Global Cannabis Cultivation Market to Witness High Growth Owning To Growing Legalization of Medical Cannabis
Cannabis cultivation involves the growing and harvesting of cannabis for medical and non-medical use. Cannabis cultivation is done both indoors and outdoors depending on factors like climate and regulations. Indoor cultivation allows for control over growing conditions and environments. Cannabis is grown for its valuable resins that contain delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). The extracts from these resins are used to produce oils, edibles, cosmetics and more.
The global cannabis cultivation market is estimated to be valued at US$ 16.0828 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing legalization of medical cannabis across various countries is a key factor driving growth of the global cannabis cultivation market. Countries like Canada, Germany, Italy, Australia, and many U.S. states have legalized medical cannabis in recent years. This has opened opportunities for large scale cultivation and production of cannabis for medical purposes. Moreover, increasing investments from major players is also fueling expansion of cannabis cultivation facilities around the world to meet the rising demand for cannabis from the medical industry. However, stringent regulations and social stigma associated with cannabis still limit the market's potential especially in developing regions.
SWOT Analysis
Strength: The increasing legalization of cannabis for medical and recreational purposes in various countries is driving the growth of this market. Many countries and states in the U.S. have legalized medical cannabis which has increased its production. The market is witnessing numerous product launches catering to various needs which is further boosting the market growth. However, availability of alternative treatment options can hinder the market growth.
Weakness: Regulatory obstacles and legal constraints in many countries impede the growth of this market. Lack of standardized cultivation practices and shortage of skilled labor are some challenges faced by cultivators. Many countries still prohibit cannabis for non-medical use which creates resistance to market growth.
Opportunity: Increasing research on medical uses of cannabis provides new opportunities for product development. Emergence of Cannabidiol (CBD) as a major component with therapeutic benefits without psychoactive effects is fueling new product innovations. Growing adoption of cannabis-based treatments for various medical conditions like chronic pains, epilepsy, mental illnesses provides scope for commercialization.
Threats: Presence of substitutes like herbal supplements, yoga and other alternative medicine poses threat to market growth. Social stigma attached to cannabis use in many regions challenges acceptance. Strict regulations in interstate transport of cannabis also hinder market expansion.
Key Takeaways
The Global Cannabis Cultivation Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing legalization of cannabis for medical use in various countries. According to market estimates, the value of global cannabis market was US$ 16.0828 Mn in 2023 and is projected to reach over US$ 35 Bn by 2030.
Regional analysis
North America dominates the global cannabis cultivation market with the largest share. U.S. is the major revenue generator owing to federal legalization of cannabis in several states. Expanding medical cultivation license and increase domestic production is boosting the regional market. Europe is projected to showcase lucrative growth in the coming years owing to favorable regulatory reforms and growing patient base formedical cannabis in major countries like Germany.
Key players
Key players operating in the Cannabis Cultivation market are Tilray, Canopy Growth Corporation, Aurora Cannabis, Aphria,Cronos Group, Acreage Holdings, MedMen Enterprises, Curaleaf Holdings, Trulieve Cannabis Corporation,Organigram Holdings. Major players are investing significantly in R&D for new product development and expanding cultivation facilities to meet rising commercial demand. Partnerships with distributors and retailers help in strengthening market presence. Acquisitions and mergers are another strategic approach adopted by players to consolidate market position.
For More Insights, Read- https://www.trendingwebwire.com/cannabis-cultivation-market-analysis-growth-forecast-outlook-2023-2030/
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