Global Cannabis Cultivation Market by Biomass (Hemp, Marijuana), by Application (Recreational Consumption, Medical Consumption) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global cannabis cultivation market was worth USD 123.9 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 14.3%) between 2020 and 2027. The market's growth is driven by growing legalization and increased use of cannabis to treat chronic diseases. The market is also growing because of the liberalization in laws governing cannabis cultivation, particularly hemp cultivation by different countries, which has a low THC content. The market for cannabis cultivation is also being driven by the legalization and increasing acceptance of cannabis for medical purposes in different regions. The number of patients has increased significantly in Germany after legalizing marijuana for medical use in 2017. Bank of Montreal's 2019 report shows that the number of patients in Germany after legalization of medical marijuana has increased from around 1,000 to 30,000 to 50,000.

The demand for hemp extracts is also growing rapidly as more developed countries legalize the cultivation and processing after realizing the high levels of CBD in hemp. This is leading to a greater demand in many sectors including pharmaceuticals, nutraceuticals and food & beverages. Hemp can be considered an agricultural commodity that is grown in more than 40 countries. It is a strain called cannabis Sativa. It is part of the genus Cannabis. The THC content can be as low as 0.3%. Some of the largest producers of hemp worldwide include Russia, China, Canada and France.

While medical marijuana has been legalized in many countries, some countries have limited legalization. Patients with multiple sclerosis, AIDS and epilepsy, for example, can use marijuana in Croatia. In Queensland, Australia, medicinal marijuana cannot be used for severe muscle spasms or chemotherapy-induced nausea and vomiting. This restriction on application in many countries will likely limit market growth and reduce the cultivation.

Impact of COVID19 cannabis market: 9.6% increase in revenue

The high demand for medical marijuana has also led to a shortage in supply chains across different countries. This is due to both a large increase in demand and restrictions on cultivation in different countries. Germany, for example, is a lucrative market that has a limited supply of medicinal cannabis. This forces patients to pay high prices. According to the Bank of Montreal in 2019, German patients are spending more than Canadian patients on average in 2019. This has further restricted the market's growth in cannabis cultivation.

Biomass Insights

Based on biomass, the market for cannabis cultivation was dominated by the hemp segment and accounted to 94.5% of the revenue share in 2019. This is due to increasing acceptance of hemp and derived products, as well as its low THC content. The fastest-growing segment is likely to be marijuana, which will grow at a substantial rate during the forecast period. This is due to marijuana legalization in many countries, both for adult and medical use.

The promise of government reforms in hemp utilization is encouraging hemp and hemp-derived products to be more widely adopted. Japan, for example, has not yet legalized marijuana products. However, hemp CBD oil, which has a low THC content has been legalized. Positive government initiatives and growing awareness are expected to help drive the overall growth.

Application Insights

Based on cannabis cultivation, the highest revenue share was 93.8% for industrial consumption in 2019. This is due to the increasing use of cannabis and hemp in many industries, including pharmaceuticals, personal care, cosmetics, nutraceuticals and food and drinks. The market for cannabis cultivation will grow due to factors like the increasing use of cannabis and its derivatives by companies to create innovative cannabis-infused products.

Due to an increase in marijuana use for medical purposes, and the treatment of various health conditions like chronic pain, mental disorders, and cancer, medical cannabis consumption is expected to rise at the highest rate of change (CAGR). The number of scientific studies that support cannabis' benefits for various diseases has increased, resulting in a tremendous increase in medical marijuana applications. Israel, for example, is doing extensive research into the medical benefits associated with cannabis. As more countries legalize medical marijuana, the market for cannabis cultivation will experience lucrative growth.

Regional Insights

Asia Pacific was the dominant market for cannabis cultivation based on geography with a 41.2% revenue share in 2019. The key factors driving market growth are increasing awareness about cannabis and its medical benefits as well as a growing patient pool that is eligible for medical marijuana treatments.

Due to the rapid improvement in laws governing cannabis cultivation, use and economic development, Africa and the Middle East are expected to experience lucrative growth during the forecast period. The growth is expected to be driven by the rising popularity of government reforms that support hemp and marijuana cultivation in this region.

Market Share Insights & Key Companies

Due to the rising demand for cannabis and other derived products, as well as technological advances, there is a lot of competition among existing players. The growing demand for cannabis cultivation will likely encourage the establishment of new companies. This is due to increasing awareness and acceptance about cannabis.

Strategic expansions of companies through mergers and acquisitions will boost competition and drive growth in the cannabis cultivation market. Tilray, for example, completed the December 2019 acquisition of Privateer Holdings, an equity firm that invests solely in legal cannabis industry. The company will be able to have greater control over its operations and flexibility. The following are some of the most prominent players in the cannabis cultivation industry:

• Canopy Growth Corporation

• Aphria, Inc.

• Aurora Cannabis

• Tilray

• The Cronos Group

• Organigram Holding, Inc.

• Better Holdings

• Pacific Cannabis Growers

• Atlas Growers

• CannTrust Holdings

• Hydropothecary Corporation.

Up Market Research published a new report titled “Cannabis Cultivation Market research report which is segmented by Biomass (Hemp, Marijuana), by Application (Recreational Consumption, Medical Consumption), By Players/Companies The Hydropothecary Corp, Aphria Inc, Atlas Growers, Pacific Cannabis Growers, Tilray, Canopy Growth Corporation, Better Holdings, The Cronos Group, Organigram Holding Inc, Aurora Cannabis, CannTrust Holdings”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Cannabis Cultivation Market Report Segments:

The market is segmented by Biomass (Hemp, Marijuana), by Application (Recreational Consumption, Medical Consumption).

Cannabis Cultivation Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Cannabis Cultivation Market

Overview of the regional outlook of the Cannabis Cultivation Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Cannabis Cultivation Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Cannabis Cultivation Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Hemp

                2. Marijuana

                1. Recreational Consumption

                2. Medical Consumption

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Cannabis Cultivation Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Cannabis Cultivation Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.