Cannabis Cultivation Market Size, Share, and Trends 2024 to 2034

The global cannabis cultivation market size accounted for USD 549.64 billion in 2024, grew to USD 649.18 billion in 2025 and is expected to be worth around USD 2,903.64 billion by 2034, registering a healthy CAGR of 18.11% between 2024 and 2034.

  • Last Updated : November 2024
  • Report Code : 2693
  • Category : Healthcare

Cannabis Cultivation Market Size and Forecast 2024 to 2034

The global cannabis cultivation market size is estimated at USD 549.64 billion in 2024 and is anticipated to reach around USD 2,903.64 billion by 2034, expanding at a CAGR of 18.11% between 2024 and 2034. The rising adoption of cannabis in medical sectors is expected to boost the growth of global cannabis cultivation market.

Cannabis Cultivation Market Size 2024 To 2034

Cannabis Cultivation Market Key Takeaways

  • North America generated for the maximum revenue share in the global market. 
  • Asia Pacific is the fastest-growing region of the global market.
  • By type, the cannabis indica segment dominance the global market.
  • By type, the cannabis sativa segment is the fastest-growing segment of the global market.
  • By biomass, the hemp segment generated more than 78% of the revenue share in 2023.
  • By biomass, marijuana is the fastest-growing segment of the global market. 
  • By application, the industrial consumption segment captured more than 70% of the revenue share in 2023.
  • By application, the medical consumption segment is predicted to be the most attractive segment from 2024 to 2034.

Market Overview

Native to South Asia, the cannabis plant is utilized in various industries, including medicinal and recreational purposes. Cannabis cultivation includes the process of preparing, producing, and harvesting the cannabis required for multiple purposes. Different parts of cannabis plants, such as roots, flowers, stems, sugar leaves and seeds, have received significant attention from medical and recreational industries. 

Mentioned parts of the cannabis plant carry long and short cellulose fibers, herbal properties, proteins, and essential fatty acids. Cultivators are focusing on distillation and processing during cannabis cultivation to boost production. With the increasing demand for cannabis and improving technology for cultivation, the global cannabis cultivation market is projected to accelerate in the upcoming years.

Cannabis Cultivation Market Growth Factors

The global cannabis cultivation market is expected to witness a significant shift during the analyzed period owing to the increased medical importance of cannabis in recent years. Many geographical areas have recently started legalizing the cultivation, production, and distribution of cannabis with stricter laws and regulations.

The rising legalization of cannabis cultivation is another primary driver for the market’s growth. The increasing prevalence of chronic disease and neurological disorders is observed to fuel the growth of medical cannabis during the forecast period.

Moreover, the growing requirements for hemp cannabis from the nutraceutical and food industries, along with the adoption of cannabis in the cosmetic industry, are considered to fuel the growth of the global cannabis cultivation market.

At the same time, the rising investments in the cultivation sector, availability of capital for cannabis cultivation facilities, the addition of key players, and growing focus on business activities such as mergers, acquisitions and partnerships are accelerating the growth of the cannabis cultivation market globally.

Market Scope:

Report Coverage Details
Market Size in 2024 USD 549.64 Billion
Market Size by 2034 USD 2,903.64 Billion
Growth Rate from 2024 to 2034 CAGR of 18.11%
Largest Market North America
Fastest Growing Market Asia Pacific
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered By Type, By Biomass and By Application
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


Market Dynamics

Driver

The rising demand of medical marijuana

Medical marijuana is typically cannabis used in the medical sector to treat various diseases. In recent years, many countries and states have legalized medical marijuana by considering its health benefits. Netherlands, Georgia, France, Portugal and Canada have stepped into the legalization of medical cannabis or marijuana. Rapid legalization has boosted the demand for medical marijuana in the global market, which drives the growth of the cannabis cultivation market. Medical marijuana is widely used to ease symptoms, including nausea and vomiting.

Moreover, medical marijuana qualifies for the treatment of HIV/AIDS, glaucoma and muscle spasms. The increasing prevalence of chronic diseases has highlighted the importance of cannabis in the medical sector. 

The THC content in marijuana helps in treating/managing neurological disorders. With the rising cases of depression, anxiety, Alzheimer's and other neurological issues, the demand for medical marijuana is considered to boost rapidly. Considering the need for medical marijuana, prominent pharmaceutical companies have entered the market by producing cannabis-derived pills, powders and oil for medical purposes.

Restraint

Difficulties in cannabis shipping and distribution

As the laws regarding cannabis cultivation, production, and distribution become stricter, the shipping of cannabis-derived products has become more complex. Every country/state has set different guidelines and rules for collecting and distributing cannabis. For example, it is legal to ship cannabis with up to 0.2% THC concentration in European Union. In contrast, Australia allows cannabis with 0.005% or less THC concentration.

