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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

The Cannabis Industry Report is Segmented by Product Type (Capsules, Concentrates, Edibles, and Other Product Types), Application (Medical and Recreational), Compound Type (Tetrahydrocannabinol (THC), Cannabidiol (CBD), and Balanced THC and CBD), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Report Offers Market Size and Forecasts for all the Above Segments in Value (USD).

The global cannabis market is likely to expand from USD 69.84 billion in 2024 to USD 2.82 trillion by 2037, witnessing a CAGR of around 32.9% throughout the forecast period, between 2025 and 2037. Key industry players include The Cronos Group, Marley Natural, Aurora Cannabis, Cara Therapeutics, among others.

The global medical cannabis market size reached USD 37.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 68.6 Billion by 2033, exhibiting a growth rate (CAGR) of 7.1% during 2025-2033. The increasing product use in treating substance use disorders, the exploration of products for chronic inflammatory conditions, the rising product demand for gastrointestinal disorders, and the rising demand for CBD-based products are some of the factors propelling the market.

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

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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 Industry Software Market size was valued at USD 1207.91 Million in 2024 and is projected to reach USD 9962.94 Million by 2031, growing at a CAGR of 30.18% from 2024 to 2031.

Global Cannabis Industry Software Market Drivers

Requirements for Regulatory Compliance: The cannabis business works in a complicated regulatory landscape with strict guidelines controlling sales, distribution, and growing. Cannabis sector software, which automates compliance procedures, keeps thorough audit trails, and guarantees adherence to legal standards, is essential in assisting firms in navigating these regulatory hurdles. The need for software solutions that make compliance management easier is growing as regulatory frameworks continue to change and tighten.

Supply Chain Optimization: The production, processing, distribution, and retail phases of the cannabis supply chain are all included. Software for the cannabis sector offers comprehensive solutions to improve productivity, visibility, and traceability at every stage of the supply chain. With capabilities like demand forecasting, logistics tracking, and inventory management, these software solutions help organizations save waste, optimize workflows, and guarantee product quality and safety all the way through the supply chain.

Operational Efficiency and Scalability: To keep a competitive edge as the cannabis market grows and competition heats up, businesses are putting more and more effort into enhancing operational efficiency and scalability. Software for the cannabis sector provides all-inclusive solutions for handling various areas of business operations, including as customer relationship management (CRM), point-of-sale (POS) systems, facility automation, and cultivation management. These software platforms help firms extend their operations efficiently and adjust to shifting market dynamics by automating manual procedures, maximizing resource utilization, and offering real-time analytics insights.

BIS Research undertakes detailed study report on North America Cannabis Market. The report analyzes key market trends, study, size, players & opportunities.

The Report Covers Cannabis Edible Manufacturers and the Market is Segmented by Product Type (Food and Beverage and Dietary Supplements), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Stores, Online Retail Stores, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, South America, Middle East, and Africa). The Market Sizes and Values are Provided in (USD Million) During the Forecast Years for the Above Segments.

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...

The global medical cannabis market size was valued at USD 12.65 Billion in 2024, driven by the increased legalization of cannabis across the globe. The market size is anticipated to grow at a CAGR of 24.00% during the forecast period of 2025-2034 to achieve a value of USD 108.72 Billion by 2034.

The global medicinal grade cannabis market is experiencing robust growth, driven by increasing legalization and acceptance of cannabis for therapeutic purposes, coupled with advancements in research and development leading to improved formulations and delivery methods. The market, estimated at $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 18% from 2025 to 2033, reaching an estimated value of $60 billion by 2033. This expansion is fueled by several key drivers, including rising prevalence of chronic pain, anxiety, and other conditions effectively treated with cannabinoids, as well as growing physician and patient awareness of cannabis' therapeutic benefits. The increasing availability of various cannabis-based medications, including dronabinol, nabilone, nabiximols, and cannabidiol (CBD), across different channels like hospitals, clinics, and pharmacies further contributes to market growth. Despite regulatory hurdles in certain regions and concerns regarding potential side effects, the overall market trajectory remains positive, reflecting a growing global shift toward the acceptance and integration of medicinal cannabis into mainstream healthcare systems. The market segmentation reveals a significant demand across diverse applications and formulations. Dronabinol, nabilone, and nabiximols dominate the product landscape, while CBD is rapidly gaining traction due to its broad therapeutic potential and lack of psychoactive effects. Geographically, North America currently leads the market, largely due to early legalization efforts and a robust regulatory framework in countries like the United States and Canada. However, substantial growth is anticipated in Europe and the Asia-Pacific region, as legalization efforts expand and consumer awareness increases. Key players, including Ultra Health, Mammoth Farms, and Canopy Growth, are actively shaping the market through product innovation, strategic partnerships, and expansion into new geographical regions. Despite competitive pressures, the market presents substantial opportunities for companies that can effectively navigate the evolving regulatory landscape and meet the growing demand for high-quality, safe, and effective medicinal cannabis products. This report provides an in-depth analysis of the burgeoning medicinal grade cannabis market, projected to reach $50 billion by 2030. It examines market dynamics, key players, emerging trends, and future growth prospects, focusing on crucial aspects such as product concentration, regulatory impact, and end-user adoption. This comprehensive study is essential for investors, industry stakeholders, and researchers seeking to navigate this rapidly evolving landscape.

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%.

The Cannabis Packaging Market is Segmented by Type (Rigid Packaging and Flexible Packaging), Packaging Material (Glass, Metal, Plastic, and Other Packaging Materials), and Geography (North America, Europe, Latin America, and Rest of the World). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

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.

The Medical Marijuana Market size was valued at USD 6,338.1 USD million in 2023 and is projected to reach USD 44,512.2 USD million by 2032, exhibiting a CAGR of 21.2 % during the forecast period. The market of medical Marijuana is therefore growing because of the legalization of cannabis products for health management across the world. It offers multiple forms (oils, capsules, vaporizers) and contains THC and CBD from the Cannabis plant. Some uses are as follows: It can be used for pain control and in the treatment of long-term conditions such as epilepsy. These are synthetic and natural types that are significantly driven by advanced extraction and cultivation technologies used in the market to improve patient quality, minimize opioid reliance, and impact the economy through taxation and employment. Key drivers for this market are: Increasing Public Awareness for Safer Medicines to Stimulate Market Value. Potential restraints include: Side Effects Associated with the Intake of Cannabis Might Restrict Market Growth. Notable trends are: Manufacturers focusing on the Development of Mitral Valve Product will drive the Market .

Medical cannabis market is expected to grow from USD 21.33 bn in 2024 to reach USD 27.81 bn in 2025 and USD 211.54 bn by 2035, representing a CAGR of 22.5%.

The size and share of the market is categorized based on Application (Cannabis Retail, Cultivation) and Product (Seed to Sale Tracking, Compliance Software) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Global Cannabis Products Market to hit USD 159.93B by 2029 growing at 25.9% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

North America Cannabis Market is anticipated to grow at a CAGR of around 27.7% during the forecast period 2022-27.

The global cannabis in food and beverage market was valued at USD 463.41 million in 2021 and is expected to grow at a CAGR of 26.1% during the forecast period.