U.S. Cannabis Market is Anticipated To Be Valued At USD 40.1 Billion By 2030
U.S. Cannabis Industry Overview
The U.S. cannabis market size was valued at USD 13.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030. In the United States, cannabis is often used in the cosmetic, pharmaceutical, and food & beverage industries. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market. The increasing research on the use of cannabis and its medicinal properties has led to its increased use to treat various chronic conditions. They are found to be effective in treating chronic pain and nausea caused due to chemotherapy. Furthermore, the constant rise in the legitimization of medical cannabis has resulted in the growth of the market. For instance, the Food and Drug Administration (FDA) has approved the use of cannabis-derived drug products such as Epidiolex, Cesamet, etc. for treating seizures, and chemotherapy-induced side effects respectively. Moreover, in December 2020, the U.S. House of Representatives passed the legislation to remove cannabis from “The controlled Substance Act of 1970”. This is anticipated to create enormous opportunities for market growth in the forthcoming years.
Moreover, a positive attitude of consumers towards the consumption of cannabinoid-based products has led to the increased penetration of abis. For instance, according to the Gallup Survey, 2022, approximately 64% of the U.S. adults were familiar with CBD and CBD products and as per the SingleCare Survey 2020, approximately one-third of Americans used CBD.
Gather more insights about the market drivers, restrains and growth of the U.S. Cannabis market
Also, the increasing number of companies entering the local markets to cater to the growing demand for cannabis is one of the factors supporting the market growth. In addition, a dynamic startup scene in the U.S. boosts the growth of the market for cannabis. For instance, as per an article published in TechCrunch, Dutchie, Inc., Oregon based company raised a Series D funding of around USD 350 million in 2021.
Other factors contributing to the growth include the favorable cultivation norms which help cater to the biomass demand in the U.S. Some major states such as Florida, Oregon, Nevada, California, Washington, and Colorado are the major producers of cannabis, owing to favorable climatic conditions and the legalization of medical marijuana. Furthermore, the increasing number of companies in cannabis businesses due to the ease with which wholesale procurement of cannabis can be carried out and product development can be achieved is driving the market growth in the U.S.
The COVID-19 pandemic resulted in the reduction in the strategic instances and revenues by various players. The factors responsible for the reduction in revenue include stringent regulation on trade and disruption in the supply chain due to lockdown in the U.S. In addition, despite the increase in the number of cannabis utilizers during the pandemic, there has also been a significant reduction in the price, which has led to a decrease in the market size, in terms of revenue.
However, with the improving situation in the region, there is an upsurge in the strategic developments by the key players, and this trend is anticipated to witness growth over the forecast period. In addition, the affirmative guidelines provided by the FDA for the continuation of the R&D activities concerning cannabis and CBD is anticipated to boost the growth of the U.S. cannabis market in the forthcoming years.
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U.S. Cannabis Market Segmentation
Grand View Research has segmented the U.S. cannabis market based on end-use, source, and derivatives:
U.S. Cannabis End-use Outlook (Revenue, USD Million, 2016 - 2030)
- Medical
- Recreational
- Industrial
U.S. Cannabis Source Outlook (Revenue, USD Million, 2016 - 2030)
- Marijuana
- Flowers
- Oil and Tinctures
- Hemp
- Hemp CBD
- Supplements
- Industrial Hemp
U.S. Cannabis Derivative Outlook (Revenue, USD Million, 2016 - 2030)
- CBD
- THC
- Others
Market Share Insights
- June 2021: Mile High Labs and Royal DSM entered into a strategic partnership to develop and commercialize the next generation of science-backed cannabinoid consumer products.
Key Companies profiled:
Some prominent players in the U.S. cannabis market include:
- Canopy Growth Corporation
- GW Pharmaceuticals, plc
- Aurora Cannabis, Inc.
- Aphria, Inc.
- Cronos Group
- Tilray
Order a free sample PDF of the U.S. Cannabis Market Intelligence Study, published by Grand View Research.
About Grand View Research
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