Latest News- Cannabis Market in US: CBD is expected to lead the Derivative Type segment during 2025-2029

The Cannabis Market in US is being driven by Growing millennial population in key cannabis markets

The Cannabis Market in US is expected to grow at a CAGR of 37.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 141.48 billion. The legalization of medical marijuana in the United States has opened up new avenues for businesses to explore medicinal applications of the plant. The National Institute on Drug Abuse (NIDA) is one such government organization that is allocating significant resources towards researching the medicinal properties of cannabis. For the fiscal year 2024, NIDA has requested an approximate budget of USD1.663 billion, consistent with the previous year's funding level. This funding will support a wide range of research initiatives, including those focused on addiction and cannabis-related studies. The increasing consumption of medical marijuana in the US has prompted authorities to boost funding for research, enabling companies to expand their presence and fueling the market's growth trajectory during the forecast period. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Derivative Type
  • CBD
  • THC
  • Balanced THC and CBD
• Product
  • Medical
  • Recreational
• Source
  • Marijuana
  • Hemp
• Geography
  • US

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing millennial population in key cannabis markets
• Increasing number of medical cannabis dispensaries
• Health benefits of medical cannabis

However, the market also witnesses some limitations, which are as follows:

• Accessibility issues and high prices associated with medical cannabis
• Side effects associated with consumption of cannabis products
• Stigma and misconceptions about cannabis

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Market Scope in Cannabis Market in US Research Report

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Research Analysis Overview

The US cannabis market is experiencing significant growth with the legalization of marijuana for both medicinal and recreational use. The flowering plant, once stigmatized, is now recognized for its medicinal benefits and therapeutic applications in conditions like chronic pain and multiple sclerosis. Innovations in AI and genetic engineering are leading to the development of new cannabis products, including CBD-related items, oils, edibles, beverages, vapes, and extracts. Legalization efforts continue, driven by millennial demand, dispensary access, hemp cultivation, and regulatory changes. Consumer adoption is on the rise, fueled by social acceptance, health benefits, and product innovation. Online sales and public policy are also key factors in the market expansion of this once-controversial industry.

Market Research Overview

The cannabis market in the US encompasses the cultivation and sale of marijuana for both medicinal and non-medicinal purposes. With the ongoing legalization of marijuana for medicinal use in various states, the market for medical marijuana and related products, such as infused edibles and mature plants, is experiencing significant growth. Medical marijuana dispensaries are at the forefront of this industry, providing therapeutic applications for patients with various conditions. The medicinal benefits of cannabis are widely recognized, leading to increased demand and investment in research and development. As disposable income increases, the market for cannabis-infused personal care products, including cosmetics and wellness items, is also poised for expansion. The global cannabis market size is calculated based on the combined revenue generated from these various sectors. The market's growth is driven by increasing disposable income, medicinal benefits, and the expanding scope of therapeutic applications.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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