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The global cannabis market, valued at USD 39.21 billion in 2024, is expected to reach USD 47.76 billion in 2025 and USD 231.81 billion by 2035, representing a healthy CAGR of 17.1% during the forecast period.
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Cannabis is a form of psychotropic substance which is derived from cannabis plant. The primary component of cannabis plant such as flowers, buds and concentrates are rich in tetrahydrocannabinol, balanced TFC and cannabidiol (CBD). These psychoactive compounds hold immense therapeutic potential which makes it ideal for the treatment of patients with chronic conditions and pain management. Moreover, the non-psychoactive cannabis is also helpful for patients with inflammatory bowel disease, irritable bowel syndrome and Crohn’s.
With growing awareness about medicinal benefits of cannabis, several government organizations has legalized the cultivation of cannabis varieties. The legal adoption of cannabis across different countries like Uruguay, Canada and Luxemburg has caught attention of the industrial players to explore its therapeutic potential beyond chronic pain condition management. Notably, the USFDA has also approved Epidiolex®, Marinol® and Syndros® for the treatment of seizures associated with Dravet syndrome, nausea and vomiting treatment that caused due to cancer chemotherapy.
It is interesting to highlight here that cannabis is also gaining significant traction in treating skin damage. Brands like Sephora and NOW have launched their new CBD-based skincare range for the treatment of aging signs. Furthermore, cannabis infused drinks is also gaining popularity among population, which is further become a primitive reason for lucrative growth.
It is worth mentioning here that owing to the therapeutic efficacy and wider adoption, several industrial players are presently taking strategic initiatives in this field to drive innovation. However, the primary aim is on technological innovation for extraction and manufacturing of cannabis-based products. For instance, in November 2024, Samson Extracts announced about the expansion of its product offerings including bulk cannabis isolate extraction and manufacturing. The company will utilize its GMP-certified complex industrial scale extraction system to get high volume.
It is important to highlight here that cannabis industrial players and several government organizations are making considerable investments in this field to promote the legal adoption of cannabis for medicinal and recreational purposes. For instance, in June 2024, New York City Economic Development Corporation and Department of Small Business Services announced that Tuatara Capital will be a new investment management of Cannabis of Cannabis NYC Loan Fund that will launch initially with USD 2 million tranche. This investment will be utilized to promote the development of equitable or early stage cannabis industry in the city.
Driven by the legal adoption, the USFDA approval and technological innovations, it is expected that market for cannabis will continue to gain momentum during the forecast period, offering lucrative opportunities to industrial players for innovations.
The market report provides comprehensive information on the leading industrial players who are active across various segments as mentioned in the table below.
| Key Report Attributes | Details | |
| Historical Trend | Since 2019 | |
| Forecast Period | Till 2035 | |
| Current Market Size | $ 47.76 Billion | |
| Market Size 2035 | $ 231.81 Billion | |
| CAGR (Till 2035) | 17.1% | |
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| PowerPoint Presentation (Complimentary) |
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| Customization Scope | 15% Free Customization | |
| Excel Data Packs (Complimentary) |
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One of the key objectives of the market report was to estimate the current market size, opportunity and the market growth potential, over the forecast period, till 2035. We have provided informed estimates on the likely evolution of the market for the forecast period.
The cannabis market analysis also features the likely distribution of the current and forecasted opportunity within the market across various segments, such as type of source (hemp and marijuana), type of product (flowers, buds, concentrates and other products), type of crop variety (cannabis indica, cannabis sativa and hybrid varieties), type of compound (tetrahydrocannabinol (THC), cannabidiol (CBD), and balanced THC and CBD), type of application (medical (arthritis, AIDS, amyotrophic lateral sclerosis, Alzheimer’s, cancer, chronic pain, depression and anxiety, diabetes, epilepsy, glaucoma, migraines, multiple sclerosis, post-traumatic stress disorder (PTSD), Parkinson's, Tourette’s and others), recreational (edibles and topicals), and industrial), type of distribution channel (physical, digital and other distribution channels), geographical region (North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America) and leading players.
In order to account for future uncertainties associated with some of the key parameters and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of industry’s evolution.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. The financial figures mentioned in this market report are in USD, unless otherwise specified.