On the other hand, the U.S. has allowed the shipping of cannabis or marijuana with up to 0.3% THC. Considering such different regulations in shipping cannabis, it becomes difficult for cultivators to expand their business internationally. However, small-scale cultivators are not involved in the distribution phase, and the difficulties in cannabis shipping may be problematic for large-scale cultivators engaged in production and distribution.

Opportunity

Deployment of genetic engineering in cannabis cultivation to boost the production

The technological innovations in cannabis cultivation procedures highlight the bright future of the global market. Genetic engineering allows the modification of the characteristics. With the invention in the agricultural sector, cannabis cultivators have started deploying genetic engineering to enhance production; genetic engineering in cannabis cultivation allows the crossing of cannabis strains in order to achieve a desirable trait.

Technological advancements have allowed cultivators to achieve the desired product in a matter of weeks. Cultivators are capable of resisting the effects of climate change on cannabis crops, and the deployment of genetic engineering is observed to offer to strengthen the production of cannabis without failure.

Type Insights

Cannabis indica and cannabis sativa are two major competitive types of the cannabis cultivation market. Both cannabis indica and cannabis sativa have plenty of medical uses, which have highlighted their importance in the medical field.

The cannabis indica segment holds a dominating share of the global cannabis cultivation market. Cannabis indica has a higher concentration of cannabidiol, which is believed to offer more calming and relaxing effects. Cannabis indica is widely used for managing poor appetite, insomnia and anxiety. 

The cannabis sativa is another fastest-growing segment of the global cannabis cultivation market. Due to the typical amount of tetrahydrocannabinol in cannabis sativa, it is believed to cause uplifting and offer pain management. Cannabis sativa is widely used in the production of fiber and oil, and another proven use of sativa is it can be used as an additive in food products. Commercially, cannabis sativa seeds are used in the production of edible/cooking oil.

Biomass Insights

The hemp segment dominates the global cannabis cultivation market; the hemp segment accounted for a revenue share of 78% in 2023. Hemp is commercially legal biomass owing to its low THC content, and it is utilized in the production of commercial products such as food, ropes, paper and even clothing. Along with this, hemp is also used in treating multiple skin infections, and the rising demand for hemp-based products from various industries will maintain the segment’s dominance.

Moreover, the increasing adoption of hemp cultivation is expected to boost the growth of the hemp segment during the forecast period. For instance, in June 2022, the Tamil Nadu government in India expressed that it is actively considering legalizing hemp cultivation for industrial and medical purposes.

Marijuana is the fastest-growing segment of the global cannabis cultivation market. Many states have recently started allowing the use of medical marijuana in treating multiple diseases and managing pain. The changing perception towards marijuana will fuel the segment’s growth.

Application Insights

The industrial consumption segment dominates the market by acquiring more than 70% of the total revenue share of the global cannabis cultivation market. The hydrating, anti-aging, anti-sebum and antioxidant properties have reserved a significant position for cannabis in the global cosmetic industry.

The rising demand from the cosmetic industry for cannabis has boosted the growth of the industrial consumption segment. Moreover, cannabis continues to play a vital role in the pharmaceutical industry owing to its soothing and stimulating properties. The expansion of cosmetics, personal care and pharmaceutical products will maintain the growth of the industrial consumption segment. 

Cannabis Cultivation Market Share, By Application, 2023 (%)

At the same time, the medical consumption segment is expected to be the most attractive segment during the forecast period. The rising demand for sativa cannabis from the medical sector as medical marijuana is uplifting the segment’s growth. Cannabis or medical marijuana are widely utilized to manage and control symptoms such as nausea and vomiting and lessen pain post-surgery. Moreover, the development of the segment is attributed to the rising legalization of cannabis cultivation, specifically for medical use in many countries.

Regional Insights

North America accounted for the largest revenue share in the global cannabis cultivation market. The rising prevalence of neurological disorders has increased the demand for cannabis from the medical industry in North America. The availability of production lands, large consumption volume, new product launches and the presence of major key players in the region are a few other factors to fuel the cannabis cultivation market in North America. The State of California is expected to dominate the cannabis cultivation market in North America.

Asia Pacific is the fastest-growing region of the global cannabis market, and the medical application of cannabis will maintain its dominance throughout the analyzed period in Asia Pacific. To highlight the importance of cannabis, India has been utilizing cannabis in various traditional remedies. On the other hand, the complicated regulations on cannabis in Japan and China will hamper the growth of the cannabis cultivation market in Asia Pacific.

Europe is another significant marketplace for cannabis cultivation. The legalization of cultivation, utilization and consumption of cannabis in various countries of Europe is supplementing the growth of the cannabis cultivation market in Europe. For instance, in October 2022, the German government planned to legalize the home cultivation of cannabis while allowing three plants per adult. Moreover, France has legalized the use of cannabis in various industries. Also, medical cannabis is legal in France and Portugal.

