Cannabis Cultivation Market Size, Share & Trends Analysis Report By Biomass (Hemp, Marijuana), By Application, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global cannabis cultivation market size was exhibited at USD 392.90 billion in 2022 and is projected to hit around USD 2,731.93 billion by 2032, growing at a CAGR of 21.4% during the forecast period 2023 to 2032.

Key Pointers:

• The hemp segment dominated the cannabis cultivation market and accounted for a revenue share of 78.9% in 2022. 
• In 2022, based on application, industrial consumption accounted for the highest revenue share of 71.9%
• The industrial consumption segment dominated the market in 2022, owing to the growing application of marijuana and hemp in various industries
• In May 2022, Aurora Cannabis Inc. completed the purchase of TerraFarma Inc., which will contribute to their Canadian recreational cannabis company and Aurora's worldwide expertise in the cannabis market
• In March 2022, HEXO and Tilray Brands Collaborate to Form Strategic Alliance, Uniting Two Canadian Cannabis Industry Leaders
• In December 2022, As part of its continuous development plan, the Company purchased Quebec-based Laurentian Holdings Inc., boosting its presence in Quebec's second-most populated province

Cannabis Cultivation Market Report Scope

Growing legalization and adoption of cannabis for the treatment of chronic diseases is positively impacting the market growth. Furthermore, the liberalization of laws related to hemp and marijuana by various countries is projected to further bolster revenue growth during the forecast period.

Furthermore, while the authorities imposed lockdown measures during COVID-19, European consumers hoarded supplies. Between January and March 2020, the value of items sold on Cannazon, a platform for hemp products, reached roughly USD 5.04 million reflecting a volume of 1.6 metric tonnes. In the U.S., a similar increase in sales was observed, with people stockpiling in anticipation of government-mandated shelters. As a result, increased stocks and strong consumer demand, as well as a growth in areas recognizing the product as a necessary commodity for recreational and medical uses, are projected to fuel market expansion throughout the forecast period.

Based on biomass, the hemp segment dominated the market in 2022. Factors contributing to increasing demand include the increasing adoption of hemp and derived products and its growing acceptance among users due to its low THC content. It is mainly used by people who intend to reap the medical benefits of the plant without getting intoxicated. In addition, positive government reforms regarding the utilization of hemp in many countries are further propelling market growth.

In 2022, the industrial consumption segment accounted for the highest revenue share. This growth is attributed to the growing application of marijuana and hemp in various industries such as pharmaceuticals, personal care & cosmetics, nutraceuticals, and food and beverages. In addition, the growing usage of cannabis and its derivatives as raw material by companies to produce their products is further fueling the growth. For instance, CBD oil and tinctures obtained from the plant are used by pharmaceutical companies for the production of cannabis-infused drugs. Hence, its consumption for various applications boosts the overall growth of the market.

Asia Pacific is expected to expand at the fastest CAGR in the forecast period owing to the presence of the largest cultivation markets in the region such as China, South Korea, India, and Australia. Furthermore, favorable climatic conditions, increasing awareness about the plant and its medical benefits, and a growing patient pool eligible for medical marijuana treatments are the other factors boosting the growth of the market in the region.

Biomass Insights

Based on biomass, the hemp segment dominated the cannabis cultivation market and accounted for a revenue share of 78.9% in 2022. The high share is attributable to the increasing adoption of hemp and derived products and its growing acceptance among 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 are increasing the adoption of hemp and hemp-derived products. For instance, since doctors are prepared to prescribe marijuana for medicinal grounds, Germany has already become the largest European market for medical cannabis. Insurance reimbursements for medical cannabis were up roughly 9% year on year by the middle of 2021, exceeding USD 17 million.

Application Insights

In 2022, based on application, industrial consumption accounted for the highest revenue share of 71.9% in the cannabis cultivation market. This is owing to the growing application of marijuana and hemp in various industries such as pharmaceuticals, personal care & 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 expand at a lucrative CAGR owing to the increase in the use of marijuana for medical purposes and 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, according to Prohibition Partners, 100,000 people additionally will be allowed to use medical cannabis products in Europe for the first time in 2022, increasing the total number of patients to 341,595. Therefore, as the number of countries legalizing medical marijuana is increasing, the market for cannabis cultivation is expected to witness lucrative growth in the forecast period.

Regional Insights

Based on geography, North America dominated the market for cannabis cultivation in terms of revenue share in 2022 owing to rapidly improving laws concerning cannabis cultivation and its utilization in both the key geographies of the region, namely, U.S. the and Canada. Furthermore, rising government reforms supporting hemp and marijuana cultivation in the region are likely to propel the growth during the forecast period.

In addition, the Asia Pacific region is expected to exhibit lucrative growth in the forecast period. Increasing awareness about cannabis and its medical benefits, a 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.

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.

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 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Cannabis Cultivation market.

By Biomass 

• Hemp
  • Seed
  • Flowers
  • Others
• Marijuana

By Application 

• Medical Consumption
• Recreational Consumption
• Industrial Consumption

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)