The Global Cannabis Market was valued at USD 22.34 Bn in 2020 and is expected to reach USD 97.74 Bn by 2027, with a growing CAGR of 23.4% during the forecast period.
Global Cannabis Market Overview
Cannabaceae family produces Cannabis, a species of flowering plants. The number of species in the cannabis family is controversial. Cannabis sativa, Cannabis indica, and Cannabis ruderalis are the three species that may be identified. Cannabis has historically been used for hemp fibre, hemp seeds and oils, hemp leaves for vegetable and juice uses, therapeutic purposes, and as a recreational narcotic. Cannabis is an herbal medicine derived from the cannabis plant. It includes cannabinoids, which are chemicals.
Global Cannabis Market Dynamics
Increasing demand for cannabis from the medicinal sector is anticipated to drive the cannabis market growth throughout the forecast period. Cannabis is used to relive pain, anxiety, and to reduce inflammation. For instance, according to Forbes Legal sales across the U.S. (for 14 states) allowed adult use of cannabis, 36 states allowed for medical sales hit a record of $17.5 billion, a 46% increase from 2019.
Additionally, the use of cannabis in food & beverage is expected to support the market growth in the near future, due to its use with daily food consumables like pizza. In the US, cannabis cafes are as famous as Starbucks, and purchasing edibles is as simple as ordering pizza. Moreover, medicinal marijuana is being provided by primary care physicians. Products, services, and customer expectations are anticipated to evolve as the cannabis industry demand increases. Recreational cannabis and medicinal cannabis that has been lab assessed is examined by doctors and researchers. This assessment replaced the old marijuana, which was about as refined and strong as oregano. Therefore, the use of cannabis in food industry is expected to drive the market growth till 2027. However, stringent government policies related to the use of cannabis may hinder the market growth during the forecast period.
The Global Cannabis Market Segmentation:
The unique insights provided by this report also include the following:
Based on type, the concentrates segment held the largest market share in 2020 and is expected to grow significantly during the forecast period due to its recreational purpose
Based on type, the market has been segmented into concentrates, capsules, flowers, and others. The concentrates segment in cannabis sector accounted for the largest market share in 2020 and is expected to grow significantly during the forecast period. Cannabis concentrates come in a range of shapes and sizes. Moreover, they can be used like cannabis oil in vape cartridges, and other times they are hidden in medicinal balms and foods. Thus, the use of concentrates in recreational purpose is expected to drive the market demand for cannabis during the forecast period.
Additionally, the concentrates are found in cannabinoids and terpenes of cannabis flowers. Marijuana concentrates have a far greater proportion of cannabinoids and terpenes as compared to raw cannabis flowers. Therefore, concentrates are consumed more cannabinoids and terpenes are responsible for the effects, aroma, and flavours that experience with any cannabis product. They are found throughout the cannabis plant in small, shiny structures called trichomes. Legalization of Cannabis in the US supports the cannabis market demand. For instance, there is a café named Original Cannabis Café based in the US, they provide marijuana for recreation & food as well.
Based on the application, the recreational segment in the cannabis market growing at the highest CAGR during the forecast period owing to its adoption in healthcare
Based on the application, the market has been segmented into recreational and medicinal. The recreational segment growing at the highest CAGR during the forecast period. For its products, the recreational marijuana business uses tetrahydrocannabinol (THC), a psychoactive chemical responsible for the high (feeling of relaxation) produced by smoking marijuana. It has a wide range of uses, from marijuana-infused beer and coffee to cigarettes. Therefore, the recreational cannabis sector promotes the high that marijuana is renowned for many consumers cravings.
Cannabis is also used for medicinal purposes. For instance, Sativex, cannabinol is one of the well-known cannabis drugs. These are used for the treatment of resistant epilepsy, chronic pain & multiple sclerosis. Additionally, there is a significant interest in the development of therapies and other consumer products derived from cannabis and its components, including cannabidiol (CBD). FDA recognizes the potential opportunities that cannabis or cannabis-derived compounds may offer and acknowledges the significant interest in these possibilities. In the US, this increase was higher among males (from 18.3% to 34.2%) than among females (from 26.1% to 29.4%). The increase was also larger among adults 65 years and older than among adults in younger age groups
Based on region, North America is expected to hold the largest market share during the forecast period owing to presence of several manufacturers
Based on region, the global cannabis market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America held the largest market share in the cannabis market owing to the presence of several manufacturers such as Aurora. Canada is home to a well-established domestic and international grain hemp market. Since its first legal commercial harvest in 2019. Moreover, the hemp industry (botanical class of Cannabis sativa) in the United States had several challenges, resulting in decreased hemp output in 2020, with further decline predicted in 2021.
In the meanwhile, Canada is anticipated to increase its production capacity for hemp in 2021. In a recent interview with Grainews, Haney stated that the country's hemp industry is expecting a 15% to 20% growth in planted area, "which should take them over the 100,000-acre threshold for sure." However, in conversations with grain hemp market players in the United States, several voiced concern that extraordinarily high prices for traditional row crops and oilseeds might lead to lower-than-expected yields. This may act as a major challenge to the market growth. Additionally, according to Haney, CBD, and other cannabinoids presently account for around 2% to 3% of overall revenues in the Canadian hemp business. Another major front for the CHTA's (Canadian Horticultural Therapy Association) activities is to assist with cannabis and hemp laws in Canada, It consists of efforts to liberalize hemp-derived cannabinoids other than THC, while also supporting the sales of CBD and other hemp-derived cannabinoids.
The report also provides an in-depth analysis of cannabis market dynamics such as drivers, restraints, opportunities, and challenges
COVID-19 Impact on the Cannabis Market Analysis
Covid-19 did impact the cannabis industry in 2020. The lockdowns and the complete freeze in the supply chain refrained the trade activities. However, medicinal benefits of cannabis such as pain relief, and others supported to increase the demand for cannabis even during the lockdown period. For instance, Coffeeshops in the Netherlands were first closed but were subsequently judged as essential category service. Due to social distance regulations, the development of Pharmacon's 178,000-square-foot cannabis grow house in North Macedonia was halted. Following the government's proclamation of a state of emergency across the nation, Cannabis Social Clubs private, non-profit organizations in which cannabis is cultivated and given to registered members were put on a stop in Barcelona. The pandemic of COVID-19 has a tremendous influence on the cannabis market. According to investor's Business Daily, the sector has been impacted as "customers store up on prescriptions and recreational consumers stock up on something to make the lockdown a little more relaxed or a little less boring."
Cannabis was utilized in Covid-19 patients amidst the pandemic. Increase use of cannabis relieved stress of Covid-19 patients. Additionally, cannabis was used to treat cancer patients suffering from covid-19. CBD inhibits the viral replication of SARS-CoV-2 entry into the host cell.
Note: A detailed analysis is specific to the cannabis market will be provided in the report
The report also provides an in-depth analysis of key trends in the cannabis market
The report also provides an in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the Cannabis market are:
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