The cannabis cultivation market in Latin America shows steady growth as the region is still dependent on exporting cannabis for specific medical purposes. The reformed drug laws in 2021 UAE made the regulations on the use of cannabis stricter; this is observed to limit the growth of cannabis cultivation in the Middle East.

On the other hand, in 2023, the president of South Africa addressed improving the cultivation of hemp cannabis to recover the economy post Covid pandemic; this is expected to boost the market’s growth in Africa during the forecast period. Along with South Africa, many other African countries are keen to embrace the production of cannabis to boost their economies.

Cannabis Cultivation Market Companies:

In recent years, the increased demand for cannabis cultivation has welcomed multiple new players in the market, a few of the prominent companies involved in the global cannabis cultivation market are-

Recent Developments:

  • In March 2023, Riverside City, California, approved cannabis cultivation as an allowed business. The approval for cannabis cultivation sets a framework for permitting licensing, taxation and legal operation of commercial cannabis with proper measures. Moreover, the approval permitted businesses, including storefront retailing, delivery businesses, testing laboratories and manufacturing businesses.  
  • In March 2023, The California Department of Fish and Wildlife (CDFW) announced grant funding of over $20 million for small-scale cannabis cultivators under its now Cannabis Restoration Grant Program. The funding aims to support conservation projects and habitat enhancement and enable cannabis cultivators to become fully licensed. Moreover, this funding covers a wide range of activities, including assisting cultivators and remediation of illegal grow sites.  
  • In March 2023, a globally leading cannabis lifestyle brand based in Canada, Tilray Brands Inc, announced the launch of the latest innovations Burst and Darts by its quintessential brand CANACA, based in Canada. Newly added Burts and Darts are made up of coarse ground whole flowers. 
  • In February 2023, the city council of Cathedral City, California, adopted a resolution to reduce the taxes on cannabis to 5% of gross proceeds. The reduction of taxes by the council aims to boost the cultivation of cannabis along with the manufacturing of cannabis goods. According to the council, the reduction in taxes on cannabis may result in revenue loss in the beginning but will attract new businesses into Cathedral City.  
  • In February 2023, 22Red partnered with Lonestar Select for cannabis cultivation in Arizona. 22Red is a lifestyle brand with cannabis on the menu, whereas Lonestar Select has been cultivating cannabis since 2011. The partnership aims to offer lucrative opportunities for 22Red to launch new products in the upcoming years.  
  • In February 2023, New Britain proposed a new site for cannabis cultivation and distribution. The latest approved center for cannabis cultivation is being built at an old Webster Bank on Slater Road. The officials have stated that this new center of cannabis cultivation will supplement the local economy and will offer employment for over 100 people.  

Segments Covered in the Report:

By Type

  • Cannabis Indica
  • Cannabis Sativa

By Biomass

  • Hemp
  • Marijuana

By Application

  • Medical Consumption
  • Recreational Consumption 
  • Industrial Consumption

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

For questions or customization requests, please reach out to us at sales@precedenceresearch.com

Frequently Asked Questions

The global cannabis cultivation market size was accounted at USD 549.64 billion in 2024 and it is expected to reach around USD 2,903.64 billion by 2034.

The global cannabis cultivation market is poised to grow at a CAGR of 18.11% from 2024 to 2034.

The major players operating in the cannabis cultivation market are Aurora Cannabis, Canopy Growth Corporation, Orgnigram Holdings Inc, Better Holdings, Maricann Group, The Cronos Group, ABcann Medicinals Inc., G W Pharmaceuticals Inc. and Others.

The driving factors of the cannabis cultivation market are the rising demand of medical marijuana, rising legalization of cannabis-derived products, and rising demand for cannabis-derived products.

North America region will lead the global cannabis cultivation market during the forecast period 2024 to 2034.

Ask For Sample

No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client

Meet the Team

Sanket Gokhale is one of the key authors contributing to the high-quality, actionable insights that define our market research reports. Sanket holds an MBA with a specialization in Healthcare Management, coupled with a Bachelor’s degree in Pharmacy. With over 5 years of experience in market research, Sanket has cultivated a deep understanding of the healthcare sector, from pharmaceutical innovations to healthcare

Learn more about Sanket Gokhale

With over 14 years of experience, Aditi is the powerhouse responsible for reviewing every piece of data and content that passes through our research pipeline. She is not just an expert—she’s the linchpin that ensures the accuracy, relevance, and clarity of the insights we deliver. Aditi’s broad expertise spans multiple sectors, with a keen focus on ICT, automotive, and various other cross-domain industries.

Learn more about Aditi Shivarkar

Related Reports