North America Cannabis Market Research Report: Forecast (2022-2027)

Market Definition

Cannabis is a general term used for indicating the several psychoactive preparations of the plant Cannabis sativa. The key psychoactive constituent present in cannabis is Delta-9 tetrahydrocannabinol (THC). It is a drug derived from the dried flowers & leaves of the hemp plant that grow in the tropical & temperate areas of the world. Cannabis is also known as hash, weed, pot, marijuana, dope, cone, and smoke.

Market Insights

The North America Cannabis Market is anticipated to grow at a CAGR of around 27.7% during the forecast period, i.e., 2022-27, says MarkNtel Advisors. The growing legal landscape in North America is offering a way to the full legalization & decriminalization of cannabis, which is why it is gaining immense prominence for both recreational & medical purposes.

Marijuana is illegal under federal law, but an increasing number of states legalizing this drug for medical or recreational uses in recent years is likely to boost the North America Cannabis Market. Till November 2020, 36 states and three territories have adopted comprehensive medical cannabis programs, and 15 states have approved sales of adult-use cannabis in the US. Further, the legalization of adult-use cannabis is expected to continue increasing in the coming years.

Moreover, the existing medical cannabis programs are highly regulated, controlling patient & supplier access. However, medical cannabis sales are expected to increase significantly in the coming future.

Impact of COVID-19 on the North America Cannabis Market 

• Last year, the COVID-19 pandemic increased the uncertainty levels of many businesses and created heavy economic, fiscal, & social pressure.
• The North America Cannabis Market was no exception as the leading industry players like Aurora & Canopy Growth faced layoffs and closed facilities, which, in turn, impacted the market growth to a certain extent.
• However, with the increasing demand for medical cannabis to treat symptoms like vomiting, headache, & pain caused due to COVID-19, sales of adult-use cannabis products rapidly increased.
• Moreover, many companies shifted their focus on e-commerce platforms & social media to reach their consumers amidst the crisis, with which the market observed a hike.
• Additionally, due to the increasing sales of medical cannabis across the US & Canada, the market is expected to witness significant growth in the coming years.