Cannabis Market in the US 2015-2019

November 11, 2015
SKU:
IRTNTR7669
This market research report presents a detailed segmentation of the cannabis market in the US by application (medical and recreational), by distribution channel (retail and wholesale), and by geography (Arizona, California, Colorado,and Washington). The key vendors analyzed in this report are American Cannabis, Greengro, mCig, Medical Marijuana, Mentor Capital, Terra Tech, and United Cannabis.

Market outlook of the cannabis market in the US

Technavio’s market research analyst predicts the cannabis market in the US to grow at a tremendous CAGR of around 42% during the forecast period. The high demand for medical cannabis is driving the growth of the market. Cannabis is typically used to reduce nausea, to improve the appetite of the patient suffering from HIV/AIDS, to treat chronic pain and muscle spasms. Moreover, the growth of the medical marijuana dispensaries is expected to contribute to the market growth during the forecast period. For instance, in Massachusetts, the single state medical marijuana dispensary has been in operation for two months and provided cannabis to nearly 1,500 patients.

However, the health consequences of legalizing cannabis are expected to pose challenges to the market growth during the forecast period. The consumption of cannabis can cause numerous health issues including respiratory illness. With the commercial market expected to open up shortly, the population near the retail stores would be exposed to use, misuse, and abuse of cannabis. Also, legalization of cannabis for recreational use will render children and non-smokers to the passive exposure.

Segmentation by distribution and analysis of - retail, wholesale

The retail segment accounted for 83% of the market share during 2014. The report predicts this segment to witness the fastest growth during the forecast period. Cannabis-based retail stores are certified, and the products are tested by the authorized laboratory for safety and level of potency. Moreover, these retail stores are licensed by the state government, thus providing product reliability to the customers.

The report offers an analysis of each of the following segments and discusses its impact on the overall market growth -

  • Retail
  • Wholesale

Segmentation by application and analysis of - medical, recreational

During 2014, the medical application segment led the market with a share of 86% and is expected to grow at a CAGR of around 40% during the forecast period. The increased usage of cannabis for treating patients suffering from HIV and other diseases is driving the growth of this segment.

The report offers an analysis of each of the following segments and discusses its impact on the overall market growth -

  • Medical
  • Recreational

Geographical segmentation and analysis of – California, Colorado, Washington, Arizona

California accounted for nearly 51% of the revenue contributed during 2014. The report predicts this region to maintain its leadership until the end of 2019, growing at a rate of 41%. California was the first state that legalized the use of cannabis for medical purposes. This state is the largest producer of the high-grade cannabis worldwide with numerous cannabis dispensaries providing products such as live plants, a variety of edibles, and seeds.

The report offers an analysis of each of the following segments and discusses its impact on the overall market growth –

  • California
  • Colorado
  • Washington
  • Arizona

Competitive landscape and key vendors – Greengro, mCig, Terra Tech, United Cannabis

The cannabis market in the US is highly diverse due to the presence of numerous domestic players as suppliers, cultivators, retailers, and venture capital firms. This market is vulnerable to various legal and financial challenges, thus facilitating inorganic growth within the market. The report predicts the market is to be highly competitive during the forecast period, with substantial investments by the vendors.

The key vendors in the market are –

  • American Cannabis
  • Greengro
  • mCig
  • Medical Marijuana
  • Mentor Capital
  • Terra Tech
  • United Cannabis

Other providers in the market include Cannabis Sativa, Cannabis Science, Cannabrandm Chuma Holdings, Dixie Elixirs & Edibles, Eaze, General Cannabis, MedMen, MJIC, Monarch America, Natural Cannabis, Novus Acquisition & Development, Oregon Green Seed, Origin Cannabis, Potbotics, and Privateer Holdings.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2019?
  • What are the key factors driving the cannabis market in the US?
  • What are the key market trends impacting the growth of the cannabis market in the US?
  • What are the challenges to market growth?
  • Who are the key vendors in the cannabis market in the US?
  • What are the market opportunities and threats faced by the vendors in the cannabis market in the US?
  • Trending factors influencing the market shares of the California, Colorado, Washington, and Arizona?
  • What are the key outcomes of the five forces analysis of the cannabis market in the US?

Technavio also offers customization on reports based on specific client requirement.

Related reports

Similar Topics

Overview of the vision care market Technavio’s market research analysts have deduced that the global vision care market will grow steadily at a CAGR of nearly 4% over the predicted period. The...
Erectile dysfunction (ED) is a condition which is described as the lack of ability to develop or retain an erection of the penis during sexual activity. The rising adoption of a sedentary lifestyle...
Overview of the global extremity products market The market research analyst at Technavio has estimated the global extremity products market to grow steadily at a CAGR of above 8% by 2020. This...
Overview of the global breast pump market Technavio’s market research analyst predicts the global breast pump market to grow at a CAGR of more than 8% by 2020. The rise in the number of working...
Outlook of the sexual wellness market in the US Technavio’s market research analyst predicts the sexual wellness products in the US to grow at a CAGR of more than 9% by 2020. Sexual wellness...
Market overview of weight loss supplements Technavio’s market research analyst predicts the global weight loss supplement market to grow at a CAGR of more than 5% by 2020. One of the primary drivers...