According to Fortune Business Insights™, the global cannabis market size stood at USD 20.47 billion in 2020. Rising awareness regarding the product’s therapeutic and medicinal benefits, enabling policies, and relaxation regulations are likely to foster market development. The cannabis market is projected to grow from USD 28.266 billion in 2021 to USD 197.74 billion by 2028, exhibiting a CAGR of 32.04% during the forecast period.
Cannabis is a flowering plant known for its therapeutic and medicinal benefits if consumed in specified amounts. It helps cure cancer, reduces depression, and possesses several other medical benefits. It is slowly gaining recognition in several countries because of the legalization policies. Further, the adoption of regulatory relaxations and favorable policies is expected to boost the product’s adoption. For example, the House of Representatives passed the HEROES Act in 2020 and presented the act to the SAFE Banking Act and Senate. This act enables banks to grant services to these companies and helps them grow positively.
The legalization of cultivation, production, and trade is likely to boost market development. The rising development of facilities and farms for medical and therapeutic marijuana products is likely to boost market development in the upcoming years.
Impact of COVID-19
Rising Demand from Medical Sectors to Boost Market Development
This market is expected to grow steadily during the COVID-19 pandemic because of the rising demand for medical marijuana from the healthcare sector. The sudden spike in COVID-19 cases led to the adoption of stringent restrictions on non-essential sectors. However, the rising demand for the product from the medical sector facilitated sales. The adoption of products for medical purposes may boost the product’s adoption. Further, the adoption of reduced capacities, part-time shifts, and production machinery enabled players to balance costs and recover losses. These factors may propel market development during the pandemic.
Highlights of the Report
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Rising Adoption from Medical Sectors and Availability of Marijuana Incorporated Edibles to Boost Market Growth
Marijuana is used extensively in the medical sector to manufacture anti-depressant drugs, cancer medicines, and other medicines. The rising awareness regarding its benefits is expected to boost its sales. The availability of a wide variety of flavors and edibles is expected to boost the product’s adoption. The product's availability in candies, chocolates, and beverages is expected to boost its popularity and enable users to enjoy the substance for an hour or two. Furthermore, marijuana’s demand is increasing rapidly from the medical sector because of relaxation policies. Several countries have placed favorable policies legalizing marijuana’s adoption in medicines. It is used to treat AIDS, cancer, and other disorders, which, in turn, is expected to boost its demand. In addition, its adoption by mainstream medical professionals is increasing because of its ability to treat arthritis, anorexia, and other disorders. These factors are likely to drive the cannabis market growth.
However, regulations prohibiting the sales and cultivation of marijuana in several countries may hinder the market’s progress.
Recreational Legalization in the U.S. to Boost Market Growth in North America
North America is projected to dominate the cannabis market share because of marijuana’s legalization in the U.S. The market in North America stood at USD 19.78 billion in 2020 and is expected to grow positively during the upcoming years. The District of Columbia and Eleven states legalized the adoption of the product in 2019. The state medical cannabis law in the U.S. recognized the product as a medical drug to cure post-traumatic stress disorder, epilepsy, chronic pain, arthritis, and Alzheimer’s disease. In addition, the emergence of several marijuana growers is expected to boost the market growth.
Europe is the second-largest market shareholder because of the rising adoption of the product and the adoption of favorable legislation. Marijuana is observed to be effective in trials and is used extensively in treating cancers, AIDS, and other disorders in the medical sector. The Greek legislation legalized the adoption of marijuana in 2018, which, in turn, may boost the product’s adoption. These factors are likely to facilitate market development.