Cannabis Cultivation Market - Size & Upcoming Industry Trends (2024-2032)

Cannabis Cultivation Market Synopsis:

Cannabis Cultivation Market Size Was Valued at USD 33.60 Billion in 2023, and is Projected to Reach USD 102.5 Billion by 2032, Growing at a CAGR of 12.10% From 2024-2032.

The Cannabis Cultivation Market ditto the agriculture market that deals in the growth, production of cannabis plants for medical, leisure as well as commercial usage. This market has recorded growth growth due to the gradual decriminalization of cannabis in most parts of the world especially in North America, Europe and some parts of Asia. Cannabis is grown for consumption, with recreational cannabis containing legal Tetrahydrocannabinol (THC), and medicinal cannabis containing medicinal Cannabidiol (CBD) for treatment of pain, epilepsy, anxiety, and other chronic illnesses. Also, the marijuana plant used for the production of textiles, bio fuels, CBD Oil and other economic products, grown industrial hemp which contain low levels of THC. The cultivation technique can be divided into two major classes, indoor and outdoor cultivation; indoor cultivation is advantageous since it can be practiced throughout the year, and the quality of the output is normally very high especially when it comes to medical marijuana. Read cultivation which is commonly employed in large scale industrial hemp and volume cannabis production is cheaper and employs sunlight. Due to the fact that cannabis is gradually gaining a more complete legal status in most of the countries today, there is great potential for the market growth because of growing interest of consumers in cannabis products, progress in procedures associated with production of medical marijuana, increasing number of studies on the medical uses of cannabis and changes in the legal status of marijuana in various parts of the world.• On rapidly growth of the Cannabis cultivation market has been set up in the last few years mainly due to increasing legalization for medical and recreational and industrial uses.ures, higher levels of research on medical applications of cannabis and legalization of marijuana in more areas of the world.

The Cannabis cultivation market has been established to expand significantly in the last few years, primarily due to the rising legalization of cannabis for medical use, recreational use, and for industrial uses. Legalization of cannabis and especially for medical use has created the consumer interest in medicinal cannabis as well as the recreational cannabis.High-CBD products, which are in the pharmacies and the wellness industry as medicinal cannabis for treatment of pain, anxiety disorders and chronic ailments, has boosted the pharmaceuticals. furthermore, the segment of recreational cannabis is emerging in response to the legalization of cannabis for adult use in more countries and states in the USA, which causes the appearance of a vast market for THC-containing goods. On the other hand, the legal cultivation of cannabis variety with low THC is used for production of textiles, biodegradable plastics, construction materials, and Cannabidiol oils. The chemical, social, commercial, medicinal and recreational demand for cannabis through global legalisation, medical marijuana programmes and evolving social norms has created a multi-fold interest in cannabis farming especially in technology, practices and a professional market.

The other determinant is the various techniques of crop growing adopted by producers and each come with various benefits and drawbacks. Out door has recently received less application compared to indoor where medical cannabis is grown all year round with adjustable controlled environmental conditions that include temperatures, humidity and light is favorable in producing effective high quality cannabis. Indoor setups also yield more steady returns and are well suited to specialize in high earning products such as Medical Marijuana and quality recreational Marijuana. Outdoor cultivation, however, is less expensive and can be applied for the commercial production of marijuana especially industrial marijuana or the quantity production of marijuana used for recreational uses. This method uses natural sun and it is greatly used in friendly products where quality is not very important to as compared to the volume and cost of production.

Cannabis Cultivation Market Trend Analysis:

Shift Towards Sustainable and Eco-Friendly Cultivation Practices

• Conventional practices of farming have also been very demanding especially when performed indoors, where a lot of energy was used for lighting and aeration, water and chemical use. As a result, cultivators have been practising organic farming, which involves the use of natural fertilizers, compost, and bio control agents instead of chemicals in pest control. They are consistent with consumers’ desire for sustainable products of improved health and are contributing to reducing the ecological impact of cannabis production. Other trends are also being embraced, such as regenerative agriculture because it tries to make cannabis farming more sustainable by correcting soil health issues, increasing the range of species, and taking carbon out of the atmosphere.
• Besides organic and regenerative farming, the cannabis industry is moving toward the efficient use of renewable energy and water. People are now using Sunpower, wind energy and LED lighting indoors in plant growing to minimize electricity usage and CO2 emissions. Further, the methods like hydroponics and aeroponics are also following so as to reduce water consumption issue which is essential in arid zone. For sustainability, growers are transitioning cannabis packaging by employing sustainable packing, using biodegradable, recyclable, or reusable materials. These combined efforts are suggestive of an emerging global trend in the cannabis industries to minimize the ‘carbon cost’ of cannabis production and integrate sustainable production principles that are hence becoming central to the strategic growth of the industries.