Based on the type of source, the global cannabis market is segmented into hemp and marijuana. According to our projection, presently, marijuana accounts for the highest share (over 75%) of the overall market. This can be attributed to the fact that marijuana is legally adopted for the treatment of chronic pain and appetite enhancement in patients with HIV / AIDS.
However, in the future, hemp segment is anticipated to grow at a higher CAGR during the forecast period. This is primarily due to the fact that hemp is widely used for the development of cannabis based products (post cannabis testing) including cannabidiol (CBD) oil , concentrates and capsules. Cannabis also holds fatty acids, antioxidants and proteins which makes it an ideal source for the development of nutritional supplement and beverages.
The global cannabis market is distributed across different types of products, such as flowers, buds, concentrates and other products. According to our projection, currently, the flower segment holds the highest share (50%) of the market. Flowers have high levels of tetrahydrocannabinol which makes it ideal for the therapeutic purpose specifically for managing pain.
However, it is worth noting here that concentrates segment is likely to register a higher CAGR during the forecast period. This can be attributed to the growing demand for concentrates such as CBD oil and resin for recreational, medicinal and skin treatment purposes.
This segment highlights the distribution of global market based on type of crop variety into cannabis indica, cannabis sativa and hybrid varieties. Among these, cannabis indica currently occupies the highest cannabis market share. This variety has a high concentration of tetrahydrocannabinol and cannabidiol that are presently used for pain management and neurological conditions. Moreover, cannabis indica is broadly utilized by the healthcare experts for managing pain in migraine patients. Driven by the medicinal benefits, this variety is expected to remain dominant and is poised to grow at a higher CAGR during the forecast period.
The global cannabis market is further distributed based on type of compound into tetrahydrocannabinol (THC), cannabidiol (CBD), and balanced THC and CBD. According to our projection, currently, cannabidiol (CBD) holds the largest share (over 65%) of the overall market. Cannabidiol (CBD) is widely known for its therapeutic benefits such as nausea relief, pain and appetite stimulation in patients with HIV. Furthermore, the growing applications of CBD for the treatment of patients with chronic conditions and neurological disorders has further fueled the growth of this segment.
However, in the future, balanced THC and CBD segment is anticipated to register higher CAGR during the forecast period. Balanced ratio of THC and CBD makes it exceptional compound for achieving sense of calmness and pain management. With a growing understanding of therapeutic efficacy, this segment is likely to gain traction during the forecast period.
Based on the type of application, the global market is segmented into medicinal, recreational (edibles and topicals), and industrial segments. According to our projection, currently medicinal application accounts for the highest cannabis market share (nearly 70%). This can be attributed to the fact that cannabis based drugs such as Marinol®, Sativex® and Cesamet® has been approved by the USFDA for the treatment of patients with chronic pain , epilepsy, seizures and other mental disorders such as anxiety and depression.
However, in the long run, the recreational segment is expected to grow at a higher CAGR during the forecast period. Cannabis based products are rich is psychoactive compounds which offer mind-altering effects, making them ideal for recreational usage, such as relaxation and gaining a sense of calmness. Additionally, the growing legalization of cannabis for recreational usage in countries like Luxemburg, Canada and Uruguay has resulted into higher CAGR of this segment.
It is important to highlight here that industrial segment is also gaining momentum in the upcoming years driven by the growing acceptance of cannabis based skincare range, cannabis-infused drinks and vapes.
On the basis of distribution channel, the global cannabis market is segmented into physical, digital and other distribution channels. According to our projection, physical distribution channel accounts for the highest share of the market. Physical distribution channels such as retailers and hospital pharmacies are the major distributor of cannabis based products. This can be attributed to the fact that cannabis based drugs can only be prescribed by the expert physician in controlled dosage.
Hence, legal physical distribution channels can provide these drugs based on the prescription. It is important to highlight here that this segment will continue to remain dominant and is likely to grow at a higher CAGR during the forecast period.
The global cannabis market size is distributed across different geographical regions, such as North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America. According to our analysis, North America currently occupies the highest share (nearly 60%) of the market. North America has a favorable regulatory policy to cultivate cannabis for medicinal purposes, which is expected to be a key reason for highest share. In addition, the growing geriatric population with chronic conditions and mental health issues in this region has further necessitated the demand for cannabis based drugs to manage disease condition.
