Global Cannabis Market Outlook, 2029

Dating back thousands of years, cannabis has been a companion to humanity across diverse cultures and landscapes. From ancient China, where it was used for medicinal purposes and recorded in texts as early as 2700 BCE, to India, where it found spiritual significance in rituals and ceremonies, cannabis has woven through the fabric of civilizations. In the Middle East, hashish became synonymous with cultural practices, while in Africa, its cultivation and use became integral to traditional medicine and cultural rituals. The geography of the cannabis market spans continents, from the lush fields of Southeast Asia where potent strains are cultivated, to the sprawling cannabis farms of North America, where legalization has transformed the industry into a multibillion-dollar enterprise. The allure of cannabis transcends borders, captivating minds with its medicinal properties, cultural rituals, and economic potential, shaping histories and forging new paths in the evolving landscape of global trade and regulation. The market for cannabis is expanding quickly due to rising plant usage and demand. The growing number of companies operating in this sector and the rising number of cannabis users are clear indicators of this. This can be attributed, in part, to the fact that cannabis is increasingly recognized by society at large and that there are more applications for it than ever before. This covers both pharmacological and recreational applications. Customers have a plethora of options because there are numerous new items being produced for the cannabis market. The legalization of cannabis is still a relatively recent development. Nonetheless, the use of cannabis is now permitted in several nations, including several US states. The demand for this product has grown as a result, and this tendency is probably going to continue.

According to the research report, “Global Cannabis Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 55 Billion by 2029. The global cannabis industry is undergoing a transformative period of rapid growth and development, driven by the increasing legalization and decriminalization of cannabis for both medical and recreational use in numerous countries. North America, particularly the United States and Canada, remains at the forefront of this burgeoning market, with extensive research and substantial investments fueling the development of a diverse array of cannabis products, including oils, edibles, topicals, and more. In the United States, the cannabis industry is marked by a patchwork of state-level regulations, creating a complex yet dynamic market environment, while Canada’s federal legalization has set a precedent for comprehensive regulatory frameworks. The therapeutic benefits of cannabis, particularly in treating conditions such as chronic pain, epilepsy, and multiple sclerosis, have garnered widespread recognition, further propelling the industry. However, the cannabis sector faces several challenges, including regulatory complexities, the need for stringent quality control measures, and navigating shifting public perceptions and societal attitudes towards cannabis use. Despite these obstacles, the industry is poised for sustained growth, supported by ongoing legislative advancements, increasing consumer acceptance, and the entry of major pharmaceutical and consumer goods companies into the market. The future of the global cannabis industry looks promising, with continued innovation and expansion anticipated as more regions embrace cannabis legalization and its myriad potential benefits.

Market Drivers

To propel market growth, hemp-infused edibles' availability, uniqueness, and innovation in product design are key. To cater to ""mainstream"" marijuana consumers, sativa consumer product companies and sellers are changing quickly. Customers now have access to a wider range of items, such as topicals, infused products, and concentrates, instead of being restricted to smoking flowers via joints, pipes, or bongs. Concerns about COVID-19 prompted people to turn to recently created alternatives like edibles and other infused goods. Compared to consuming an edible substance, inhaling the product allows THC to swiftly reach the bloodstream and enter the lungs, causing the user to experience the associated mind-altering effects much faster.
Scientific research and commercial innovation have started to address the shortcomings of edibles, such as the variable effects of marijuana after eating. Topical or sublingual infusion treatments, which are absorbed through the skin or beneath the tongue, are among the more recent types of infusion products. Drinks, chocolates, and candies are still among the most widely consumed hemp-based consumables. These edibles produce a euphoric "high" that takes one to two hours to start, but it lasts longer than the effects of smoking or inhaling vapor. However, over the forecast period, product innovation and packaging-related changes are anticipated to expand at the highest rate and to play a crucial role in improving edibles' sales emotions.
In recent years, medical hemp has drawn a lot of attention from all over the world. As more nations and jurisdictions allow the use of C. sativa for medicinal purposes, the use and acceptability of medical C. sativa are growing. Because medical marijuana has so many benefits, certain nations, like Canada, Finland, Germany, Israel, and Sweden, have taken the brave decision to legalize its usage. Furthermore, marijuana usage for recreational purposes is now permitted in over 30 U.S. states. Mainstream physicians in Florida and California have effectively treated cancer, AIDS, anorexia, and arthritis with the substance. The upcoming years should see significant expansion in the industry thanks to the ongoing research and clinical studies for a number of marijuana-based treatments.

