The Cannabis Market Report is Segmented by Product Type (Flower, Pre-Rolls, Concentrates, and More), by Application (Medicinal, Adult-Use/Recreational, and More), by Compound Type (THC-Dominant, CBD-Dominant, and More), and by Geography (North America, Europe, Asia-Pacific, South America, Middle East, and Africa). The Market Forecasts are Provided in Terms of Value (USD).

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US Cannabis Market Size 2025-2029

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

The US cannabis market is experiencing significant growth, driven by the expanding millennial population in key markets and increasing investment in research and production of medical marijuana. This demographic shift, coupled with growing acceptance of cannabis for medicinal purposes, presents a substantial opportunity for market expansion. From soothing medical treatments to trendy recreational products, cannabis is weaving its way into the fabric of American life, transforming healthcare, leisure, and local economies. However, challenges persist, including accessibility issues and high prices associated with medical cannabis. These obstacles necessitate strategic planning and innovation from industry players to effectively cater to consumer needs and maintain competitiveness.
Companies seeking to capitalize on market opportunities must navigate these challenges, ensuring regulatory compliance and offering competitive pricing and accessibility solutions. By addressing these factors, businesses can effectively position themselves in the dynamic and evolving cannabis market landscape.

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 market dynamics and trends, with various entities playing crucial roles. Environmental impact is a pressing concern, as the industry explores sustainable practices, such as water management and energy efficiency, to minimize its carbon footprint. Economic impact is substantial, with tax revenue generation and job creation being key drivers. Regulatory challenges persist, as legal frameworks evolve, addressing issues like intellectual property, data analytics, and drug abuse prevention. Product safety and consumer safety are paramount, with rigorous testing for addictive substances and contaminants. Yield optimization and nutrient solutions are essential for maximizing profits, while cannabis accessories, including dab rigs and vaporizers, cater to diverse consumer preferences.
Waste management and public health concerns are also critical, as the industry navigates the complexities of the legal framework, grey market, and public opinion. Social equity initiatives aim to address historical injustices and promote community impact. Trichome analysis and legalization debates continue, as the industry strives for product standardization and consumer trust. Regulatory compliance, product safety, and sustainability are essential for navigating the evolving cannabis market landscape.

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


Cultivation Type

  Indoor Cultivation
  Outdoor Cultivation
  Greenhouse Cultivation


Distribution Channel

  Dispensaries
  Online


Geography

  North America

    US

By Derivative Type Insights

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

The CBD segment in the US cannabis market is expected to remain dominant 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, states like Georgia and Indiana allow hemp-derived CBD oil for medicinal purposes, with Georgia permitting oil containing up to 5% THC for specific medical conditions, and Indiana allowing its use as long as it contains less than 0.3% THC. Quality control and compliance regulations are crucial in the cannabis industry, with potency testing, heavy metal testing, microbial testing, and pesticide testing being essential for ensuring consumer safety.

Extraction methods, such as supercritical fluid extraction and CO2 extraction, play a significant role in the production of CBD isolate, broad-spectrum CBD, and THC oil. Brand development and marketing strategies are essential for businesses looking to succeed in the competitive cannabis market, with product labeling, inventory management, and consumer perception being key factors. The cannabis market encompasses various product offerings, including cannabis edibles, cannabis concentrates, and cannabis cultivation methods like soil cultivation, outdoor growing, and indoor growing. Organic cannabis and child-resistant packaging are also important considerations for businesses. D

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.

This dataset presents a thorough analysis of the cannabis industry in 2025, highlighting key statistics and trends such as market growth rates, sales data, usage patterns, legalization progress, employment statistics, and the overall economic impact of the cannabis industry in the United States and globally.

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Marijuana Market Size 2024-2028

The marijuana market size is forecast to increase by USD 87.8 billion at a CAGR of 32.14% between 2023 and 2028.

