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US Cannabis Market Size 2025-2029

The US cannabis market size is forecast to increase by USD 141.48 billion billion at a CAGR of 37.1% between 2024 and 2029.

The US cannabis market is experiencing significant growth driven by key demographic trends and advancements in research and production of medical marijuana. The millennial population, the largest consumer demographic in the US, is increasingly embracing cannabis use, particularly for medicinal purposes. This shift in consumer behavior is fueling market expansion in states with legal medical and recreational marijuana programs. Furthermore, the investment landscape is evolving, with an increase in funding for research and production of medical cannabis. This influx of capital is enabling companies to innovate and improve product offerings, as well as expand their reach and distribution networks.
However, challenges persist, including accessibility issues and high prices associated with medical cannabis. As the market continues to mature, companies must navigate these challenges effectively to capitalize on growth opportunities and maintain a competitive edge. Strategic partnerships, operational efficiency, and a focus on patient care and education will be essential for success in this dynamic and rapidly evolving industry.

What will be the size of the US Cannabis Market during the forecast period?

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The cannabis market in the US is experiencing significant growth and transformation, driven by increasing legalization efforts and shifting consumer preferences. The market encompasses a range of cannabis products, including flowering plants and derivatives such as CBD-related items, cannabis-infused edibles, beverages, vapes, and extracts. Medical marijuana continues to gain traction due to its therapeutic applications for conditions like chronic pain and multiple sclerosis. Legalization for recreational use is expanding, leading to the proliferation of dispensaries and online sales. Regulatory changes and consumer adoption are fostering innovation in product development, from cannabis oils(Cannabinoids) to advanced cannabis-infused beverages and edibles.
Social acceptance is on the rise, with millennials leading the charge. Industrial hemp cultivation is also contributing to the market's expansion, with applications ranging from textiles to CBD production. Overall, the cannabis market is poised for continued growth and evolution, shaped by regulatory developments, consumer trends, and product innovation.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Derivative Type

  CBD
  THC
  Balanced THC and CBD


Product

  Medical
  Recreational


Source

  Marijuana
  Hemp


Geography

  US

By Derivative Type Insights

The cbd segment is estimated to witness significant growth during the forecast period.

The CBD segment is projected to dominate the US cannabis market due to the federal legality of hemp-derived CBD oil. This trend is driven by relaxing government norms regarding CBD usage in most states and at the federal level. As of 2024, Georgia and Indiana allow hemp-derived CBD oil for medicinal purposes, with THC content restrictions. Marijuana legalization for medicinal and recreational use varies across states, leading to the growth of medical marijuana dispensaries and the production of marijuana flower, CO2 oil, butane hash oil, live resin, and ice water hash. The market encompasses a range of consumable products, including edibles, infused beverages, and vapes, as well as topical products and medical hemp.

While some consumers use cannabis for mind-altering effects, others seek therapeutic applications for medical indications such as chronic pain, multiple sclerosis, and neurological health management. Cannabidiol (CBD) is a major component of medical cannabis, offering potential benefits for mental health management and pain relief. However, the market faces challenges related to packaging-related modifications, inhalation hazards, and social stigma. Despite these challenges, the market is expected to grow, driven by increasing acceptance of cannabis for medicinal and recreational use.

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The CBD segment was valued at USD 8.76 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of US Cannabis Market?

Growing millennial populati

There were 3.43 million recreational cannabis users in the United States in 2020. By 2025, this number is set to almost double.

Eighteen to twenty-nine-year-olds were the largest group of current marijuana smokers in the United States in 2019. Roughly a quarter of the age group were current smokers, with usage dipping among older age groups. Seniors were the least likely, with only three percent stating that they were current smokers.

Support for legalization

Although cannabis is still federally illegal, it has been legalized for recreational consumption in 10 states since 2012. Nationwide support for the federal legalization of cannabis has grown every year, with 18 to 34-year-olds being the biggest supporters. Seventy-eight-percent of Americans in that age group supported marijuana legalization in 2018, nearly double the level of support in 2003. Approval of legalization is more than 50 percent among all age groups.

