In the dynamic world of cannabis consumption, understanding market trends is crucial for industry players and enthusiasts alike. This article delves into recent data analysis spanning from 2017 to 2027, providing valuable insights into the evolving landscape of cannabis product sales.
From the enduring popularity of flower to the rising demand for concentrates and edibles, join us as we unravel the complexities of today's U.S. cannabis market size and share reports.
Market Overview:
The U.S. cannabis market is poised for substantial growth, with projections indicating a market value ofUSD 39.85 billion in 2024, and a compound annual growth rate (CAGR) of 13.93% from 2024 to 2028, reaching USD 67.15 billion by 2028. (Statista)
The market was valued at USD 13.2 billion in 2022 and is expected to expand at aCAGR of 14.2% from 2023 to 2030. (Grand View Research)
Cannabis usage in the U.S. spans various industries including cosmetics, pharmaceuticals, and food & beverages, driven by increasing legalization and acceptance for medical purposes. (Grand View Research)
Market Drivers:
The growing acceptance of cannabis for medical purposes, supported by research highlighting its efficacy in treating chronic conditions like pain and nausea, is a key driver for market growth. (Grand View Research)
Favorable cultivation norms in states likeFlorida, Oregon, and Colorado, along with ease of wholesale procurement, are driving market growth. (Grand View Research)
Despite setbacks from the COVID-19 pandemic, strategic developments and FDA support for R&D activities are expected to boost market growth. (Grand View Research)
Sales by Product Type:
Recent analyses provide insights into the shifting landscape of cannabis product sales, though the numbers vary by report. Flowhub reports the following data from 2018 to 2021 to depict the amount of sales in each product category:
Flower, encompassing pre-packed, deli-style, and pre-rolls, remains a cornerstone of the cannabis market, constituting 59% of total sales in 2021.
Pre-rollsdemonstrate resilience, particularly in specific markets, comprising 17% of total sales in Alaska, 13% in Massachusetts, and 9% in Nevada.
Concentrateshave witnessed a notable uptick, with their share of total sales climbing from an average of 22% to 24% in 2021, driven by heightened demand in established markets such as Nevada, Colorado, and California.
Edibleshave experienced growth, accounting for 11% of total sales in 2021, up from an average of 9% previously. States like Missouri, Maine, Nevada, and Massachusetts have notably contributed to this surge.
Cannabis accessory sales maintain a modest proportion, averaging at 2% of total sales. Interestingly, newer markets exhibit higher rates of accessory purchases compared to more mature markets.
Other reports also touch on the popularity of certain product types. Statista reports:
Flower and pre-rollcontinues to be the market share leader in the cannabis market 2020, but its popularity is declining.
Vapeproducts accounted for 17% of market sales in 2017, but have grown to cover a 29% share in 2020.
Adult-use cannabisconcentratesreached approximately USD $3 billion U.S. in 2021.
Concentratesales are expected to continue to incline, reaching at least USD $6.5 billion by 2025.
End-use Insights:
The medical segment dominated in 2022, accounting for77.0%of revenue, driven by acceptance for treating chronic conditions and FDA-approved drugs like Marinol and Syndros. (Grand View Research)
Recreational cannabis is anticipated to grow at a faster rate of 19.1% due to its broader applications and legalization in 19 states. (Grand View Research)
Source Insights:
Marijuana products contributed to 86.5% of revenue in 2022, driven by their efficacy in treating various conditions and changing perceptions towards cannabis-based products. (Grand View Research)
Marijuana-derived cannabinoids are expected to see the fastest growth, driven by regulatory changes and increased adoption for both medical and recreational purposes. (Grand View Research)
Derivative Insights:
CBD products held the largest market share in 2022 (65.5%), driven by their medicinal properties and lack of psychoactive effects. (Grand View Research)
Minor cannabinoids like CBC, CBG, and CBDa are expected to see rapid growth due to increasing research and awareness of their health benefits. (Grand View Research)
Key Companies & Market Share Insights:
Increasing demand for cannabis is attracting new companies, with strategic partnerships and alliances driving market growth. (Grand View Research)
Key players include Canopy Growth Corporation, GW Pharmaceuticals, Aurora Cannabis, and Aphria, among others. (Grand View Research)
Market Forecast:
Combined medical and recreational cannabis sales could reachUSD 33.6 billion by the end of 2023, with retail sales projected to surpassUSD 53.5 billion by 2027. (MJBizDaily)
Strong growth is expected in both medical and adult-use markets, driven by expansions in state programs and transitions from medical to recreational markets. (MJBizDaily)
Conclusion:
The U.S. cannabis market presents significant opportunities for growth, driven by increasing acceptance, regulatory changes, and expanding applications across various industries. As the market matures, strategic partnerships and innovations are likely to shape its trajectory in the coming years.
