It is witnessing significant growth due to increasing legalization of cannabis across various regions. Also, the growth of this market can also be attributed to the increasing awareness among consumers regarding health benefits of cannabis and its growing medical application Cone weed.
According to MarketsandMarkets, the global cannabis market size is estimated to be valued at USD 20.5 billion in 2020 and is projected to reach USD 90.4 billion by 2026, recording a CAGR of 28.0% in terms of value. The growth of cannabis market can be attributed to the increasing legalization of cannabis across various regions. Along with that, growing medicinal applications of cannabis will further contribute to the growth of cannabis market in the forecasted period. North America region dominated the cannabis market.
Market Growth Drivers:
Growth in the medical applications of cannabis
Increase in legalization of cannabis and rise in social acceptance of marijuana
Geographic Analysis:
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.
Market Dynamics
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.