Market Size of Cannabis Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 33.84 Billion |
| Market Size (2029) | USD 69.25 Billion |
| CAGR (2024 - 2029) | 15.40 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cannabis Market Analysis
The Cannabis Market size is estimated at USD 33.84 billion in 2024, and is expected to reach USD 69.25 billion by 2029, growing at a CAGR of 15.40% during the forecast period (2024-2029).
The cannabis market offers various items divided into recreational and medicinal uses. While medicinal usage is becoming more broadly accepted, the recreational use of cannabis is likely to rise in tandem with increased tolerance and official legalization globally. The market growth has been fueled by the continued adoption of legal medical or recreational cannabis in more countries worldwide and high-profile achievements from some of the industry's emerging top contenders. With the first cannabis-based drug receiving approval from the US Food and Drug Administration (FDA), many investors have started legal marijuana operations in the last eight years.
The medicinal properties of cannabis, increasing advances in genetic development, and intellectual property on cannabis may expand the global market over the coming years. According to Harvard University, the most common use for medical cannabis in the United States is for pain control. In 2020, about 85% of Americans supported legalizing medical cannabis, and it is estimated that at least several million Americans currently use it.
In May 2024, the Cannabis for Private Purposes Act made South Africa the first African nation to legalize the use of marijuana in the region. Africa offers enormous opportunities to local start-ups and foreign companies looking to expand, with affordable land, low-cost labor, and an experienced agricultural workforce. However, even if medicinal cannabis were to be legalized across the continent, access to products would be restricted due to a lack of healthcare infrastructure.
According to a report by the United Nations' International Narcotics Control Board, the United Kingdom was the largest producer and exporter of legalized cannabis for medical and research purposes prior to legalization. As a result, it is projected that the legalization of cannabis in Europe is expected to boost the cannabis industry during the review period.
Cannabis Industry Segmentation
Cannabis is a tall plant with a stiff upright stem used as a drug for recreational and entheogenic purposes and is being legalized for its medical usage.
The cannabis market is segmented by product type (capsules, concentrates, edibles, and other product types), application (medical and recreational), compound type (tetrahydrocannabinol (THC), cannabidiol (CBD), and balanced THC & CBD), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers market size and forecasts for all the above segments in value (USD).
| Product Type | |
| Capsules | |
| Concentrates | |
| Edibles | |
| Other Product Types |
| Application | |
| Medical | |
| Recreational |
| Compound Type | |
| Tetrahydrocannabinol (THC) | |
| Cannabidiol (CBD) | |
| Balanced THC and CBD |
| Geography | ||||||
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Cannabis Market Size Summary
The cannabis industry is experiencing significant growth, driven by the increasing acceptance and legalization of both medicinal and recreational cannabis worldwide. The market is characterized by a diverse range of products catering to these two primary uses. The medicinal segment holds a substantial share, with numerous countries legalizing cannabis for therapeutic purposes. This trend is supported by regulatory changes, such as Thailand's decriminalization of marijuana and hemp, aimed at establishing the country as a regional hub for herbal medicine. In the United States, the National Cannabis Industry Association is fostering a conducive environment for the legal cannabis sector, which is bolstered by the approval of cannabis-based drugs by the FDA. North America, particularly the United States and Canada, leads the market, with states like California, Washington, and Colorado at the forefront of cannabis sales.
The global cannabis market is highly fragmented, with key players like Aphria, Medmen, Jazz Pharmaceuticals Inc., Aurora Cannabis Inc., and Canopy Growth Corp. actively expanding their market presence through strategic partnerships and product innovations. The North American region is poised to become the primary producer of cannabis, supported by increased production capacities and research initiatives. The market's growth trajectory is further enhanced by the rising demand for cannabis, particularly among older adults in the United States, who seek its medicinal benefits for chronic conditions. As more states and countries continue to legalize cannabis, the industry is expected to witness sustained expansion, with ongoing research and product standardization playing a crucial role in its future development.
Cannabis Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Legalization of Cannabis
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1.2.2 Growing Focus on Health Benefits of Cannabis
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1.3 Market Restraints
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1.3.1 Lack of Data on Dosages and Results
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1.3.2 Lack of Access to Financial Assistance
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Capsules
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2.1.2 Concentrates
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2.1.3 Edibles
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2.1.4 Other Product Types
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2.2 Application
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2.2.1 Medical
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2.2.2 Recreational
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2.3 Compound Type
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2.3.1 Tetrahydrocannabinol (THC)
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2.3.2 Cannabidiol (CBD)
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2.3.3 Balanced THC and CBD
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.1.4 Rest of North America
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 Czech Republic
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2.4.2.3 Croatia
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2.4.2.4 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 Australia
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2.4.3.2 Thailand
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2.4.3.3 Rest of Asia-Pacific
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2.4.4 South America
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2.4.4.1 Argentina
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2.4.4.2 Chile
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2.4.4.3 Peru
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2.4.4.4 Rest of South America
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2.4.5 Middle East and Africa
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2.4.5.1 South Africa
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2.4.5.2 Lebanon
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2.4.5.3 Rest of Middle East and Africa
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Cannabis Market Size FAQs
How big is the Cannabis Market?
The Cannabis Market size is expected to reach USD 33.84 billion in 2024 and grow at a CAGR of 15.40% to reach USD 69.25 billion by 2029.
What is the current Cannabis Market size?
In 2024, the Cannabis Market size is expected to reach USD 33.84 billion.
