[149 Pages Report] Cannabis is a drug derived from the Cannabis Sativa, Cannabis Indica, and hybrid strains. The main cannabinoids that are most active are tetrahydrocannabinol (THC), the psychoactive compound, and cannabidiol (CBD). The market definition for cannabis, in this study, takes into consideration both medical as well as recreational cannabis.

The cannabis market is projected to grow at a CAGR of 30.7% to reach USD 39.35 billion by 2023 from USD 10.31 billion in 2018. The growth is attributed to the increasing number of medicinal applications of cannabis and the increasing legalization of cannabis. The complex regulatory structure for the usage of cannabis is restraining market growth.

By product type, the concentrates segment is expected to grow at the highest rate during the forecast period.

The flower segment dominated all the product types of cannabis. The dominance of this segment is mainly attributable to its maximum availability, and its method of delivery as smoking or vaping the cannabis flower has a quicker effect and is preferred for fast-acting relief by medical and recreational cannabis consumers.

The market for concentrates is projected to grow at the highest CAGR during the forecast period. This is due to their ease in usage, and their versatility in the method of delivery, such as dabbing, ingestible oils, and tinctures. Also, along with ingestion, concentrates can offer cleaner, smoother, and less odiferous hits than the flower.

By compound, the THC- dominant segment is expected to dominate the market during the forecast period.

The THC-dominant segment dominated the market for cannabis in 2017 and is also projected to grow at the highest CAGR during the forecast period. The dominance of this segment is majorly attributed to the fact that THC is the psychoactive substance in cannabis products, which is responsible for the high. Even though high THC content is better known for its mind-altering euphoria, it also has significant medical benefits. It is considered useful in relieving nausea, appetite loss, and insomnia, among other symptoms.

North America expected to lead the market during the forecast period.

The North American market accounted for the largest share in 2017. The market in this region is primarily driven by growth in the US and Canadian markets. The market in this region is driven by the increasing legalization of cannabis for both medical and recreational purposes. There is a growing awareness among consumers regarding the health benefits of cannabis. The market is further fuelled by the presence of major cannabis giants such as Canopy Growth Corporation, Aurora Cannabis Inc., and Medical Marijuana Inc., who are continuously investing and collaborating for the development of new products to fulfil the consumer demand.

Market Dynamics

Driver: Increasing legalization of cannabis

Cannabis legalization is often viewed upon with dual perceptions wherein its legalization has been met with scepticism associated with possible abuse. On the contrary, it is believed that legalization could, in turn, allow people to practice safe substance usage, while also reaping its medicinal benefits. As a result, there is an increasing number of countries that are gradually legalizing the usage of cannabis across the globe. As of November 2018, it is legal to smoke marijuana for medical usage in 33 states in the US, whereas nine states will still be requiring a doctor�s letter to do so. The recreational usage of cannabis is, in turn, legalized in ten of these states. Similarly, in 2013, Uruguay became the first country to legalize marijuana outside the US. Similarly, Canada, too, legalized the complete usage of marijuana in 2018.

While most countries across the globe have still not legalized the usage, the approach to the usage and sales has been relaxed over the years. As more countries move toward its partial or complete legalization, the market for cannabis will be experiencing a positive trajectory.

Restraint: Complex regulatory structure for the usage of cannabis

Companies offering cannabis and cannabis-infused products are required to comply with different regulatory guidelines globally. While countries across the globe practice different levels of legalization for different applications of marijuana, the strict regulatory norms about the production and sales of cannabis across various states in the same country could be tedious for manufacturers and stakeholders to comply with. Additionally, the regulations associated with a single application of cannabis also remain highly varied from state to state, which further leads to complications related to the trading of the commodity. For instance, Germany allows general practitioners to prescribe cannabis only when alternative treatment types cannot be applied to a medical condition. Also, many countries only allow the usage of specific cannabis compounds for treatment purposes. The UK is amongst the few countries that imply the usage of medical cannabis as illegal in nature, except for Nabilone and Sativex.

The complexity of regulations associated with the usage of cannabis is not only limited to the type of variation in regulations, but also remains highly ambiguous in nature. For instance, for both Washington DC and Vermont, the possession of cannabis is permitted up to specified limits, but its trade for recreational purposes remains restricted. Similarly, Chile allows the possession of a certain amount of cannabis, with the cultivation of about six plants. However, public consumption and trade are still not allowed. Furthermore, the regulations associated with the trading, manufacturing, and prescription of cannabis remains highly complex and varied across states and countries, which makes the industry one of the most highly regulated ones.

Opportunity: Product development via research and novel product delivery solutions

Robust growth in the global demand for cannabis has further propelled the need to come up with better product delivery systems as well as sustainable product strains. This need has, in turn, led to many companies coming up with R&D, which extensively investigates several genetic improvement strategies for cannabis. For instance, Hydro pothecary partnered with Segra in March 2018 to incorporate plant tissue propagation into the cannabis plant production process, to help increase the yield of healthy and better variant plants to serve the growing industry for medical and recreational cannabis. While looking into this genetic improvement, companies have been extensively venturing into the development of wide yielding varieties, better harvestability and market quality, a reliable low THC content, and improved herbicide tolerance of the cannabis crop. The high yield potential of cannabis arises from several factors that are both genetic and agronomic in nature. This would further investigate combining early maturity, and reduced plant height and acceptable seed size, to improve grain yield. The early maturity makes the harvest window more flexible, while a reduced plant height further aids this increase of the harvest window.

Challenge: Declining prices as product gets commoditized

Although the market for cannabis is expected to be experiencing exponential growth rates during the forecast period, crop pricing could highly hamper market development for cannabis. This could happen as more countries across the globe look forward to commoditizing cannabis, which, in turn, could result in crop prices experiencing a downward trend. While the legalization of cannabis could propel the market prospects during the short run when manufacturers and related stakeholders of the industry witness substantial demand. This upward wave may experience a slump in pricing due to various market forces creating a state of disequilibrium due to excess supply, the advent of an increased number of local and unorganized players, and market fragmentation. For instance, the legalization of recreational and medicinal cannabis in Canada has already resulted in the appreciation of shares of Aurora and Canopy by 200%, ridden by market sales hype, and an optimistic outlook. Furthermore, the expectations associated with the pricing of their product have also been over-estimated, with US private producers of cannabis earning about 60% lesser than what is expected of Canada. While the supply of marijuana to the market will be higher than market expectations, in comparison to the demand being lower, there will be a market state of oversupply. Furthermore, the government controls that limit all differentiating factors could further lead to commoditization, resulting in the reduction of commodity prices.

Scope of the Report

Report Metric Details Market size available for years 2016�2023 Base year considered 2017 Forecast period 2018�2023 Forecast units Million (USD) Segments covered Product Type, Application, Compound, and Region Geographies covered North America, South America, Europe, and RoW Companies covered Key market players including,

Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), Tikun Olam (Israel), Cannabis Science Inc. (US), Aphria Inc. (Canada), Maricann Group Inc. (Canada), Tilray Inc. (Canada), VIVO Cannabis Inc. (Canada), Medical Marijuana, Inc. (US), STENOCARE (Denmark), Cronos Group Inc. (Canada), Terra Tech Corp. (US), and MedMen (US).

The research report categorizes the Cannabis Market to forecast the revenues and analyze the trends in each of the following sub-segments:

By product type,

Flower

Concentrates

Others (capsules, topicals, edibles, and beverages)

By application

Medical

Recreational

By compound

THC-dominant

CBD-dominant

Balanced THC & CBD

By region

North America Us Canada Mexico

South America Chile Columbia Uruguay

Europe Germany Italy France The Netherlands

RoW

Key Market Players

Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), Cannabis Science Inc. (US), and Aphria Inc. (Canada)

Recent Developments

In October 2018, Spectrum Cannabis (Canada), a wholly owned subsidiary of Canopy Growth Corporation, partnered with the Ontario Long Term Care Association (OLTCA) (Canada) for the pilot study on cannabis as an alternative source of medicine for degenerative cognitive function.

In August 2018, Aurora Cannabis Inc. and its subsidiary MedReleaf Corp. (Canada), entered into an agreement with the Ontario Cannabis Store for the distribution of its high margin products such as pre-rolls, oils, and capsules.

In August 2018, Terra Tech Corp. partnered with the Valiente Group (Germany), to manufacturer cannabis-infused non-alcoholic beverages under the brand IVXX.

In July 2018, Aurora Cannabis Inc. announced to form a partnership with Wagner Dimas Inc. (Nevada). Under this partnership, both the companies would form a new entity for the production of pre-rolls using Wagner Dimas's technology to serve the recreational market.

Critical questions the report answers:

What will be the revenue-generating pockets for the key players in the Cannabis Market ?

? Which are the major players leading the market, and what initiatives have they undertaken over the past few years?

What are the future revenue pockets in the market?

How is the current regulatory framework expected to impact the market?

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