Cannabis Market is anticipated to reach USD 90.4 billion by 2026, recording a compound annual growth rate (CAGR) of 28.0% during the forecast period. It is witnessing significant growth due to increasing legalization of cannabis across various regions. Also, the growth of this market can also be attributed to the increasing awareness among consumers regarding health benefits and its growing medical application. The North America region is going to dominate the global cannabis market due to increasing legalization for both medical and recreational purposes all over North America.
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Recreational segment is projected to grow at the highest CAGR during the forecast period.
The recreational segment is projected to remain concentrated in the North American region. Despite its low availability in various countries, the consumption and demand levels are higher as compared to that of medicinal cannabis, due to which the demand for recreational cannabis is projected to surpass the demand for medical cannabis. Therefore, the legalization of recreational cannabis across other regions could translate into a larger market share for this segment. Due to these factors, the recreational segment is projected to witness the fastest growth in the cannabis market during the forecast period.
In-terms of product type, flowers to account for the largest share during the forecast period.
The flower is the actual bud that is found on the cannabis plant. Once harvested and dried, a flower is typically either smoked or vaporized. It is the section of the plant which can be smoked, also known as nuggets or bud. The dominance of the flower segment can be largely attributed to its wider availability and versatility in terms of offering numerous methods of consumption. Smoking or vaping cannabis flowers have a faster effect on consumers than consuming them for pain relief. Additionally, in comparison to concentrates, flowers are extensively able to retain a higher degree of flavor and aroma, which could be beneficial for a stronger consumer appeal. Additionally, flowers contain a higher degree of THC compounds as they are the most unprocessed and raw form of the plant, making them extremely appealing for recreational purposes.
The THC-dominant segment to account for the largest share during the forecast period.
The THC-dominant segment dominated the market in 2020 and is projected to grow at the highest CAGR during the forecast period to reach USD 60.5 billion by 2026. The dominance of this segment is majorly attributed to the fact that THC is the psychoactive substance in cannabis products that are responsible for the high. Even though high THC content is better known for its euphoria-inducing tendencies, it also has important medical benefits and is considered effective in relieving nausea, appetite loss, and insomnia, among other symptoms.
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The North America region to account for largest market share during the forecast period.
The North American market is primarily driven by the increasing legalization of cannabis for both medical and recreational purposes and increasing awareness among consumers regarding the health benefits of it. The market is further driven by the presence of major giants such as Canopy Growth Corporation, Aurora Cannabis Inc., and Medical Marijuana Inc., who are continuously investing and collaborating for the development of new products to fulfill the demand of the consumers.
The global market is dominated by major players such as Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), MedMen (US), Terra Tech Corp. (US), Aphria Inc. (Canada), VIVO Cannabis Inc. (Canada), The Cronos Group (Canada), Medical Marijuana Inc. (US), STENOCARE (Denmark), Tikun Olam (Israel), Organigram Holdings Inc. (Canada), Cresco Labs (US), Indiva (Canada), Curaleaf Holding Inc. (US), HEXO Corp. (Canada), Ecofibre Limited (Australia), Harvest Health & Recreation (US), Green Thumb Industries (US), Maricann Group Inc. (Canada), and TerrAscend (Canada).