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Cannabis Cultivation Market Size Worth $45.4 Billion by 2026

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The global cannabis cultivation market size is expected to reach USD 45.4 billion by 2026, according to a new report by Grand View Research, Inc., exhibiting a CAGR of 13.5% during the forecast period. Rising number of countries legalizing marijuana cultivation, increasing number of cultivators, and growing global marijuana trade are some of the leading factors contributing toward the rise in cultivation. In addition, rising production of marijuana derivatives such as oil, creams, and edibles due to increase in demand and geographical expansion of cannabis producing companies is expected to drive growth during the forecast period.

Key suggestions from the report:

Buds dominated the market in 2018, owing to a high consumer pool already smoking buds. Moreover, it is a readily usable form and, hence, is considered as a primary product that has more potency as it contains the necessary levels of THC and CBD content. However, the ill effects of smoking buds are likely to impede growth over the forecast period and drive production of cannabis-based oils & tinctures as these products are safe to consume & have a faster onset of action.

North America dominated the marijuana cultivation market in 2018 owing to the presence of two largest marijuana markets-the U.S. and Canada. This is due to legalization of marijuana for recreational and medicinal purposes in Canada & several U.S. states, along with presence of leading cultivators such as Aphria, Tilray, Canopy Growth Corporation, & The Chronos Group in the region.

Canada and the U.S. collectively produced the highest quantity of cannabis, accounting for almost the whole share of the total produce. This is due to high demand for medical & recreational cannabis, increase in pot tourism, and a steep growth in online sales channels. Europe is expected to be the fastest growing, owing to increasing legalization of indigenous cultivation and reducing focus on marijuana imports due to high costs. Moreover, other countries such as Sri Lanka and Thailand are expected to start cultivation after their expected/recent legalization.

Some of the major marijuana cultivators are Canopy Growth Corporation; Aurora Cannabis; Maricann Group, Inc.; Tilray; Aphria, Inc.; The Cronos Group; ABcann Medicinals, Inc.; GW Pharmaceuticals plc.; and Organigram Holding, Inc. Several new cultivators are expected to enter the market due to ongoing legalization in various countries, rising technological advancements in equipment, and growing funding for new startups.

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