The legal cannabis market is valued at over $40 billion and is expected to grow substantially in the coming years, according to a new report.
The Technavio report shows that the market is expected to grow at a compound annual growth rate (CAGR) of 28.85% between 2024 and 2028.
“The market’s growth rate hinges on several key factors. Firstly, the rising number of countries decriminalizing and legalizing cannabis is significantly boosting market expansion”, states the report. “Secondly, the growing purchasing power of millennials in the cannabis industry is driving demand, particularly in the recreational and medicinal sectors.”
The report states that “Additionally, the increasing awareness and acceptance of the health benefits of medical cannabis are propelling market growth. These factors, combined with evolving regulatory landscapes and shifting societal attitudes, are creating a robust environment for the cannabis market to flourish.”
According to Technavio, “North America dominated the market during the forecast period.” Key countries contributing to the market growth also includes Canada, the UK, Germany, and Australia.
Key market players include:
- Aurora Cannabis Inc.
- Bhang Nation
- Cannabinoid Creations
- Cannoid LLC
- Canopy Growth Corp.
- CBD American Shaman
- Cronos Group Inc.
- CV Sciences Inc.
- Elixinol Wellness Ltd.
- Folium Biosciences
- Jazz Pharmaceuticals Plc
- Medical Marijuana Inc.
- MediPharm Labs Inc.
- Mentor Capital Inc.
- PharmaHemp d.o.o.
- Tikun Olam
- Tilray Brands Inc.
- Unrivaled Brands Inc.
The report goes on to say:
The legal cannabis market experiences growth due to advancements in cannabis cultivation. Fully-equipped laboratories with sanitized chambers and controlled environments facilitate the use of techniques like Screen of Green and Sea of Green. These methods enhance production levels and THC content in cannabis. Marijuana-derived CBD oil products also benefit from these techniques, increasing revenue in the sector. The application of these advanced techniques is anticipated to boost yield and meet escalating cannabis demand, driving market expansion during the forecast period.
The legal cannabis market is experiencing significant growth with various trends shaping its future. Environments and practices, such as cultivation, packaging, and processing, are crucial aspects of this industry. Cannabinoids, like CBD and THC, are popular products in this market. Producers are focusing on improving yields and quality through advanced techniques. Carbon dioxide and hydrocarbon extraction methods are commonly used for extracting these cannabinoids. Regulations, including those related to labeling and testing, are essential for maintaining consumer trust and safety. Medicial and recreational uses continue to drive demand, with patients and consumers seeking relief from various conditions. Overall, the legal cannabis market is a dynamic and evolving industry, with innovation and compliance being key factors for success.
Technavio is a research firm with over 500 specialized analysts. Technavio’s report library consists of more than 17,000 reports, covering 800 technologies and spanning across 50 countries.
