The global cannabis market is projected to reach $148.9 billion by 2031, increasing nearly sixfold from $25.7 billion in 2021, according to a new report from Allied Market Research.
The report estimates the market will grow at a compound annual growth rate of 20.1% from 2022 through 2031, driven largely by expanding legalization, rising consumer awareness and continued investment in medical marijuana research and product development.
Cannabis extracts accounted for the largest product segment in 2021, generating $13.8 billion in revenue. The segment is projected to reach $82.3 billion by 2031, growing at a CAGR of 20.4%. Extracts include products made using solvents such as ethanol, butane, propane and supercritical carbon dioxide.
By application, recreational marijuana was the largest segment in 2021, with $13.9 billion in revenue. Allied Market Research projects the segment will climb to $78 billion by 2031. However, the medical segment is expected to grow at a faster rate, with a projected CAGR of 21.1% during the forecast period.
Balanced THC and CBD products were the leading compound segment in 2021, while THC-dominant products are projected to see the fastest growth, with a CAGR of 20.4%.
North America remained the dominant region in 2021, generating $22.1 billion in revenue. The report projects the region will reach $104.4 billion by 2031, supported by marijuana legalization in the United States and Canada, as well as continued research into medical uses.
The LAMEA region, which includes Latin America, the Middle East and Africa, is projected to grow the fastest, with a CAGR of 32.3%.
The report lists several major companies operating in the global cannabis market, including Tilray, Green Thumb Industries, Cresco Labs, Curaleaf, Aurora Cannabis, Organigram and Canopy Growth.
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