The global cannabis products market is expected to grow from $28.0 billion in 2021 to $35.0 billion in 2022 at a compound annual growth rate (CAGR) of 25.0%. The market is expected to reach $80.0 billion in 2026 at a CAGR of 23.0%.
Major players in the cannabis products market are Canopy Growth Corporation, Aphria Inc, Aurora Cannabis, Cara Therapeutics, GW Pharmaceuticals PLC, Maricann Group, Tilray, The Cronos Group, Tikun Olam and United Cannabis Corporation.
The cannabis products market consists of sales of cannabis products and related services. Cannabis is a psychoactive drug which is obtained from the cannabis plant of the cannabaceae family. Cannabis can be used for the treatment of various diseases such as chronic pain, cancer pain, depression, anxiety disorders, sleep disturbances and neurological disorders.
The main types of products are flower, concentrates and others. The smokable section of the cannabis plant, also known as the bud or nug, is referred to as flower, bud, or nug. The different compounds include THC-dominant, CBD-dominant, balanced THC & CBD and can be used in medical, recreational. The various routes of administration include oral solutions and capsules, smoking, vaporizers, topicals and others.
North America was the largest region in the cannabis products market in 2021. Middle East is expected to be the fastest growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The growing applications of cannabis in the medical field is an important driver for the cannabis products market. Cannabis is a drug that comes from Indian hemp plants such as Cannabis sativa and Cannabis indica, with THC (delta-9 tetrahydrocannabinol) being the main active chemical in it. Cannabis has several medical applications in conditions such as nausea and vomiting, glaucoma, epilepsy, asthma.
Hence, many countries have legalized the use of cannabis for medical applications despite it being a psychoactive drug. Medical applications of cannabis include treating cancer, chronic pain, depression, arthritis, diabetes, glaucoma, migraines, epilepsy, AIDS, Alzheimer's disease and Parkinson's disease. According to Harvard Health, around 85% of Americans supported legalizing medical marijuana, and at least several million Americans were using it.
The presence of several legal norms related to the use and possession of cannabis is an important restraint on the cannabis products market. These norms include regulations of the Food and Drug Administration (FDA) as well as rules set up by the government of each state in the USA.
The FDA reviews all applications of cannabis products for their safety and effectiveness. Despite having laws allowing cannabis businesses, many states in the USA still do not allow such businesses. For instance, Los Angeles, San Francisco, San Jose and San Diego have laws allowing cannabis businesses, but 80% of California's nearly 500 municipalities do not allow retail marijuana businesses.
Solar cannabis cultivation is an emerging trend in the cannabis products market. As cannabis cultivation requires a large amount of energy for lighting, heating, air-conditioning, and dehumidification systems, cannabis products manufacturing companies are investing in solar cannabis cultivation.
This is mainly a result of legalizing cannabis products in various states of the USA, which is continuously increasing the consumption of energy and leading cannabis manufacturers to opt for solar cannabis cultivation. For instance, Aurora acquired 71 acres of land in Medicine Hat, Alberta, and installed a high-technology hybrid greenhouse cannabis production facility.
The government of California regulates the safety in manufacturing cannabis under the California Code of Regulations, Title 17 Division 1. It states that every manufacturer of cannabis product should obtain a valid license issued by state cannabis licensing agency.
To obtain an annual license for cannabis manufacturing, the manufacturer should submit the physical address of the manufacturing premises and a written security plan. The security plan should include the security measures to prevent access of unauthorized people into the manufacturing premises and prevention of loss or theft of cannabis and cannabis products. Hence, this is expected to maintain vigil on manufacturing of cannabis in the coming the years.
In May 2020, Aurora Cannabis Inc., a Canada-based cannabinoids company acquired Reliva, LLC for an undisclosed amount. Through this acquisition Aurora and Reliva will be able to build a market-leading international cannabinoid platform, and they will be able to offer stable revenue and enhanced profitability. Reliva, LLC is a US-based company and a pacesetter in delivering high-quality hemp-derived CBD products to consumers.
Key Topics Covered:
1. Executive Summary
2. Cannabis Products Market Characteristics
3. Cannabis Products Market Trends And Strategies
4. Impact Of COVID-19 On Cannabis Products
5. Cannabis Products Market Size And Growth 5.1. Global Cannabis Products Historic Market, 2016-2021, $ Billion 5.1.1. Drivers Of The Market 5.1.2. Restraints On The Market 5.2. Global Cannabis Products Forecast Market, 2021-2026F, 2031F, $ Billion 5.2.1. Drivers Of The Market 5.2.2. Restraints On the Market
6. Cannabis Products Market Segmentation 6.1. Global Cannabis Products Market, Segmentation By Product Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Flower
Concentrates
Others
6.2. Global Cannabis Products Market, Segmentation By Usage, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Medical
Recreational
6.3. Global Cannabis Products Market, Segmentation By Compound, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
THC-Dominant
CBD-Dominant
Balanced THC & CBD
6.4. Global Cannabis Products Market, Segmentation By Route of Administration, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
Oral solutions and capsules
Smoking
Vaporizers
Topicals
Others
7. Cannabis Products Market Regional And Country Analysis 7.1. Global Cannabis Products Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion 7.2. Global Cannabis Products Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
