Craft Cannabis Market Projects Steady Climb to $12.3B by 2031

LOS ANGELES – Small-scale producers in the Cannabis industry are gaining ground as buyers turn toward premium, handcrafted options, with the craft segment expected to double in value over the next five years. A report from Market Research Intellect forecasts the global craft Cannabis market at $5 billion for 2025, on pace to hit $12.3 billion by 2031, reflecting a CAGR of 15.5%.

This pace outstrips the broader Cannabis market’s projected 10-11% annual increase through the decade, signaling a clear premium on artisanal goods amid wider legalization. Buyers, particularly in established markets, prioritize strain-specific varieties grown in controlled settings with organic techniques, often fetching 20-30% higher prices than mass-produced alternatives. Data from the U.S. Department of Agriculture shows small Cannabis operations up 12% year-over-year since major legalization waves, tied to demand for traceable, clean, terpene-rich products that promise better flavor and effects.

North America anchors the category, claiming about 70% of revenues thanks to mature regulations in states like California and Colorado, where craft cultivators leverage micro-licensing to focus on limited runs. Europe follows with quicker uptake in places like Germany and the Netherlands, where medical reforms open doors for high-end imports. Asia-Pacific holds untapped promise, especially in Australia and Thailand, as urban consumers with rising incomes seek wellness-aligned options.

Yet, the path forward poses challenges. Strict compliance rules can add 25% to operating costs for independents, squeezing margins in fragmented new markets. Major MSOs, fresh off quarterly revenues exceeding nine figures, are dipping into the craft arena through hybrid approaches that blend scale and production efficiency with boutique branding and craft appeal, which may squeeze out dedicated small-batch growers. Analysts point to supply inconsistencies [like variable potency from seasonal grows] as a risk that could undermine buyer trust if not addressed through better testing standards.

Other projections, however, temper the optimism. Verified Market Reports forecasts the craft Cannabis market will expand to $45.12 billion by 2033 at 15.7% growth, factoring in faster tech adoption like precision farming. Such variance highlights how forecasts are heavily dependent on policy shifts, including potential federal rescheduling that could ease access to banking and interstate trade.

In a field where differentiation drives dollars, craft Cannabis stands out for its bet on quality over quantity. Highly Capitalized Network-HCN recognizes this niche as a lasting trend, one that rewards those who deliver clean label consistency and flavorful authenticity, even as the giants circle.