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The US cannabis market size is projected to increase by USD 46.90 billion, at a CAGR of 24.03% between 2022 and 2027. The growth of the market depends on several factors, including the rising millennial population in key markets, the increasing number of medical cannabis dispensaries, and various health benefits of medical cannabis.
The rising millennial population in key markets is driving the US market growth. The consumption of the products, especially for recreational purposes, is very popular among millennials. Also, the fact that they are relatively more enthusiastic about trying out new variants when compared with older generations can be attributed to the increased use among millennials. Such factors are expected to drive the U.S. Market growth in the US during the forecast period.
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The legalization of medical marijuana in the US has provided vendors with In US, there has been increasing opportunities for vendors to find new medicinal uses for marijuana due to the legalization of medical marijuana. Additionally, government organizations such as the NIDA are focusing on R&D investment in medical marijuana.
For instance, for the financial year 2022, NIDA requested USD 1.9 billion to support cuttingedge research on all aspects of addiction. Thus, there is an increase in funding for research by government authorities due to the growing consumption of medical marijuana in the US. Thus, such funding will provide an incentive for vendors to expand their presence. Such factors are major market trends propelling the market growth.
Even though medical cannabis is widely consumed in all states of the US, it is not accessible to all consumers. Also, it is not covered under insurance and thus cannot be sold at local medical pharmacies. As a result, patients need to visit legalized dispensaries to access in a controlled, safe, and legal manner
For instance, in many states in the US, such as Alaska, Arizona, Arkansas, California, and Colorado, patients should have an active identification card with the recommendation of doctors to purchase and possess the products. Hence, such regulations can make it difficult for many consumers to buy and possess, which can pose a significant challenge to the U.S. Market during the forecast period.
The market share growth by the CBD segment will be significant during the forecast period. Due to the federal legality of hempbased CBD oil, it is expected to maintain its dominance in market share during the forecast period. For instance, Georgia and Indiana have legalized hempderived CBD oil for medicinal purposes.
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The CBD channel segment was valued at USD 6.05 billion in 2017 and continued to grow until 2021. There is increasing adoption of the CBD segment due to the relaxation in government norms regarding CBD usage in most states and at the federal level. For instance, CBD is legalized at the federal level as long as it contains less than 0.3% THC. However, CBD is conditionally legal in South and Midwest states only under particular circumstances, such as for medical use or with a prescription, but it is otherwise illegal. Some of the key factors that are expected to drive the market include the increasing number of states legalizing the use of marijuana products and the rising consumption of the products, particularly for recreational purposes. Thus, such factors are expected to drive the market in US during the forecast period.
The medical segment will account for a significant share of market growth during the forecast period. Factors such as the increasing number of legal approvals by state governments in the US and the rising usage of marijuana for medical purposes are key reasons which are driving the medical segment of the market in US.
For instance, as of 24 April 2023, 38 states, three territories, and the District of Columbia permitted the medical use of the products, according to the National Conference of State Legislatures. Vendors in the segment are launching new variants of medical marijuana and opening new dispensaries. Additionally, the growing number of organized retail outlets offering medical marijuana products and the increasing legalization of the products is expected to significantly drive the market in US.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, categoryfocused, industryfocused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market experiences significant growth, driven by legalization trends and increasing social acceptance. With applications ranging from chronic pain to anxiety and cancer treatment, cannabinoidbased products like CBDinfused edibles and oils for vaping are in demand. Major players focus on R&D and technological innovation, exploring minor cannabinoids for conditions like epilepsy and arthritis. Regulatory frameworks are evolving, impacting cultivation norms and supply chain management. Strategic developments include the expansion of the recreational segment and pharmaceutical industry involvement. Innovations like artificial intelligence and genetic engineering improve cannabis cultivation and product consistency, ensuring quality and meeting health and wellness objectives. The market in the US is witnessing a transformative phase driven by changing social perceptions and advancements in technology. Cannabisbased products, including capsules, gummies, and more, are gaining popularity. Artificial intelligence (AI) is revolutionizing cannabis deliveries and refining user data analysis. The industry is marked by dynamic trends, reflecting price changes and volume fluctuations.
Cannabis growers are adopting innovative farming techniques, focusing on genetic improvement strategies for consistent product quality. Lowdosage edible products, such as gummies, chocolates, and beverages, cater to diverse consumer preferences. Indoor cultivation, equipped with climatecontrol technology, and greenhouse cultivation are contributing to energy and water consumption considerations. The market also emphasizes the importance of testing cannabis for THC and CBD compounds, ensuring product safety and consistency. Portable and remote testing systems facilitate efficient quality control. Recreational marijuana, confectionary and bakery products, and evolving consumption patterns shape the cannabis landscape, indicating a promising future for the industry in the US.
The market report forecasts market growth and trends by revenue at global, regional & country levels and provides an analysis of the market analysis and report, latest trends and growth opportunities from 2017 to 2027.
US Cannabis Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2022 |
Historic period |
20172021 |
Forecast period |
20232027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.03% |
Market growth 20232027 |
USD 46,904.91 million |
Market structure |
Fragmented |
YoY growth 20222023(%) |
21.92 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., Canopy Growth Corp., Charlottes Web Holdings Inc., Columbia Care Inc., Cresco Labs LLC, Cronos Group Inc., Curaleaf Holdings Inc., Folium Biosciences, Green Roads Inc., Jazz Pharmaceuticals Plc, Lexaria Bioscience Corp., Medical Marijuana Inc., MM Enterprises USA LLC, Pure Spectrum CBD, Sundial Growers Inc., Terrascend Canada, Tilray Brands Inc., Trulieve Cannabis Corp., Unrivaled Brands Inc., and Verano Holdings LLC |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fastgrowing and slowgrowing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market forecast 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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