Market Challenges



Laws pertaining to the use of hemp in different nations that impede the expansion of the market. In some parts of North America, Africa, Australia, Europe, and South America, marijuana is ostensibly recognized and approved for medical use. However, most Asian and Middle Eastern nations continue to forbid it. The use, possession, acquisition, and sale of the commodity are all illegal in Asian nations like Japan, India, and Korea and are regarded as crimes. It is therefore anticipated that the legal environment surrounding the products in these areas will prevent the market from reaching its maximum growth potential. Additionally, adverse effects like cognitive impairment linked to its use as a medication are anticipated to limit market expansion.

Market Trends

•Legalization of marijuana: The cannabis market is dominated by products used for medicinal purposes. Numerous nations have approved the use of cannabis for medical purposes, including Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, Poland, Portugal, Thailand, the United Kingdom, and Uruguay. In June 2022, Thailand's Food and Drug Administration decriminalized marijuana and hemp by removing them from the Category 5 narcotics list. This legal amendment essentially permits Thais to grow and market medical marijuana, which the government believes has the potential to make Thailand a ""herbal centre"" of Southeast Asia.
Cannabis can be used recreationally in 19 states, two US territories, and the District of Columbia as of 2022. The substance is authorized for use as medicine in thirty-seven states, four US territories, and Washington, DC. During the projection period, more states are anticipated to follow suit because to the high demand for cannabis and its medicinal benefits. Most cannabis users in US provinces where it is legal are over 50 years old. This demographic profile is anticipated to increase the market for cannabis in the nation because of the increased risk of chronic diseases after the age of 50 and the effectiveness of cannabis on such disorders.

Based on the report, the Application segment segmented into Medical, Recreational, and Industrial Hemp. Recreational segment is dominating the global cannabis market. Cannabis is in high demand for recreational activities because they offer a unique and enjoyable experience that can't be found with other drugs moreover due to widespread legalization efforts and growing social acceptance globally.

The allure of the recreational cannabis segment lies in its ability to cater to a fundamental aspect of human culture: leisure and relaxation. As societal attitudes towards cannabis evolve and legalization spreads across various regions, the recreational use of cannabis has emerged as a vibrant and lucrative market segment. Unlike medicinal cannabis, which is primarily sought for therapeutic purposes, recreational cannabis appeals to a broader demographic seeking experiences ranging from euphoria and creativity to relaxation and socialization. This segment has tapped into a deeply ingrained human desire for altered states of consciousness, leisurely pursuits, and social bonding, offering products that range from premium flower varieties to artisanal edibles and innovative concentrates. The allure of recreational cannabis also stems from its association with lifestyle choices, where consumers view it as a means of enhancing experiences, whether at social gatherings, cultural events, or simply during moments of personal indulgence. Moreover, the economic impact of the recreational market cannot be understated, as it drives substantial revenue generation, job creation, and investment opportunities in retail, tourism, and ancillary services. As legalization frameworks continue to expand globally, the recreational cannabis segment stands poised to further revolutionize consumer experiences and perceptions, blending commerce with cultural acceptance in a dynamic and evolving marketplace.

Based on the report, the Component segment is segmented into THC dominant, Balanced THC & CBD and CBD Dominant. Balanced THC & CBD segment is estimated to hold the largest share during the forecast period in the global cannabis market due to its appeal for therapeutic benefits while minimizing psychoactive effects.

