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).

In 2023, the medical cannabis market in Europe was valued at approximately 745 million U.S. dollars. In the following years, as more European countries will introduce legalization, the market is expected to increase significantly. Forecasts show that by 2027, the market could reach around 2.2 billion U.S. dollars.

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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?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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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. Despite t

The global cannabis market size is projected to grow from USD 52.01 billion in 2025 to USD 290.73 billion by 2033, exhibiting a CAGR of 24%.
Report Scope:

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%.

According to Cognitive Market Research, the global Cannabis market size was 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

Legalization and regulatory reforms are significantly driving the market

A primary driver of the cannabis market is the increasing wave of legalization and regulatory reforms across various regions. Governments and other organizational bodies are increasingly recognizing the medical and therapeutic benefits of cannabis, along with its potential to generate significant revenue, leading to progressively easing restrictions on cultivation, distribution and consumption.

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.

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.

Trends in the Cannabis Market

The Expansion of Legalization Fuels Consumer and Investment Growth

The global cannabis market is undergoing significant changes due to the rising legalization of both medical and recreational cannabis in North America, Europe, and certain regions of Latin America. Nations like Canada, Germany, and various U.S. states are witnessing a surge in consumer demand, which is fostering the emergence of new startups, product innovation, and increased investment. This legal shift is also normalizing cannabis use and encouraging the growth of dispensaries, wellness products, and edibles.

The Growing Popularity of CBD-Infused Products in Health and Wellness

Cannabidiol (CBD), the non-psychoactive element of cannabis, is emerging as a significant player in the wellness, cosmetics, and functional food industries. Consumers are increasingly turning to CBD for its alleged health advantages, including stress relief, improved sleep, pain management, and anti-inflammatory effects. Consequently, a diverse array of CBD-infused products—spanning oils, gummies, skincare creams, and pet supplements—are entering the market.

Impact of Covid-19 on the Cannabis Market

The COVID-19 pandemic had a mixed impact on the cannabis market. On the positi...

The size of the Medical Cannabis Market market was valued at USD 26.91 Million in 2023 and is projected to reach USD 85.87 Million by 2032, with an expected CAGR of 18.03% during the forecast period. Recent developments include: In March 2024, Jesse Ventura introduced a cannabis edible brand. Ventura partnered with Retro Bakery, based in Columbia Heights, to manufacture THC edibles derived from hemp., February 2023: Metrc reported the expansion of its contract with the State of Missouri to support the regulation of its adult-use cannabis market.. Key drivers for this market are: Increasing Number of Countries Legalizing the Use of Medical Marijuana, Trend of Producing Edible Products with Cannabis; Favorable Reimbursement Environment and Government Support in Certain Countries. Potential restraints include: Lack of Awareness about the Dosage and Medicinal Properties of Marijuana, Social Stigma Related to Cannabis Use. Notable trends are: The Chronic Pain Segment is Expected to Experience the Fast Growth Over the Forecast Period.

In Florida, the medical cannabis market is projected to reach around *** billion U.S. dollars in 2027. This statistic shows a forecast of the medical cannabis market in the United States, by state.

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).

In 2018, medical cannabis products were legalized for the first time in the United Kingdom. Subsequent to this legalization, the country's medical cannabis market is forecasted to increase in size massively. In 2023, the of medicinal cannabis market in the UK stood at *** million U.S. dollars, and by 2027 it is projected to exceed *** million U.S dollars.

The Europe medical cannabis market size reached USD 2,586.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 12,652.9 Million by 2033, exhibiting a growth rate (CAGR) of 18.33% during 2025-2033. The market is poised for significant growth with increase in legalization and expanding therapeutic applications of the product and the rising patient demand for cannabis. Technological advancements in cultivation and extraction technologies, strategic partnerships and growing investment in research and development (R&D) are also contributing positively to the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on species, derivative, application, end use and route of administration.

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Legal Cannabis Market Size 2025-2029

The legal cannabis market size is valued to increase USD 142.39 billion, at a CAGR of 31.7% from 2024 to 2029. Rising number of countries decriminalizing and legalizing cannabis will drive the legal cannabis market.

