March 2, 2024
Cannabis Cultivation Market

Cannabis Cultivation Market is Expected to be Flourished by Growing Medical Cannabis Acceptance

Cannabis cultivation involves growing and harvesting of cannabis plants for medical and recreational use. Cannabis plants are grown both indoors and outdoors and are cultivated for their medical compounds including cannabidiol (CBD) and tetrahydrocannabinol (THC). Cannabis cultivation products include seeds, live plants, dried flowers, extracts, and oils which find numerous industrial applications in medical, food and personal care industries. Cannabis cultivation market is still in a nascent stage, however, the growing acceptance of medical cannabis and its legalization in many countries is creating new opportunities.

The global Cannabis Cultivation Market is estimated to be valued at US$ 27.89 billion in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing Medical Cannabis Acceptance- As highlighted earlier, growing acceptance of medical cannabis is driving the market. Cannabis is increasingly being used for treatment of chronic conditions like cancer, arthritis, Parkinson’s disease and Alzheimer’s. Legalization of medical cannabis in countries like Canada, Germany and Australia is creating massive opportunities for market players. Additionally, advancing research on therapeutic properties of cannabis is also expanding its medical applications. These factors together are boosting demand as well as cultivation of cannabis worldwide.
Expansion of Recreational Use- Along with medical use, expansion of recreational and adult-use cannabis is a key driver. Countries like Canada, Mexico and many U.S. states have legalized recreational cannabis. This has led to surge in demand and commercial cultivation. Moreover, lifting of bans on recreational use is creating investment opportunities for market participants across the value chain.

Segment Analysis
The global cannabis cultivation market is dominated by the recreational segment. This is due to the legalization of recreational cannabis across various regions such as North America and Europe. The recreational segment accounts for more than 60% of the overall market due to high demand for recreational cannabis. Medical segment also has a significant share and is growing at a higher pace compared to recreational segment owing to increasing use of cannabis for medical applications such as cancer, arthritis, and other diseases.

PEST Analysis
Political: Regulations regarding the use and production of cannabis are frequently changing across the globe. More regions are legalizing medical and recreational cannabis which is positively impacting the market growth. However, varying political landscape also creates uncertainties.
Economic: Investments in cannabis cultivation have increased significantly over the past few years. Most investments are directed towards R&D, technology adoption, and facility expansion to cater to the growing demand. Changes in GDP along with disposable income levels will influence the overall market size.
Social: Social acceptance of cannabis is increasing owing to awareness regarding its medical benefits. Recreational use is also not considered a taboo in many regions. However, some regions still have social constraints regarding its use.
Technological: Adoption of advanced indoor farming techniques such as hydroponics and aeroponics is helping in improving yield per harvest. Automation and use of analytics is also enhancing productivity and optimizing cultivation processes.

Key Takeaways
Global Cannabis Cultivation Market Size is expected to witness high growth over the forecast period of 2022-2028.

Regional analysis: The North America region accounts for over 40% market share currently owing to developed cultivation infrastructure and increasing consumption in the US and Canada. The US state of Colorado emerged as one of the largest producer and consumer owing to its early legalization of recreational cannabis in 2014. Other states like California and Florida are also major cultivators.

Key players operating in the cannabis cultivation market are Canopy Growth Corporation, Aurora Cannabis, Aphria, Tilray, ABcann Medicinals, and Cronos Group. Canopy Growth is the largest player with international operations and a wide product portfolio. Aurora is expanding its production capacity significantly through facilities in Canada, Denmark, and other countries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it