The market is experiencing significant growth due to the increasing legalization of cannabis for medical and recreational use in various regions. This trend is further fueled by the expansion of the e-commerce industry, enabling easier access to cannabis-infused edible products, CBD oil, and other cannabinoid-based offerings. However, the market also faces challenges such as the potential side effects associated with inappropriate use of medical marijuana and the need for effective pest control solutions to ensure product quality and safety. The cannabis industry is evolving rapidly, with a focus on innovation and compliance to meet the growing demand for CBD and other cannabinoid-based products.

What will be the Size of the Marijuana Market During the Forecast Period?

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The market encompasses a diverse range of products derived from the Cannabis plant, including flowers, concentrates, edibles, topicals and tinctures. Two primary types of cannabis are commonly recognized: Cannabis sativa and Cannabis indica. THC (tetrahydrocannabinol) and CBD (cannabidiol) are the most prominent cannabinoids, with THC producing psychoactive effects and CBD offering therapeutic benefits. Medical cannabis and recreational cannabis are the two primary market segments. Medical cannabis is used to alleviate symptoms of various conditions, such as chemotherapy-induced nausea, while recreational cannabis is consumed for its psychoactive properties. CBD products, such as CBD gummies, have gained popularity due to their non-psychoactive nature and potential health benefits.
The market is continually evolving, with new products and innovations emerging regularly. Cannabinoids, including CBD (Epidiolex) and THC (Sativex, Marinol, Syndros, and others), are being developed and marketed as pharmaceuticals. The cannabis market is experiencing significant growth and is expected to continue expanding due to increasing legalization, consumer demand, and ongoing research and development.

How is this Marijuana Industry segmented and which is the largest segment?

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

Product

  Medical marijuana
  Recreational marijuana


Type

  Oil and tinctures
  Flower


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC



  South America



  Middle East and Africa

By Product Insights

The medical marijuana segment is estimated to witness significant growth during the forecast period. Medical marijuana is experiencing significant growth In the US market due to its potential therapeutic benefits for various health conditions. Chronic pain, including neuropathic and inflammatory pain, is one of the primary conditions treated with marijuana. The increasing prevalence of chronic pain among adults and the popularity of medical marijuana as a pain reliever are driving market expansion. Additionally, medical marijuana has shown promise in alleviating nausea caused by conditions such as Crohn's disease, acute gastritis, hypoglycemia, panic disorder, and arachnoiditis. Marijuana plants used for medicinal purposes include Cannabis indica, Cannabis sativa, and hybrids. The market for medical marijuana products, including flowers, concentrates, edibles, topicals, and tinctures, is expected to continue growing due to their potential therapeutic applications in treating conditions such as epilepsy, multiple sclerosis, anxiety, cancer, glaucoma, and insomnia.

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The Medical marijuana segment was valued at USD 9.19 billion in 2018 and showed a gradual increase during the forecast period. THC and CBD are the primary cannabinoids found in marijuana, with THC providing psychoactive effects and CBD offering therapeutic benefits without the high. Other cannabinoid-based products, such as Sativex, Marinol, Cesamet, and various cannabis-based products, are also gaining popularity for their medicinal applications. The legalization of marijuana for adult use in some states and continued clinical trials for various conditions are further fueling market growth.

Regional Analysis

North America is estimated to contribute 87% 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. In North America, the legalization of marijuana for medical use is gaining momentum. In the US and Canada, marijuana is authorized for thera

Cannabis Market Outlook

According to our latest research, the global cannabis market size reached USD 67.2 billion in 2024, reflecting a robust expansion driven by evolving regulatory environments and increasing consumer acceptance. The market is projected to grow at a CAGR of 14.8% from 2025 to 2033, with the total market value forecasted to reach USD 196.3 billion by 2033. The significant growth momentum is primarily attributed to the rising demand for both medical and recreational cannabis, advancements in product innovation, and broadening legalization across key markets.

One of the primary growth factors for the global cannabis market is the progressive shift in legislative frameworks worldwide. Governments in North America, Europe, and parts of Latin America are increasingly recognizing the therapeutic benefits of cannabis, leading to the relaxation of restrictions and the establishment of regulated markets. Medical cannabis, in particular, has gained traction as scientific studies and clinical trials continue to validate its efficacy in managing chronic pain, neurological disorders, and various other health conditions. This regulatory evolution is not only fueling domestic consumption but also encouraging cross-border investments and collaborations, further accelerating market expansion.

