The growth of this market can also be attributed to the increasing awareness among consumers regarding health benefits of cannabis and its growing medical application thca.
According to MarketsandMarkets, the global cannabis market size is estimated to be valued at USD 20.5billion in 2020 and is projected to reach USD 90.4 billion by 2026, recording a CAGR of 28.0% in terms of value. The growth of cannabis market can be attributed to the increasing legalization of cannabis across various regions. Along with that, growing medicinal applications of cannabis will further contribute to the growth of cannabis market in the forecasted period. North America region dominated the cannabis market.
Cannabis is a drug derived from the Cannabis sativa, Cannabis indica, and hybrid strains. Cannabis is composed of different cannabinoids, the two main cannabinoids that are considered to be the most active compounds are tetrahydrocannabinol (THC), the psychoactive compound, and cannabidiol (CBD), the non-psychoactive compound. It used for various medical and recreational purpose.
North America dominated the global cannabis market. It is largely driven by the increasing legalization of cannabis for both medical and recreational purposes all over the region. Also, the consumers are now more aware about the health benefits of cannabis. The market is further fueled by the presence of major cannabis giants, such as Canopy Growth Corporation, Aurora Cannabis Inc., and Medical Marijuana Inc. These companies are playing a major role in developing new innovative products to fulfill consumer demand.
Among various product types of cannabis, flower segment accounted for the major market share in the overall cannabis market. The dominance of this segment is largely attributable to its wider availability. Also, its method of delivery as smoking or vaping the cannabis flower has a quicker effect, which is why is it preferred by medical and recreational cannabis consumers for fast-acting relief.
Based on application, the recreational segment is projected to be the fastest-growing during the forecast period. The growth is mainly associated with the high consumption and demand levels for recreational cannabis. Also, the demand for recreational cannabis is projected to surpass the demand for medical cannabis. Therefore, the legalization of recreational cannabis across various regions could translate into a larger market share.
Among various compounds, the THC-dominant segment accounted for the major market share in the overall cannabis market. The dominance of this segment is majorly attributed to the fact that THC is the psychoactive substance in cannabis products. The THC-dominant products also offer important medical benefits, which are considered effective in relieving nausea, appetite loss, and insomnia.