U.S. Cannabinoids Market size was valued at USD 11.5 Billion in 2021 and is poised to grow from USD 13.80 Billion in 2022 to USD 59.34 Billion by 2030, at a CAGR of 20% during the forecast period (2023-2030).

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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. D

The U.S. Minor Cannabinoids Market size was valued at USD 14.4 billion in 2023 and is projected to reach USD 38.30 billion by 2032, exhibiting a CAGR of 15.0 % during the forecasts period. Factors fueling this growth include the advantages of hybrid seeds, government incentives, heightened food security concerns, and technological breakthroughs. Hybrid seeds offer resilience to environmental stresses, increased yield, and superior nutritional content, driving their adoption. The U. S. minor cannabinoids market is evolving at a particularly high speed because consumers are becoming more focused on health and wellness. Other minor components such as CBG, CBN and CBC are also coming to the fore as they have desired medical uses like pain relief, sleeping aid, and anti-inflammatory effects. The market expansion is driven by various reasons such as improved extraction techniques, increasing preference of natural products and changing legal systems. Investments are increasing on product innovation to develop new forms such as tinctures, capsule and topical use. Though such markets face regulatory concerns, they hold a great potential for future growth in response to growth in public knowledge and increased scientific evidence. Recent developments include: In December 2023, Rare Cannabinoid Company launched THC + THCV Uplift Gummies. This product combines the relaxing sensation of Delta-9-THC with the energizing, appetite-controlling effects of CBD and THCV. , In October 2022, High Tide Inc., a retail-focused cannabis company, announced that its Colorado-based subsidiary, NuLeaf Naturals, launched its plant-based softgels and full spectrum multicannabinoid oil with CBC, CBD, CBG, delta-9 tetrahydrocannabinol (Delta 9), and CBN for sale in Manitoba. .

On the assumption that the federal prohibition on cannabis ends by 2020, the value of the consumer market for cannabinoid-based pharmaceuticals in the United States is forecast to grow to 25 billion U.S. dollars in 2025 and be worth 50 billion U.S. dollars in 2029.

The therapeutic potential of cannabinoids Cannabis – also known as marijuana – contains active ingredients called cannabinoids. The second-most abundant cannabinoid found in cannabis is cannabidiol (CBD), a chemical substance that is considered to have a broad range of medical benefits. Clinical trials to test the effects of cannabis-based drugs are ongoing, but potential treatments have been identified for cancer pain, glaucoma, and epilepsy. Annual sales of CBD products in the United States were expected to generate around three million U.S. dollars in 2019, with sales from the state of California contributing a 25 percent share.

Medical marijuana laws by state In 1996, California became the first state in the United States to allow the medical use of cannabis. As of 2018, the market for medical marijuana in the United States had grown to 33 states and Washington D.C. – the state of Oklahoma had the fastest-growing medical marijuana market in the country. More states may loosen their marijuana laws over the next few years, but for the time being, cannabis remains federally illegal in the United States.

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).

According to some projections for the United States, the medical cannabis market will reach a peak in 2024, with around *** billion U.S. dollars. After that, a phase of stagnation and even decline is expected in the following years. This is partly because medical sales tend to fall when states start allowing adult-use sales after previously allowing medical-use sales.

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Cannabinoids Market Size 2024-2028

The cannabinoids market size is forecast to increase by USD 88.4 billion at a CAGR of 30.41% between 2023 and 2028.

The market is experiencing significant growth due to the increasing recognition of cannabinoids' therapeutic potential in managing various health conditions. Key drivers include the legalization of medicinal cannabinoids and the launch of educational programs to raise awareness of their benefits. However, the market also faces challenges, such as the potential side effects associated with inappropriate use. Cannabinoids have shown promise in addressing inflammation, insomnia, cancer-related symptoms, and chronic pain. The immunological system and central nervous system are the primary targets for these compounds. As the use of cannabinoids, including marijuana and prescription drugs, becomes more widespread, it is crucial to understand their effects and proper application to maximize their benefits and minimize risks. The market's growth is expected to continue as research uncovers new applications and regulatory frameworks evolve to support their use.

