SAN FRANCISCO – The U.S. cannabis market size is expected to reach USD 40.0 billion by 2030 and is expected to expand at a CAGR of 14.9% over the forecast period, according to a new report by Grand View Research, Inc. The increased legalization of cannabis for medical and recreational purposes is driving the market growth. Cannabis legalization has influenced the growth.
Key Industry Insights & Findings from the report:
- The U.S. market for cannabis is anticipated to be valued at USD 40.0 billion by 2030, owing to growth at an exponential rate. Despite its discrepancy in legality across states, businesses are working hard to keep up with rising demand and frequent legislative changes affecting each state in the country.
- The medical end-use segment dominated the market with a 77.5% revenue share in 2021 owing to the increasing research activity and growing scientific literature supporting its benefits in the treatment of various chronic diseases.
- Based on source, the marijuana segment dominated the market with an 85.5 % share of the revenue in 2021, owing to the recognition of cannabis for medical purposes and increasing legalization of its use.
- Based on derivatives, the CBD segment dominated the market with a revenue share of 66.3% in 2021 due to its rise in acceptance as a potent pain reliever and its use to treat several other conditions.
U.S. Cannabis Market Growth & Trends
The possibility of abuse owing to cannabis utilization has been reduced due to major, gradual legalization initiatives in many states. While some states have yet to authorize cannabis for recreational use, perspectives toward its usage and sale have shifted over time. As a result, cannabis use has become more popular, moving the overall cannabis business ahead. The safe utilization of marijuana due to legalization is benefitting the growth of the market.
Based on type, the medical segment dominated the market with a revenue share of 77.5% in 2021. Some of the primary factors responsible for this are increased knowledge about the medicinal benefits of cannabis, rising demand for plant-based medicines in pain management, and increasing legalization of cannabis for medical uses. Several states have authorized medicinal marijuana in recent years, although its prescription is based on the physician’s preference and the patient’s desire. The market is likely to develop at a healthy rate over the forecast period as the number of states that have legalized medical marijuana increases.
Based on the source, the marijuana segment dominated the market with a revenue share of 85.5% in 2021 owing to the use of marijuana for recreational as well as medicinal purposes. Also, the growing consumer base and legal purchasing of marijuana products are boosting the segment growth. Moreover, the initiatives undertaken by the government to legalize the consumption and selling of marijuana in different states in the region are impelling the segment growth.
Based on derivative type, the CBD segment dominated the market with a revenue share of 66.3% in 2021. The growing acceptance of CBD products and legalization of CBD in the region are the major factors contributing to the dominance of the segment. Also, CBD has shown its potential in treating various diseases like PTSD and different types of cancer. Moreover, the key players focusing on the development of CBD-infused products is another factor boosting the growth of the segment.
The COVID-19 pandemic outbreak dramatically impacted the cannabis supply chain and has thrown it into turmoil. As a result of the significant ban, the availability of cannabis in dispensaries has dropped due to the global lockdown. Furthermore, the COVID-19 pandemic has harmed the export industry. As a result of the disruption, the distribution system has been interrupted by lockdowns in major countries, affecting both import and export commerce from the U.S. to other countries. On the other hand, the number of patients using cannabis as a medication is certain to rise due to the rise in the number of diseases that require cannabis treatment, thereby paving way for the growth of the market in the forthcoming years.
U.S. Cannabis Market Segmentation
Grand View Research has segmented the U.S. cannabis market based on end-use, source, and derivatives:
U.S. Cannabis Market – End-use Outlook (Revenue, USD Million, 2016 – 2030)
- Chronic Pain
- Depression and Anxiety
- Multiple Sclerosis
- Amyotrophic Lateral Sclerosis
- Post-Traumatic Stress Disorder (PTSD)
U.S. Cannabis Market – Source Outlook (Revenue, USD Million, 2016 – 2030)
- Oil and Tinctures
- Hemp CBD
- Industrial Hemp
U.S. Cannabis Market – Derivative Outlook (Revenue, USD Million, 2016 – 2030)
List of Key Players in the U.S. Cannabis Market
- Canopy Growth Corporation
- GW Pharmaceuticals, plc
- Aurora Cannabis, Inc.
- Aphria, Inc.
- Cronos Group
(This information is primarily sourced from Grand View Research, Inc. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).