Grand View Research reported that the U.S. cannabis market is predicted to reach $40 billion by 2023 due largely to increased legalization of cannabis, which is driving the market growth. The market is expected to expand at a CAGR of 14.9% over the forecast period.
According to the report, the medical end-use segment dominated the market with a 77.5% revenue share in 2021 owing to the increasing research activity and growing scientific literature supporting its benefits in the treatment of various chronic diseases. The marijuana segment dominated the market with an 85.5% share of the revenue in 2021, owing to the recognition of cannabis for medical purposes and increasing legalization of its use.
Based on derivatives, the CBD segment dominated the market with a revenue share of 66.3% in 2021 due to its rise in acceptance as a potent pain reliever and its use to treat several other conditions.
U.S. Cannabis Market Trends
The possibility of abuse owing to cannabis utilization has been reduced due to major, gradual legalization initiatives in many states. While some states have yet to authorize cannabis for recreational use, perspectives toward its usage and sale have shifted over time. As a result, cannabis use has become more popular, moving the overall cannabis business ahead. The safe utilization of marijuana due to legalization is benefitting the growth of the market.
Based on type, the medical segment dominated the market with a revenue share of 77.5% in 2021. Some of the primary factors responsible for this are increased knowledge about the medicinal benefits of cannabis, rising demand for plant-based medicines in pain management and increasing legalization of cannabis for medical uses. Several states have authorized medicinal marijuana in recent years, although its prescription is based on the physician’s preference and the patient’s desire. The market is likely to develop at a healthy rate over the forecast period as the number of states that have legalized medical marijuana increases.
Based on the report, the marijuana segment dominated the market with a revenue share of 85.5% in 2021 owing to the use of marijuana for recreational as well as medicinal purposes. Also, the growing consumer base and legal purchasing of marijuana products are boosting the segment growth. Moreover, the initiatives undertaken by the government to legalize the consumption and selling of marijuana in different states in the region are impelling the segment growth.
Based on derivative type, the CBD segment dominated the market with a revenue share of 66.3% in 2021. The growing acceptance of CBD products and legalization of CBD in the region are the major factors contributing to the dominance of the segment. Also, CBD has shown its potential in treating various diseases like PTSD and different types of cancer. Moreover, the key players focusing on the development of CBD-infused products is another factor boosting the growth of the segment.
The COVID-19 pandemic outbreak dramatically impacted the cannabis supply chain and has thrown it into turmoil. As a result of the significant ban, the availability of cannabis in dispensaries has dropped due to the global lockdown. Furthermore, the COVID-19 pandemic has harmed the export industry. As a result of the disruption, the distribution system has been interrupted by lockdowns in major countries, affecting both import and export commerce from the U.S. to other countries. On the other hand, the number of patients using cannabis as a medication is certain to rise due to the rise in the number of diseases that require cannabis treatment, thereby paving way for the growth of the market in the forthcoming years.