The global cannabis cultivation industry is projected to grow from $180.7 billion in 2025 to $651.8 billion by 2034, according to a new report released by Research and Markets.
The report anticipates a compound annual growth rate of 15.3%, driven by expanding legalization, increasing demand for premium cannabis, and continued advances in cultivation technology.
The report points to a growing global consumer preference for high-quality cannabis flower and extracts, leading cultivators to focus more on strain innovation, cannabinoid potency, and terpene profiles. On the medical side, the demand for pharmaceutical-grade marijuana has encouraged producers to adopt controlled environment agriculture and automation to ensure consistency and efficiency.
Emerging trends in the market include the adoption of vertical farming, artificial intelligence, and sensor-based monitoring, alongside a shift toward sustainable and organic growing practices. Companies are also investing in genetic research to develop strains with higher yields, resistance to pests, and enhanced therapeutic effects.
Despite the optimistic outlook, the report outlines several challenges facing cultivators. These include regulatory complexity, high operational costs, oversupply in some regions resulting in price compression, and a continued lack of access to banking services in federally restricted markets. A shortage of skilled labor in cannabis-specific horticulture was also highlighted.
The market segmentation includes Cannabis Sativa and Indica types, with applications spanning medical, recreational, and industrial sectors. North America remains the largest market, followed by Europe and the Asia-Pacific region. Notable companies operating in the space include Canopy Growth, Curaleaf, Trulieve, Aurora, Tilray, and Green Thumb Industries.
Overall, the report portrays cannabis cultivation as a critical and evolving sector, with investment, technology, and changing consumer preferences fueling long-term global growth.
