Global Cannabis Market Report and Forecast 2024-2032

Cannabis Market Size

The global cannabis market reached a value of USD 32.23 billion in 2023, driven by the increasing legalization and decriminalization of cannabis for medical and recreational use. The market is expected to grow at a CAGR of 23.50% between 2024 and 2032, reaching a value of USD 215.42 billion by 2032. 

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Cannabis Market Outlook

• Demand for cannabis is increasing among the medicinal industries owing to the increasing awareness about the therapeutic benefits associated with its usage such as reducing anxiety, relieving pain, and relaxing tight muscles.

• Various countries have made the use of cannabis, among other drugs, legal and have permitted its usage by adults for social, religious, and cultural purposes, further bolstering the market growth.

• The market value is impacted by the growth in the cannabis edibles and beverages segment, rising demand for cannabidiol (CBD) products, and increasing availability of retail channels.

Cannabis Market Overview

Cannabis is a type of drug that is also known as marijuana and is prepared by using dried leaves and flowers from the hemp plant. It contains various compounds that have psychoactive, euphoric, and pain-relieving effects and is therefore useful in medicinal and recreational applications. The market is driven by the rising legalization of cannabis for medical and recreational use in many countries across North America, Europe, and Latin America. These laws allow the cultivation and sale of cannabis, which opens up new market opportunities for cannabis companies.

The growing acceptance of cannabis as a legitimate medical treatment is also a major growth driver of the market, leading to more healthcare providers prescribing cannabis-based products to patients. Further, the growth of e-commerce platforms and the increasing availability of retail channels for cannabis products are poised to fuel market expansion.

Cannabis Market Growth Drivers

Increasing Legalisation of Cannabis to Drive Market Growth

In February 2024, the cannabis legalization bill was passed by German lawmakers, authorizing legal sales of cannabis products to adults in the country. This marijuana decriminalization bill would allow home cultivation of cannabis for adults along with legalizing non-profit cannabis clubs to supply adult consumers. Such regulatory shift is witnessed across many countries, which is reducing the stigma associated with cannabis use and providing business opportunities to cannabis manufacturing companies. Thus, the increasing legalization and decriminalization of cannabis is poised to fuel the market growth.

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Global Cannabis Market Trends

The market is witnessing several trends and developments to improve the current global scenario. Some of the notable trends are as follows:

Rising Availability of Retail Channels for Cannabis Products to Impact the Market Landscape

The increasing availability of retail channels for cannabis products is a significant market trend that is driving market expansion. Consumers are getting easy access to a wide range of cannabis products through online platforms, dispensaries, and local stores. The market is also witnessing the growth of e-commerce platforms which is further boosting the sales of cannabis-based products. These online channels are equipped with features including a diverse product range and convenience of home delivery. Thus, the widespread availability of cannabis is propelling the overall market demand.

Growth in Strategic Partnerships Expected to Augment Cannabis Market Size

In April 2024 , two major California-based cannabis brands, Falcon and Maven, announced a partnership with Nabis, a leading licensed cannabis wholesale platform, to boost their growth and distribution. Through this agreement with the third-party fulfillment platform, the cannabis companies aim to improve scalability in California’s turbulent yet growing cannabis market by leveraging technologically advanced, streamlined distribution services of Nabis. This trend is driven by the need to access data-driven technologies, enhance sales, and expand product portfolio while maintaining customer satisfaction. Thus, the rise in such strategic partnerships and collaborations is anticipated to augment the market size in the forecast period.

Increasing Investment and Funding is Likely to Boost Cannabis Market Demand

One of the major market trends is the increasing investment and funding into the cannabis sector, which is set to accelerate market growth. Venture capital firms and private equity investors, among other corporations, are recognizing the growth potential in the market and thus are heavily investing in cannabis companies. This rising influx of financial capital is likely to expand product lines and market reach.

Expansion of Product Offerings to Elevate Cannabis Market Value

The market is witnessing a rising availability of diverse cannabis-based products such as oils, edibles, tinctures, topicals, capsules, and beverages. This product diversification addresses different consumer preferences and needs and also helps in enhancing market reach. Moreover, the increasing innovations in product formulations and delivery methods (like nano-emulsion technology) are expected to elevate the market value.

