Cannabis Industry Expected to Generate Over 350 Billion Dollars by 2027

The report "Cannabis Cultivation Market Size, Share & Trend Analysis by Biomass (Hemp, Cannabis), by Application (Medical and Adult Use), by Region and Segment Forecasts, 2020 - 2027" was released by Research And Markets.

The global cannabis cultivation market size is expected to reach USD 358.8 billion by 2027, expanding at a CAGR of 14.3% from 2020 to 2027.

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The growing legalization and adoption of cannabis for the treatment of chronic diseases is positively impacting market growth. Additionally, the liberalization of laws related to hemp and cannabis by various countries is further driving revenue growth during the forecast period.

Based on biomass, the hemp segment dominated the market in 2019. Factors contributing to the increased demand include the growing adoption of hemp and derived products and its increasing acceptance among users due to its low THC content. It is primarily used by individuals looking to reap the medical benefits of the plant without getting intoxicated. Furthermore, positive government reforms regarding the use of hemp in many countries are further driving market growth.

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In 2019, the industrial consumption segment accounted for the largest share of revenue. This growth is attributed to the increasing application of marijuana and hemp in various sectors such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages. Additionally, the growing use of cannabis and its derivatives as raw materials by companies for the production of their products is further fueling growth. For example, CBD oil and tinctures obtained from the plant are used by pharmaceutical companies to produce cannabis-infused drugs. Thus, its consumption for various applications drives overall market growth.

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The Asia-Pacific region dominated the market with a revenue share of 41.2% in 2019, due to the presence of the largest cultivation markets in the region, such as China, South Korea, India, and Australia. Additionally, favorable climatic conditions, increased awareness of the plant and its medical benefits, and the rising number of patients eligible for medicinal cannabis treatments are other factors driving market growth in the region.

Source: GlobeNewsWire