Cannabis is a flowering plant known for its therapeutic and medicinal benefits if consumed in specified amounts. It helps cure cancer, reduces depression, and possesses several other medical benefits. It is slowly gaining recognition in several countries because of the legalization policies. Further, the adoption of regulatory relaxations and favorable policies is expected to boost the product’s adoption. For example, the House of Representatives passed the HEROES Act in 2020 and presented the act to the SAFE Banking Act and Senate. This act enables banks to grant services to these companies and helps them grow positively. The legalization of cultivation, production, and trade is likely to boost Industry development. The rising development of facilities and farms for medical and therapeutic marijuana products is likely to boost Industry development in the upcoming years.
By type, the Industry is segmented into concentrates and flowers/buds. Based on application, it is classified into industrial hemp, recreational, and medical. Regionally, it is classified into Europe, North America, Asia-Pacific, and the Rest of the World.
Marijuana is used extensively in the medical sector to manufacture anti-depressant drugs, cancer medicines, and other medicines. The rising awareness regarding its benefits is expected to boost its sales. The availability of a wide variety of flavors and edibles is expected to boost the product’s adoption. The product’s availability in candies, chocolates, and beverages is expected to boost its popularity and enable users to enjoy the substance for an hour or two. Furthermore, marijuana’s demand is increasing rapidly from the medical sector because of relaxation policies. Several countries have placed favorable policies legalizing marijuana’s adoption in medicines. It is used to treat AIDS, cancer, and other disorders, which, in turn, is expected to boost its demand. In addition, its adoption by mainstream medical professionals is increasing because of its ability to treat arthritis, anorexia, and other disorders. These factors are likely to drive the cannabis Industry growth.
The global cannabis Industry size stood at USD 20.47 billion in 2020. Rising awareness regarding the product’s therapeutic and medicinal benefits, enabling policies, and relaxation regulations are likely to foster Industry development. in its Research titled “Cannabis/Marijuana Industry, 2021-2028” states that the Industry is projected to grow from USD 28.266 billion in 2021 to USD 197.74 billion by 2028, exhibiting a CAGR of 32.04% during the forecast period.
Recreational Legalization in the U.S. to Boost Industry Growth in North America
North America is projected to dominate the cannabis Industry share because of marijuana’s legalization in the U.S. The Industry in North America stood at USD 19.78 billion in 2020 and is expected to grow positively during the upcoming years. The District of Columbia and Eleven states legalized the adoption of the product in 2019. The state medical cannabis law in the U.S. recognized the product as a medical drug to cure post-traumatic stress disorder, epilepsy, chronic pain, arthritis, and Alzheimer’s disease. In addition, the emergence of several marijuana growers is expected to boost the Industry growth.
Europe is the second-largest Industry shareholder because of the rising adoption of the product and the adoption of favorable legislation. Marijuana is observed to be effective in trials and is used extensively in treating cancers, AIDS, and other disorders in the medical sector. The Greek legislation legalized the adoption of marijuana in 2018, which, in turn, may boost the product’s adoption. These factors are likely to facilitate Industry development.
Companies Acquire Crucial Players to Expand their Product Portfolio
The prominent companies operating in the Industry devise acquisition strategies to expand their product portfolio. For example, Supreme Cannabis Company, Inc. and the Canopy Growth Corporation entered an agreement to acquire Supreme Cannabis by Canopy Company, Inc. in April 2021. This acquisition shall help Canopy Growth Corporation expand its product portfolio, attract consumers, and improve its brand position globally. Further, the launch of innovative products may enable manufacturers to satisfy consumer demand and enhance their brand image.
List of Key Players Profiled in this Industry Research
Aurora Cannabis Inc. (Edmonton, Canada) Tilary, Inc. (Nanaimo, Canada) Canopy Growth Corporation (Ontario, Canada) CannTrust Holdings Inc. (Vaughan, Canada) VIVO Cannabis Inc. (Greater Napanee, Canada) Cronos Group Inc. (Toronto, Canada) Jazz Pharmaceuticals (Dublin, Ireland) OrganiGram Holdings (Moncton, Canada) Lexaria Corp. (Kelowna, Canada) ABcann Medicinals, Inc. (Ontario Canada)