Aug, 2022 by Cannabiz Wholesaler
Cannabis continues to grow -- and not just on farms.
The cannabis market is expected to be worth $90.4 billion by 2026, thanks in large part to growth in the medical applications of cannabis.
According to MarketsandMarkets Inc. in Northbrook, IL, the global cannabis market’s size was estimated to be valued at $20.5 billion in 2020, and is projected to reach $90.4 billion by 2026, recording a CAGR (compound annual growth rate) of 28.0% in terms of value. Various product developments happening in the category, in tandem with novel product delivery solutions will create opportunities within the market, the company said in a release.
The concentrates segment within the cannabis market, by product type, is estimated to grow at the fastest rate from 2020 to 2026. “This is majorly due to the varied number of forms in which concentrates let one experience cannabis in a multitude of ways, such as shatter, rosin, wax, crumble, oil, dabs, and tinctures,” officials pointed out. Concentrates also offer a wide variety of delivery methods, such as smoking, vaping, dabbing, ingestion, and tinctures, which further aid their market growth.
The cannabis market, by application, is estimated to be dominated by the medical segment.
“Marijuana has been used as a medicine in different cultures for thousands of years,” the company noted. “The use of cannabis is being legalized across countries for medical purposes for the treatment of various illnesses and ailments. Furthermore, the usage of medical CBD in the form of oils, topical pain relief treatment solutions, and edibles could also dissuade its smoke intake among patients while being equally effective medically.”
Medical cannabis remains the most effective mainly because it is also used for various health conditions, which include pain management, neurological health management, and mental health management.
The North American cannabis market is primarily driven by growth in the U.S. and Canadian markets, MarketsandMarkets noted. “The market in this region is driven by the increasing legalization of cannabis for both medical and recreational purposes all over North America, and increasing awareness among consumers regarding the health benefits of cannabis.”
The market is being further driven by the presence of cannabis giants such as Canopy Growth Corporation, Aurora Cannabis Inc., and Medical Marijuana Inc., who are continuously investing and collaborating for the development of new products to fulfill the demand of the consumers.
Furthermore, executives said, the legalization of recreational usage of cannabis in Canada in 2018 and several U.S. states for medical and recreational purposes is also expected to generate a “huge” opportunity for the cannabis market in the North American region. Other factors -- such as an increase in recognition of medical benefits of cannabis and growing consumer demand for cannabis in disease management and treatment due to high healthcare costs -- are expected to drive the growth.
Other researchers are coming to the same conclusions regarding growth.
According to a Zion Market Research study, the global cannabis testing market was valued at around $1.35 billion in 2021, and is estimated to grow to about $10.86 billion by 2028, with a CAGR of approximately 19.8% over the forecast period.
“The existence of a significant number of cultivators, as well as an increase in the number of testing laboratories in the North America region due to strict government restrictions for cannabis producers, are key drivers promoting market growth in this North America region,” the New York City-based firm said in a release. “The rising legalization of cannabis in several European countries, as well as the expanding use of the plant in drug development and research, are expected to fuel the market for cannabis testing.”
Cannabis testing is the process of analyzing a single sample of cannabis to evaluate CBD, THC, and terpene levels, as well as pollutants and impurities such as mold spores, residual solvents, infection, and pesticide residue, Zion noted. “Each state and municipality has the authority to set their own rules and regulations for what must be tested and printed on cannabis labeling.”
The cannabis testing market in the region is tightly regulated, executives noted, with most countries barring goods having more than 0.3% THC, thereby driving the market growth in this region.
“Medical cannabis has shown to be helpful in a number of medical uses,” researchers noted, including lowering intraocular pressure in glaucoma patients, managing muscular spasms in multiple sclerosis patients, boosting appetite in AIDS patients, and minimizing chemotherapy-induced nausea. “Medical cannabis is legal in a number of countries due to its health benefits. Italy, Brazil, Israel, the Netherlands, Germany, the United Kingdom, Portugal, Spain, North Korea, Canada, and Australia have all approved it in the last few years.”
Zion reported that 25 states have legalized medical cannabis, with four — Alaska, Oregon, Washington, and Colorado -- legalizing it for both recreational and medical purposes. “Thus, with the rising legalization of cannabis, an increase in adoption of its testing is being witnessed, which in turn is fostering the growth of the global cannabis testing market.”