San Francisco, 06 June 2024: The Report U.S. Cannabis Market Size, Share & Trends Analysis Report By End-use (Medical, Recreational, Industrial), By Source (Marijuana, Hemp), By Derivative (CBD, THC), And Segment Forecasts, 2023 - 2030

The U.S. cannabis market size is expected to reach USD 40.1 billion by 2030 and is expected to expand at a CAGR of 14.2% 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. 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 77.0% in 2022. 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 86.5% in 2022 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 65.5% in 2022. 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.

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In the United States, cannabis is often used in the cosmetic, pharmaceutical, and food & beverage industries. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market. The increasing research on the use of cannabis and its medicinal properties has led to its increased use to treat various chronic conditions. They are found to be effective in treating chronic pain and nausea caused due to chemotherapy. Furthermore, the constant rise in the legitimization of medical cannabis has resulted in the growth of the market. For instance, the Food and Drug Administration (FDA) has approved the use of cannabis-derived drug products such as Epidiolex, Cesamet, etc. for treating seizures, and chemotherapy-induced side effects respectively. Moreover, in December 2020, the U.S. House of Representatives passed the legislation to remove cannabis from “The controlled Substance Act of 1970”. This is anticipated to create enormous opportunities for market growth in the forthcoming years.

U.S. Cannabis Market Report Highlights

• The U.S. market for cannabis is anticipated to be valued at USD 40.1 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 77.0% revenue share in 2022 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 86.5 % share of the revenue in 2022, 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 65.5% in 2022 due to its rise in acceptance as a potent pain reliever and its use to treat several other conditions

Moreover, a positive attitude of consumers towards the consumption of cannabinoid-based products has led to the increased penetration of abis. For instance, according to the Gallup Survey, 2022, approximately 64% of the U.S. adults were familiar with CBD and CBD products and as per the SingleCare Survey 2020, approximately one-third of Americans used CBD.

Also, the increasing number of companies entering the local markets to cater to the growing demand for cannabis is one of the factors supporting the market growth. In addition, a dynamic startup scene in the U.S. boosts the growth of the market for cannabis. For instance, as per an article published in TechCrunch, Dutchie, Inc., Oregon based company raised a Series D funding of around USD 350 million in 2021.

U.S. Cannabis Market Report Scope

Other factors contributing to the growth include the favorable cultivation norms which help cater to the biomass demand in the U.S. Some major states such as Florida, Oregon, Nevada, California, Washington, and Colorado are the major producers of cannabis, owing to favorable climatic conditions and the legalization of medical marijuana. Furthermore, the increasing number of companies in cannabis businesses due to the ease with which wholesale procurement of cannabis can be carried out and product development can be achieved is driving the market growth in the U.S.

The COVID-19 pandemic resulted in the reduction in the strategic instances and revenues by various players. The factors responsible for the reduction in revenue include stringent regulation on trade and disruption in the supply chain due to lockdown in the U.S. In addition, despite the increase in the number of cannabis utilizers during the pandemic, there has also been a significant reduction in the price, which has led to a decrease in the market size, in terms of revenue.

However, with the improving situation in the region, there is an upsurge in the strategic developments by the key players, and this trend is anticipated to witness growth over the forecast period. In addition, the affirmative guidelines provided by the FDA for the continuation of the R&D activities concerning cannabis and CBD is anticipated to boost the growth of the U.S. cannabis market in the forthcoming years.

List of Key Players in the U.S. Cannabis Market

• Canopy Growth Corporation
• GW Pharmaceuticals, plc
• Aurora Cannabis, Inc.
• Aphria, Inc.
• Cronos Group
•  Tilray

About Grand View Research
Grand View Research is an India & U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services.
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