Cannabis Cultivation Market Forecasts to 2028 - Global Analysis By Product Type, Compound, Application, Distribution Channel, Cultivation Type, Biomass, Crop Variety and By Geography

According to Stratistics MRC, the Global Cannabis Cultivation Market is accounted for $392.1 billion in 2022 and is expected to reach $1377.7 billion by 2028 growing at a CAGR of 23.3% during the forecast period. Cannabis is a genus of flowering plants that has been consumed for thousands of years due of its widely acknowledged therapeutic and medical properties. Its use in social and spiritual contexts is likewise well documented. Three species predominate: C. sativa, C. indica, and C. ruderalis. The majority of cultivars developed now are hybrids that combine traits from two or more of these important species. Additionally, the global movement to legalise marijuana is gathering steam. The main factor fueling this momentum is the growing understanding that the product may have a variety of valid medicinal benefits and therapeutic applications.

According to research published in The Lancet in October 2021, the pandemic resulted in 53.2 million extra significant cases of depressive disorder and 76.2 million additional instances of anxiety disorders worldwide in 2020.

Market Dynamics:

Driver:

Growth in research & development activities and technological innovation

As cannabis cultivation and consumption become more popular in many nations around the world, technological advancement is being reformed to allow for the effective creation of cannabis-based products. As more countries strive to legalise cannabis for medical purposes, technology engagement in cannabis cultivation is becoming increasingly important. Cannabis growers have traditionally prioritised little plant processing. However, due to technical advancements, producers are increasingly focusing on producing edibles, capsules, vaping oils, and gummies.

Restraint:

Problems associated with high-dose cannabis consumption

Legalising cannabis brings benefits in terms of increased employment and tax income, but it also increases the risk of cannabis overdose. Overdosing can cause anxiety or panic attacks in the short term, as well as heart arrhythmia and mental health problems in the long term. Cannabis poisoning, or the transient harmful effects of consuming an excessive amount of cannabis at once, is also a possibility. There are numerous cannabis products available, including capsules, oils, a variety of foods, and vaporizers. Because the effects of edibles take time to manifest, there is a larger danger of mistakenly consuming a high dose of such edibles. As a result of these unfavourable health impacts, several countries are not legalising cannabis, hindering global cannabis industry growth.

Opportunity:

Cannabis infused edibles offer better opportunities for the cannabis market growth

The rapid expansion in global demand for cannabis has heightened the need for improved development. As a result of this necessity, several companies have developed R&D that exhaustively investigates various genetic improvement options for cannabis. One of the most promising opportunities for manufacturers is to create low-dose edible products for patients seeking medical cannabis without psychoactive effects. Furthermore, low-dose edibles are an ideal product line for attracting new consumers into the cannabis market because micro-dosing allows them to have control over their recreational usage. The rise of the cannabis-infused consumable products business is being driven by greater social acceptance of cannabis.

Threat:

Intensive water consumption during cultivation of cannabis

Cannabis plant cultivation requires a lot of energy and consistency. Cannabis is one of the most energy-intensive crops growing in the majority of US states and other areas of the world. To maximise output, a large amount of water and light are necessary, as well as specialised climate-control equipment for indoor and outdoor plant growth. The high demand for water causes contamination and diversion, which can harm the ecology. It may also contribute directly to soil erosion. Cannabis plants, on the other hand, have the potential to absorb and store heavy metals. Energy costs might amount to 50% of the wholesale price, which figure is projected to rise as cannabis prices continue to fall.

COVID-19 Impact:

The COVID-19 pandemic has had a significant impact on the cannabis market. The COVID-19 outbreak has had an impact on a wide range of enterprises worldwide. This is also true in the Cannabis Market. To limit the spread of COVID-19, governments around the world imposed extreme restrictions such as border closures, lockdowns, and social isolation. However, in the post-COVID situation, the cannabis market is expected to benefit.

