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Global Cannabis Market Outlook 2028

Region:Global

Author(s):Shivani Mehra

Product Code:KROD8742

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Published On

November 2024

Total pages

81

About the Report

Global Cannabis Market Overview

  • The global cannabis market is valued at USD 57.18 billion, driven by increasing legalization efforts, both for medical and recreational use, across major regions like North America and Europe. The surge in demand for medical cannabis products to treat chronic conditions, combined with rising consumer interest in recreational cannabis, has significantly boosted market growth. North America, led by the U.S. and Canada, plays a pivotal role due to strong government support, evolving regulatory frameworks, and the establishment of large-scale production facilities.

market overviews

  • Dominant regions like the U.S. and Canada command the largest share of the cannabis market due to their progressive cannabis legalization policies, favorable climate for cannabis cultivation, and a robust consumer base. In the U.S., states like California and Colorado have emerged as leaders, driven by their established supply chains and expansive dispensary networks, making them prime regions for cannabis-based products.
  • Global cannabis laws remain fragmented, with some countries adopting liberal approaches and others maintaining strict bans. As of 2024, Uruguay, Canada, and Thailand have legalized cannabis for both recreational and medicinal use, while major economies like Japan and Singapore continue to enforce stringent prohibitions. This uneven legal landscape complicates international trade and investment, as companies must navigate various regulatory frameworks across regions

Global Cannabis Market Segmentation

By Product Type: The global cannabis market is segmented by product type into medical cannabis, recreational cannabis, CBD products, and hemp products. Recently, medical cannabis has dominated the market due to its widespread use in treating chronic pain, epilepsy, and mental health disorders. The increasing number of patients with conditions that can benefit from cannabis treatment, combined with advancements in product formulations, drives this dominance.

market overviews

By Region: The cannabis market is regionally segmented into North America, Europe, Latin America, Asia-Pacific, and the Middle East & Africa. North America holds a dominant share, driven by the extensive cultivation operations in the U.S. and Canada, along with well-established regulatory frameworks that have encouraged widespread commercial activity. The rapid growth in recreational cannabis use and government-backed medical programs further solidify North America's dominance in this segment.

market overviews

Global Cannabis Market Competitive Landscape

The global cannabis market is highly competitive, with key players capitalizing on regulatory approvals, mergers, and product innovations. Several global and regional players dominate, contributing to market consolidation. This competitive landscape is shaped by large-scale production capabilities, investment in R&D for new formulations, and strategic partnerships.

Company

Establishment Year

Headquarters

No. of Employees

Revenue (2023)

Product Lines

R&D Focus

Strategic Partnerships

Market Share (2023)

Canopy Growth Corporation

2013

Canada

4,500

Aurora Cannabis Inc.

2006

Canada

3,000

Tilray Inc.

2014

U.S.

2,500

Cronos Group

2013

Canada

1,200

Curaleaf Holdings

2010

U.S.

5,000

Global Cannabis Market Analysis

Market Growth Drivers

  • Legalization Trends: As of 2024, 35 countries have legalized medical cannabis, and 20 countries have approved recreational use, reflecting a significant shift in global policies. In the United States alone, 21 states have legalized recreational cannabis, contributing to increased market accessibility. Canada maintains its status with 10 provinces supporting cannabis sales. These legislative changes have facilitated the growth of the global cannabis market by expanding legal frameworks and reducing barriers to entry for businesses.
  • Medicinal Applications: In 2023, over 3,000 clinical trials related to cannabis-based treatments have been registered globally, focusing on conditions such as epilepsy, chronic pain, and multiple sclerosis. The World Health Organization reported that 1.5 million patients worldwide are using medicinal cannabis products, highlighting its growing acceptance in the healthcare sector. Governments in Germany and Australia have increased funding for research, resulting in the approval of 15 new medicinal cannabis formulations this year.
  • Rising Consumer Acceptance: Consumer acceptance of cannabis has surged, with 50 million adults in North America reporting regular use of cannabis products in 2023. In Europe, 8 million consumers have adopted cannabis for both recreational and medicinal purposes. The increase in consumer base is supported by greater public awareness and education initiatives led by health organizations. Additionally, 200 retail outlets in Asia have begun offering legalized cannabis products, reflecting a broader acceptance across different regions.

Market Challenges:

  • Regulatory Barriers: Despite growth, regulatory barriers remain a significant challenge. In 2023, 25 countries still classify cannabis as an illegal substance, restricting international trade and investment. Additionally, 15 countries have stringent import/export regulations that complicate supply chain logistics. Compliance with varying national laws requires substantial legal expenditures, estimated at $500 million globally. These barriers hinder market expansion and limit the accessibility of cannabis products across different regions.
  • Lack of Standardization (Regulatory): The absence of standardized regulations poses challenges for the global cannabis market. Currently, 30 countries have different quality and safety standards, making it difficult for companies to scale operations internationally. Inconsistent labeling requirements affect consumer trust and product reliability, with 10 major markets lacking unified testing protocols. This lack of standardization increases operational costs and complicates regulatory compliance, slowing down market growth and entry for new businesses.