Consumer awareness and acceptance of cannabis-derived products have witnessed a significant surge, contributing to the market's exponential growth. The stigma traditionally associated with cannabis use is gradually diminishing, thanks to extensive educational campaigns, advocacy by patient groups, and endorsements by healthcare professionals. The proliferation of diverse product formats such as edibles, concentrates, topicals, and wellness supplements is attracting a broader demographic, including older adults seeking alternative therapies and younger consumers interested in recreational experiences. This diversification in product offerings is enabling companies to tap into new user segments and sustain long-term growth.

Technological advancements in cultivation, extraction, and product formulation are transforming the cannabis industry landscape. Innovations such as precision agriculture, hydroponics, and advanced extraction techniques are enhancing product quality, consistency, and yield. These improvements are not only resulting in premium-grade cannabis products but are also fostering the development of novel applications across medical, recreational, and industrial sectors. Furthermore, the integration of digital platforms for sales and distribution is streamlining access to legal cannabis, thereby expanding market reach and driving revenue growth.

From a regional perspective, North America continues to dominate the global cannabis market, accounting for the largest share in 2024 due to favorable regulatory policies, high consumer demand, and a well-established supply chain. Europe is emerging as a significant growth frontier, propelled by incremental legalization and rising investments in research and development. Meanwhile, the Asia Pacific region is gradually opening up to cannabis, with countries like Thailand and Australia leading the way in medical cannabis adoption. Latin America and the Middle East & Africa are also witnessing increased activity, although market maturity varies significantly across these regions.

Product Type Analysis

The cannabis market is segmented by product type into flower, concentrates, edibles, topicals, and others. The flower segment remains the most traditional and widely consumed form, particularly among recreational users who prefer smoking or vaporizing. The popularity of cannabis flower is underpinned by its accessibility, affordability, and the immediate effects it delivers. However, the segment is experiencing intense competition from newer product forms as consumer preferences evolve. Companies are investing in premium and specialty strains to differentiate their offerings, while regulatory bodies are introducing qual

Cannabis market is expected to grow from USD 39.21 billion in 2024 to USD 47.76 billion in 2025 and USD 231.81 billion by 2035, representing a CAGR of 17.1%.

A broad dataset providing insights into cannabis industry statistics and trends for 2025, covering market size, growth statistics, business insights, consumer data, and more.

The Medical Marijuana Market Report is Segmented by Formulation Type (Capsules, Oils, and More), Cannabinoid Composition (THC-Dominant, and More), Route of Administration (Oral, Inhalation, Sublingual, and More), Application (Chronic Pain, Arthritis, Migraine, and More), Distribution Channel (Hospital Pharmacies, and More), and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

The Cannabis-Infused Edible Products Market report segments the industry into Product Type (Food, Beverages, Dietary Supplements), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Stores, Online Retail Stores, Other Distribution Channels), and Geography (North America, Europe, Asia Pacific, Rest of the World). Get five years of historical data alongside five-year market forecasts.

Cannabis producers in Canada have blossomed in recent years as recreational products were legalized in 2018, opening up massive growth. Since Health Canada opened up medicinal cannabis production to more players in 2013, producers have grown continuously as they invest in production capabilities to produce quality products. As consumers shifted from illegal cannabis purchases to the licensed recreational market, cannabis growers have grown significantly, but revenue is expected to contract 1.0% in 2024 alone as the novelty of legal cannabis has worn off and most the black market has shifted to licensed purchases, which has decreased growth. Revenue has ballooned at a CAGR of 29.4% to reach $12.6 billion over the past five years. The Cannabis Act was passed in 2018, but ever since its announcement the industry has begun to shift and transform as it transitions into a full-blown consumer product industry. The medicinal marijuana market had been expanding quickly, particularly as it was the only legal cannabis market until late 2018. This has driven innovation and investment into the industry from the biggest producers, which has boosted the industry. The announcement of the legalization of recreational cannabis has shifted production and demand away from medicinal cannabis, which has driven up prices at a significantly faster rate, almost to match the price of recreational cannabis. This has also fomented growth as prices industry-wide have increased. Large capital investment and continued adaptation to a new market amid strong regulations and lack of expertise have also kept profit negative. The industry is still new, adapting to a new environment as established companies explore new frontiers and unlicensed producers transition into legality. Profit is expected to improve in the coming years as growers enhance efficiency and revenue continues to grow as demand continues to shift away from the illegal market. Despite this, the illegal market will likely remain a strong threat and may dampen revenue growth in the future. Competition is expected to intensify and cannabis producers will likely continue adjusting as they explore a new market. Revenue is expected to grow at a CAGR of 1.6% to $13.7 billion over the five years to 2029.

The Medical Cannabis Market size is expected to reach a valuation of USD 137.9 billion in 2033 growing at a CAGR of 21.90%. The Medical Cannabis Market research report classifies Market by share, trend, demand, forecast and based on segmentation.

The Cannabis Market Industry encompasses a diverse product portfolio, including: Marijuana/Flowers: The dried form of the cannabis plant, primarily utilized for recreational and medical purposes. Industrial Hemp: The non-intoxicating variety of cannabis used for fiber, seed, and oil production. Other Concentrates/Products: Extracts, resins, and edibles derived from the cannabis plant. Applications of Marijuana: Medical (pain management, anxiety relief, etc.), recreational, industrial (fiber, biofuel)Applications of Hemp: Textiles, building materials, paper, bioplastics, food (seeds, oil) Notable trends are: The increase in the number of nuclear families and persons living alone at home drives market growth..

The United States medical cannabis market size reached around USD 15.10 Billion in 2024. The market is projected to grow at a CAGR of 12.20% between 2025 and 2034 to reach nearly USD 47.74 Billion by 2034.

Get key insights from Market Research Intellect's Medicinal Cannabis Market Report, valued at USD 25.5 billion in 2024, and forecast to grow to USD 65.4 billion by 2033, with a CAGR of 12.0% (2026-2033).

The global cannabis market should grow from $25.6 billion in 2019 to $77.6 billion by 2024 at a compound annual growth rate (CAGR) of 24.8% for the period of 2019-2024.

Cannabis market size was valued at USD 8.26 billion in 2019 and is anticipated to reach USD 48.29 billion by 2027 at a CAGR of 24.6%. Increasing beliefs and proven studies that suggest the cannabis to be a favorable plant for usage in multiple medications treatments, have been remarkably helping in...

US Cannabis Market Outlook 2031:

The US cannabis market size size was valued at USD 13.20 Billion in 2022 and is projected to reach USD 43.61 Billion by 2031, expanding at a CAGR of 14.2% during the forecast period 2023 - 2031. The growth of the market is attributed to the common use of cannabis products for various applications in industries such as cosmetic, pharmaceutical, and food & beverage.



Despite its quasi-legal status, the market is expected to exhibit exponential growth due to gradual expansion of hemp legalization in several states in the country.



As more states approved marijuana legalization, the market has grown significantly in recent years. As of 2019, marijuana was made legal in 33 states and several states are under the process of legal approval of the products for medical, recreational, or both purposes. This has resulted in an increase in the number of business startups, which has aided in collectively driving the market.

Cannabis plant, a key source of marijuana, is widely adopted to treat patients having chronic illnesses including cancer, Parkinson's disease, Alzheimer's disease, and neurologic problems such as depression and epilepsy. According to a study published by the International Agency for Research on Cancer (IARC), the global burden of cancer was around 18.1 million new cases and 9.6 million deaths in 2018.



Keeping the view of surging illegal trade of cannabis products in the US, industrial companies and government officials are working towards for striking a balance between combating illegal marijuana usage and maintaining a safe and controlled supply. However, the country's illicit cannabis sector is thriving as items sold through illegal channels are costing less than those available in the market officially.



Furthermore, politicians are working towards resolving issues between federal and state regulations to curb stifle of the market growth. Owing to the unavailability of long-term banking solutions, cannabis businesses in the country have been forced to conduct transactions in cash, which has resulted in financial security issues such as money laundering.



