The global cannabis market is on a significant upward trajectory, projected to grow from USD 39.21 billion in 2024 to USD 231.81 billion by 2035, achieving a compound annual growth rate (CAGR) of 17.1% during this forecast period. As a psychotropic substance derived from the cannabis plant, it primarily includes flowers, buds, and concentrates rich in tetrahydrocannabinol (THC) and cannabidiol (CBD). These compounds are recognized for their therapeutic potential, particularly in managing chronic conditions and pain. The increasing legalization and acceptance of cannabis for medicinal use have further spurred market growth.

Market Growth Projections

The cannabis market is expected to reach USD 47.76 billion in 2025 and continue to expand significantly, with a forecasted size of USD 231.81 billion by 2035. This growth is largely driven by an increase in the legal adoption of cannabis for medicinal and recreational purposes, alongside technological advancements in product development.

Drivers of Growth

Key factors contributing to the robust growth of the cannabis market include:

- High Incidence of Chronic Conditions: A significant portion of the aging population suffers from chronic illnesses, which increases the demand for cannabis-based medications.
- Growing Awareness of Medicinal Benefits: As more individuals become aware of the therapeutic advantages of cannabis, the market is witnessing an upsurge in demand.
- Legalization Efforts: Governmental support for the cultivation and use of cannabis in various countries, including the approval of cannabis-based drugs by the USFDA, plays a crucial role in market expansion.

Market Segmentation

The cannabis market can be segmented into various categories:

- Type of Source: The market is divided into hemp and marijuana, with marijuana currently holding the majority share.
- Type of Product: Products include flowers, buds, concentrates, and other forms, with flowers being the most prominent at present.
- Type of Crop Variety: This includes cannabis indica, cannabis sativa, and hybrid varieties, with cannabis indica dominating the market due to its medicinal use.
- Type of Compound: The market is classified into THC, CBD, and balanced THC and CBD, where CBD currently holds the largest share.
- Application Areas: Cannabis is utilized in medical, recreational, and industrial applications, with the medical segment accounting for approximately 70% of the market share.
- Distribution Channels: The market is accessed through physical, digital, and other distribution channels, with physical channels being the most prominent.

Challenges in the Market

Despite the growth, the cannabis market faces several challenges:

- Stringent Guidelines: Various countries maintain strict regulations regarding the cultivation and use of cannabis, which can impede market growth.
- Addictive Nature: Concerns regarding the addictive properties of cannabis may hinder its acceptance and utilization in certain regions.

Key Players in the Industry

The cannabis market features a mix of established companies and emerging players. Notable companies include Aurora Cannabis, Canopy Growth, and GW Pharmaceuticals, among others. These players are focusing on strategic partnerships and innovations to enhance their market presence and product offerings.

Recent Developments

The cannabis industry is witnessing rapid developments, including new product launches and strategic partnerships aimed at expanding market reach. Recent initiatives highlight the increasing interest and investment in cannabis, reflecting a growing recognition of its potential benefits.

In conclusion, the cannabis market is poised for significant growth, driven by increasing legalization, rising awareness of its medicinal benefits, and ongoing innovations in product development. While challenges remain, the overall outlook for the industry appears promising as it evolves and adapts to changing regulatory landscapes and consumer demands.

Thank you for reading Roots Analysis report. Kindly get in touch with Roots’ team to know more about the report or to receive a customized copy of it. Our team will ensure the report is tailored according to your needs.

About Roots Analysis

Roots Analysis is a global leader in market research, competitive intelligence and consulting services across industries. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, and venture and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serving our clients in the best possible way.

Contact Details

Roots Analysis

Gaurav Chaudhary

+1 (415) 800 3415

+44 (122) 391 1091

Gaurav.chaudhary@rootsanalysis.com

Website: https://www.rootsanalysis.com/