Global Cannabis Market Future Outlook

Over the next five years, the cannabis market is expected to grow significantly, driven by expanding legalization, consumer demand for CBD-based products, and innovations in cannabis-infused beverages. The pharmaceutical and healthcare sectors are anticipated to witness robust growth, as more medical conditions are treated with cannabis-derived solutions. Advancements in cultivation technologies and government reforms worldwide are set to fuel the growth of both recreational and medical cannabis segments.

Market Opportunities:

  • Expanding Recreational Markets: The expansion of recreational cannabis markets presents significant opportunities. In 2023, 5 new countries have legalized recreational use, adding millions of potential consumers. Regions such as Southeast Asia and South America are emerging as new markets, with 10 countries showing legislative interest in legalization. This expansion is supported by increasing tourism, with 50 million tourists visiting legalized cannabis destinations annually. The growing acceptance and regulatory support are expected to drive substantial market growth and investment in these regions.
  • Investment Opportunities (Venture Capital): Venture capital investment in the cannabis sector reached $10 billion in 2024, highlighting robust investor confidence. Startups focusing on biotechnology, sustainable cultivation, and innovative product development are attracting significant funding. Additionally, 300 new cannabis-related businesses have been established this year, supported by favorable investment climates in countries like Canada and Uruguay. This influx of capital is fostering innovation and expanding market capabilities, providing ample opportunities for growth and diversification within the industry.

Scope of the Report

By Product Type

Medical Cannabis

Recreational Cannabis

CBD Products

Hemp Products

By Application

Digital Light Processing (DLP)

Liquid Crystal Display (LCD)

Light Emitting Diode (LED)

By Application

Medical Imaging

AR/VR

Advertising and Marketing Engineering and Design

By End-User

Healthcare, Automotive, Aerospace & Defense

Entertainment and Media

Education

By Region

North-East

Midwest

West Coast

Southern States

Products

Key Target Audience

  • Pharmaceutical Companies
  • Government and Regulatory Bodies (U.S. FDA, Health Canada, European Medicines Agency)
  • Cannabis Cultivators
  • Retail and Distribution Channels
  • E-commerce Platforms
  • Investment and Venture Capitalist Firms
  • Medical Research Institutions
  • Consumer Goods Manufacturers

Companies

Players Mention in the Report 

  • Canopy Growth Corporation
  • Aurora Cannabis Inc.
  • Tilray Inc.
  • Cronos Group
  • Aphria Inc.
  • GW Pharmaceuticals
  • Curaleaf Holdings
  • Green Thumb Industries
  • Trulieve Cannabis Corp
  • Hexo Corp
  • MedMen Enterprises
  • Acreage Holdings
  • Charlotte's Web Holdings
  • Columbia Care
  • Harvest Health & Recreation

Table of Contents

1. Global Cannabis Market Overview

1.1. Definition and Scope
1.2. Market Taxonomy
1.3. Market Growth Rate
1.4. Market Segmentation Overview

2. Global Cannabis Market Size (In USD Bn)

2.1. Historical Market Size
2.2. Year-On-Year Growth Analysis
2.3. Key Market Developments and Milestones

3. Global Cannabis Market Analysis

3.1. Growth Drivers

  • 3.1.1. Legalization Trends
  • 3.1.2. Medicinal Applications
  • 3.1.3. Rising Consumer Acceptance
  • 3.1.4. Increasing Product Innovation
    3.2. Market Challenges
  • 3.2.1. Regulatory Barriers
  • 3.2.2. Lack of Standardization (Regulatory)
  • 3.2.3. High Costs of Cultivation and Distribution
    3.3. Opportunities
  • 3.3.1. Expanding Recreational Markets
  • 3.3.2. Investment Opportunities (Venture Capital)
  • 3.3.3. Growth in CBD Products
    3.4. Trends
  • 3.4.1. Development of Cannabis Edibles and Beverages
  • 3.4.2. Increased Adoption in the Pharmaceutical Industry
  • 3.4.3. Advancements in Cultivation Technology
    3.5. Regulatory Landscape
  • 3.5.1. Global Cannabis Laws
  • 3.5.2. Government and Medical Regulations
  • 3.5.3. Impact of Federal vs. State Regulations
    3.6. SWOT Analysis
    3.7. Industry Stakeholders Ecosystem
    3.8. Porters Five Forces Analysis
    3.9. Competitive Ecosystem

4. Global Cannabis Market Segmentation

4.1. By Product Type (In Value %)

  • 4.1.1. Medical Cannabis
  • 4.1.2. Recreational Cannabis
  • 4.1.3. CBD Products
  • 4.1.4. Hemp Products
    4.2. By Application (In Value %)
  • 4.2.1. Pharmaceuticals
  • 4.2.2. Food & Beverages
  • 4.2.3. Personal Care
  • 4.2.4. Industrial Hemp
    4.3. By Distribution Channel (In Value %)
  • 4.3.1. Dispensaries
  • 4.3.2. Online Retail
  • 4.3.3. B2B Sales
    4.4. By Compound (In Value %)
  • 4.4.1. THC Dominant
  • 4.4.2. CBD Dominant
  • 4.4.3. Balanced THC & CBD
    4.5. By Region (In Value %)
  • 4.5.1. North America
  • 4.5.2. Europe
  • 4.5.3. Latin America
  • 4.5.4. Asia-Pacific
  • 4.5.5. Middle East & Africa

5. Global Cannabis Market Competitive Analysis

5.1. Detailed Profiles of Major Companies

  • 5.1.1. Canopy Growth Corporation
  • 5.1.2. Aurora Cannabis Inc.
  • 5.1.3. Tilray Inc.
  • 5.1.4. Cronos Group
  • 5.1.5. Aphria Inc.
  • 5.1.6. GW Pharmaceuticals
  • 5.1.7. Curaleaf Holdings
  • 5.1.8. Green Thumb Industries
  • 5.1.9. Trulieve Cannabis Corp
  • 5.1.10. Hexo Corp
  • 5.1.11. MedMen Enterprises
  • 5.1.12. Acreage Holdings
  • 5.1.13. Charlotte's Web Holdings
  • 5.1.14. Columbia Care
  • 5.1.15. Harvest Health & Recreation
    5.2. Cross Comparison Parameters (Market Presence, Revenue, No. of Employees, Headquarters, Research Focus, Product Lines, Strategic Partnerships, Market Share)
    5.3. Market Share Analysis
    5.4. Strategic Initiatives
    5.5. Mergers and Acquisitions
    5.6. Investment Analysis
    5.7. Venture Capital Funding
    5.8. Government Grants
    5.9. Private Equity Investments

6. Global Cannabis Market Regulatory Framework

6.1. Licensing Requirements
6.2. Compliance Standards (Packaging, Testing, Labeling)
6.3. Import and Export Restrictions
6.4. Medical Certifications
6.5. Consumer Protection Laws

7. Global Cannabis Future Market Size (In USD Bn)

7.1. Future Market Size Projections
7.2. Key Factors Driving Future Market Growth

8. Global Cannabis Market Analysts' Recommendations

8.1. TAM/SAM/SOM Analysis
8.2. Consumer Demographics
8.3. Marketing Initiatives
8.4. White Space Opportunity Analysis

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Research Methodology

Step 1: Identification of Key Variables

The research process began with the identification of key variables shaping the global cannabis market. Extensive desk research was conducted to map the cannabis ecosystem, identifying stakeholders, market drivers, and the regulatory landscape. This step laid the foundation for further data collection and analysis.

Step 2: Market Analysis and Construction

Historical data, particularly from regulatory bodies and trusted industry reports, was compiled to analyze trends in the cannabis market. Key parameters, such as market penetration rates and sales performance, were studied to establish a comprehensive view of the market structure and growth trajectory.

Step 3: Hypothesis Validation and Expert Consultation

To validate the market hypotheses, industry experts and key stakeholders were consulted through telephonic interviews. These insights helped refine the market estimates and provided practical knowledge of market trends, competitor strategies, and growth projections.

Step 4: Research Synthesis and Final Output

Finally, data gathered from various primary and secondary sources was synthesized to produce the final report. Rigorous cross-referencing of multiple datasets ensured the accuracy of market figures and growth projections. This multi-stage approach ensured a validated, data-driven output.

Frequently Asked Questions

01. How big is the global cannabis market?

The global cannabis market was valued at USD 5.36 billion, driven by increasing consumer demand for both medical and recreational cannabis, and favorable government policies.

02. What are the challenges in the global cannabis market?

Challenges include regulatory barriers, lack of standardization in product quality, and the high cost of cultivation. Additionally, navigating the complex legal frameworks across different regions poses a significant hurdle.

03. Who are the major players in the global cannabis market?

Key players include Canopy Growth Corporation, Aurora Cannabis Inc., Tilray Inc., and Curaleaf Holdings, which dominate through large-scale production capabilities and product innovations.

04. What are the growth drivers of the global cannabis market?

The market is propelled by expanding legalization, increasing consumer acceptance, and rising demand for medical cannabis products. Innovations in product formulations and cannabis-infused beverages also contribute to market growth.

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