Surge in Consumer Demand for Premium, Sustainable Cannabis Products

• The global cannabis cultivation market is experiencing extraordinary growth in consumer acceptance of high-quality green cannabis products. While cannabis continues to gain legal status across the globe, and the substance is gradually being accepted by societies’conventional consumers are demanding premium quality cannabis strains for both recreational and medical use. It is this demand that is forcing cultivators to embrace the growth of quality products like high CBD products for medical use and quality THC products for the common users. At the same time customers are becoming increasingly aware of the organic and sustainably grown cannabis and are willing to buy or use only the organic pesticide-Free and grown using sustainable methods. This new wave of conscientious consumers is forcing growers to use proper techniques such as organic farming and environmentally sensitive packaging to satisfy idealistic and growing audience demands.
• This change in demand for quality an eco-friendly product is also forcing change in the ways that the plants are grown. Vertical farming for example, indoor systems that fully utilize available space and utilize fewer inputs, use more efficient systems of production that embrace input of precision farming. In addition, every client would prefer to buy goods that are produced with minimal impacts on health and the environment and therefore, any brand that caters for clean production methods of its goods enjoys a higher price strategy. In sum, it is predicted that the desire for organic, high-quality and sustainable cannabis products will remain on the rise in the future acting as the main stimulant for producers to seek new opportunities for growth in the frame of fulfilling pressing and changing consumer expectations.

Cannabis Cultivation Market Segment Analysis:

Cannabis Cultivation Market is Segmented on the basis of Type, Application, End User, and Region

By Type, Medical Cannabis segment is expected to dominate the market during the forecast period

• The Medical Cannabis segment is expected to remain in the forefront, throughout the forecast period due to rising global approval for the use of cannabis for treatment of various ailments. As academics and professionals continue to uncover marijuana’s potential as a medicine, especially for chronic pain, epilepsy, anxiety, and the side effects of cancer and neurological diseases, those in pain turn to cannabis-based medicine. As more territories such as the US continue making the marijuana business legal for its medical use the high CBD/low THC cannabis products would continue to be popular on the market. This change is backed by the growing popularity of high-quality medical marijuana, and ongoing research that is building the evidence base for its effectiveness.
• Also, there is an increasing number of doctors who prescribe cannabis, increased availability and increased awareness of the effectiveness of this medicine. Medical cannabis is also getting better research funding for research and development is helping to enhance the development of new specific and effective medicinal marijuana products. Thus it reflects how the medical marijuana sectors consumers and the health care professionals rely on cannabis to do its therapeutic functions to reform in the future remains the largest segment in the global cannabis growth cultivation market.

By Application, Medical and Pharmaceutical segment expected to held the largest share

• The Medical and Pharmaceutical segment is expected to dominate the global market throughout the forecast period. There continues to be improved legal acceptance of cannabis in managing a number of ailments such as chronic pain, neurological conditions, cancer, anxiety, sleep disorders as well as other ailments meaning improved growth for this segment. Since the number of countries and territories legalizing medical marijuana keeps on increasing, medical marijuana products inclusive of oil, tincture, capsules, and balms among others remain on the rise. Legalization of marijuana for medical purposes has been induced by the number of pharmaceutical firms that are currently exploring the capabilities of cannabis-based products through several raging studies.
• In particular, there are positive changes in legislation and concerns for the enhancement of the norms governing the medical and pharmaceutical market for cannabis along with the continuous increase in the knowledge about the therapeutic effects of cannabis. An increasing number of healthcare practitioners are prescribing marijuana as a treatment and the pharma industry is funding marijuana-based drugs to expand market demand. This trend, combined with the growing focus on the treatment potential of cannabinoids as well as the increasing demand for natural and/or organic medicine, is already expected to deepen the medical/pharmaceutical application as the largest and most dominant segment in the cannabis market.

Cannabis Cultivation Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America is anticipated to hold the largest Cannabis Cultivation Market size during the forecast period, citing a rapidly liberalizing legal cannabis market and increased acceptance of cannabis for medical and recreational use. The United States continues to be the leading driver of the growth, specifically, California, Colorado and Illinois, which have compliant markets for both medical marijuana and recreational cannabis. Also, this year Canada became the first country from the G7 to legalize cannabis for adult use in 2018 which positively impacted the cannabis cultivation. With the legal restrictions easing up, North America has achieved significant growths in both domestic cultivation and exports of cannabis making the region as one of the strongest blocs in terms of cultivation ability and new invention.
• Larger cultivation facilities which enhance production, development of high technology cultivation like vertical farming, automated production units, and rapid growth in investment on research and development of cannabis substantiate North America’s supremacy in the market. The mere legalisation is a good sign with clear legal framework and having strong distribution and retail structure guarantees that North America is capable of maintaining high percentage consumption of the global cannabis production market. In addition, intensification of natural farming methods, innovative growth techniques, and medical marijuana production is other market drivers that are expanding the region, making North America to be one of the leading markets for cannabis over the forecast period 2020-2025.

Active Key Players in the Cannabis Cultivation Market:

• Aphria Inc. (Canada)
• Aurora Cannabis Inc. (Canada)
• Canopy Growth Corporation (Canada)
• Cronos Group Inc. (Canada)
• Curaleaf Holdings, Inc. (United States)
• Green Thumb Industries (United States)
• Harvest Health & Recreation (United States)
• Hexo Corp (Canada)
• Liberty Health Sciences (United States)
• MedMen Enterprises (United States)
• Organigram Holdings Inc. (Canada)
• Sundial Growers Inc. (Canada)
• The Green Organic Dutchman (Canada)
• The Scotts Miracle-Gro Company (United States)
• Tilray, Inc. (Canada)
• Trulieve Cannabis Corporation (United States)
• Vireo Health International, Inc. (United States)
• Zynerba Pharmaceuticals (United States)
• Other Active Players