Cannabis Market Expected to Reach $148.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cannabis Market," The cannabis market size was valued at $25.7 billion in 2021, and is estimated to reach $148.9 billion by 2031, growing at a CAGR of 20.1% from 2022 to 2031.

For the treatment of a number of disorders, doctors recommend cannabis, often known as marijuana. Due to production and political constraints, the use of cannabis as medicine has not undergone extensive testing, which has limited the amount of clinical research that can be done to determine the safety and effectiveness of utilizing cannabis to treat ailments.

The key factors driving the cannabis market growth are the legalization of marijuana in many different countries, the rise in consumer knowledge of the drug's health advantages, and its expanding medicinal uses, including the treatment of a wide range of ailments and symptoms. The medicinal cannabis business is also expanding as a result of increased R&D activity and the creation of novel products. The market's expansion is hampered by a number of major issues, including a complex legislative framework for cannabis use and cannabis' societal stigma. Instead, the Asia-Pacific region's legalization of cannabis presents a business opportunity for the industry's producers.

According to cannabis market analysis, the global cannabis market is analyzed on the basis of product type, compound, application, and region. By product type, the market is divided into buds or marijuana flower and cannabis extracts. Among these, the cannabis extracts segment occupied the major cannabis market share of the market in 2021, and is projected to maintain its dominance during the cannabis market forecast period. Cannabis extracts are concentrates created using a solvent. The terms "extract" and "concentrate" are occasionally used synonymously, despite the fact that this is erroneous. All extracts are concentrates, but not all concentrates are extracts. Butane, propane, ethanol, and supercritical carbon dioxide are the most typical solvents utilized to create a cannabis extract (CO2). All these cannabis market trends are creating cannabis market opportunities. 

By compound, the cannabis market is divided into THC-dominant, balanced THC & CBD, and CBD-dominant. The CBD-dominant segment is growing at a moderate rate during the forecast period. Cannabidiol, or CBD, is the second most common active component in marijuana (marijuana). While CBD is a crucial component of medicinal marijuana, it is either produced in a lab or is taken straight from the hemp plant, a relative of the marijuana plant.

By application, it is classified into medical, recreational, and others. The recreational segment is anticipated to grow at highest CAGR during the forecast period. Cannabis is used recreationally when it is consumed for pleasure rather than for medical reasons. The use of marijuana for medicinal purposes, which entails using the drug as directed to treat certain medical diseases' symptoms, can be contrasted with marijuana use for recreational purposes.

The region that dominated the global cannabis market in 2021 was North America, and this dominance is anticipated to continue throughout the forecast period. This was attributed to the legalization of cannabis for medical and recreational use in both the U.S. and Canada, as well as the rise in the use of medical cannabis in North America to treat a number of diseases linked to changing lifestyles, including epilepsy, cancer, multiple sclerosis, post-traumatic stress disorder, chronic pain, depression, and social anxiety. A further factor supporting the expansion of the market in the region was continued R&D in cannabis's recreational uses.

Exporters in both developed and developing nations faced a number of difficulties as a result of the COVID-19 epidemic. The implementation of lockdown and curfew procedures on a global scale had an impact on both domestic and foreign manufacture of cannabis, which in turn hindered market expansion. As a result, the COVID-19 epidemic had a negative influence on the cannabis market in 2020 as a result of decreased company sales and operations being suspended.

The major players analyzed for global cannabis industry are Aurora Cannabis Inc., Tilray, Canopy Growth Corporation, Cresco Labs, Curaleaf, Ecofibre Limited, Green Thumb Industries, Hexo Corporation, INDIVA, Maricann Inc., Medical Marijuana Inc., MME LLC., Organigram Holdings Inc., Stencocare, and Harvest Health & Recreation, Inc.

KEY FINDINGS OF STUDY

• By product type, the cannabis extracts segment was the highest revenue contributor to the market, with $13,794.3 million in 2021, and is estimated to reach $82,309.1 million by 2031, with a CAGR of 20.4%.
• By compound, the balanced THC and CBD segment was the highest revenue contributor to the market, with $11,976.5 million in 2021, and is estimated to reach $67,909.8 million by 2031, with a CAGR of 19.8%.
• Depending on application, the recreational segment was the highest revenue contributor to the market, with $13,873.2 million in 2021, and is estimated to reach $78,013.0 million by 2031, with a CAGR of 19.7%.
• Region wise, North America was the highest revenue contributor, accounting for $22,115.3 million in 2021, and is estimated to reach $104,403.3 million by 2031, with a CAGR of 17.6%.