Cannabis Cultivation Market Size, Share & Trends Report

Cannabis Cultivation Market Size, Share & Trends Analysis Report By Biomass (Hemp, Marijuana), By Application (Medical Consumption, Recreational Consumption), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-3-68038-803-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview               

The global cannabis cultivation market size was valued at USD 123.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.3% from 2020 to 2027. Growing legalization and the adoption of cannabis for the treatment of chronic diseases are the key factors driving the growth of the market. In addition, the liberalization of laws related to cannabis cultivation, especially for hemp cultivation by various countries due to low THC content is further increasing its adoption. Furthermore, the legalization of marijuana in various geographies and its increasing adoption for medical purposes are factors driving the market for cannabis cultivation. For instance, after the legalization of marijuana for medical purposes in Germany in 2017, there was a significant increase in the number of patients. According to the 2019 report published by Bank of Montreal, the number of patients post-legalization of medical marijuana in Germany increased from 1,000 to around 30,000-50,000.

The U.S. cannabis cultivation market size

In addition, the demand for hemp is rapidly growing, as many developed countries have legalized the cultivation and processing of hemp after recognizing the levels of CBD present in it, which is leading to an increased demand for hemp extracts for various application in several sectors, including pharmaceuticals, cosmetics, nutraceuticals, and food & beverage. Hemp is regarded as an agricultural commodity produced in over 40 countries. It is a strain of cannabis Sativa, part of the genus cannabis, with THC content as low as 0.3%. Countries such as China, Canada, France, Chile, South Korea, Ecuador, Croatia, Czech Republic, Mongolia, Romania, and Russia are some of the major producers of hemp across the world.

Although medical cannabis has been legalized in various countries, several countries have legalized it only for certain indications. For instance, in Croatia, the usage of marijuana is legal among patients suffering from AIDS, cancer, multiple sclerosis, and epilepsy. Moreover, in Queensland, Australia, medical marijuana can be only used for indications such as severe muscle spasms, chemotherapy-induced nausea & vomiting, and epilepsy with severe seizures & palliative care. This limited scope of application in several countries is likely to hinder market growth and limit the cultivation.

Moreover, the high demand for medical cannabis has led to a bottleneck in the supply chains in various countries. This is primarily due to a significant increase in demand and the cultivation restriction in various countries. For instance, lucrative markets such as Germany face a shortage of medicinal cannabis, which compels patients to pay high prices. According to the Bank of Montreal, in 2019, patients in Germany are paying higher average prices than Canadian patients, which has further restrained the growth of the market for cannabis cultivation.

Biomass Insights

Based on biomass, the hemp segment dominated the market for cannabis cultivation and accounted for a revenue share of 94.5% in 2019. This high share is attributable to the increasing adoption of hemp and derived products and its growing acceptance among the users due to its low THC content. Furthermore, marijuana is expected to be the fastest-growing segment, growing at a significant growth rate over the forecast period. This growth can be attributed to the growing legalization of marijuana in various countries for medical and adult use.

In addition, promising government reforms regarding the utilization of hemp in many countries is increasing the adoption of hemp and hemp-derived products. For instance, Japan has not legalized marijuana products, however, due to the low THC content, hemp CBD oil has been legalized. Therefore, affirmative government initiatives and rising awareness is anticipated to contribute to the overall growth.

Application Insights

In 2019, based on application, industrial consumption accounted for the highest revenue share of 93.8% in the cannabis cultivation market. This is owing to the growing application of marijuana and hemp in various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages. Furthermore, factors such as the growing usage of cannabis and its derivatives as raw material by companies to produce innovative cannabis-infused products are expected to propel the growth of the market for cannabis cultivation during the forecast period.

In addition, medical consumption is expected to grow at the highest CAGR owing to the increase in the use of marijuana for medical purposes and in the treatment of varied health conditions such as chronic pain, mental disorders, cancer, etc. Furthermore, medical applications of cannabis have witnessed tremendous growth, as the number of scientific studies supporting its benefits in the treatment of various diseases is increasing. For instance, Israel is conducting thorough research on the medical benefits of cannabis. Therefore, as the number of countries legalizing medical marijuana is increasing, the market for cannabis cultivation is expected to witness lucrative growth over the forecast period.

Regional Insights

Based on geography, Asia Pacific dominated the market for cannabis cultivation with a revenue share of 41.2% in 2019. Increasing awareness about cannabis and its medical benefits, growing patient pool eligible for medical marijuana treatments, the presence of the largest cultivation markets in the region, and favorable climatic conditions are some of the key factors fueling the market growth.

Global cannabis cultivation market share

In addition, the Middle East and Africa is also expected to exhibit lucrative growth over the forecast period owing to rapidly improving laws with respect to cannabis cultivation and utilization and economic development. Furthermore, rising government reforms supporting hemp and marijuana cultivation in the region is likely to propel the growth during the forecast period.

Key Companies & Market Share Insights

Competition is high among existing players owing to the rise in demand for cannabis and derived products coupled with technological advancements. The rising demand in the cannabis cultivation is likely to promote the entry of new companies in the future, fueled by increasing acceptance and awareness regarding cannabis.

Furthermore, strategic expansions by companies in the form of mergers and acquisitions are expected to boost the competition and propel the growth of the market for cannabis cultivation. For instance, in December 2019, Tilray completed the acquisition of Privateer Holdings-an equity firm that invests exclusively in the legal marijuana industry. This acquisition is anticipated to provide the company with greater control and operational flexibility. Some of the prominent players in the cannabis cultivation market include:

  • Canopy Growth Corporation

  • Aphria, Inc.

  • Aurora Cannabis

  • Tilray

  • The Cronos Group

  • Organigram Holding, Inc.

  • Better Holdings

  • Pacific Cannabis Growers

  • Atlas Growers

  • CannTrust Holdings

  • The Hydropothecary Corp.

Cannabis Cultivation Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 140.7 billion

Revenue forecast in 2027

USD 358.8 billion

Growth Rate

CAGR of 14.3% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Biomass, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

The U.S.; Canada; The U.K.; Germany; Spain; France; Italy; Netherlands; Croatia; Switzerland; Czech Republic; Australia; China; Japan; India; South Korea; New Zealand; Thailand; Uruguay; Chile; Colombia; Mexico; Israel; South Africa

Key companies profiled

Canopy Growth Corporation; Aphria, Inc.; Aurora Cannabis; Tilray; The Cronos Group; Organigram Holding, Inc.; Better Holdings; Pacific Cannabis Growers; Atlas Growers; CannTrust Holdings; The Hydropothecary Corp.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research, Inc. has segmented the global cannabis cultivation market report on the basis of biomass, application, and region.

  • Biomass Outlook (Revenue, USD Million, 2016 - 2027)

    • Hemp

    • Marijuana

  • Application Outlook (Revenue, USD Million, 2016 – 2027)

    • Medical Consumption

    • Recreational Consumption

    • Industrial Consumption

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

      • Italy

      • France

      • Spain

      • Netherlands

      • Croatia

      • Switzerland

      • Czech Republic

    • Asia Pacific

      • Australia

      • China

      • Japan

      • South Korea

      • India

      • New Zealand

      • Thailand

    • Latin America

      • Uruguay

      • Chile

      • Colombia

      • Mexico

    • The Middle East & Africa

      • Israel

      • South Africa

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