Major Market Trends & Insights

North America dominated the market and accounted for a 92% growth during the forecast period.
By Product - Medical cannabis segment was valued at USD 11.85 billion in 2023
By Derivative Type - CBD segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 853.08 million
Market Future Opportunities: USD 142391.30 million
CAGR : 31.7%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and rapidly evolving industry, fueled by the continuous decriminalization and legalization of cannabis in various parts of the world. According to recent reports, the number of countries permitting the use of cannabis for medicinal or recreational purposes has significantly increased, with some estimating that over 65% of the global population now resides in jurisdictions with lenient cannabis policies. This market expansion is driven by a growing recognition of the potential therapeutic benefits of cannabis, as well as shifting societal attitudes towards its use. In this evolving landscape, core technologies and applications, such as hydroponics, LED lighting, and automated cultivation systems, are revolutionizing cannabis production.
Service types and product categories, including cultivation, processing, and retail, are seeing significant investment and innovation. However, the industry faces challenges, such as limited funding and investment opportunities, which hinder its growth potential. Despite these hurdles, the market presents substantial opportunities for businesses and investors alike, offering a promising future in a continually unfolding market.
The impact environmental factors cannabis cultivation plays a crucial role in determining plant health and yield, while the effects light spectrum cannabinoid production influence the potency of harvested buds. Through optimization nutrient solutions hydroponic systems, growers can enhance growth and efficiency. The role microbial communities soil health cannabis cannot be understated, contributing to robust plant development. Implementing effectiveness integrated pest management strategies and methods improving cannabinoid potency cannabis plants ensures higher quality crops. Detailed analysis terpene profiles different cannabis strains and comparison various extraction methods cannabinoid yield help refine product offerings. Additionally, assessment post-harvest processing techniques shelf life, strategies enhancing water usage efficiency cannabis, and techniques optimizing energy consumption indoor cultivation support sustainable practices, while assessment quality control measures cannabis products guarantees consumer trust.

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

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How is the Legal Cannabis Market Segmented and what are the key trends of market segmentation?

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.

Product

  Medical cannabis
  Recreational cannabis


Derivative Type

  CBD
  THC
  Balanced THC and CBD


Source

  Hemp
  Marijuana


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    Australia
    China
    India
    Japan


  Rest of World (ROW)

By Product Insights

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

In the dynamic the market, various cultivation techniques are employed to optimize crop yields and improve product quality. Cloning propagation methods, such as asexual propagation, ensure consistency in plant genetics. Harvesting is optimized through crop rotation schedules, growth cycle management, and water usage efficiency. Energy consumption metrics are closely monitored to minimize environmental impact. Trichome development and genetic modification methods are essential for enhancing cannabinoid profiling and plant morphology. Organic cultivation practices, including seed germination techniques and soil health indicators, cater to consumer preferences. Terpene extraction methods, such as hydrocarbon extraction and phytochemistry analysis, contribute to the unique flavors and aromas of cannabis strains.

Environmental control systems, integrated pest management, and microbial community analysis ensure disease management and nutrient uptake efficien

The global cannabis market size was valued at over USD 57.36 billion in 2025 and is expected to expand at a CAGR of more than 18.4%, surpassing USD 310.55 billion revenue by 2035, driven by the rising importance of cannabis in the Cannabis Market.

The medical cannabis market in Australia was forecasted to grow from around *** million U.S. dollars in value in 2023 to over *** million U.S. dollars by 2027. Over the given period, the market size of medical cannabis in the country is expected to follow a consistent upward trend.

In 2024, Market Research Intellect valued the Medical Cannabis Market Report at USD 50.5 billion, with expectations to reach USD 100.5 billion by 2033 at a CAGR of 8.5%.Understand drivers of market demand, strategic innovations, and the role of top competitors.

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.

The North America, Europe & Asia Pacific Legal Cannabis Market is estimated to be valued at USD 36.2 billion in 2025 and is projected to reach USD 345.7 billion by 2035, registering a compound annual growth rate (CAGR) of 25.3% over the forecast period.

The North America Legal Cannabis Market size was valued at USD 18.3 billion in 2023 and is projected to reach USD 47.51 billion by 2032, exhibiting a CAGR of 14.6 % during the forecasts period.

The global legal cannabis market is expected to grow in the forecast period of 2025-2034 at a CAGR of 23.00%.

Market Research Intellect's Cannabis Market Report highlights a valuation of USD 30 billion in 2024 and anticipates growth to USD 70 billion by 2033, with a CAGR of 10.5% from 2026-2033.Explore insights on demand dynamics, innovation pipelines, and competitive landscapes.