Cannabis Market Projections
The cannabis industry has flourished the past several years, and it shows no signs of slowing.
The cannabis plant, also known as marijuana, is known for both its psychoactive and medical benefits. For example, the greatest amount of evidence for the therapeutic effects of cannabis relates to its ability to reduce chronic pain, nausea and vomiting due to chemotherapy, and spasticity from MS.
Despite the fact that it’s still illegal under the U.S. federal law to use and possess it, there are over 34 states that allow publicly available cannabis programs.
While people may think that the entire cannabis industry is centered on recreational/medical use of the plant, the market can be divided into a variety of sectors:
- Cannabis cultivation and growing and production of marijuana plants.
- Extraction, processing and packaging of the plant.
- Analytical testing of cannabis plant and products.
- Distribution and sales of cannabis products.
- Drug development of cannabis-related compounds.
It is also important to recognize how the cannabis market has both direct and indirect influence on other industries. A good example is the rising popularity of hemp in a variety of applications.
Hemp is now quite popular in everything from dietary supplements to biofuels and papers. Another major market that is directly impacted by the cannabis market is, you may have guessed it, CBD. Produced from marijuana, CBD is primarily used to treat a variety of medical conditions and has seen major growth since the majority of states legalized cannabis.
The reason that these three (among other) markets are so impacted by each other is because all sectors in the cannabis market are interconnected in a positive way. Despite the challenge of inconsistent legalization and regulations from different agencies, the cannabis industry as a whole is expected to grow exponentially over the next five years, from $25.6 billion in 2019 to $77.6 billion by 2024 at 24.8% annually. This growth will surely impact all related industries.
Cannabis Market Trends and Projections
Based on end-user sales, the global cannabis market should grow from $23 billion in 2019 to $70 billion by 2024, growing 24.9% annually.
- The market for cannabis testing equipment and services should grow from $200 million in 2019 to $600 million by 2024, growing 24.6% annually.
- With more states and countries legalizing cannabis use, there is a growing number of new testing laboratories entering cannabis the marketplace, mostly small businesses.
- Key market players include: C4 Laboratories, Canopy Growth Corp, and Tilray.
- The market will see a rise in biotech companies working on CBD and other cannabinoids as potential therapeutics.
Impact of Coronavirus on Cannabis Market
COVID-19 has only increased the demand for cannabis, prompting steady growth. This extends to all participating businesses, from small, home-based facilities to the companies that provide unique equipment of specific extraction services and everything in-between.
For additional intel into the global market for cannabis, download a free overview of our report, Cannabis Market: Products, Technologies and Applications.