U.S. Cannabinoids Market Size, Share, Growth Analysis, By Product(Cannabidiol (CBD), Cannabigerol (CBG)), By Application(Inflammation, Pain Management) - Industry Forecast 2023-2030

U.S. Cannabinoids Market size was valued at USD 11.5 Billion in 2021 and is poised to grow from USD 13.80 Billion in 2022 to USD 59.34 Billion by 2030, at a CAGR of 20% during the forecast period (2023-2030).

The U.S. Cannabinoids Market has garnered significant attention owing to the increasing legalization of cannabis for medicinal and recreational use and the potential therapeutic benefits associated with cannabinoids. The market's growth is propelled by factors like the expanding acceptance of cannabis for medical purposes, rising consumer awareness regarding the health benefits of cannabinoids, and the emergence of diverse product categories, encompassing CBD oils, tinctures, capsules, topicals, and edibles. A key driver is the growing demand for CBD products, renowned for its non-psychoactive nature and potential therapeutic effects such as pain relief and anxiety reduction. The market spans various sectors like healthcare, wellness, personal care, and pet care. Regulatory dynamics surrounding cannabis, though federally illegal, are shifting at the state level, creating opportunities for market expansion. The market is marked by numerous players, both established companies and startups, actively involved in research, product innovation, strategic partnerships, and M&A activities to enhance their competitive position. Continuous monitoring of legislative developments, consumer preferences, and scientific research is crucial for market participants to capitalize on emerging trends. Anticipated growth in the U.S. cannabinoids market is fueled by increasing consumer acceptance, product diversification, and ongoing efforts toward legalization at state and federal levels.

Top-down and bottom-up approaches were used to estimate and validate the size of the U.S. Cannabinoids Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

U.S. Cannabinoids Market Segmental Analysis

The U.S. cannabinoids market is segmented on the basis of end use, derivative, and region. By end use, the market is segmented into medical, recreational, and industrial. In terms of derivatives, the market is segmented into CBD, THC and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the U.S. Cannabinoids Market

Derived from cannabis plants, medicinal cannabis has exhibited potential in alleviating symptoms associated with specific medical conditions and mitigating side effects from certain treatments, with a primary focus on pain management. The increasing global acceptance and legalization of cannabis for various indications have contributed to the growing utilization of medicinal cannabis. Notably, the FDA has sanctioned medical cannabis for severe forms of epilepsy such as Dravet syndrome and Lennox-Gastaut syndrome, as well as for addressing spasticity in Multiple Sclerosis (MS). Alongside approved drugs, there is a rising interest in two key cannabinoids: delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). THC shows potential in enhancing appetite, reducing fatigue, and managing muscle-related issues, while CBD demonstrates effectiveness in controlling epileptic seizures, treating psychiatric illnesses, and reducing inflammation. The therapeutic properties of these cannabinoids have attracted considerable attention, highlighting their potential applications across various medical conditions.

Restraints in the U.S. Cannabinoids Market

The production and acquisition of medical cannabis devices can result in significant expenses, compounded by high procedure costs due to specialized equipment and training requirements. These financial challenges create obstacles to accessing medical cannabis treatments for both patients and healthcare facilities, especially in economically disadvantaged areas. The elevated costs associated with these devices and procedures may deter certain patients, particularly if they are required to cover the expenses independently, as insurance coverage for medical cannabis treatments is often limited. Consequently, the substantial costs involved act as a significant impediment to market growth, especially in regions where cost considerations are crucial. However, with advancing technology, there is potential for a reduction in the costs of these devices and procedures, potentially improving accessibility for patients and healthcare facilities. The intricate nature of medical cannabis devices and the prohibitive costs of associated treatments are anticipated to be limiting factors for market expansion.

Market Trends of the U.S. Cannabinoids Market

The market is experiencing a broadening of product offerings, extending beyond conventional CBD oils and tinctures. Companies are introducing an extensive array of cannabinoid-infused products, including edibles, beverages, topicals, skincare items, pet products, and more. This diversification aims to accommodate diverse consumer preferences, enhancing the market's reach and appeal for cannabinoids.