With an increasing number of countries that are legalizing cannabis for medicinal or recreational use, and a growing demand for THC and CBD-infused edibles and topical products, the global cultivation market is experiencing significant growth that is expected to continue in the coming years.
According to a new report from Grand View Research, Inc. (GVR), the global cannabis cultivation market is expected to be worth $45.4 billion by 2026 with a compound annual growth rate (CAGR) of 13.5 percent.
With legal cannabis cultivation in Canada and a growing number of states in the U.S., North America led the global cannabis market in 2018 with a revenue of USD 15.6 billion.
In December of 2018, there were more than 800 cultivators that applied for licenses in Canada, which was 30 percent higher than in August of the same year.
“Canada and the U.S. collectively produced the highest quantity of cannabis, accounting for almost the whole share of the total produce,” stated GVR in a press release. “This is due to a high demand for medical & recreational cannabis, increase in pot tourism, and a steep growth in online sales channels.”
GVR reports that Europe is expected to be the fastest-growing market due to increasing legalization of indigenous cultivation and a reduced focus on imported cannabis which is more expensive.
The cultivation market is separated into buds (flower), oils, and tinctures.
Cannabis flower dominated the market in 2018 due to the high number of people that smoke marijuana and the fact that it is considered a primary product in a readily usable form.
But GVR reports that the demand for oils and tinctures is increasing at a faster rate than cannabis flower due to easy administration, extended shelf life, quicker onset time, and lack of negative effects associated with smoking.
There are already a large number of major players in the market, and new cultivators are expected to enter as countries continue to legalize cannabis, make technological advances, and as new startups receive funding.
