SAN FRANCISCO, June 15, 2022 /PRNewswire/ -- 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.
Read 150-page market research 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, 2022 - 2030", published by Grand View Research.
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
Check out more related studies published by Grand View Research:
North America Legal Cannabis Market - The North America legal cannabis market size is expected to hit USD 47.5 billion by 2030, registering a CAGR of 15.3% from 2022 to 2030, as per a new report by Grand View Research, Inc. The market is likely to see a marginal increase in demand due to the changing government policies for product legalization and use. Off-late, the population across North America has been made aware of the benefits entailing the use of cannabis for multiple indications.
North America, Europe & Asia Pacific Legal Cannabis Market - The North America, Europe, and Asia Pacific legal cannabis market size is expected to reach USD 89.9 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 25.3% from 2022 to 2030. As more individuals become aware of the medical benefits of hemp, marijuana, and its derivatives, and as these products become more generally available, acceptance is expanding.
Cannabis Extract Market - The global cannabis extract market size is expected to be valued at USD 28.5 billion by 2027, according to a new report published by Grand View Research, Inc. It is projected to expand at a CAGR of 16.6% over the forecast period. Growing legalization of cannabis in various countries, preference for cannabis oil and tinctures, and adoption of medical marijuana for treating chronic diseases like arthritis, anxiety, and Alzheimer's are the major factors propelling the growth.
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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.
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