(Food-Beverage-News.Com, September 27, 2021 ) According to MarketsandMarkets, the global cannabis market size is estimated to be valued at USD 20.5 billion in 2020. It is projected to reach USD 90.4 billion by 2026, recording a CAGR of 28.0%, in terms of value. The growing medical applications of cannabis is driving the demand for cannabis.
Drivers: increase in legalization of cannabis and rise in social acceptance of marijuana
Cannabis legalization is often viewed upon with dual perceptions wherein its legalization has been proven to be met with skepticism associated with possible abuse. Legalization of cannabis has allowed people to practice safe substance usage along with realizing its medicinal benefits. As a result of which, many countries are gradually legalizing the usage of cannabis across the globe. While most the countries across the globe have still not legalized the recreational use of cannabis, the approach to the usage and sales has been relaxed over the years. This has led to the growing popularity of usage of cannabis in various regions driving the growth of overall cannabis market.
Restraints: Complex regulatory structure for the usage of cannabis
One of the major factors restraining the growth of market is complex regulatory structure for the usage of cannabis. Companies offering cannabis and cannabis-infused products are required to comply with different regulatory guidelines, globally. The strict regulatory norms related to the production and sales of cannabis across different countries could be tedious for manufacturers and stakeholders to comply. Also, the regulations pertaining to the usage of cannabis is varied from country to country, it creates further hindrances in the growth of global market.
Opportunities: Emergence of cannabis legalization in Asia Pacific
As most countries in North America, Europe and South America are legalizing cannabis, there is a huge opportunity for the initialization and legalization of cannabis in the Asia Pacific region. China, being one of the major markets for industrial hemp, is expected to become one of major upcoming markets for industrial cannabis. Many key players operating in the cannabis industry, are waiting for the legislative development in the Asia Pacific region, expecting to generate huge opportunity for cannabis. Several countries in the region could be potential low-cost producers of cannabis with high production capacity.
Challenges: Myths associated with cannabis
Although, thousands of patients in North America and Europe believe that cannabis is an effective medicine for treating various chronic diseases. There is a myth regarding the intoxicating effects of cannabis irrespective of THC content. There is a lack of acceptance of cannabis as a medical therapeutic because of there is an assumption that cannabis is to be consumed only via smoking. Whereas, cannabis can be consumed through pills, vaporization, edibles, dabs, and patches. To overcome these challenges, effective marketing strategies are needed for the right placement of cannabis-based medical products.
The CBD-dominant segment is projected to account for the second-largest share in the cannabis market during the forecast period
By compound, the cannabis market is segmented into THC-dominant, CBD-dominant, and Balanced THC & CBD. CBD-dominant segment accounted for the second-largest market share in the overall cannabis market. It is considered one of the most therapeutic and healing part of the plant. Also, CBD-dominant strains are preferred by consumers suffering from chronic pain, inflammation, anxiety, and other chronic disorders.
The Europe region is the fastest-growing region in the cannabis market in the forecast period
Europe will be the fastest-growing region in the global cannabis market in the forecast period. The cannabis market in Europe is majorly driven by the increasing legalization of medical cannabis in the region coupled with healthcare system present in several Euroepan countries. Along with this, the demand for medical cannabis is rising in the region, further fueling the growth of European cannabis market.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), MedMen (US), Terra Tech Corp. (US), Aphria Inc. (Canada), VIVO Cannabis Inc. (Canada), The Cronos Group (Canada), Medical Marijuana Inc. (US), STENOCARE (Denmark), Tikun Olam (Israel), Organigram Holdings Inc. (Canada), Cresco Labs (US), Indiva (Canada), Curaleaf Holding Inc. (US), HEXO Corp. (Canada), Ecofibre Limited (Australia), Harvest Health & Recreation (US), Green Thumb Industries (US), Maricann Group Inc. (Canada), and TerrAscend (Canada).