North America Cannabis Market Research Report: Forecast (2022-2027)
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.
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.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Countries Covered||North America: USA, Canada, Mexico|
|Key Companies Profiled||22nd Century Group Inc, Medical Marijuana Inc, Hemp Inc, Axim Biotechnologies Inc, Arena Pharmaceuticals Inc., Canopy Growth Corporation, Aphria Inc, Aurora Cannabis Inc, Abcann Medicinals Inc|
|Unit Denominations||USD Million/Billion|
Impact of COVID-19 on the North America Cannabis Market
Among all, Medical Cannabis is anticipated to capture the largest market share during 2022-27. The burgeoning Medical Use of cannabis is driven primarily by the abundant availability of medicinal cannabis across North America. Additionally, due to the legalization of cannabis in some parts of the region, there is a rapid surge in R&D activities to develop a safe form of medical cannabis across the US & Canada.
FDA has learned the market potential for cannabis-based medical treatment in the region. Hence, the increasing FDA approvals for cannabis-related products, especially for adults to obtain relief from symptoms like sleep difficulties, nausea, chronic pain, etc., are expected to fuel the demand for cannabis for medical uses in the coming years.
As of March 2021, FDA has significantly contributed to the market growth with the approval of various innovative cannabis-related products, including Dronabinol (Marinol, Syndros) & Cesamet (nabilone). However, all these products are available through a prescription given by a doctor.
Here, Flower-Based cannabis is projected to witness the maximum demand across North America through 2027. ‘Flower’ is the smokeable, trichome-enriched part of a cannabis plant. It is the most common form of cannabis consumption owing to its methods of use & versatility. It can be smoked, rolled into a joint, and even used for cooking. The THC content of cannabis flowers is around 15% or above.
Moreover, the boiling temperature of Cannabinoids is lower than the temperature at which cannabis flower starts burning. This property is used majorly in vaporizers, which is gaining immense popularity after the COVID-19 outbreak.
Further, favorable demand dynamics, higher availability & penetration, and a huge consumer base for such products, especially among the western markets, significantly contribute to the demand for flower-based cannabis and fuel the overall market growth.
Geographically, North America Cannabis Market expands across:
Of all, Canada is anticipated to dominate the market with the largest share during the forecast period. The country has witnessed high levels of cannabis use in the previous years and is set to prevail in the same trend in the coming years. In 2020, more than a quarter of people aged 16 & above reported non-medical use of cannabis. Moreover, the consumption of cannabis in men was found higher than in women; and among the age group of 20-24 for both sexes.
Nearly 31% of cannabis users aged 24 and younger reported consuming more cannabis than those aged 25 and older (which accounts for around 19%). Among all methods of cannabis consumption, smoking was the most common one in Canada in 2021.
Further, the large population & legalization of recreational marijuana in Canada are the key factors propelling the market growth in the country. In December 2020, Aphria Inc. & Tilray Inc. (Canada) got engaged in a comprehensive deal to merge their operations and form the world's largest cannabis corporation. This merger would have a comprehensive portfolio of branded Cannabis 2.0 products in Canada, backed by low-cost growing, processing, and manufacturing facilities.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The North America Cannabis Market is projected to grow at a CAGR of around 27.7% during 2022-27.
A. The Medical Use of cannabis dominates the market with the largest share and the same trend is expected to be followed in the coming years.
A. Canada is expected to maintain its dominance during 2022-27 and present immense opportunities to industry leaders in the North America Cannabis Market.
A. The key factors driving the North America Cannabis Market growth are: • Burgeoning rate of decriminalizing & legalizing cannabis in North America • Increasing use of cannabis for medical use
A. Post-COVID-19, the North America Cannabis Market is likely to witness steady growth owing to the rising usage of cannabis for medical uses.