According to a new report by Grand View Research, the global cannabis cultivation market size is expected to reach USD 358.8 billion by 2027, expanding at a CAGR of 14.3 percent from 2020 to 2027.
Growing Legalization Boosts Market Growth
Growing legalization and adoption of cannabis for the treatment of chronic diseases is positively impacting the market growth. Furthermore, the liberalization of laws related to hemp and marijuana by various countries is further bolstering revenue growth over the forecast period.
Based on biomass, the hemp segment dominated the market in 2019. Factors contributing to increase in demand include increasing adoption of hemp and derived products and its growing acceptance among the users due to its low THC content. It is mainly used by people who intend to reap the medical benefits of the plant without getting intoxicated. In addition, positive government reforms regarding the utilization of hemp in many countries is further propelling the market growth.
Growing Usage of Cannabis and Derivatives
In 2019, the industrial consumption segment accounted for the highest revenue share. This growth is attributed to the growing application of marijuana and hemp in various industries, such as personal care and cosmetics, pharmaceuticals, nutraceuticals, and food and beverages. In addition, the growing usage of cannabis and its derivatives as raw material by companies to produce their products is further fueling the growth. The consumption for various applications boosts the overall growth of the market.
The Asia Pacific dominated the market with a revenue share of 41.2 percent in 2019 owing to the presence of the largest cultivation markets in the region, such as China, South Korea, India, and Australia. Furthermore, favorable climatic conditions, increasing awareness about the plant and its medical benefits, and growing patient pool eligible for medical marijuana treatments are the other factors boosting the growth of the market in the region.
Source: Grand View Research