In Europe region, the market for cannabis is likely to grow at a higher CAGR during the forecast period. This is likely to be the result of flexibility provided by the European government for cannabis cultivation for drug development and rising awareness about the therapeutic benefits of cannabis in managing chronic conditions.
The “Cannabis Market: Industry Trends and Global Forecasts, till 2035” market research report features an extensive study of the focus on competitive landscape of strategic initiatives, emerging mega trends, company profiles and key drivers and restraints. Key takeaways of the market data analysis are briefly discussed below.
Notably, cannabis industry is moderately competitive featuring the presence of well-established and new entrants. Startups are emerging in developing countries as well for unlocking the potential in these regions. Companies like Calmosis and India Hemp Organics started operations in India during the period 2023-24.
In order to leverage the competitive edge, key players such as Aurora Cannabis and Medicinal Marijuana are taking strategic initiatives followed by collaborations and partnerships to drive innovation in this industry. For instance, in December 2024, Aurora Cannabis has forged a strategic distribution partnership with MedReleaf Australia and the Entourage Effect. Under this partnership, the Entourage Effect offer distribution and support services to the leading pharmacies in Australis and serve as a wholesaler for MedReleaf Australia’s leading product portfolio under CraftPlant, Aurora. As more market players show immense interest in the industry, we believe that market will remain competitive throughout the projected period.
Cannabis industry is likely to be propelled by the increasing incidence of chronic conditions among geriatric population worldwide. According to the National Council of Aging, nearly 94.9% of the adult population (above 60 years age) in the US has at least one chronic condition. Thus, high incidence of chronic conditions necessitated the demand for cannabis based drugs to manage chronic conditions such as arthritis and epilepsy. Furthermore, several government organizations in European countries and the US have provided flexible guidelines to support the cannabis cultivation for medicinal purposes. These factors are collectively driving the market during the projected period.
Although the cannabis industry is growing exponentially, there are several challenges that hinder the market progress during the forecast period. Some of the potential challenges are stringent guidelines associated with approval of cannabis based drugs. It is important to highlight here some countries such as Japan, Korea, and middle eastern countries has strict regulatory policies for the cultivation and manufacturing of cannabis based products. In addition, limited cannabis based drug approval and addictive nature of cannabis are another major challenges that impact the market growth during the forecast period.
With rising awareness about therapeutic benefits of cannabis, its derivates has become a hotspot for the industrial players to expand more medicinal benefits which is anticipated to be a key growth factor, Furthermore, expanding research on cannabis to understand the therapeutic benefits has further fueled the market growth. A recent research published by the John Hopkins Medicine-led research team in April 2024 found that naturally occurring chemicals in cannabis helps to reduce anxiety-inducing effects of tetrahydrocannabinol. In addition to growing research, cannabis is widely used for the development of nutraceutical, food supplement and cannabis infused drinks, which is expected to drive the market growth during the forecast period.
The global cannabis market is currently valued at USD 47.76 billion. Driven by the increasing usage of cannabis as a therapeutic drug, the market is expected to reach at USD 231.81 billion by 2035. It is interesting to highlight here that several industrial leaders are entering into partnerships to expand their product portfolio for global reach. For instance, in November 2024, Celadon Pharmaceuticals (UK based company) announced strategic collaboration with Valeos Pharma to accelerate its production and market supply of medical cannabis. Driven by the growing partnerships, we believe that the market for cannabis is expected to grow at a higher CAGR of 17.1% during the forecast period.
Examples of key players engaged in this field of cannabis (which have also been captured in this report) include Aurora Cannabis, Canopy Growth, CV Sciences, Endoca, Elixinol, Folium Biosciences, Gaia Herbs, GW Pharmaceuticals, Isodiol International, Medical Marijuana, Medterra, NuLeaf Naturals, Tilray and Vapen CBD. This market report includes an easily searchable excel database of all the companies focusing on medicinal cannabis and other recreational products.
The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain across different segments. Amongst other elements, the market report includes:
Several recent developments have taken place in the field of cannabis. We have outlined some of these recent initiatives below.