Marijuana Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, Australia, Germany, UK - Size and Forecast 2023-2027

Marijuana Market Forecast 2023-2027

The global marijuana market is projected to reach a value of USD 48.20 billion at a CAGR of 24.86% between 2022 and 2027. The marijuana market refers to the buying and selling of cannabis products. It is a rapidly growing industry, with legalization efforts spreading across many countries. Different strains of marijuana have varying levels of THC (tetrahydrocannabinol) and CBD (cannabidiol), which contribute to their effects. The market includes various product types, such as dried flowers, edibles, concentrates, and topicals.

The market overview emphasizes comprehensive market growth analysis, offering insights through market research reports. Both medical marijuana and recreational marijuana are part of the overall market, serving different purposes and customer segments. Delving into market growth and forecasting, the analysis encompasses trends and emerging patterns, providing a comprehensive market forecast. This detailed market analysis and report not only offer a snapshot of the current industry's landscape but also serve as a guide for anticipating market trends, enabling stakeholders to make informed decisions in this dynamic and evolving sector.

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The market is experiencing significant growth, driven by the increasing popularity of cannabis-based products such as oils and gummies. With the emergence of companies like Cannabase and LDN CBD, the market offers a diverse range of products catering to different consumer preferences. However, concerns over water and energy consumption, as well as environmental factors like soil erosion, have led to the adoption of sustainable practices such as precision irrigation and climate-control equipment in cultivation methods like outdoor, indoor, and greenhouse cultivation. Additionally, advancements in pest control and the development of different cannabis strains like C. sativa, C. indica, and C. ruderalis have further fueled market growth. Regulatory approvals of pharmaceutical products like Marinol and Syndros by companies like Avextra Pharma GmbH have also contributed to the market expansion.

Market Dynamics and Customer Landscape

The market is experiencing exponential growth, driven by both medical and recreational cannabis industries. Legalization trends and increasing social acceptance contribute to this expansion. Technological innovations, including artificial intelligence and genetic engineering, enhance cultivation and product development. Cannabis-based products like edibles, oils, and capsules, particularly those containing CBD, gain popularity. However, concerns over water and energy consumption, as well as soil erosion, prompt the adoption of precision irrigation and sustainable cultivation methods. With outdoor, indoor, and greenhouse cultivation options, pest control remains vital. Notable cannabis derivatives include THC, Epidiolex, Marinol, and Syndros, highlighting the market's diverse landscape.

Key Market Driver

The increasing acceptance of marijuana is notably driving market development. The governments of many countries, such as Australia, Canada, Chile, Greece, Israel, Italy, the Netherlands, Peru, and Uruguay, have legalized the use of these substances for medicinal purposes. In December 2022, the US government announced the Medical Substance and Cannabidiol Research Expansion Act to establish a new registration process to facilitate research on the substance. In Australia, government authorities have increased funding for research on this medicinal substance.

In June 2022, Thailand legalized the cultivation of this substance to expand its agricultural and tourism sectors and enable the use of the plant for medical purposes. Therefore, efforts by various governments regarding the legalization of this substance are anticipated to drive the growth of the market during the forecast period.

Significant Market Trends

The growth in the e-commerce industry is a key trend influencing the market expansion. The rising Internet penetration and the increasing use of smartphones have made online shopping convenient. Several e-commerce platforms offer discounts and provide detailed descriptions of products. Moreover, omnichannel retailing has popularized online retail distribution channels.

This trend has encouraged manufacturers to focus on the Internet-savvy customer segment and explore the online retail format. For instance, in July 2021, HempStreet expanded its product range by launching 30 new cannabis-based products, such as CBD oil and hemp protein powder. The online channel will help vendors save operating costs and overheads. Thus, the growth of the e-commerce industry is expected to support the growth of the global market during the forecast period.

Major Market Challenges

Adverse effects linked to the improper utilization of medicinal substances may hinder market evolution. Active ingredients called cannabinoids, with THC being a crucial one, are found in these medicinal substances. Additionally, medical substances comprise various other chemicals, making it challenging to determine the appropriate dosage for patients. Furthermore, side effects of medicinal substances encompass alterations in mood, impaired coordination, heightened appetite, red eyes, dry mouth, nausea, cough, throat infection, delayed reaction time, and others.

More severe side effects, such as increased heart rate, depression, and difficulties in memorization and learning, can be particularly impactful. These adverse effects may have a detrimental effect on the acceptance of medicinal substances, consequently restraining the growth potential of the global market in the projected period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Market Customer Landscape

Key Market Players

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Aurora Cannabis Inc. - The company offers products such as CBD 510 Cartridge, Live CBD Mango, and Rex 510 Vape Cartridge.

