The North America cannabis market is expected to reach US$ 65,161.4 million by 2027 from US$ 6,036.9 million in 2019. The market is anticipated to grow at a CAGR of 29.9% from 2020 to 2027.
The growth of the North America cannabis market is attributed to increasing approvals for cannabis-based products and growing sales and inventory for cannabis. However, stringent regulatory framework for cannabis is likely to hinder the market growth during the forecast period.
Canada is among the fastest and largest countries in terms of production of cannabis and commercialization of its products. In October 2018, the Federal Government accepted the Cannabis Act, and since after the cannabis industry has boomed in the country. Various companies have initiated production and manufacturing to embrace the recreational and medical use of cannabis. According to the Government of Canada's data published in May 2020, ~7,840,577 packaged units of cannabis were sold in Canada. It was sold for medical and recreational uses. Approximately 73% of total sales were contributed by dried cannabis, whereas cannabis extracts contributed 14%, and edible cannabis contributed 13% in the country's total sales of cannabis.
In addition, the data also stated that ~43,309,909 packaged units of cannabis products are kept in inventory by cultivators, manufacturers, and suppliers across the country. Among the total inventories, 42% is held by the distributors and retailers for packaged units of cannabis-based products. Moreover, the number of cultivators is growing rapidly across the country. For instance, as of May 2020, ~6,518,054 cultivators had a federal license. Thus, growing cultivation has enabled to increase sales and inventory for packed and unpacked cannabis products in the market. Hence, it is expected to grow the cannabis market significantly during the forecast period.
Based on product type, the North America cannabis market is segmented into flower, concentrates, and others. In 2019, the flowers segment held a largest market share of the cannabis market. However, the concentrates segment is expected to witness the highest CAGR over the forecast period.
In terms of application, the North America cannabis market is segmented into medical and recreational. In 2019, the medical segment held a larger share of the market. However, the recreational segment is anticipated to witness a faster growth in the cannabis market.
Based on compound, the North America cannabis market is segmented into tetrahydrocannabinol (THC)-dominant, cannabidiol (CBD)-dominant, and balanced THC and CBD. In 2019, the tetrahydrocannabinol (THC)-dominant segment held the largest share of the market. However, the cannabidiol (CBD)-dominant segment is anticipated to witness the fastest growth in the cannabis market.
Food and Drug Administration, Multidisciplinary Association for Psychedelic Studies and Mexico's Federal Commission for the Protection against Sanitary Risk, and Drug Enforcement Administration are among the major primary and secondary sources for the North America cannabis market.