Cannabis Cultivation Market Report
Cannabis Cultivation Market by Biomass (Hemp, Seed, Flowers, Marijuana, and Others), Application (Medical Consumption, Recreational Consumption, and Industrial Consumption), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Cannabis Cultivation Overview
Cannabis cultivation includes the process of preparing, producing, and harvesting the cannabis required for multiple purposes. Different parts of cannabis plants, such as roots, flowers, stems, sugar leaves and seeds, have received significant attention from medical and recreational industries. Both indoor and outdoor cultivation methods are used with the help of cutting-edge technology to maximize production, optimize plant growth, and guarantee the quality of the finished products. However, it’s crucial to keep in mind that different jurisdictions have quite diverse laws regarding cannabis growing, which has an impact on the activities and dynamics of the market.
Global Cannabis Cultivation Market Analysis
The global cannabis cultivation market size was $398.0 billion in 2022 and is predicted to grow with a CAGR of 21.6%, by generating a revenue of $2,695.7 billion by 2032.
COVID-19 Impact on Global Cannabis Cultivation Market
The COVID-19 pandemic had a wide-ranging effect on the cannabis cultivation market. At first, output was hampered by difficulties locating crucial crop inputs due to supply chain disruptions, labor shortages, and travel limitations. Nevertheless, operations might continue in some areas since cannabis enterprises were classified as essential, albeit with more stringent safety precautions.
The market saw changes in consumer behavior as well, with more people in some regions buying cannabis products for recreational use during lockdowns and stress reduction. On the other hand, for other people, economic uncertainty and a decline in disposable income resulted in a more frugal approach to spending. In addition, the epidemic hastened the shift towards online shopping and delivery services, forcing growers to change their distribution plans.
Growing Legalization and Adoption of Cannabis for Medical Purposes to Drive the Market Growth
The cannabis cultivation market has been expanding significantly due to the growing legalization and decriminalization of cannabis for both medical and recreational purposes in many jurisdictions. The legal environment is changing, which has encouraged both seasoned agricultural firms and recent arrivals to invest in cannabis growing and expand the market. Additionally, the demand for high-quality, standardized cannabis harvests has increased due to the growing acceptance of cannabis-based products for medical uses as well as the trend towards wellness and natural cures. In addition, the liberalization of laws related to cannabis cultivation, especially for hemp cultivation by various countries due to low THC content is further increasing its adoption.
Stringent Regulatory Norms Regarding the Production of Cannabis to Restrain the Market Growth
Cannabis is grown and used legally in different places, but there are considerable regulatory barriers and inconsistent laws that make this possible. Investment and expansion potential are further hampered by the stigma attached to the sector and the restricted access to traditional financial services caused by federal laws. Sustainable practices are also required because environmental issues with water use and energy-intensive indoor growth techniques, which raises the cost of operations and compliance.
Advancements in Technology to Drive Excellent Opportunities
The improvements in cultivation technology, including indoor and greenhouse facilities outfitted with sophisticated automation and control systems is providing significant growth opportunities for the cannabis cultivation market. The market is projected to experience ongoing expansion as research continues to reveal the potential therapeutic benefits of different cannabis components, supported by changing policies and consumer preferences. Besides, the production and cultivation of cannabis products have been revolutionized by the astounding technological breakthroughs in the cannabis farming business. Numerous areas have experienced innovation, including cultivation techniques, robotics, genetic engineering, and data-driven analytics. Additionally, platforms powered by AI and data analytics have appeared, allowing real-time monitoring of cultivation parameters, predictive analytics for disease outbreaks, and recommendations for growth optimization
Global Cannabis Cultivation Market Share, by Biomass, 2022
The hemp sub-segment accounted for the highest market share in 2022. The hemp industry is a flexible and quickly growing sector with a wide variety of applications, which is crucial to the cannabis cultivation market. Hemp, a non-psychoactive version of the Cannabis plant has attracted a lot of attention due to its wide range of applications in sectors including textiles, health & wellness, construction, and even food. It is an environmentally beneficial choice for farmers due to its quick pace of development and little requirement for pesticides and water. Furthermore, hemp has become increasingly popular as a cash crop due to the fact that it is legal to grow in many areas, which boosts rural economies and gives farmers an additional source of income. Hemp is particularly significant because of its ability to improve soil quality and store carbon, which would be in line with sustainable farming methods and environmental stewardship.
Global Cannabis Cultivation Market Share, by Application, 2022
The industrial consumption sub-segment accounted for the highest market share in 2022. Industrial consumption provides the critical tools, machinery, and technologies required for efficient and large-scale cannabis plant growing. This application covers a broad range of goods and services, such as specialized lighting systems, climate control options, irrigation & fertilizer delivery systems, automation & monitoring tools, culture substrates, and pest control strategies. These products are designed to meet the special and exacting demands of cannabis growing, which can call for highly regulated settings to maximize yield and promote plant growth. Besides, industrial consumption helps farmers produce consistently high-quality products while also enabling them to conserve resources, cut costs, and establish perfect growing conditions. Furthermore, it serves as a driving force behind the growth and innovation required to meet the rising demand for legal cannabis products while assuring sustainable and standardized production practices.
Global Cannabis Cultivation Market Share, by Region, 2022
The North America cannabis cultivation market generated the highest revenue in 2022. This is mainly because North America has turned into a major centre for cannabis production, innovation, and cultivation as a result of the gradual legalization and decriminalization of cannabis throughout many states and provinces. With a wide variety of temperature zones appropriate for different cultivation methods, including indoor, outdoor, and greenhouse production, the US and Canada, especially have been at the forefront of this business. Due to its advantageous geographic location, the region is able to grow a wide range of cannabis strains that can satisfy different consumer tastes. Furthermore, the development of sophisticated farming practices, genetic breeding, and extraction processes has been aided by North America's advanced research and development infrastructure. The cannabis cultivation market in North America not only stimulates economic growth by creating a large amount of tax money and job possibilities, but it also establishes the norm for industry standards, regulatory frameworks, and consumer trends that have an impact on the worldwide cannabis market.
Competitive Scenario in the Global Cannabis Cultivation Market
Investment and agreement are the common strategies followed by the major market players. Some of the leading cannabis cultivation market players are Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Tilray, The Cronos Group, Organigram Holding, Inc., Better Holdings, Pacific Cannabis Growers, Atlas Growers, CannTrust Holdings, and The Hydropothecary Corp.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Biomass
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the global cannabis cultivation market?
A. The size of the global cannabis cultivation market was over $398.0 billion in 2022 and is projected to reach $2,695.7 billion by 2032.
Q2. Which are the major companies in the cannabis cultivation market?
A. Canopy Growth Corporation and Aphria, Inc. are some of the key players in the global cannabis cultivation market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. Aurora Cannabis, Tilray, The Cronos Group, and Organigram Holding, Inc. are the companies investing more on R&D activities.