SAN FRANCISCO, Sept. 2, 2019 /PRNewswire/ -- The global cannabis cultivation market size is expected to reach USD 45.4 billion by 2026, according to a new report by Grand View Research, Inc., exhibiting a CAGR of13.5% during the forecast period. Rising number of countries legalizing marijuana cultivation, increasing number of cultivators, and growing global marijuana trade are some of the leading factors contributing toward the rise in cultivation. In addition, rising production of marijuana derivatives such as oil, creams, and edibles due to increase in demand and geographical expansion of cannabis producing companies is expected to drive growth during the forecast period.
Key suggestions from the report:
North America dominated this market in 2018 with a revenue of USD 15.6 billion, owing to the presence of largest marijuana producing countries such as the U.S. and Canada, which have legalized medical & recreational use
Based on product type, the cannabis cultivation market is segmented into buds, oils, and tinctures.
Buds segment dominated in 2018 owing to buds being a readily usable form and an already existing high consumer pool that smokes buds
Some of the key players are Cannabis Sativa, Inc.; GW Pharmaceuticals plc; Tikun Olam; Tilray, Maricann, Inc.; Aurora Cannabis; Aphria, Inc.; and Canopy Growth Corporation
In December 2018, nearly 840 cultivators in Canada applied for a license, which was 30% higher than that recorded in August 2018.
Buds dominated the market in 2018, owing to a high consumer pool already smoking buds. Moreover, it is a readily usable form and, hence, is considered as a primary product that has more potency as it contains the necessary levels of THC and CBD content. However, the ill effects of smoking buds are likely to impede growth over the forecast period and drive production of cannabis-based oils & tinctures as these products are safe to consume & have a faster onset of action.
North America dominated the marijuana cultivation market in 2018 owing to the presence of two largest marijuana markets-the U.S. and Canada. This is due to legalization of marijuana for recreational and medicinal purposes in Canada & several U.S. states, along with presence of leading cultivators such as Aphria, Tilray, Canopy Growth Corporation, & The Chronos Group in the region.
Canada and the U.S. collectively produced the highest quantity of cannabis, accounting for almost the whole share of the total produce. This is due to high demand for medical & recreational cannabis, increase in pot tourism, and a steep growth in online sales channels. Europe is expected to be the fastest growing, owing to increasing legalization of indigenous cultivation and reducing focus on marijuana imports due to high costs. Moreover, other countries such as Sri Lanka and Thailand are expected to start cultivation after their expected/recent legalization.
Some of the major marijuana cultivators are Canopy Growth Corporation; Aurora Cannabis; Maricann Group, Inc.; Tilray; Aphria, Inc.; The Cronos Group; ABcann Medicinals, Inc.; GW Pharmaceuticals plc.; and Organigram Holding, Inc. Several new cultivators are expected to enter the market due to ongoing legalization in various countries, rising technological advancements in equipment, and growing funding for new startups.
Grand View Research has segmented the global cannabis cultivation market on the basis of product and region:
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.