Within the cannabis market, the segment emphasizing balanced THC (tetrahydrocannabinol) and CBD (cannabidiol) content is captivatingly emerging as the fastest-growing niche. This trend reflects a nuanced understanding and appreciation for the therapeutic potential of cannabis beyond its recreational use. Balanced THC and CBD ratios are prized for their ability to offer a harmonious blend of effects: THC, known for its psychoactive properties, is moderated by CBD, which mitigates its intensity while providing additional health benefits such as pain relief, anxiety reduction, and anti-inflammatory properties. This equilibrium appeals to a diverse consumer base seeking therapeutic outcomes without overwhelming psychoactive effects, fostering a market driven by wellness and medicinal applications. Culturally, this segment aligns with a shift towards holistic health practices and natural remedies, resonating deeply with those seeking alternatives to traditional pharmaceuticals. Geographically, the growth of this segment mirrors global trends towards legalization and regulation, as countries recognize the potential benefits of balanced cannabis products for both medical and wellness markets. As the cannabis industry continues to evolve, the allure of balanced THC and CBD products lies not only in their efficacy but also in their ability to redefine wellness and therapeutic options in a captivating and transformative manner.

North America is leading the Cannabis market due to widespread legalization efforts, robust industry infrastructure, and significant consumer demand across both medical and recreational sectors, while the Asia-Pacific (APAC) region is experiencing rapid growth due to its vast population, increasing acceptance of medical cannabis, and regulatory shifts towards legalization across several countries in the region.

The market in North America is expected to hold a significant portion due to the widespread usage of marijuana and products infused with it.
The market was dominated by North America, where it is now legal for recreational use in 19 states, 2 territories, and the District of Columbia. All state medical hemp legislation in the United States have acknowledged the use of medical hemp as a treatment or medication for ailments like cancer, post-traumatic stress disorder, arthritis, anorexia, Alzheimer's disease, chronic pain, and epilepsy. Canada has become a leader in the global legalization of marijuana and has become a symbol of pride. Moreover, there are now a lot more cultivators of marijuana in the United States, which boosts usage and consumption. It is anticipated that this would boost sales and provide new revenue streams for local businesses. Because of its progressive laws and increasing use of medical cannabis, Europe is currently the second-largest market. Medical marijuana has shown promise in trials conducted in European nations. It is legitimately used in medical settings to treat a variety of illnesses, from cancer to people with AIDS-related sickness using it as an appetite stimulant. Furthermore, it is anticipated that changes in government policy will result in a sharp rise in product demand. The pertinent laws are quite recent in many nations. The sale of cannabis products for recreational purposes is not supported by any national government in Europe, according to the European Monitoring Centre for Drugs and Drug Addiction. Sales in the region should increase as a result of the product's expanding therapeutic use in several nations. Due to the legalization of cannabis in several Asian nations and the region's quickly evolving political landscape, Asia Pacific is predicted to experience significant growth. Thailand's legalization of marijuana growing is expected to increase the country's consumption of both hemp and marijuana, which could have a favourable effect on the expansion of the regional market. Additionally, it is anticipated that the expanding body of research in the pharmaceutical sector will demonstrate the medical value of cannabis in the area.

In May 2023, Toast and Nirvana Group partnered to launch cutting-edge goods for customers and patients in Oklahoma and New Mexico.
April 2023: Belief Co. and a nearby U.S. retailer, Hello Juice and Smoothie, launched CBD-infused juice shots.
May 2022: Two new varieties for its cannabis-infused fizzy drinks—grape and orange—were released by Canopy Growth, a well-known international cannabis corporation.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Cannabis Market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Flower
• Concentrates

By Application
• Medical
• Recreational
• Industrial Hemp

By Component
• THC dominant
• Balanced THC and CBD
• CBD Dominant

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Cannabis industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.