Cannabis Cultivation Market Worth Nearly $2081.73 Billion By 2032

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The cannabis cultivation market was worth around USD 394 billion In 2022 and it is projected to advance at an 18.11% CAGR from 2023 to 2032, hitting around USD 2081.73 billion by 2032.

The cannabis cultivation market growth is driven by the increasing medical importance of cannabis, the rising prevalence of chronic disorders, and increasing investments in cannabis cultivation.

Market Overview:

Cannabis refers to the dried flowers, leaves, stems, and seeds of the cannabis plant. It is also known as marijuana, weed, or pot. Cultivation of all cannabis plants is harvested, sold as flowers, and processed into products. Cannabis cultivation includes a multi-step process such as preparing the soil, planting clones or seeds, irrigation, fertilization, pest control, harvesting plants, drying, curing, and trimming plants.

Numerous nations, including the United States, Australia, Japan, Canada, China, France, Italy, Denmark, Hungary, and other European countries, are global leaders in hemp cultivation. Cannabis includes chemicals that have an impact on the brain and body, such as delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). Cannabis' intoxicating effects are caused by THC. CBD is not intoxicating, but it can still have an impact on a person's brain. 

The plant has been used for both industrial (THC 0.3%) and medical (THC >0.3%) applications. The plant contains about 100 cannabinoids, the most abundant of which are THC and CBD. It is classified as a narcotic crop due to the presence of high THC levels (assumed >0.3%) in the plants. Tetrahydrocannabinol (THC) is used to treat chronic disorders such as Crohn's disease, Multiple Sclerosis, Alzheimer's disease, chronic pain, and others. Cannabis refers to the plant species Sativa Cannabis L. Cannabis sativa L. is among the oldest plant species. Hemp is a Cannabis Sativa plant species that are particularly grown for industrial or medicinal use. It is also used as a food, a fiber, and a key raw material in the manufacturing of textiles, rope, and paper. 

Cannabis plants, when grown in large enough quantities, can cause environmental problems due to the emission of biogenic volatile organic compounds (BVOCs) in the form of monoterpenes. Additionally, the market has grown as a result of the rising legalization of cannabis cultivation. Furthermore, the increasing requirements for hemp cannabis from the nutraceutical and food industries are projected to boost market expansion in the coming years.

Cannabis Cultivation Market Report Scope:

Report Highlights:

• By Type, the cannabis indica segment accounted for the larger revenue share owing to its various medical uses. Cannabis Indica is known for its intensely relaxing effects. It helps in reducing nausea and pain as well as enhances appetite. The three most popular cannabis indica strains are Afghan Kush, Hindu Kush, and Granddaddy Purple.
• By Biomass, The hemp market dominated with a significant revenue share of xx% in 2022 due to the surging demand for products derived from hemp across various industries, increasing hemp cultivation, and rising legalization of hemp cultivation for various medical and industrial purposes. Hemp is also known as Cannabis sativa L. It is a plant that contains 0.3% THC or less. Hemp consists of 25,000+ products. Hemp produces durable fibers of natural origin, used to produce ropes and sails, paper, and others.
• By Application, the industrial consumption held the larger revenue share of more than 70% in 2022. This growth of the segment is attributed to the increasing uses of cannabis in several industries such as cosmetics, pharmaceuticals, textiles, food & beverages, and others. Cannabis' hydrating, anti-aging, and antioxidant properties have earned a prominent place in the global cosmetic sector.

Regional Insights:

North America is expected to dominate the global cannabis cultivation market due to the rise in the use of cannabis for medical purposes, the rising prevalence of neurological disorders, and the increasing number of research studies supporting the benefits of cannabis in the treatment of several chronic disorders. The State of California accounted for the largest market share of the cannabis cultivation market in North America. On the other hand, the Asia Pacific market is expected to grow at a significant CAGR during the forecast period due to the growing plantation of cannabis, rising use of cannabis in the medical field, and the increasing cannabis industry in Southeast Asia.

Market Dynamics:

Drivers

Rising demand for marijuana in the medical sector

Cannabis is rapidly gaining popularity for its medicinal advantages as opposed to its negative social image. Cannabis has shown positive results in several studies for the treatment of chronic disorders. Cannabis Capsules are highly demanded due to their medicinal benefits. The cannabis plant contains over 100 cannabinoids, including tetrahydrocannabinol (THC) and cannabidiol (CBD). The increasing prevalence of chronic disorders around the world resulted in an increasing demand for marijuana. 

For instance, in March 2021, Stada, Germany's largest pharmaceutical firm, entered the medicinal marijuana market with two flower products, and the company expects to provide five flower products as well as three extracts with varying CBD and THC compositions. The National Academies of Sciences, Engineering, and Medicine has pointed out that cannabis and cannabinoids can help in several disorders such as nausea and vomiting resulting from chemotherapy treatment, chronic pain in adults, some symptoms of multiple sclerosis (MS), sleep problems relating to sleep apnea, fibromyalgia, and low appetite.

Restraint:

Adverse effects associated with the overdose of cannabis consumption

The high risk associated with the overdose of cannabis consumption such as severe mental and heart issues is projected to hamper the growth of the cannabis cultivation market. There are some short-term effects of cannabis use such as impairing the ability to think temporarily, ability to harm your mental health, and sometimes making it harder to remember things. Cannabis, in the long term, might harm your lungs and create breathing problems. Cannabis usage is associated with a higher chance of developing anxiety and depressive disorders.

Opportunities:

Legalizing the use of cannabis around the world for several benefits

Several countries around the world are legalizing the use of cannabis for medical and industrial purposes is projected to provide lucrative opportunities for the growth of the cannabis cultivation market during the forecast period. Legalizing recreational marijuana leads to the beneficial regulation of a safe medication while reducing the possibility of negative outcomes. Legalizing recreational marijuana would assist to reduce the price.

Challenges:

Stringent regulatory norms

The major issues with the implementation of stringent regulatory policies for the production and sales of cannabis in several places act as a key challenge for the market expansion of the cannabis cultivation market during the forecast period. 

Recent Developments: 

• In March 2023, Cannabis cultivation has been approved as a permitted business in Riverside County, California. Medical and recreational cannabis is legal in California pursuant to California's Adult Use of Marijuana Act (AUMA) and Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). The permission for cannabis production establishes a framework for allowing appropriate licensing, taxes, and legal operation of commercial cannabis. Moreover, Riverside County allows those over the age of 21 to cultivate up to six cannabis plants for personal and non-commercial use.
• In March 2022, Tilray Brands, Inc., a pioneer in cannabis lifestyle and consumer packaged goods, announced proposed agreements for a commercial and financial partnership with HEXO Corp., which would bring together Canada's two largest cannabis market share leaders, strengthening their respective positions and establish a foundation for higher production efficiencies amid competitive market dynamics.

Major Key Players:

• Aurora Cannabis
• Canopy Growth Corporation
• Orgnigram Holdings Inc
• Better Holdings
• Maricann Group
• The Cronos Group
• ABcann Medicinals Inc
• G W Pharmaceuticals Inc

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