Approval for medical use

Support for the medical usage of cannabis is even higher, and unlike recreational usage, approval levels are very close among all age groups. The average degree of support among all age groups was seventy-four percent. In contrast to the young age of most recreational smokers, in Oregon, one of the first state to legalize recreational cannabis, the highest share of people registered as medical marijuana patients were 55 to 69 years old.

In 2023, nearly 22 percent of the population of the United States used cannabis within the past year. The graph shows the percentage of the population in the U.S. who consumed cannabis in the past year from 2002 to 2023.

According to a survey on substance use in India between December 2017 and October 2018, about 2.8 percent of Indians aged 10-75 years were users of any cannabis product in the measured time. This meant roughly 31 million people used cannabis across the country. Five percent of Indian men had a prevalence of cannabis use during the survey period. Notably, there were more prevalence of use among children in the country compared to females.

Current marijuana use among U.S. adults in 2022 was highest in Vermont, where around 34.37 percent of adults reported using marijuana within the past year. In recent years, a number of U.S. states, including Colorado and California, have legalized the sale of marijuana for recreational use. In 2022, around 132 million people in the United States reported that they had used marijuana at least once in their lifetime.

Consumer behavior Starting around 2013, the majority of U.S. adults now say they are in favor of legalizing marijuana in the United States. The share of adults who were in favor of legalization has continued to increase over the years. As of 2021, about 68 percent of U.S. adults aged 18 and older were in favor of legalization. Legal sales of marijuana reached 16.5 billion U.S. dollars in 2021, and are expected to increase to around 37 billion dollars by the year 2026.

COVID-19 impact on marijuana use The COVID-19 pandemic and resulting lockdowns led to fears of an increase in substance abuse in many parts of the world. In March 2020, around 40 percent of millennials who used cannabis in the past year reported that they planned to increase their marijuana use during the COVID-19 pandemic. This rise in usage was reflected in sales early in the pandemic. In California for example, sales of marijuana on March 16, 2020 increased 159 percent compared to the same day in 2019.

Consuming population of cannabis and volume consumed of cannabis by age group and frequency of use, Canada, annual.

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Cannabis Packaging Market Size 2024-2028

The cannabis packaging market size is forecast to increase by USD 12.18 billion at a CAGR of 35.11% between 2023 and 2028.

The market in North America is experiencing significant growth due to key factors such as the increasing legalization of marijuana for both medicinal and recreational use among the millennial population. This trend is driving demand for innovative packaging solutions, including smart packaging with sensors and RFID technology, to ensure product freshness, safety, and security. Fluctuations in raw material prices, particularly for glass packaging using soda lime glass and polyethylene, rigid and flexible packaging, as well as tin, metal, and hemp fiber, are impacting the market. Additionally, the emergence of cannabis-infused baked goods and beverages, such as chocolate and soda, requires specialized packaging solutions to maintain product quality and shelf life.
The use of caps and closures, adhesives, and diamond-coated ropes for securing glass jars and pouches, further adds to the complexity of the market. Overall, the market is expected to continue growing, with a focus on sustainable and eco-friendly packaging solutions, such as those made from biodegradable materials, to meet evolving consumer preferences.

What will be the Size of the Cannabis Packaging Market During the Forecast Period?

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The market encompasses a diverse range of products catering to various forms of cannabis consumption, including THC and CBD products, edibles, tinctures and pills, and concentrates. Market growth is driven by the legalization of cannabis for medicinal and recreational use in numerous jurisdictions worldwide. In response, packaging has innovated to meet evolving consumer demands, offering solutions in materials such as high-density polyethylene (HDPE), plastic, hemp, and ocean-reclaimed plastic. Brands prioritize sustainable and child-resistant packaging to address regulatory requirements and consumer preferences. Market size is projected to expand significantly as the cannabis industry continues to mature and gain broader acceptance.
Key trends include the increasing popularity of eco-friendly and customizable packaging solutions, as well as the integration of advanced technologies to enhance product protection and consumer convenience.

How is this Cannabis Packaging Industry segmented and which is the largest segment?

The cannabis packaging industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Material

  Glass
  Metal
  Plastics
  Cardboard containers


Type

  Rigid packaging
  Flexible packaging


Geography

  North America

    Canada
    US


  APAC

    China


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Material Insights

The glass segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing demand for THC and CBD products. Glass containers are gaining popularity in this market due to their impermeable nature, which preserves the product's flavor and freshness. Glass is a safe alternative to plastic and metal, as it does not affect the product quality even when exposed to external temperatures. However, its fragile nature necessitates careful handling. Cannabis packaging caters to various product types, including edibles, vape items, pre-roll joints, and cannabis-infused chocolates, butter, and tinctures. Packaging solutions range from rigid, semi-rigid, and flexible options in materials like metal, plastic, glass, paper, and hemp.

Hemp fiber, hemp sacks, ropes, canvas, and eco-friendly materials like ocean-reclaimed plastic are also gaining traction. Legalization of cannabis for recreational and medical use is driving the market's growth. Companies like Green Rush Packaging, Cannaline, C Class Jars, and others offer a wide range of containers and caps, high-density polyethylene, and specialized packaging solutions.

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The Glass segment was valued at USD 398.60 million in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American the market is experiencing significant growth due to the legalization of medical cannabis In the US and Canada. This region holds immense potential for cannabis products, wit

This statistic shows the user profile of select surveyed cannabis users in the U.S. and abroad, as of 2017. As of that year, about 75 percent of the respondents used CBD (cannabidiol) products and 53 percent regularly used CBD-dominant products in general.

According to Cognitive Market Research, the global Cannabis market size will be USD 58614.5 million in 2024. It will expand at the compound annual growth rate (CAGR) of 35.00% from the year 2024 to 2031.

North America held the primary market share for more than 40% of global revenue with a market size of USD 23445.80 million in 2024 and will rise at a compound annual growth rate (CAGR) of 33.2% from the year 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 17584.35 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 13481.34 million in 2024 and will rise at the compound annual growth rate (CAGR) of 37.0% from the year 2024 to 2031.
Latin America held a market share of more than 5% of global revenue with a market size of USD 2930.73 million in 2024 and will rise at the compound annual growth rate (CAGR) of 34.4% from the year 2024 to 2031.
Middle East and Africa held a market share of around 2% of global revenue and estimated at a market size of USD 1172.29 million in 2024 and will rise at the compound annual growth rate (CAGR) of 34.7% from the year 2024 to 2031.
The concentrates category is the fastest growing segment of the Cannabis industry

Market Dynamics of Cannabis Market

Key Drivers for Cannabis Market

Increasing Legalization and Decriminalization of Cannabis to Boost Market Growth

The growing trend of cannabis legalization and decriminalization across various countries and states is a significant driving factor for the cannabis market. Governments are recognizing the economic potential of legal cannabis through tax revenues and job creation, leading to the gradual relaxation of laws surrounding its production, distribution, and consumption. Legalization has expanded access to medical and recreational cannabis, encouraging more consumers to explore its benefits. In regions like North America and Europe, regulatory shifts have fostered a thriving market for cannabis-based products, including oils, edibles, and topicals. This trend is also driving innovation, attracting investments, and minimizing the stigma associated with cannabis use, further boosting its adoption. As more countries follow suit, the global cannabis market is foreseen to rise significantly, propelled by both increased accessibility and consumer interest. For instance, CV Sciences, Inc. introduced its +PlusCBD reserve collection of extra gummies. The reserve collection product line offers a blend of full-spectrum cannabinoids capable of providing relief when intense support is required

Rising Demand for Medical Cannabis to Drive Market Growth

The increasing acceptance of cannabis for medical purposes is another major factor driving market growth. Scientific studies and clinical trials have highlighted the therapeutic benefits of cannabis compounds, particularly cannabidiol (CBD) and tetrahydrocannabinol (THC), in managing chronic pain, anxiety, epilepsy, and other conditions. This has led to growing prescriptions for cannabis-based medications in healthcare systems worldwide. The ageing global population and surging prevalence of chronic diseases have further spurred demand for medical cannabis as a natural and effective treatment option. The advancements in extraction technologies and product formulations have made cannabis-derived pharmaceuticals more accessible and standardized, enhancing their appeal among patients and healthcare professionals. With ongoing research and increasing acceptance, the medical cannabis segment is poised to play a pivotal role in the expansion of the overall cannabis market.