The hemp segment is expected to be the largest during the forecast period

The hemp segment is estimated to have a lucrative growth, due to the increased popularity of hemp and hemp-derived goods, and because of its low THC concentration. Furthermore, marijuana is predicted to be the fastest-growing market, expanding at a rapid pace during the projection period. This expansion can be ascribed to the increasing legalisation of marijuana for medical and adult use in numerous countries.

The industrial consumption segment is expected to have the highest CAGR during the forecast period

The industrial consumption segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increasing use of marijuana and hemp in businesses such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages. Furthermore, factors such as the increasing use of cannabis and its derivatives as raw materials by enterprises to create innovative cannabis-infused products are likely to boost the cannabis cultivation market throughout the forecast period.

Region with highest share:

South America is projected to hold the largest market share during the forecast period owing to fast changing government regulations and the legalisation of recreational hemp in countries such as Uruguay and Chile, among others. Some of the important causes that contributed to this attitude towards the product through laws and legislation were social movements in favour of legalisation. Furthermore, several new start-ups are commencing on product research, development, and production.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the growing usage of medical cannabis and progressive legislation. Medical marijuana has been shown in trials to be useful in treating illnesses ranging from cancer to appetite stimulants in individuals with AIDS-related sickness in European countries. Furthermore, due to changes in government policy, the product's demand is predicted to skyrocket. As a result, rising therapeutic use of the substance in countries is likely to improve regional sales.

Key players in the market:

Some of the key players profiled in the Cannabis Cultivation Market include: Atlas Growers, Canopy Growth Corporation, Organigram Holding, Inc., Aphria, Inc., Pacific Cannabis Growers, Aurora Cannabis, The Hydropothecary Corp., Tilray, The Cronos Group, CannTrust Holdings, Better Holdings, Curaleaf, Green Thumb Industries, Cresco Labs, Trulieve and Medmen.

Key Developments:

In May 2022, Canopy Growth Corporation launched new flavours for their flavoured cannabis infused carbonated drinks: orange orbit and the Grape. This launch increases the company's product portfolio and delivering innovative products in cannabis market.

In March 2022, Martha Stewart, in collaboration with Canopy Growth Corporation and Marquee Brands, released 15-flavor CBD Wellness Gummies Sampler. This range of products provided the consumer with the wellness benefits of CBD.

In March 2022, Tilray medicals announced their market entry in Malta and launch its first cannabis oil product in Malta. This will help company to expand its regional presence

In December 2021, Organigram Holdings Inc. acquired Laurentian Organics Incorporation, Canadian brand which is a craft cannabis licensed producer. It will help company in acquiring strong customer-based through this brand.

In May 2021, Aurora Cannabis Inc. launched the company's own science & innovation business unit, which mainly focus on commercializing patents and patent technology, with the development of cannabinoid biosynthesis and plant genetics.

In April 2021, Canopy Growth Corporation acquired Supreme Cannabis Company, which leads on to adding their premium brand 7acres to Canopy Growth Portfolio and the facilities of cultivating low-cost hybrid greenhouse cannabis. Due to this acquisition the company can reach more consumers through Supreme's premium brands and high-quality products, further solidifying Canopy's market leadership.

Product Types Covered:

• Concentrates
• Flowers
• Topicals and Tinctures
• Edibles
• Other Product Types

Compounds Covered:

• Cannabidiol (CBD)-dominant
• Tetrahydrocannabinol (THC)-dominant
• Balanced THC & CBD

Applications Covered:

• Recreational Consumption
• Industrial Consumption
• Medical Consumption
• Other Applications

Distribution Channels Covered:

• Digital
• Physical
• Other Distribution Channels

Cultivation Types Covered:

• Outdoor
• Greenhouse Cultivation
• Indoor
• Other Cultivation Types

Biomass Covered:

• Hemp
• Marijuana

Crop Varieties Covered:

• Cannabis Sativa
• Cannabis Indica
• Other Crop Varieties

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances