Enjoy complimentary customisation on priority with our Enterprise License!
The US cannabis market size is projected to grow by USD 89.50 billion, at a CAGR of 32.14% between 2023 and 2028. The market growth is driven by several factors, including the rising millennial population supporting legal cannabis, and the increasing number of medical cannabis dispensaries across the country. Additionally, the various health benefits of medical cannabis are becoming more widely recognized, further boosting market demand. The popularity of recreational cannabis use among millennials is also driving expansion, alongside the emergence of industrial hemp as a valuable cannabinoid source. These trends collectively contribute to the robust growth trajectory of the US cannabis market.
For more cannabis market insights, View Report Sample
The US cannabis market research report provides comprehensive cannabis industry data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical cannabis market data from 2018 to 2022 for the following segments.
The market share growth by the CBD segment will be significant during the forecast period. Due to the federal legality of hemp-based CBD oil, it is expected to maintain its dominance in market share during the forecast period. For instance, Georgia and Indiana have legalized hemp-derived CBD oil for medicinal purposes.
To know more about the market research and growth report, View the PDF Sample
The CBD channel segment was valued at USD 7.28 billion in 2018. There is increasing adoption of the CBD segment due to the relaxation in government norms regarding CBD usage in most states and at the federal level. For instance, CBD is legalized at the federal level as long as it contains less than 0.3% THC. However, CBD is conditionally legal in South and Midwest states only under particular circumstances, such as for medical use or with a prescription, but it is otherwise illegal. Some of the key factors that are expected to drive the market include the increasing number of states legalizing the use of marijuana products and the rising consumption of the products, particularly for recreational purposes. Thus, such factors are expected to drive the market in US during the forecast period.
The medical segment will account for a significant share of market growth during the forecast period. Factors such as the increasing number of legal approvals by state governments in the US and the rising usage of marijuana for medical purposes are key reasons which are driving the medical segment of the market in the US.
For instance, as of 24 April 2023, 38 states, three territories, and the District of Columbia permitted the medical use of the products, according to the National Conference of State Legislatures. Vendors in the segment are launching new variants of medical marijuana and opening new dispensaries. Additionally, the growing number of organized retail outlets offering medical marijuana products and the increasing legalization of the products is expected to significantly drive the market in the US.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The US cannabis market research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Cannabis industry data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; cannabis market insights are quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The US cannabis market overview highlights significant growth following marijuana legalization and liberalization initiatives. This flowering plant is valued not only for its therapeutic and medicinal benefits but also for its social and spiritual utilization. The market offers a variety of products, including cannabis-infused products such as edibles, beverages, and vapes, catering to diverse consumer preferences. Medical marijuana dispensaries play a crucial role in providing cannabis-related products tailored for therapeutic applications, particularly for conditions like multiple sclerosis. Organic and sustainable farming practices are increasingly emphasized, supporting the production of wellness and health products, including CBD-related items. Hybrid strains like Indica and Ruderalis are cultivated to meet specific consumer demands, reflecting dynamic evolution in the cannabis industry. As cannabis legalization expands, the industry continues to innovate, offering extracts and derivatives that cater to both medical cannabis segments and recreational users known as pure stoners.
The growing millennial population in key cannabis markets is notably driving market growth. The cannabis market in the US has experienced significant growth, particularly among millennials, with an estimated 36.4 million individuals aged 12 or older using cannabis for recreational and medical purposes in 2021. The cosmetic, pharmaceutical, and food & beverage industries have seen increased demand for cannabinoid-based products, including CBD and cannabis-based alcoholic beverages, due to their potential benefits for various health conditions such as chronic pain, nausea, and chemotherapy side effects. Strategic developments in the cannabis industry include the FDA's approval of prescription cannabinoid-based medications like Epidiolex and Cesamet for medical purposes. According to the Gallup Survey and SingleCare Survey, consumers are turning to cannabis for managing conditions like cancer, depression, anxiety, diabetes, arthritis, epilepsy, and sleep cycle disruptions. The cultivation norms and biomass demand have led to stringent regulations and strategic instances in the supply chain.
Moreover, scientific literature supports the use of cannabis for health conditions like chronic pain, seizures, and psychoactive effects on conditions like anxiety, depression, and stress. Marinol and Syndros are other prescription cannabis-derived medications used for medical purposes. The cannabis market's growth is driven by the legalization of marijuana for medical and recreational purposes in many states, with chronic conditions, chronic pain, and nausea being common reasons for use. The market's growth is also influenced by the potential benefits of cannabis for conditions like cancer, Alzheimer's disease, and sleep cycle disruptions. Cannabis oil is used for various health conditions, including pain management and seizure control. The market report covers factors that are driving the growth of the market during the forecast period.
The increase in funding for research and production of medical marijuana is one of the key cannabis industry trends driving growth. The legalization of medical marijuana in the US has provided vendors with In US, there has been increasing opportunities for vendors to find new medicinal uses for marijuana due to the legalization of medical marijuana. Additionally, government organizations such as the NIDA are focusing on R&D investment in medical marijuana.
For instance, for the financial year 2022, NIDA requested USD 1.9 billion to support cutting-edge research on all aspects of addiction. Thus, there is an increase in funding for research by government authorities due to the growing consumption of medical marijuana in the US. Thus, such funding will provide an incentive for vendors to expand their presence. These are the major cannabis industry trends propelling market growth, as highlighted in the market growth and trends report.
The accessibility issues and high prices associated with medical marijuana are the challenges hindering the growth. Even though medical cannabis is widely consumed in all states of the US, it is not accessible to all consumers. Also, it is not covered under insurance and thus cannot be sold at local medical pharmacies. As a result, patients need to visit legalized dispensaries to access in a controlled, safe, and legal manner
For instance, in many states in the US, such as Alaska, Arizona, Arkansas, California, and Colorado, patients should have an active identification card with the recommendation of doctors to purchase and possess the products. Hence, such regulations can make it difficult for many consumers to buy and possess, which can pose a significant challenge to the U.S. Market during the forecast period.
The market encompasses a diverse range of products and applications, catering to both recreational and medicinal consumers. From smoking flowers in joints, pipes, and bongs to consuming infused products like topicals, candies, and beverages, the market offers various consumption methods. Medical hemp and CBD-related products dominate the medicinal segment, targeting conditions such as glaucoma and muscle spasticity. Extracts like CO2 oil and Butane hash oil are popular for their potency, while recreational users favor products like shatter, wax, and live resin for their mind-altering effects. The industry sees ongoing innovations in cannabis packaging, with a shift towards natural, unprocessed products to mitigate inhalation hazards. Despite social stigma, decriminalization efforts continue, supporting broader acceptance and accessibility of cannabis for therapeutic and recreational use.
In addition, the market is evolving with advancements in hybrids and genetic engineering and cannabis testing, enhancing the medical cannabis segment. Artificial Intelligence plays a role in optimizing cultivation and extraction processes, leading to innovations in cannabis edibles, infused beverages, and vapes. Extracts such as oils and concentrates remain popular for their potency and versatility in consumption methods. Cannabis-infused products offer consumers diverse options, from edibles like candies to beverages and vaping solutions. The market's growth is driven by increasing acceptance and legalization, fostering a robust industry that caters to both medicinal and recreational users. As regulations evolve and technologies advance, the legal cannabis market continues to expand, offering new opportunities for innovation and consumer choice in the United States.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 32.14% |
Market Growth 2024-2028 |
USD 89.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
24.42 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., Canopy Growth Corp., Charlottes Web Holdings Inc., Columbia Care Inc., Cresco Labs LLC, Cronos Group Inc., Curaleaf Holdings Inc., Folium Biosciences, Green Roads., Jazz Pharmaceuticals Plc, Lexaria Bioscience Corp., Medical Marijuana Inc., MM Enterprises USA LLC, Pure Spectrum CBD, Sundial Growers Inc., Terrascend Canada, Tilray Brands Inc., Trulieve Cannabis Corp., Unrivaled Brands Inc., and Verano Holdings LLC |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our cannabis market analysis and report have not included the cannabis market data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this US cannabis market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Derivative Type
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.