Increasing demand for cannabis-based edible from food sector is anticipated to drive the market growth during the forecast period
The Global Cannabis Market is expected to grow from USD 22.34 Bn in 2020 to USD 97.74 Bn by 2027, at a CAGR of 23.4%.
The global demand for cannabis is driven by its use in edibles. Food items containing cannabis extract (edibles) have evolved as a popular and profitable in the regulated recreational and medicinal cannabis markets. Edibles have grown in popularity among cannabis users in states where the drug is permitted for recreational or therapeutic uses. In Colorado (US) for example, 1.96 million edible medicinal cannabis-infused products and 2.85 million edible retail cannabis-infused products were sold, accounting for around 45% of total cannabis sales in the state (Brohl, Kammerzell, & Koski,). As direct purchases of cannabinoid-infused oil or cannabis used to manufacture homemade edibles are not considered as edibles purchases.
Additionally, the emergence of legalization of cannabis in various countries in Asia -Pacific is expected to drive cannabis market growth in the near future. For instance, Thailand legalized the use of Medicinal cannabis in February 2021. Additionally, in November 2020, South Korea became the first East Asian country to allow medicinal marijuana. The policy went into effect in March with the purpose of expanding therapeutic options for those suffering from epilepsy, chronic pain, and other diseases. The cannabis ingredient Epidiolex, a CBD oral solution intended to treat epileptic patients, was licensed for clinical testing in Japan the same month.
Based on the application, the recreational segment is anticipated to hold the largest market share during the forecast period owing to the increase in production for cannabis. Cannabis businesses are rapidly adopting strategies and technology pioneered by commercial agriculture and horticulture farmers. According to the vice-president of operations at Organigram, a cannabis grower in Moncton, Canada, the company strictly manages its farming activities. The indoor growing of cannabis is also expected to drive the market demand for cannabis in the near future. For instance, the City of Sacramento allows residential cultivation of up to six plants, indoors only for medicinal or recreational purpose. According to the chapter 8.132.040 of the Sacramento City Code. Violations of the 6-plant rule is subject to a fine of USD 500 per plant in excess of the limit.
Global Cannabis Market by Region Outlook (Revenue, USD Million, 2021-2027)
In terms of geography, North America is expected to dominate the cannabis market during the forecast period owing to the full legalization of cannabis & mature market as compared to other global regions. For instance, Canada has fully legalized the use of cannabis for recreational & medicinal purpose as well. The legislation and accompanying regulations came into force on October 17, 2018. To evaluate the impact of the Cannabis Act, data is required to better understand how Canadians view and use cannabis. The Canadian Tobacco, Alcohol and Drugs Survey (CTADS) and the Canadian Student Tobacco, Alcohol and Drugs Survey (CSTADS) are designed specifically to measure prevalence. CSTADS 2018/19 indicates that 18% of students in grades 7 to 12 (~374,000) have used cannabis in the past 12 months.
Moreover, the legalization of cannabis in Africa is anticipated to drive the market growth during the forecast period. Developments in Western countries, where legalization is swiftly increasing, and the chance of getting in on the rapidly growing multibillion-dollar business, are contributing to the continent's developments. At least ten African nations have endorsed legal framework for the commodity, and several more are considering legalizing cannabis in the upcoming years. Some of these countries, such as Zimbabwe and Malawi , are major tobacco exporters. Furthermore, due to tobacco’s adverse environmental effects policy makers expect that cannabis can replace tobacco as the country’s top cash crop.
The Global Cannabis Industry Segmentation:
Global Cannabis Market by Type Industry Outlook (Revenue, USD Million, 2021-2027)
Global Cannabis Market by Application Industry Outlook (Revenue, USD Million, 2021-2027)
Company Profiles and Competitive Intelligence
The key players operating in the cannabis market are: