Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Cannabis Cultivation market.
Trusted Business Insights presents an updated and Latest Study on Cannabis Cultivation Market 2019-2026. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Cannabis Cultivation market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Get Sample Copy of this Report @ Cannabis Cultivation Market Size, Share, Market Research and Industry Forecast Report, 2026 (Includes Business Impact of COVID-19)
Industry Insights, Market Size, CAGR, High-Level Analysis: Cannabis Cultivation Market
The global cannabis cultivation market size was valued at USD 15.7 billion in 2018 and is anticipated to exhibit a CAGR of 13.5%. Legalization of cannabis for medical & recreational purposes in North America & Europe and growing demand for marijuana-based products among patients are some of the key factors driving growth.
Uruguay was the first country to fully legalize marijuana in 2013, followed by Canada in 2018. Other countries such as the Netherlands & Portugal, which have not legalized marijuana, are following a relaxed approach toward its sale, cultivation, and use. For instance, the Dutch government allows sale of small quantities of low-strength cannabis only through its coffee shops, while citizens in Poland can buy medical cannabis through registered pharmacies.
On the other hand, countries such as Italy and Germany are currently involved in importing marijuana from Canada & other marijuana-producing countries. Demand & supply gap in these countries can be reduced by the expected legalization of commercial cultivation. For instance, Italy, in response to growing demand for medical marijuana, is planning to import around 400 kg of over the next 2 years.
However, Italy is expected to increase its indigenous production by allowing entry to private companies in the country. In Germany, Federal Institute for Drugs and Medical Devices (BfArM) has granted domestic cultivation licenses to Aphria Deutschland GmbH, Aurora Produktions GmbH, and Demecan GmbH. BfArM is conducting a trial with these companies to reduce high cost of cannabis imports in the country. This initiative may lead to legalization of cultivation in the country.
Moreover, the expected increase in cannabis cultivators in various countries with a legal program is also anticipated to boost growth during the forecast period. For instance, in December 2018, nearly 840 cultivators in Canada applied for a cultivation license, which was 30% higher than that recorded in August 2018. In addition, marijuana cultivation in South American countries, such as Colombia & Mexico, is lucrative owing to low cost of production, cheap labor, and favorable climate.
Type Insights of Cannabis Cultivation Market
Based on product type, the marijuana cultivation market is segmented into buds, oils, and tinctures. In 2018, buds segment dominated the market and is expected to grow with a lucrative CAGR over the forecast period. This can be attributed to high prevalence of consumers already smoking buds. Moreover, as bud is the primary product of cultivation, its quantity with respect to other products, such as oils and tinctures, is expected to be high. Furthermore, growing pot tourism in states, such as Colorado & Washington, and countries, such as Canada, is a major factor for high share of buds.
As per the Colorado State Department of Tourism, pot tourism in the state has increased by 51% since 2014. In 2016, Colorado reported around 4 million visitors. The number of tourists is also increasing in Washington and Canada. Moreover, low per gram cost of buds compared to its extracts is another factor contributing toward growth. Smoking buds, however, is linked to a number of ill effects that can make them unsuitable for consumption by children on a medical marijuana prescription. List of ill effects include damage to throat & lungs due to tar deposits, excess phlegm formation, and chronic bronchitis. Buds are also known to contain toxins and carcinogens, which limits their adoption. Therefore, demand for oils and tinctures is increasing at a faster rate than buds due to easy administration, long shelf life, and faster onset of action.
Regional Insights of Cannabis Cultivation Market
Based on region, the cannabis cultivation market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA. North America dominated the global market in 2018 and is anticipated to grow at a lucrative CAGR over the forecast period. This is due to presence of two largest legalized markets-the U.S. and Canada. The U.S. has a high consumption rate owing to legal acceptance of marijuana, whereas Canada is a major cultivator and exporter of cash crop, thereby significantly contributing toward the global cultivation. This is further driven by the presence of high marijuana businesses in the region. These players have significantly increased their cultivation capabilities in tandem to increasing marijuana demand. For instance, in 2018, Canopy Growth Corporation-a cannabis-producing company based in Ontario-has tripled its cultivation capacity to over 2.4 million sq ft. The company is also planning to expand its cultivation space to more than 5 million sq ft by the end of 2019. In addition, these countries have also legalized both forms of marijuana use (i.e., medical & recreational), which is expected to considerably increase product adoption.
On the other hand, Europe is expected to grow at the fastest rate over the forecast period due to increasing legalization of medical marijuana. Moreover, expected indigenous cannabis production in these countries owing to high import costs is another major factor expected to drive the European marijuana cultivation market.
Market Share Insights of Cannabis Cultivation Market
The market consists of a large number of cultivators. Some of the key players are Cannabis Sativa, Inc.; Tikun Olam; GW Pharmaceuticals plc; Tilray; Maricann, Inc.; Aurora Cannabis; Aphria, Inc.; and Canopy Growth Corporation account for major share of cannabis cultivation out of the total production. Moreover, with legalization of indigenous cannabis production in European countries, rise in production in South American markets, such as Colombia and Mexico, and advancements in equipment are expected to favor entry of several new players.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Cannabis Cultivation Market Research Report
This report forecasts revenue growth at country level and provides an analysis on latest industry trends in each of the sub-segments from 2015 to 2026. For the purpose of this study, this market research report has segmented the global cannabis cultivation market report on the basis of product and region:
Product Outlook (Volume [kg]; Revenue, USD Million, 2019 – 2030)
Quick Read Table of Contents of this Report @ Cannabis Cultivation Market Size, Share, Market Research and Industry Forecast Report, 2026 (Includes Business Impact of COVID-19)
Trusted Business Insights
Media & Marketing Executive
Email Me For Any Clarifications
Connect on LinkedIn
Click to follow Trusted Business Insights LinkedIn for Market Data and Updates.
US: +1 646 568 9797
UK: +44 330 808 0580