Global Cannabis Products Market Report 2023
New York – The global cannabis products market is expected to grow from $28.0 billion in 2021 to $35.0 billion in 2022 at a compound annual growth rate (CAGR) of 25.0%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The cannabis products market is expected to reach $80.0 billion in 2026 at a CAGR of 23.0%.
The cannabis products market consists of sales of cannabis vape products, cannabis edibles, cannabis topicals, and cannabis oral products.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.
Cannabis products refer to a cannabis that has undergone a process that turns the plant material into a concentrate, such as, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other substances. It is frequently used as a recreational drugs and has several medical applications, including the treatment of migraines, nausea, and vomiting.
North America was the largest region in the cannabis products market in 2022.Middle East is expected to be the fargest growing region in the forecast period.
The regions covered in the cannabis products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of products are flowers, concentrates, and others.The smokable section of the cannabis plant, also known as the bud or nug, is referred to as the flower, bud, or nug.
The different compounds include THC-dominant, CBD-dominant, balanced THC & CBD and can be used in medical, and recreational. The various routes of administration include oral solutions and capsules, smoking, vaporizers, topicals, and others.
The growing applications of cannabis in the medical field are an important driver for the cannabis products market.Cannabis is a drug that comes from Indian hemp plants such as Cannabis sativa and Cannabis indica, with THC (delta-9 tetrahydrocannabinol) being the main active chemical in it.
Cannabis has several medical applications in conditions such as nausea and vomiting, glaucoma, epilepsy, and asthma.Hence, many countries have legalized the use of cannabis for medical applications despite it being a psychoactive drug.
Medical applications of cannabis include treating cancer, chronic pain, depression, arthritis, diabetes, glaucoma, migraines, epilepsy, AIDS, Alzheimer’s disease, and Parkinson’s disease. According to Harvard Health, around 85% of Americans supported legalizing medical marijuana, and at least several million Americans were using it.
The presence of several legal norms related to the use and possession of cannabis is an important restraint on the cannabis products market.These norms include regulations of the Food and Drug Administration (FDA) as well as rules set up by the government of each state in the USA.
The FDA reviews all applications of cannabis products for their safety and effectiveness.Despite having laws allowing cannabis businesses, many states in the USA still do not allow such businesses.
For instance, Los Angeles, San Francisco, San Jose, and San Diego have laws allowing cannabis businesses, but 80% of California’s nearly 500 municipalities do not allow retail marijuana businesses.
Solar cannabis cultivation is an emerging trend in the cannabis products market.As cannabis cultivation requires a large amount of energy for lighting, heating, air-conditioning, and dehumidification systems, cannabis product manufacturing companies are investing in solar cannabis cultivation.
This is mainly a result of legalizing cannabis products in various states of the USA, which is continuously increasing the consumption of energy and leading cannabis manufacturers to opt for solar cannabis cultivation. For instance, Aurora acquired 71 acres of land in Medicine Hat, Alberta, and installed a high-technology hybrid greenhouse cannabis production facility.
The government of California regulates the safety of manufacturing cannabis under the California Code of Regulations, Title 17 Division 1.It states that every manufacturer of cannabis products should obtain a valid license issued by a state cannabis licensing agency.
To obtain an annual license for cannabis manufacturing, the manufacturer should submit the physical address of the manufacturing premises and a written security plan.The security plan should include security measures to prevent access of unauthorized people into the manufacturing premises and prevention of loss or theft of cannabis and cannabis products.
Hence, this is expected to maintain a vigil on the manufacturing of cannabis in the coming years.
In May 2020, Aurora Cannabis Inc., a Canada-based cannabinoids company acquired Reliva, LLC for an undisclosed amount. Through this acquisition, Aurora and Reliva will be able to build a market-leading international cannabinoid platform, and they will be able to offer stable revenue and enhanced profitability. Reliva, LLC is a US-based company and a pacesetter in delivering high-quality hemp-derived CBD products to consumers.
The countries covered in the cannabis products market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The cannabis products market research report is one of a series of new reports that provides cannabis products market statistics, including cannabis products industry global market size, regional shares, competitors with a cannabis products market share, detailed cannabis products market segments, market trends and opportunities, and any further data you may need to thrive in the cannabis products industry. This cannabis products market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
(This information is primarily sourced from ReportLinker. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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