Cannabis Cultivation Market

The global cannabis cultivation market size was valued at USD 140.24 billion in 2020 and is projected to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the increasing adoption of cannabis for the treatment of chronic diseases and rising legalization.

Additionally, the liberalization of rules associated with cannabis cultivation, mainly for hemp cultivation by many countries because of low Tetrahydrocannabinol (THC) content, which push to raise the adoption of cannabis. Moreover, the growing adoption of marijuana and its legalization in different geographies are factors propelling the cannabis cultivation market. For instance, in 2017, in the post-legalization of medical marijuana in Germany, there was a substantial growth of the adoption among a large number of patients. According to the 2019 report published by Bank of Montreal, after the legalization of marijuana, the number of patients were increased from 1,010 to around 35,000 in Germany.

The demand for hemp and its processing is increasing due to legalization of the plant in many developed countries after acknowledging the levels of cannabidiol (CBD) present inside. This leads to growing adoption of hemp extracts for many applications in different sectors such as cosmetics, food & beverage, nutraceuticals, and pharmaceuticals. Hemp is considered as an agricultural goods produced in more than 40 countries. Globally, countries including China, Chile, Croatia, Russia, Canada, Mongolia, South Korea, Romania, France, Czech Republic, and Ecuador are major producers of this plant. In many countries, medical marijuana cannabis are legalized only for certain indications. For instance, in Croatia, the use of medical cannabis is legal only for treating patients who are suffering from multiple sclerosis, AIDS, epilepsy, and cancer. Owing to limited applications, the demand for these cannabis leads to restricted supply chains globally. For instance, Germany is currently facing a lack of medicinal cannabis supply, due to which patients have to pay high prices.

Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for marijuana-based products and recreational purposes around the world are offering various opportunities for market players, which is anticipated to fuel the market growth in the coming years.
• Early advancement of genetic development and extensive range of applications of cannabis especially for industrial and medical use are major factors responsible for the growth of the market.
• Major market players are focusing on inorganic strategies and growing intellectual property of cannabis, thereby, expected to boost the market expansion in the coming years
• Stringent regulations regarding cannabis cultivation and lack of strong global supply chain for the substance are major challenges anticipated to impede the market during the forecast period.
• Limited cultivation and restricted scope of application of medical cannabis in many countries are expected to hamper the market growth in the coming years.

Scope of the Report

The report on the global cannabis cultivation market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Hemp segment is projected to hold a key market share

In terms of biomasses, the cannabis cultivation market is segregated into hemp and marijuana. The hemp segment is expected to hold a key share of the market during the forecast period owing to growing adoption of hemp and derived products along with rising implementation within the users as lower THC content. On the other hand, the marijuana segment is anticipated to expand at a rapid pace during the forecast period due to increasing legalization of it in many countries for adult and medical use.

Moreover, favorable government regulations for the medical and industrial use related to the utilization of hemp in many countries are pushing to propel the adoption of hemp and hemp-derived products. For instance, in Japan, marijuana products are not legalized but hemp CBD oil is legalized because of low THC content. Therefore, positive government initiatives and increasing awareness of the benefits of CBD are expected to boost the overall market growth.

Medical consumption segment is expected to expand at a rapid pace

On the basis of applications, the market the divided into medical consumption, recreational consumption, and industrial consumption. The industrial consumption segment is expected to represent a key share of the market in the coming years due to rising application of marijuana and hemp in different industries such as nutraceuticals, cosmetics & personal care, food & beverages, and pharmaceuticals. Moreover, factors such as increasing the use of cannabis by many corporations and its derivatives as raw material for the production of innovative cannabis-infused products are anticipated to fuel the market growth over the forecast period.

However, the medical consumption segment is anticipated to expand at a rapid pace during the forecast period due to rising use of marijuana in the medical sector and for treating various health conditions including mental disorders, chronic pain, and cancer. Furthermore, the rising demand for marijuana cannabis is due to numerous support from many scientific studies regarding its benefits for the treatment of several diseases.

Asia Pacific is anticipated to dominate the market

Based on regions, the cannabis cultivation market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period owing to the occurrence of the major agriculture markets in the region. Moreover, rising awareness among people about cannabis and its medical benefits, favorable climatic conditions, and increasing number of patients for medical marijuana treatments are other key factors driving the regional market growth.

However, the market of Middle East and Africa in combined is anticipated to exhibit a rapid growth rate in the coming years due to quicker improvement in regulations with respect to cannabis cultivation and application for industrial and medical use. Additionally, increasing government reforms encouraging hemp and marijuana cultivation is estimated to fuel the regional market growth.

Segments

Segments Covered in the Report

The global cannabis cultivation market has been segmented on the basis of

Biomasses

• Hemp
• Marijuana

Applications

• Medical Consumption
• Recreational Consumption
• Industrial Consumption

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Canopy Growth Corporation
• Aphria, Inc.
• Aurora Cannabis
• Tilray
• The Cronos Group
• Organigram Holding, Inc.
• Better Holdings
• Pacific Cannabis Growers
• Atlas Growers
• CannTrust Holdings
• The Hydropothecary Corp.

Competitive Landscape

Key players competing in the cannabis cultivation market are Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Tilray, The Cronos Group, Organigram Holding, Inc., Better Holdings, Pacific Cannabis Growers, Atlas Growers, CannTrust Holdings, and The Hydropothecary Corp.

The cannabis cultivation market is competitive due to increasing demand for cannabis and its derived products along with technological advancements. Furthermore, increasing demand for the plant worldwide has promoted new players in the market. Some of these major market players have implemented business strategies such as partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.

Moreover, key players are constantly looking for adopting mergers and acquisitions strategies to boost their market positions. For instance, in December 2019, Tilray acquired Privateer Holdings, an equity firm investing in legal marijuana industry.