U.S. Cannabinoids Market Size to Hit Around USD 76.86 Bn By 2032
The U.S. cannabinoids market size was exhibited at USD 18.35 billion in 2022 and is projected to hit around USD 76.86 billion by 2032, growing at a CAGR of 15.4% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Cannabinoids Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 21.18 Billion |
| Market Size by 2032 | USD 76.86 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 15.4% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Product type, Application |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Mile High Labs; Global Cannabinoids; GenCanna; CBD Inc.; Precision Plant Molecules; Rhizo Sciences; LaurelCrest; Fresh Bros Hemp Company; BulKanna; High Purity Natural Products; Zero Point Extraction, LLC |
The growth of the U.S. cannabinoids industry is attributed to the increasing use of cannabinoids for the rising awareness about their health and therapeutic benefits. The characteristics associated with the presence of medicinal Phyto cannabinoids in cannabis increase the adoption of cannabinoids to be used for therapeutic purposes. Moreover, the increasing demand for cannabinoid-based products aided by expanding research in the field of cannabinoid use is further propelling the growth of the overall market.
The COVID-19 pandemic has had a mixed impact on the U.S. cannabinoids market. On the one hand, it has resulted in increased demand for natural remedies and alternative therapies, including minor cannabinoids, as people seek ways to boost their immune systems and manage stress & anxiety. This has led to increased sales and revenue for many companies in the industry, as well as an increase in investments and interest from investors & other stakeholders. However, the pandemic has also disrupted the global supply chain, leading to shortages of raw materials, delayed shipments, and increased costs. These factors have negatively impacted some companies in the cannabinoids market, especially smaller players who may not have the resources to absorb these additional costs.
Moreover, many companies operating in the country are keen on entering the cannabinoids market with their specialty cannabinoid products. For instance, in March 2023, Gene Pool Technologies, LLC. Announced the addition of the patent cannabis portfolio of Insectergy, LLC. With this collaboration, the company aims to expand and become one of the major players in manufacturing and producing of cannabis products in the market.Furthermore, with the sanctioning of cannabis for recreational purposes, the demand for THC products has increased, which has led to an increase in the number of companies in the country.
Furthermore, the launch of novel products with leading market players focusing on collaboration and partnerships is further anticipated to propel the U.S. cannabinoids market. Some of the recent launches include, such as, in March 2023, CannaAid launched H4-CBD products and has become the first company to introduce and sell the product within U.S. and globally. Moreover, in March 2023, Innocan Pharma Corporation LTD. received a patent grant in the U.S. which covers the company’s cannabis-based pain relief topical products.
However, one of the major factors restraining the growth of the market is the high cost associated with cannabinoid-based products. The minor cannabinoids such as CBG, CBC, & CBN are found in very small quantities and are extracted in very low quantities as compared to the major cannabinoids such as CBD & THC, which makes the minor component that has prominent health benefits highly expensive and unaffordable to the majority of the population.Furthermore, even if CBD and THC products are not as costly as minor cannabinoid products, they are yet costlier than alternative drugs available for treatment.
Product Type Insights
The cannabidiol (CBD) segment held the largest revenue share in the U.S. cannabinoids market in 2022 with a share of 27.6% and is anticipated to witness a steady CAGR over the forecast period. The dominance of the segment is attributed to the increasing therapeutic application of cannabidiol for a number of conditions such as neurological disorders, metabolic disorders, diabetes, arthritis, epilepsy, Alzheimer’s disease, and pain management.
CBD-based products are available in the market in various forms such as oil, tinctures, edibles, topicals, sprays, capsules, and softgels which further increases its adoption in the market. Furthermore, the launch of newer CBD-based products into the market is further increasing the demand for the product in the market. For instance, in November 2022, Stirling CBD Oil launched CBD Immunity Gummies and CBD Energy Gummies expanding itscannabidiol portfolio.
The THCV segment is expected to showcase the fastest CAGR over the forecast period owing to rising demand and growing awareness regarding the minor cannabinoid. The market has also seen unprecedented growth owing to the development of novel products concerning different minor cannabinoids by key players in the market. For instance, in September 2021, Rare Cannabinoid Company launched CBDV oil which is expected to be one of the purest forms of CBDV oil for sale in the market. The oil is being extensively researched for the pharmaceutical treatment of muscular dystrophy, autism, Rett syndrome, and seizures. Such initiatives are expected to enhance the knowledge and research on the therapeutic potential of CBDV to be used in pharmaceuticals.
Application Insights
The neurological disorders segment captured the largest revenue share of 23.1% in the U.S. cannabinoids market in 2022 and is projected to exhibit a lucrative CAGR throughout the forecast period. The neurological disorders segment has shown growth potential in recent years. Cannabinoids, particularly CBD and CBG, have been found to have neuroprotective properties and may be effective in managing symptoms of neurological disorders such as epilepsy, Parkinson's disease, and multiple sclerosis.