States in the United States are addressing these issues by allowing cannabis credit co-operatives to aid business development to ensure accountability in the financial transaction related to cannabis trade. Section 280E of the federal tax code prohibits the deduction of ordinary business expenses related to the "trafficking" of Schedule I drugs.

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Legal Cannabis Market Size 2025-2029

The legal cannabis market size is forecast to increase by USD 142.39 billion at a CAGR of 31.7% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing number of countries decriminalizing and legalizing cannabis use. This global trend is fueled by a growing recognition of the medicinal benefits of cannabis and shifting societal attitudes towards its use. A key trend in the market is the adoption of advanced techniques in cannabis cultivation, including hydroponics and greenhouse growing, which enable higher yields and improved product quality. However, the cannabis market faces challenges, particularly in the area of funding and investment. Despite its growth potential, the industry remains largely underbanked due to federal regulations in many countries, making it difficult for businesses to secure the capital they need to scale operations and meet demand. Companies seeking to capitalize on market opportunities must navigate these challenges effectively, exploring alternative funding sources and building strong business plans to attract investors. Overall, the market presents significant opportunities for growth, particularly in areas such as medical applications, product innovation, and international expansion.

What will be the Size of the Legal Cannabis Market during the forecast period?

Request Free SampleThe cannabis market encompasses a range of products derived from the cannabis plant, including CBD products. CBD, a non-psychoactive compound, is gaining traction in the medical field for its therapeutic potential in treating conditions such as epilepsy seizures and chemotherapy-induced nausea. Marijuana, a plant containing both CBD and THC, is classified as a Schedule I drug in the US, limiting its availability and use. However, the medical cannabis market is expanding, with pharmacists prescribing it for chronic disease treatment and managing chronic pain. The cultivation techniques used to produce these strains can significantly impact their medicinal properties. CBD and THC derivatives are also being explored for their potential in treating multiple sclerosis and other health conditions. The genetic makeup of the cannabis plant continues to be a focus of research, as scientists uncover new medicinal applications for this versatile plant.

How is this Legal Cannabis Industry segmented?

The legal cannabis industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductMedical cannabisRecreational cannabisDerivative TypeCBDTHCBalanced THC and CBDSourceHempMarijuanaGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaAPACAustraliaChinaIndiaJapanSouth AmericaRest of World (ROW)

By Product Insights

The medical cannabis segment is estimated to witness significant growth during the forecast period.The medical cannabis market encompasses the utilization of cannabis and its derivatives for therapeutic applications. This segment holds significance due to the potential therapeutic benefits it offers for various medical conditions and symptoms. Medical cannabis is commonly employed to alleviate chronic pain, reduce inflammation, manage nausea and vomiting, stimulate appetite, and provide relief for symptoms related to diseases such as multiple sclerosis, epilepsy, cancer, and HIV or AIDS. Furthermore, it is being investigated for its potential therapeutic effects on mental health disorders, including anxiety, depression, and PTSD. Medical cannabis is available in different forms, including cannabis flower, extracts, tinctures, and edibles. The legalization of cannabis for medical use has led to the development of eco-friendly packaging solutions and the emergence of online platforms for sales. However, the market faces challenges such as illegitimate trade, social stigma, and regulatory complexities. The therapeutic potential of cannabis is attributed to its cannabinoid content, particularly cannabidiol (CBD) and tetrahydrocannabinol (THC). The medical field continues to explore the medicinal properties of cannabis and its species, Cannabis Sativa and Cannabis Indica, to address the unmet needs of patients. Pharmacists, medical practitioners, and state governments play crucial roles in ensuring the safe and effective use of medical cannabis. Despite the ongoing debates surrounding cannabis, its legitimization for medical use has gained momentum, with an increasing number of adults recognizing its health benefits. The market for medical cannabis products, including CBD, is expected to grow as more research is conducted on its therapeutic potential and its use becomes more mainstream.

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Medicinal Cannabis Market valuation is estimated to reach USD 23.93 Bn in 2025 and is anticipated to grow to USD 102.58 Bn by 2032 with steady CAGR of 23.1%.