Restraint Factor for the Cannabis Market

Stringent Regulatory Frameworks and Legal Restrictions Will Limit Market Growth

The cannabis market faces significant restraints due to stringent regulatory frameworks and inconsistent legal statuses across different regions. While some countries and states have legalized medical or recreational cannabis, many others continue to impose strict prohibitions. Even in legalized areas, taxation policies, complex licensing requirements, and compliance costs pose challenges for market participants. These barriers limit market entry for smaller businesses and slow the expansion of cannabis-related products. Additionally, the lack of global standardization in regulations complicates international trade and investment opportunities. The stigma assoc...

Prevalence of socio-demographic factors, smoking cannabis, and consumption of alcohol among 980 university students in south-western Uganda.

In 2020, the highest number of cannabis consumers in the United States were located in the state of California, amounting to approximately 6.7 million. Around 2.8 million of cannabis consumers were based in Florida.

Demographics and clinical parameters of all the patients.

Medical and recreational marijuana growing in the United States has experienced substantial growth, with industry revenue surging at a CAGR of 20.4% to reach $23.8 billion over the past five years, including a gain of 9.7% in 2024 alone. Legislative victories during the pivotal 2016 and 2020 elections have facilitated the approval of marijuana for both medical and recreational use in numerous states, contributing to this growth. The acceptance of medical and recreational marijuana has reached an overwhelming 88.0% among US adults, while 57.0% support full adult use legalization, as per a recent Pew Research Center survey. This growing acceptance has opened unprecedented opportunities for growers and investors, fundamentally reshaping the industry landscape. The profitability of marijuana growers has seen a marked increase. Influxes of new market entrants, particularly in states that have legalized recreational use, contributed to substantial revenue spikes, including a 39.6% increase in 2020 alone. Medical marijuana growers have benefitted from a growing aging population with higher incidences of chronic illnesses and cancer, further driving demand. The ongoing momentum for recreational marijuana legalization is expected to continue boosting profit, providing growers with the financial means to expand operations, invest in advanced cultivation technologies and develop diverse product lines. This economic growth has significantly impacted the overall profitability and stability of the industry. Looking ahead, industry revenue is projected to grow at a CAGR of 15.1% to $48.2 billion over the next five years. Although federal legalization remains uncertain, the expanding base of medical marijuana patients and the continuing movement toward recreational legalization are expected to sustain industry growth. Additionally, legalization trends in neighboring countries like Canada and Mexico could exert pressure on the United States federal government to reconsider its stance on marijuana. This evolving regulatory landscape, combined with increasing consumer demand, sets the stage for continued expansion. Consequently, the industry is poised to offer lucrative opportunities for both growers and investors, promising robust growth and innovation.

Health Pot Market size is growing at a faster pace with substantial growth rates over the last few years and is estimated that the market will grow significantly in the forecasted period i.e. 2024 to 2031.

Global Health Pot Market Drivers

The market drivers for the Health Pot Market can be influenced by various factors. These may include:

Trends in Health and Wellness: Growing consumer awareness and care for their health and well-being may stimulate demand for goods viewed as healthy, which could propel the market for medical marijuana to expansion.
Preference for Natural and Organic items: In place of conventional items, consumers are becoming more and more interested in natural and organic alternatives. This group might be interested in health pots made with natural materials or components.
Growing Disposable Income: As customers’ disposable incomes increase, they might be more inclined to spend money on high-end health items, like as cannabis.
Product Design Innovation: By drawing customers searching for cutting-edge solutions, new materials or features that improve convenience or health advantages can stimulate market growth.
Marketing and Branding: Demand can be increased by employing strategic marketing techniques that highlight the health advantages of health pots and set them apart from conventional alternatives.
Demographic Shifts: Changes in the population’s makeup, such as an aging population or a rise in the health-consciousness of younger generations, might open up new markets for health pots.
Regulatory Environment: Modifications to laws pertaining to health and wellness products may have an effect on customer confidence, labeling specifications, and production methods, all of which may have an effect on the market.

