Cannabis Cultivation Market Size, Share, Growth, and Industry Analysis, By Type (Hemp and Marijuana), By Application (Medical and Recreational) and Regional Forecast to 2032

Updated On: 08 April 2024

CANNABIS CULTIVATION MARKET REPORT OVERVIEW

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The global cannabis cultivation market size was USD 16082.75 million in 2022 and is projected to touch USD 45181.21 million by 2032, exhibiting CAGR of 10.88%.

The global cannabis cultivation market is anticipated to gain substantial growth in the coming years, driven by several factors. This market has experienced significant growth and transformation, primarily due to shifting legal and regulatory environments in various regions. Participants in the cannabis cultivation market engage in activities related to cultivating cannabis plants, processing the harvested material, and distributing cannabis products.

Additionally, these cannabis products are intended for medical or recreational use and that can include cannabis flower, hemp, marijuana, concentrates, edibles, and various derivatives. Also, Advancement in technology, such as controlled environment agriculture, have boosted the efficiency and quality of cannabis cultivation. Therefore, the legalization in certain region, and growing use of cannabis for medical and recreational purposes are poised to accelerate the demand for the cannabis in the market.

COVID-19 Impact: Increased Demand for Therapeutic Drug Supported the Market During the Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels. Numerous regions experienced a surge in cannabis demand during the pandemic. This was partly due to people looking for stress relief and relaxation during lockdowns, but also because some consumers may have turned to cannabis as an alternative to alcohol. On the other hand, medical cannabis patients increased their consumption to manage stress and anxiety. However, initially, supply chain disruptions slow down the market growth. As a result, the cannabis cultivation market experienced a rise in demand and revenue during the pandemic. While the market may eventually recover as the situation improves, the immediate impact of COVID-19 was predominantly negative for the global market.

LATEST TRENDS

"Global Expansion and Medicinal Cannabis Exports to Magnify Market Opportunities"

The market has been witnessing several latest trends in the cannabis cultivation market such as a notable surge in research and development activities focused on creating novel cannabis strains with specific attributes, such as higher CBD content and unique flavors, while also emphasis on improved terpene profiles. Additionally, there has been a prominent emergence of cannabis-infused beverages, including CBD-infused sparkling water and THC-infused cocktails which reflecting a growing diversity in product offerings and consumer preferences. Furthermore, cannabis companies from regions with established legal frameworks are increasingly venturing into international markets, establishing partnerships and export agreements, with a primary focus on the exportation of medicinal cannabis products. As a result, these trends are collectively signifying the evolving landscape of the cannabis cultivation market and expected to its boost potential growth over this forecast.

CANNABIS CULTIVATION MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Hemp and Marijuana"."

Hemp and marijuana are two varieties of the Cannabis plant, each with distinct purposes and legal classifications. Hemp is primarily used for industrial and agricultural purposes due to its low THC content, while marijuana is used for its psychoactive and medicinal properties, subject to varying legal regulations

• By Application

Based on application the global market can be categorized into Medical and Recreational

cannabis in medical application, use to treat a range of medical conditions and symptoms, with carefully dosed products containing specific cannabinoids. It's prescribed by healthcare professionals and is subject to legal regulations. Recreational cannabis, on the other hand, is used for enjoyment and relaxation, often containing higher levels of THC for its psychoactive effects. It doesn't require a prescription and is used by adults for leisure and creative enhancement in regions where it's legally permitted.

DRIVING FACTORS

"Rising Consumer Demand for Hemp to Raise Cannabis Sales"

The cannabis cultivation market growth is mainly driven by the increasing consumer demand for cannabis due to changing perceptions and reduced stigma surrounding its use. With growing awareness of its medical benefits and the preference for natural remedies, cannabis has gained acceptance as a complementary or alternative medicine. In regions where it's legal for recreational use, it's increasingly viewed as a means of relaxation and enjoyment, and cultural shifts in media and entertainment also playing a role in normalizing its consumption all over the world which are enhancing the demand for the product.

"Legalization and Regulatory Changes to Support the Market Growth"

Another most significant factor for market growth is the changing legal landscape. As more regions legalize cannabis for medical or recreational use, it opens up opportunities for legal cultivation and sales. Regulatory changes create a favorable environment for businesses to operate. While, advances in cultivation technology and techniques are increasing efficiency and productivity. As well as innovations in genetics, lighting, and environmental control systems are also driving the market.

RESTRAINING FACTORS

"Legalization Barriers and Regulations Can Slowdown Market Development "

In some countries, cannabis remains illegal at the federal level, even if it's legalized at the state or provincial level. This conflict creates regulatory uncertainty and challenges for cannabis businesses that may hamper investment and interstate or international trade. On the other hand, compliance with complex and evolving regulations, such as security requirements, testing protocols, and licensing procedures, can also be expensive and challenging for cultivators particularly small businesses which can restrict their production.

CANNABIS CULTIVATION MARKET REGIONAL INSIGHTS

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"North America Dominates the Market due to Early legalization of Hemp Consumption "

North America has been an eminent market in cannabis cultivation. Specifically, Canada and certain U.S. states, are the prominent countries in the region due to its early legalization. Canada was among the first G7 countries to fully legalize recreational cannabis in 2018. This provided a regulatory framework for legal cultivation and distribution. Likewise, the U.S., individual states, such as California, legalized cannabis for medical and recreational use, which allowed legal cultivation to flourish in specific regions. Additionally, along with these factors, innovation and technology, research and development, and well-developed industry infrastructure have also aided the region to gain the majority of the global cannabis cultivation market shares.

KEY INDUSTRY PLAYERS

"Key Companies offer Wide Range of Product Portfolio to Cater to Broader Customer Base "

Dominating companies in the cannabis cultivation market gain the highest profit through a combination of strategic practices and factors. They offer a wide range of cannabis products, including flower, concentrates, edibles, topicals, and beverages that allows companies to cater to a broader consumer base and capture different market segments. Moreover, they focus to optimize cultivation techniques, whether indoor, outdoor, or greenhouse which can lead to higher yields and lower production costs. As advanced technology and sustainable practices can improve efficiency. Strategic mergers and acquisitions, also contribute to long-term success in this competitive and evolving industry.

List of Market Players Profiled

• Tilray (Canada)
• Tikun Olam (Israel)
• Maricann (Canada)
• Aphria (Canada)
• Cannabis Sativa (U.S.)
• GW Pharmaceuticals (U.K.)
• Aurora Cannabis (Canada)  

INDUSTRIAL DEVELOPMENT

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REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.