Green Rush: Legal Reforms, Medical Needs Fuel Cannabis Cultivation Boom

This article is part of Benzinga Cannabis’ series ‘Cultivator Chronicles,’ which focuses on the latest trends, developments, and major players in the industry.

Stay tuned as we dig into the world of cannabis growers and their contributions to this rapidly expanding market.

The cannabis cultivation market is experiencing rapid expansion, with its global value reaching $392.1 billion in 2022. According to Grand View Research, this market is anticipated to grow at a compound annual growth rate (CAGR) of 21.3% from 2023 to 2030.

Cannabis legalization, its treating chronic diseases, alongside the easing of restrictions on hemp cultivation, fuels this growth.

Here’s what you need to know.

Hemp’s Dominant Market Share

Hemp, a low-THC strain of cannabis Sativa, has become increasingly popular due to its broad acceptance and legalization in many developed countries.

Hemp-derived products are now widely used in pharmaceuticals, cosmetics, nutraceuticals, and the food and beverage industry.

In 2022, hemp accounted for a substantial 78.7% revenue share in the cannabis cultivation market. Major hemp producers include China, Canada, and France, among others.

Medical Cannabis Usage

Medical cannabis has seen a significant increase in demand, particularly during the COVID-19 pandemic. Research published in The Lancet in October 2021 indicated a substantial rise in depressive and anxiety disorders, leading to higher medical cannabis usage.

Additionally, a study in the Journal of Addictive Diseases found that the use of medical cannabis among patients with mental health issues surged by 91% following the pandemic’s onset.

Regional and Market Dynamics

North America dominated the cannabis cultivation market in terms of revenue share in 2022, driven by favorable laws and government reforms in the U.S. and Canada. The region’s market growth is supported by the increasing acceptance of cannabis for medical and recreational use.

The Asia Pacific region is also expected to see considerable growth, fueled by rising awareness of cannabis’s medical benefits and favorable climatic conditions for cultivation.

Industrial and Medical Applications

Cannabis cultivation is increasingly important for industrial applications, particularly in the pharmaceuticals and personal care sectors, which accounted for the highest revenue share of 71.3% in 2022. The medical consumption of cannabis is also anticipated to grow, supported by a growing body of scientific evidence demonstrating its benefits for treating various health conditions.

Competitive Market

The cannabis cultivation market is highly competitive, with major players like Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Tilray, and The Cronos Group leading the industry. Technological advancements and rising demand are expected to attract new entrants and foster growth through mergers and acquisitions.

Benzinga Cannabis Capital Conference

To learn more about cannabis cultivation, you can attend Benzinga’s Cannabis Capital Conference, recognized as North America’s premier cannabis investment and branding event, held on October 8-9, 2024, at the Marriott Magnificent Mile in Chicago, IL.

The Spring 2024 edition in Hollywood, FL, attracted over 2,000 attendees and more than 200 investors. Attendees praised the targeted content and networking opportunities. The Fall conference aims to continue this success by bringing together key decision-makers from the C-suite, political, and capital markets backgrounds.

Photo: Courtesy of BublikHaus via Shutterstock