Cannabis Market Expected To Hit $198B By 2028, Industry Boasts 32.04% CAGR

According to a report published by Fortune Business Insights, the global cannabis market size stood at USD $20.47 billion in 2020. Rising awareness regarding marijuana's therapeutic and medicinal benefits, enabling policies, and relaxation regulations are likely to foster market development. The cannabis market share is projected to grow from $28.266 billion in 2021 to $197.74 billion by 2028, exhibiting a CAGR of 32.04% during the forecast period.

Legalization of cultivation, production and trade is likely to boost market development. The rising development of facilities and farms for medical and therapeutic marijuana products is likely to boost cannabis market development in the upcoming years.

Rising Demand from Medical Sectors to Boost Market Development

This cannabis market grew steadily during the COVID-19 pandemic because of the rising demand for medical marijuana from the healthcare sector, according to the report, that noted the rising demand for the product from the medical sector facilitated sales.

Driving Factors: Marijuana is used extensively in the medical sector to manufacture anti-depressant drugs, cancer medicines, and other medicines. The rising awareness regarding its benefits is expected to boost its sales. The availability of a variety of flavors and edibles is expected to boost interest as   candies, chocolates and beverages grow popularity. Furthermore, marijuana's demand is increasing rapidly from the medical sector because of relaxation policies. Several countries have placed favorable policies legalizing marijuana's adoption in medicines. These factors are likely to drive the cannabis market growth. However, regulations prohibiting the sales and cultivation of marijuana in several countries may hinder the market's progress.

Regional Insights: North America is projected to dominate the cannabis market share because of its potential full legalization in the U.S. The market in North America stood at $19.78 billion in 2020 and is expected to grow positively during the upcoming years.

Europe is the second-largest market shareholder because of the rising adoption of the product and favorable legislation. The Greek legislation legalized the adoption of marijuana in 2018, which, in turn, may boost the product's adoption. These factors are likely to facilitate market development.

Photo created by J Rod of Benzinga