Global Cannabis Market Analysis

The Global Cannabis Market size stood at around xx Bn in 2023 and is projected to reach US $xx Bn by 2033, exhibiting a CAGR of xx% during the forecast period.

The Global Cannabis Market Analysis Executive Summary

Cannabis is a generalized term that encompasses different preparations obtained from the cannabis plant or Cannabis sativa. It has been found that the chemical responsible for the psychoactivity of cannabis is ∆-9 tetrahydrocannabinol. Cannabinoids are chemical entities that are closely related in structure to THC. Furthermore, other compounds studied in recent years that are not classified as cannabinoids, yet produce akin pharmacological actions. The term ‘marijuana’ which came from Mexico, is generally understood as cannabis leaves, or other plant material in its crude form. Hashish is actually the female plants which are not used in pollination and cannabis oil which is also known as hashish oil is an concentrate of cannabinoids prepared by dissolution in solvents of the marijuana plant or its resin.

With the expansion of cannabis products for legal recreation and medicinal use in several parts of the country, the market has grown rapidly. It is driven by the increase in research on the health benefits of cannabis especially for chronic pain and for mental condition. D-8 Due to the increasing demand for its products among customers, the industry is gradually diversifying its products beyond liquids to topical and edible products. Engagement of investment in the industry is catalyzing product improvement and new product development. Such trends towards legalization all over the world are opening up new markets and economic opportunities. As the knowledge of the medicinal value of cannabis continues to spread, special markets such as the medicinal cannabis market in particular will expand with a possibility for biomedical and pharmaceutical companies.

Global Cannabis Market Dynamics

Market Growth Drivers

The cannabis market is rapidly expanding due to the progressive legalization of both medicinal and recreational use in various regions. Growing research into the therapeutic benefits of cannabis is driving demand, particularly for treating conditions such as anxiety and chronic pain. Changing perceptions and reduced stigma are enhancing consumer interest, while product diversity, including edibles and topicals, caters to broader preferences. Increased investment is fostering innovation in product development and quality. With global legalization trends, new markets and business opportunities are emerging, and the rise of wellness products like CBD is expected to further stimulate growth. Stricter regulations are improving safety and market credibility, and international trade is likely to expand as legalization advances.

Opportunity

The medicinal cannabis sector is set for growth due to increasing research into its therapeutic benefits for conditions such as anxiety and chronic pain, presenting opportunities for pharmaceutical and biomedical companies. The market is expanding with new products like edibles and beverages, while additional services such as packaging and compliance are emerging. Cross-sector partnerships, especially with biotechnology, can enhance market reach and help navigate regulatory challenges. Growing consumer demand for ethically and sustainably produced cannabis products is creating opportunities for businesses that prioritize social responsibility.

Market Restraints

The cannabis industry encounters challenges despite legalization efforts, including complex and varying laws across regions that complicate market entry and operations. In the U.S., federal legislative obstacles can impede growth and investment. Market saturation in developed areas like Canada and certain U.S. states has resulted in price competition and diminished profit margins. The ongoing black market provides cheaper, unregulated alternatives, hindering the legal market’s expansion. Economic factors such as inflation and shifting consumer spending can affect sales, while the COVID-19 pandemic has intensified supply chain issues, leading to potential shortages and increased costs.

Competitive Landscape for Cannabis Market in Global

Key Players

• Curaleaf Holdings, Inc.

• BYND Cannasoft Enterprises Inc. 

• Rodedawg International Industries, Inc. 

Recent Developments:

April 2024, Germany has legalized possession of small amounts of cannabis.

Feb 2024, Heavy cannabis use linked to increased risk of developing a new anxiety disorder

Mergers and Acquisitions

February 2023, TPCO Holding Corp announced an all-stock merger with Gold Flora, a significant move in the California market and notable for being entirely conducted with marijuana stocks.

June 2023, Canadian company TerrAscend Corp revealed two acquisitions in the newly legalized Maryland market, totalling just under $30 million- small deals in the broader M&A landscape.

August 2023, Planet 13 Holdings disclosed its acquisition of Florida-based VidaCann LLC, marking its entry into Florida's growing market. The deal, valued just under $50 million, is modest by M&A standards.

Healthcare Policies and Regulatory Landscape for Cannabis Market in Global

Policy changes and Reimbursement scenario

The U.S. Department of Health and Human Services (HHS) has recommended reclassifying cannabis from Schedule I to Schedule III, potentially paving the way for nationwide medical marijuana use and partial legalization. Over 58% of Americans now reside in areas where cannabis is legal for recreational or therapeutic purposes. As of February 2024, 38 states and three territories have legalized cannabis in some capacity, reflecting increasing acceptance. Federal rescheduling could influence government spending on programs like Medicare and Medicaid, possibly raising healthcare costs while enhancing patient access. Legalization could also elevate state tax revenues, as demonstrated in states like Colorado and Washington, although the illegal market and potential offsets may diminish expected federal tax income.