The market growth and trends report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Bhang Inc.
• Botanic Lab
• Cannabinoid Creations
• CBD American Shaman LLC
• CV Sciences Inc.
• Elixinol Wellness Ltd.
• HEXO Corp.
• Jazz Pharmaceuticals Plc
• Lexaria Bioscience Corp
• MM Enterprises USA LLC
• Organigram Holdings Inc.
• Unrivaled Brands Inc.
• Cannoid LLC
• Canopy Growth Corp.
• Folium Biosciences

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market encompasses both the medical cannabis industry, aimed at therapeutic applications, and the recreational cannabis industry, catering to leisure and lifestyle preferences. Advancements in new technologies, coupled with extensive research and development efforts, are driving the evolution of this market. Technological innovation, such as artificial intelligence and genetic engineering, is revolutionizing cultivation practices and product development. Cannabis growers are leveraging these advancements to enhance plant genetics, optimize growing conditions, and increase yields. In the product segment, a diverse range of offerings is available, including edibles like capsules and gummies. Companies like Cannabase and LDN CBD are at the forefront of creating innovative and high-quality products to meet consumer demands. Water consumption and climate-control equipment play crucial roles in cultivation, especially for indoor cultivation facilities. Life cycle analysis helps assess the environmental impact of cultivation methods, promoting sustainability practices. Various cannabis strains, including C. indica and C. ruderalis, offer distinct characteristics and effects, catering to different consumer preferences. Outdoor and indoor cultivation methods further contribute to the diversity of products available in the market, ensuring a wide range of options for consumers worldwide.

Market by Product

The market share growth by the medical marijuana segment will be significant during the forecast period. It is considered an alternative to traditional pain-relieving medications. Some of the types of marijuana plants used for chronic pain relief include Cannabis indica, Cannabis sativa, and hybrids.

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The medical marijuana segment was valued at USD 7.93 billion in 2017 and continued to grow until 2021. The number of adults with chronic pain is rising in countries such as the US. In addition, the popularity of medical marijuana is growing. These factors will drive the growth of this segment during the forecast period.

Key Regional Analysis

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North America is estimated to contribute 90% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

In the United States, sales of recreational marijuana reached USD 17.5 billion in 2020, representing a 46% increase from the previous year. It is estimated that more than half of adults in Canada have tried or currently use cannabis for either medicinal or recreational purposes. In the US and Canada, the use of marijuana is legal for medical purposes. In August 2019, the Supreme Court of Mexico decided to legalize the use of marijuana as a medication for epilepsy. Therefore, government initiatives regarding the legalization of medical marijuana are driving the growth of the market growth in the region. 

Market Analyst Overview

The market encompasses both the medical cannabis industry and the recreational cannabis industry, driven by legalization trends and increasing social acceptance. New technologies and research & development efforts are leading to technological innovation, including the integration of artificial intelligence and genetic engineering. Cannabis growers produce a variety of products, such as capsules, oils, and gummies, with companies like Cannabase and LDN CBD playing significant roles. However, concerns over water and energy consumption, climate control, soil erosion, and pest control persist, particularly in outdoor, indoor, and greenhouse cultivation settings. Strains like C. sativa, C. indica, and C. ruderalis, along with products like Epidiolex, further characterize the dynamic landscape of the global market.

The market is evolving rapidly, with a focus on sustainability and efficiency. Water consumption and precision irrigation techniques are critical considerations, especially in outdoor and indoor cultivation settings. Climate-control equipment plays a pivotal role in optimizing growing conditions, while life cycle analysis helps assess environmental impact. Companies like Avextra Pharma GmbH and academic institutions like the Philadelphia College of Osteopathic Medicine are contributing to research and development efforts. In the United States, the National Conference of State Legislatures and the District of Columbia are at the forefront of legalization trends. Additionally, pharmaceutical products like Marinol and Syndros offer alternative forms of cannabis-based medication. The Tasmanian region is emerging as a key player in the global market with its conducive growing conditions.

The market is experiencing a significant shift in perception, with increasing social acceptance of cannabis for both medicinal and recreational use. Research & Development activities are booming, leading to the development of various cannabis-based products, such as oils for vaping and CBD-infused edibles. Outdoor cultivation of different cannabis strains, including C. sativa, indica, and ruderalis is expanding globally, supported by organizations like UNODC and regulatory bodies like Thailand's Food and Drug Administration. Pharmaceutical products like Epidiolex (containing Cannabidiol) and Marinol/Syndros (containing Dronabinol) are gaining prominence for treating chronic diseases such as Alzheimer’s disease and HIV/AIDS. Stenocare and BfArM are among the key players in this evolving market, addressing concerns such as insomnia and ensuring quality cannabis deliveries. The US Government Accountability Office and NCBI are also actively involved in monitoring and researching the impact of cannabis usage.

Segment Overview

This market research and growth report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook
  • Medical Marijuana
  • Recreational marijuana

• Type Outlook 
  • Oil 
  • Tinctures 
  • Flower 

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 24.86%
Market growth 2023-2027	USD 48.20 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	22.39
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 90%
Key countries	US, Canada, Australia, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aurora Cannabis Inc., Bhang Inc., Botanic Lab, Cannabinoid Creations, CBD American Shaman LLC, CV Sciences Inc., Elixinol Wellness Ltd., HEXO Corp., Jazz Pharmaceuticals Plc, Lexaria Bioscience Corp, MM Enterprises USA LLC, Organigram Holdings Inc., Unrivaled Brands Inc., Cannoid LLC, Canopy Growth Corp., Folium Biosciences, Medical Marijuana Inc., Tikun Olam, Tilray Brands Inc., and VIVO Cannabis Inc.
Market dynamics	Parent market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

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