cannabis Inc.
  • Tikun Olam
  • Tilray Brands, Inc.
  • The Cronos Group
  • HEXO Corp.

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REGIONAL FRAMEWORK
World Geography

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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product Type, Application, and Compound

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States

The List of Companies - Cannabis Market

  1. Aphria, Inc.
  2. Aurora Cannabis
  3. Cannabis Science, INC.
  4. Canopy Growth Corporation
  5. Medical Marijuana, Inc.
  6. VIVO Cannabis Inc.
  7. Tikun Olam
  8. Terra Tech Corp.
  9. Tilray
  10. The Cronos Group

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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