This was one single topic among many, from the February 2018 Mixed Topic survey. To view the survey questions, click on the following link:

https://www.edmontoninsightcommunity.ca/c/a/5tKHEJ44EOxCU3WV2dl88H?t=1

Open from February 13 - 20, 2018.

At the time the survey was launched survey invitations were sent to 7,131 Insight Community Members. 2,024 members completed the survey which represents a completion rate of 28%. A total of 2,071 respondents completed the survey: 2,024 Insight Community Members and 7 from the call to action button on our webpage and 40 using the anonymous link(s) on edmonton.ca/surveys which will have no demographic information.

Column definitions can be found as an attachment to this dataset (under the About option, in the Attachment section).

Czechia had the highest prevalence of cannabis use among adults in Europe as of 2022, with 11.1 percent of their population consuming cannabis in the preceding twelve months. This was followed closely by Italy, with 10.8 percent of the population using cannabis.Student use of cannabis in Italy As of 2022, over 40 percent of male students aged 19 years were users of cannabis, while 35 percent of female students this aged were also users. Among 15-year-olds, around ten percent of both boys and girls this age used cannabis.Other drug use in the EU Cannabis is by far the most used drug across the population of the European Union, with almost 30 percent using at some point in their lifetime. This is followed by cocaine, which 5.4 percent have used in their life, and then MDMA with four percent of individuals having used.

The cannabis industry software market was estimated at USD 806.99 million in 2022 and is projected to reach USD 6,656.15 million in 2030, growing at a CAGR of 30.2% during the forecast year 2023-2030. The Driving Factor of the Cannabis Industry Software:

The rising number of point-of-sale (POS) systems in dispensaries is propelling the growth of the cannabis industry software market

The cannabis industry software market will be driven by the rising demand for POS software, which is designed to help retailers manage their businesses successfully POS software helps retailers in tracking sales, inventory, and other vital data that helps them run their businesses more profitably. It also offers features like employee management systems and loyalty programs for customers, which will accelerate the growth of the cannabis industry software market. For instance, on 27 January 2023, POSaBIT reached a deal with Akerna to acquire three cannabis compliance companies in an all-cash deal.

The Restraining Factor of Cannabis Industry Software:

The high finance will hamper the growth of the cannabis industry software market

Cannabis finance is a type of loan, the businesses that deal with cannabis, CBD, and hemp products. This type of financing can provide the necessary capital to cover various expenses such as inventory, equipment, hiring new staff, overhead costs, property purchases, and more will hamper the growth of the cannabis industry market What is cannabis industry software?

The term "cannabis software" refers to a wide variety of management software programs created to simplify the daily operations of legal cannabis enterprises throughout the supply chain. From seed to sale, cannabis software solutions serve a broad range of enterprises in the sector. Cannabis software maintains a thorough digital record of all the crucial information used in daily operations. This makes it simple to follow all of the rules and regulations associated with managing a legal cannabis business. The increasing legalization of cannabis is driving the market. Due to the rising incidence of chronic diseases after the age of 50 and the efficiency of cannabis in treating these conditions, it is expected that this population will be the main driver of global cannabis demand.

European Health Survey: Consumption of cannabis in the last 12 months, according to sex and size of the municipality of residence. Population aged 16 years old and over. National.

The share of cannabis consumers that preferred edible products grew among all age groups in the United States from 2022 to 2023. The most significant growth was among 35 to 54 year-olds, 22 percent of whom used edibles more than other cannabis products in 2023.