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

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The market is witnessing significant growth due to the increasing awareness and acceptance of cannabis-derived products for various health conditions. The market encompasses a range of products, including body lotions, oils, capsules, and vaping items, derived from the cannabis sativa plant, specifically hemp, and medical cannabis. Cannabinoids are chemical compounds found in the cannabis sativa plant. The most prominent cannabinoids include cannabidiol (CBD), cannabigerol (CBG), and tetrahydrocannabivarin (THCV). Among these, CBD has gained significant attention due to its potential therapeutic benefits.
In addition, anxiety, seizures, muscle disorders, Parkinson's disease, chronic noncancer pain, cancer patients, neuropathy, vomiting, appetite, weight loss, and cancer progression are some of the conditions for which cannabinoids are being explored as potential treatments. The market is expected to continue its growth trajectory due to the increasing acceptance and legalization of medical cannabis and the growing body of scientific evidence supporting the therapeutic benefits of these compounds. However, it is essential to note that the regulatory landscape for these products is evolving, and it is crucial for companies to stay informed of the latest regulations and guidelines. In summary, the market in North America is experiencing steady growth due to the increasing demand for natural alternatives to synthetic products for managing various health conditions.

How is this market segmented and which is the largest segment?

The market 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.

Application

  Medical
  Non-medical


Channel

  Retail pharmacies
  Online stores
  Hospital


Geography

  North America

    Canada
    US


  Europe

    Germany


  APAC



  South America



  Middle East and Africa

By Application Insights

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

Medical cannabinoids derived from the Cannabis sativa plant, including Cannabidiol (CBD) and Tetrahydrocannabinol (THC), have emerged as potential alternatives to conventional pain management medications in the US. These compounds have shown efficacy in alleviating chronic non-cancer pain, particularly pain caused by nerve damage and inflammation. The increasing prevalence of chronic pain among adults in the country is a significant factor driving the growth of the market. Furthermore, medical cannabis testing and legalization in several states are fueling market expansion. In addition to pain relief, cannabinoids have demonstrated potential in treating conditions causing severe nausea, such as Crohn's disease, acute gastritis, hypoglycemia, panic disorder, and arachnoiditis.

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The medical segment was valued at USD 10.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 64% 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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In North America, the legalization of cannabinoids for medical use in the United States and Canada is fueling market expansion. Notable companies providing cannabinoids in this region mimic the cannabinoid compounds naturally produced

US Cannabis Testing Services Market size is growing with a CAGR of 12.7% in the prediction period and it crosses USD 4.71 Bn by 2032 from USD 2.04 Bn in 2025.

Global Legal Cannabis Market size is expected to be worth around USD 247.4 Billion by 2033 from USD 26.1 Billion in 2023

The US Cannabis Marijuana Market offers a diverse range of products, including marijuana flowers, oils, tinctures, hemp CBD, supplements, and industrial hemp. Marijuana flowers are a key product category, with different strains offering varying potencies and effects. Cannabis oils are highly concentrated extracts, providing a potent delivery method. Tinctures are liquid extracts that can be easily mixed into beverages or consumed sublingually. Hemp CBD products are derived from hemp plants and contain non-psychoactive cannabidiol (CBD), which has therapeutic properties without the psychoactive effects of tetrahydrocannabinol (THC). Industrial hemp is used for various non-drug applications, such as fiber production and biofuel. Notable trends are: Prolonged Legalization and Regulatory Developments are driving the market growth..

This graph shows the U.S. cannabis consumer market size, combining both recreational and medical marijuana, from 2015 to 2024, in billion U.S. dollars. It is estimated that in 2024 the cannabis consumer market in the U.S. will reach **** billion U.S. dollars.

Technological advancements in the U.S. Minor Cannabinoids industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

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 projected number of cannabis users is projected to increase significantly by the year 2025. As of 2016, the value of the cannabis market attributable to medical use was about *** billion U.S. dollars. By 2025, the projected market value for medical cannabis is estimated to be over ** billion U.S. dollars. In recent years, the cannabis market has grown significantly in the U.S. and is anticipated to grow outside the U.S. as well. Economic benefits from the cannabis industry One of the potential economic benefits from the cannabis market is the potential to generate taxable revenue for states. The value of taxable revenue generated by cannabis sales is expected to grow significantly in the coming years. Another benefit of the cannabis industry is the potential for job creation and growth. The estimated number of jobs that will be created by the U.S. marijuana industry is expected to exceed *** thousand in the next few years. Consumers and opinions Consumers are an important part of the cannabis market growth in the U.S. The number of U.S. adults that had used marijuana within their lifetimes has been increasing in recent years. Cannabis can be used in a variety of forms with many methods for consumption. The most common form of marijuana consumed in the U.S. in recent years was cannabis flower, followed by edibles. Marijuana can also be purchased or acquired through a variety of channels. A majority of adults in the U.S. in recent years had purchased their marijuana from a recreation facility.

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.

In US Legal Cannabis Market is projected to grow from USD 17.8 billion in 2025 to USD 54.9 billion by 2031, at a CAGR of 20.7%

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.

Overview

New York, NY – April 25, 2025 The Global Legal Cannabis Market size is expected to be worth around USD 247.4 Billion by 2033 from USD 26.1 Billion in 2023, growing at a CAGR of 25.2% during the forecast period from 2024 to 2033.

The global legal cannabis market is projected to expand significantly, reaching USD 247.4 billion by 2033, up from USD 26.1 billion in 2023, growing at a CAGR of 25.2% during the forecast period (2024-2033). This growth is driven by increasing legalization of medical and recreational cannabis, rising consumer demand, and expanding research on cannabis-derived health benefits.

Medical cannabis is being widely adopted for its therapeutic properties, particularly in managing chronic pain, neurological disorders, and mental health conditions. Meanwhile, the recreational cannabis segment continues to grow as governments worldwide ease regulations and create structured legal frameworks.

North America currently dominates the market due to widespread legalization in the U.S. and Canada. However, Europe and Latin America are witnessing rapid growth as more countries move toward cannabis decriminalization. Additionally, advancements in CBD-based products, edibles, and cannabis-infused beverages are further driving market expansion.

Despite regulatory challenges and supply chain complexities, the legal cannabis industry presents immense opportunities for investment, innovation, and economic development. As legalization expands globally, companies are focusing on product diversification, partnerships, and sustainable cultivation practices to strengthen their market presence.

Introduction

New York, NY – January 22, 2025 – The Legal Marijuana Market size is expected to be worth around USD 86.3 Billion by 2033 from USD 19.4 Billion in 2023, growing at a CAGR of 16.1% during the forecast period from 2024 to 2033. In 2023, North America led the market, achieving over 75% share with a revenue of US$ 14.4 Billion.

The legal marijuana market is witnessing remarkable growth, driven by increasing legalization for medical and recreational use globally. As of 2023, over 50 countries have adopted legal frameworks to regulate cannabis, with prominent markets in North America, Europe, and emerging regions such as Asia-Pacific and Latin America. North America remains the largest market, with the United States leading due to widespread state-level legalization and Canada being the first G7 country to legalize cannabis nationwide.

Medical marijuana dominates the sector, fueled by growing recognition of its therapeutic benefits for conditions like chronic pain, epilepsy, and anxiety. Recreational use is also expanding rapidly, supported by shifting societal attitudes and government regulations. Innovations in product formats, including edibles, oils, and vapes, are attracting diverse consumer demographics. Additionally, significant investments in cannabis cultivation technologies and research are enhancing product quality and availability.

Despite regulatory complexities and stigma in certain regions, the global legal marijuana market is projected to grow exponentially. Industry experts anticipate a compound annual growth rate (CAGR) of over 20% from 2023 to 2030. This highlights the market's potential to generate substantial economic benefits, create jobs, and contribute to public health advancements through regulated cannabis use.

The US Cannabis Market size is expected to be worth around US$ 115.1 Billion by 2034 from US$ 38.4 Billion in 2024.