Moreover, recent advancements in clinical studies and research to validate the benefits of cannabis as a medical treatment for Parkinson’s disease are one of the major factors contributing to the growth. For instance, in February 2023, a research team at Oxford are focusing on the trial of cannabis-based medicine for the treatment of neurological disorders such as psychosis and severe epilepsy.
The pain management segment is expected to showcase the fastest CAGR over the forecast period. Cannabinoids, particularly CBD, have been found to have analgesic properties, making them effective in managing pain caused by conditions such as neuropathy, fibromyalgia, and arthritis. The increasing prevalence of chronic pain, along with the opioid epidemic & concerns about their addictive properties, has fueled the demand for natural and plant-based alternatives for pain management.
For instance, in January 2023, Holistic Industries launched CANNACEUTICA, the first oral cannabis capsule for the management of chronic pain in Massachusetts. This launch is expected to enhance the acceptability and clinical evidence of cannabis in pain management.
Key Companies & Market Share Insights
The key players operating in the field of cannabinoids are constantly focusing on introducing and changing existing product lines that enhance patient outcomes and substantially increase the efficiency and effectiveness of healthcare in the U.S. For instance, in March 2023, Corganics entered into a partnership with OrthoLoneStar to provide the company access to clinical CBD therapies of Corganics. Some prominent players in the U.S. cannabinoids market include:
Segments Covered in the Report
This report forecasts revenue growth at 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 U.S. Cannabinoids market.
By Product Type
By Application
Chapter 1 Methodology and Scope
1.1 Market Segmentation and Scope
1.1.1 Segment scope
1.1.2 Regional scope
1.1.3 Estimates and forecast timeline
1.2 Research Methodology
1.3 Information Procurement
1.3.1 Purchased database:
1.3.2 Nova one advisor internal database
1.3.3 Secondary sources
1.3.4 Primary research
1.3.5 Details of primary research
1.4 Information or Data Analysis
1.4.1 Data analysis models
1.5 Market Formulation & Validation
1.6 Model Details
1.6.1 Commodity Flow Analysis
1.6.1.1 Approach: Commodity Flow Approach
1.7 Research Assumptions
1.8 List of Secondary Sources
1.9 List of Abbreviations
1.10 Objectives
1.10.1 Objective 1
1.10.2 Objective 2
1.10.3 Objective 3
1.10.4 Objective 4
Chapter 2 Executive Summary
2.1 Market Outlook
2.2 Segment Outlook
2.3 Competitive Insights
Chapter 3 U.S. Cannabinoids Market Variables, Trends, & Scope
3.1 Market Lineage Outlook
3.1.1 Parent market
3.2 Regulatory Scenario
3.3 Market Dynamics
3.3.1 Market drivers analysis
3.3.1.1 Growing number of new entrants in the market leading to expansion in product availability
3.3.1.2 Increasing number of consumers opting for isolated cannabinoid products
3.3.1.3 Growing number of clinical studies on the use of cannabinoids for specific applications
3.3.1.4 Rising awareness about cannabinoid products and their use in health and wellness
3.3.2 Market restraint analysis
3.3.2.1 High price of cannabinoids-based products
3.3.2.2 Expensive extraction processes for cannabinoids
3.3.2.3 Absence of definite regulatory framework for minor cannabinoids
3.3.2.4 Limited research is hindering the growth of the cannabinoids market
3.4 U.S. Cannabinoids Market Analysis Tools
3.4.1 U.S. Cannabinoids Market - PESTLE Analysis
3.4.2 U.S. Cannabinoids Market - PORTER’S Analysis
3.5 COVID Impact Analysis
3.6 Supply Chain Analysis
3.6.1 Supply Chain Analysis - CBD Consumer Health Product
3.7 Product Adoption Pattern Analysis
3.7.1 Cannabidiol (CBD)
3.7.2 Tetrahydrocannabinol (THC)
3.7.3 Cannabinol (CBN)
3.7.4 Cannabidiolic Acid (CBDA)
3.7.5 Others
3.7.5.1 Cannabigerol (CBG)
3.7.5.2 Cannabichromene (CBC)
3.8 Biosynthetic Cannabinoids
3.9 Upcoming Trends in U.S. Minor Cannabinoids Market
3.9.1 Diversification Of Products:
3.9.2 Increased Availability Of Minor Cannabinoids:
3.9.3 More Brands Entering The Market:
3.9.4 Growing Demand For Natural Remedies:
3.10 TAM-SAM-SOM Analysis
3.11 Transcript of an industry KOL
3.12 Key Analysis from the Primary Respondents
Chapter 4 U.S. Cannabinoids Market Segment Analysis, By Product Type, 2020 - 2032
4.1 Definition and Scope
4.2 Product Type Market Share Analysis, 2022 & 2032
4.3 Segment Dashboard
4.4 U.S. Cannabinoids Market, by Product Type, 2020 to 2032
4.5 Market Size & Forecasts and Trend Analyses, 2020 to 2032
4.5.1 Cannabidiol (CBD)
4.5.1.1 Cannabidiol (CBD) market estimates and forecast, 2020 - 2032
4.5.2 Tetrahydrocannabinol (THC)
4.5.2.1 Tetrahydrocannabinol (THC) market estimates and forecast, 2020 - 2032
4.5.3 Cannabinol (CBN)
4.5.3.1 Cannabinol (CBN) market estimates and forecast, 2020 - 2032
4.5.4 Cannabigerolic Acid (CBGA)
4.5.4.1 Cannabigerolic acid (CBGA) market estimates and forecast, 2020 - 2032
4.5.5 Cannabigerol (CBG)
4.5.5.1 Cannabigerol (CBG) market estimates and forecast, 2020 - 2032
4.5.6 Cannabichromene (CBC)
4.5.6.1 Cannabichromene (CBC) market estimates and forecast, 2020 - 2032
4.5.7 Tetrahydrocannabivarin (THCV)
4.5.7.1 Tetrahydrocannabivarin (THCV) market estimates and forecast, 2020 - 2032
4.5.8 Others
4.5.8.1 Others market estimates and forecast, 2020 - 2032
Chapter 5 U.S. Cannabinoids Market Segment Analysis, By Application 2020 - 2032
5.1 Definition and Scope
5.2 Application Market Share Analysis, 2022 & 2032
5.3 Segment Dashboard
5.4 U.S. Cannabinoids Market, by Application, 2020 to 2032
5.5 Market Size & Forecasts and Trend Analyses, 2020 to 2032
5.5.1 Inflammation
5.5.1.1 Inflammation market estimates and forecast, 2020 - 2032
5.5.2 Pain Management
5.5.2.1 Pain management market estimates and forecast, 2020 - 2032
5.5.3 Neurological Disorders
5.5.3.1 Neurological disorders market estimates and forecast, 2020 - 2032
5.5.4 Cancer
5.5.4.1 Cancer market estimates and forecast, 2020 - 2032
5.5.5 Others
5.5.5.1 Others market estimates and forecast, 2020 - 2032
Chapter 6 U.S. Cannabinoids Market - Competitive Analysis
6.1 Recent Developments & Impact Analysis, by Key Market Participants
6.1.2 Heat map analysis
6.1.3 Major Deals and Strategic Alliances Analysis
6.1.3.1 Joint Ventures
6.1.3.2 Licensing Agreements
6.1.3.3 Product Launches
6.2 Company Categorization
6.2.1 Innovators
6.2.2 Market Leaders
6.3 Company Market Position Analysis
6.4 Company Profiles
6.4.1 Mile High Labs
6.4.1.1 Company overview
6.4.1.2 Financial performance
6.4.1.3 Product benchmarking
6.4.1.4 Strategic Initiatives
6.4.2 Global Cannabinoids
6.4.2.1 Company overview
6.4.2.2 Financial performance
6.4.2.3 Product benchmarking
6.4.2.4 Strategic Initiatives
6.4.3 GenCanna
6.4.3.1 Company overview
6.4.3.2 Financial performance
6.4.3.3 Product benchmarking
6.4.3.4 Strategic Initiatives
6.4.4 CBD Inc.
6.4.4.1 Company overview
6.4.4.2 Financial performance
6.4.4.3 Product benchmarking
6.4.4.4 Strategic Initiatives
6.4.5 Precision Plant Molecules
6.4.5.1 Company overview
6.4.5.2 Financial performance
6.4.5.3 Product benchmarking
6.4.5.4 Strategic Initiatives
6.4.6 Rhizo Sciences
6.4.6.1 Company overview
6.4.6.2 Financial performance
6.4.6.3 Product benchmarking
6.4.6.4 Strategic Initiatives
6.4.7 LaurelCrest
6.4.7.1 Company overview
6.4.7.2 Financial performance
6.4.7.3 Product benchmarking
6.4.7.4 Strategic initiatives
6.4.8 Fresh Bros Hemp Company
6.4.8.1 Company overview
6.4.8.2 Financial performance
6.4.8.3 Product benchmarking
6.4.8.4 Strategic initiatives
6.4.9 BulKanna
6.4.9.1 Company overview
6.4.9.2 Financial performance
6.4.9.3 Product benchmarking
6.4.9.4 Strategic initiatives
6.4.10 High-Purity Natural Products
6.4.10.1 Company overview
6.4.10.2 Financial performance
6.4.10.3 Product benchmarking
6.4.10.4 Strategic initiatives
6.4.11 Zero Point Extraction, LLC
6.4.11.1 Company overview
6.4.11.2 Financial performance
6.4.11.3 Product benchmarking
6.4.11.4 Strategic initiatives
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers