The global legal cannabis market is projected to reach $148.4 billion by 2031, growing at a CAGR of 16.9%, driven by increasing legalization and advancements in cultivation techniques.
Key points:
- Rising number of countries decriminalizing and legalizing cannabis is fueling market growth, with the market expected to grow by $100.61 billion from 2024-2028 at a CAGR of 28.85%.
- Advanced cultivation techniques like Screen of Green and Sea of Green are enhancing production levels and THC content, boosting market expansion.
- The industry faces challenges including limited access to banking services, regulatory complexities, and stigma surrounding cannabis use.
Market estimate: According to SkyQuest Technology, the global cannabis market is expected to reach USD 148.4 billion by 2031, with a compound annual growth rate (CAGR) of 16.9% during the forecast period of 2024-2031. Technavio estimates the legal cannabis market to grow by USD 100.61 billion from 2024-2028, with a CAGR of 28.85%.
The global cannabis industry is on track for unprecedented expansion, with new market projections highlighting its remarkable growth trajectory. According to a recent report by SkyQuest Technology, the legal cannabis market is expected to reach a staggering $148.4 billion by 2031, growing at a compound annual growth rate (CAGR) of 16.9% from 2024 to 2031.
This robust growth is further corroborated by Technavio’s analysis, which forecasts an increase of $100.61 billion in market size from 2024 to 2028, with an even more aggressive CAGR of 28.85% during this period.
The primary driver behind this explosive growth is the increasing number of countries decriminalizing and legalizing cannabis for both medical and recreational use. This trend has opened up new markets and expanded existing ones, creating opportunities for businesses across the supply chain.
Advancements in cultivation techniques are playing a crucial role in market expansion. Methods such as Screen of Green and Sea of Green are enhancing production levels and increasing THC content in cannabis products. These innovations are enabling producers to meet the escalating demand more efficiently.
However, the industry is not without its challenges. Despite the growing acceptance, cannabis businesses still face significant hurdles, including:
- Limited access to banking services, with many financial institutions hesitant to work with cannabis companies due to regulatory and ethical concerns.
- Complex and varying regulations across different jurisdictions, making compliance a significant challenge for businesses operating in multiple markets.
- Ongoing stigma surrounding cannabis use, which can impact public perception and market growth in some regions.
Key players in the market include Aurora Cannabis Inc., Canopy Growth Corp., Cronos Group Inc., and Tilray Brands Inc., among others. These companies are at the forefront of innovation and market expansion, driving the industry forward despite the challenges.
As the legal cannabis market continues to evolve, it presents both significant opportunities and unique challenges for investors, businesses, and policymakers alike. The coming years will be crucial in shaping the long-term trajectory of this rapidly growing industry.