Cannabis Market Segmentation

Market Breakup by Product Type 

• Capsules

• Edibles

• Concentrates

• Others

Market Breakup by Application

• Medical

• Recreational

Market Breakup by Compound Type

• Tetrahydrocannabinol (THC)

• Cannabidiol (CBD)

• Balanced THC & CBD

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Cannabis Market Share 

The Application Segment Holds a Significant Market Share

The market segmentation by application includes medical and recreational use of cannabis. Medical application is anticipated to hold a significant share of the market owing to the increasing knowledge about the medicinal benefits associated with cannabis. The efficacy of medical cannabis in managing conditions such as chronic pain and chemotherapy-induced nausea is increasingly being recognized, which is leading to a high demand for cannabis-based pharmaceuticals and wellness products. Moreover, the rising cases of depression and cancer, among other chronic conditions, are propelling the legalization of cannabis as a medicinal drug. Growing awareness among individuals regarding the legalization of cannabis and improvements in supply and distribution channels are further expected to support market growth over the forecast period.

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Cannabis Market Analysis by Region

The market breakup based on region includes North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these, North America accounts for a large share of the market for cannabis owing to the legalization of cannabis in various countries of the region. Various governments in North America have legalized the use of cannabis for recreational purposes. Additionally, in the United States, cannabis is increasingly being recognized as a form of medicine for the treatment of various diseases such as anorexia, epilepsy, Alzheimer’s, and post-traumatic stress disorder. Moreover, increasing sales channels have also contributed to the growth of the market for cannabis in North America.

Leading Players in the Global Cannabis Market

The key features of the market report comprise strategic initiatives by the leading key players including mergers, collaborations and new product launches. The major companies in the market are as follows:

Aurora Cannabis Inc.

Aurora Cannabis Inc., founded in 2006, is headquartered in Alberta, Canada. This cannabis manufacturing company produces and distributes cannabis and its derivatives products to consumers in Canada and other countries.

Tilray Brands, Inc.

Tilray Inc. is a pharmaceutical company that was established in 2013 and is headquartered in New York in the United States. The company is focused on researching, processing, cultivating, and distributing cannabis products to consumers across the globe.

Canopy Growth Corporation

Canopy Growth Corporation, a leading cannabis company, is based in Smiths Falls, Ontario. Canopy is known for manufacturing, distributing, and selling cannabis and cannabinoid-based products for medical purposes and recreational use.

Cresco Labs, LLC

Headquartered in Chicago, Illinois, Cresco Labs, LLC is a leading cannabis and medical marijuana company widely recognized for its branded cannabis products in the country. Cresco Labs holds an extensive distribution network to cater to a broad consumer base.

Other key players in the market include Ecofibre Ltd., Green Thumb Industries Inc., HEXO Operations Inc., INDIVA Inc., and Maricann Inc.

Key Questions Answered in the Cannabis Market Report

• What was the global cannabis market value in 2023?
• What is the global cannabis market forecast outlook for 2024-2032?
• What are the regional markets covered in the EMR report?
• What is market segmentation based on product type?
• What is the market breakup based on application?
• What is the market breakup by compound type?
• What are the major factors aiding the global cannabis market demand? 
• How has the market performed so far and how is it anticipated to perform in the coming years?
• What are the market's major drivers, opportunities, and restraints? 
• Which regional market is expected to lead the market share in the forecast period? 
• Which country is expected to experience expedited growth during the forecast period? 
• How does the increasing legalization and decriminalization of cannabis affect the market landscape?
• What are the major global cannabis market trends?
• How does the rise in supportive government policies impact the market size?
• Which product type will dominate the market share? 
• Which application is expected to have a high market value in the coming years?
• Which compound type will experience the highest demand in the market segment?
• Who are the key players involved in the cannabis market?
• What are the current unmet needs and challenges in the market?
• How are partnerships, collaborations, mergers and acquisitions among the key market players shaping the market dynamics?

Key Highlights of the Report

Cannabis Market Report Snapshots

Cannabis Market Size

Cannabis Companies