Recreational cannabis, also known as adult-use marijuana, refers to any cannabis plant component, living or not, that is consumed intoxicatingly for enjoyment and pleasure rather than for health benefits. Tetrahydrocannabinol (THC) is a substance found in cannabis products. These THC contains mood-altering properties and can impair thinking and coordination.
The main types of products included in recreational cannabis are oils, transdermal patches, tablets, capsules, vapes, suppositories, tinctures, creams, edibles, and others. Oil refers to a broad range of compounds that are often unctuous, viscous, flammable, liquid at room temperature, and soluble in ether or alcohol but not in water. The compounds used are tetrahydrocannabinol (THC) dominant, cannabidiol (CDB) dominant, and balanced tetrahydrocannabinol (THC), which can be administered through oral, topical, inhalation, rectal, and sublingual routes. These are used in several applications, including chronic pain, cancer, mental disorders, sleep management, and others, which are used by various end users, such as pharmaceuticals, food, beverages, tobacco, personal care, and research and development centers.
The global recreational cannabis market is segmented -
1) By Product: Oils, Transdermal Patches, Tablets, Capsule, Vape, Suppositories, Tinctures, Creams, Edibles, Other Products
2) By Compound: Tetrahydrocannabinol (THC) Dominant, Cannabidiol (CBD) Dominant, Balanced Tetrahydrocannabinol (THC)
3) By Administration: Oral, Topical, Inhalation, Rectal, Sublingual
4) By Application: Chronic Pain, Cancer, Mental Disorder, Sleep Management, Other Applications
5) By End Users: Pharmaceuticals, Food, Beverages, Tobacco, Personal care, Research and Development Center
The global recreational cannabis market is expected to grow from $1.84 billion in 2022 to $1.98 billion in 2023 at a compound annual growth rate (CAGR) of 7.5%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The recreational cannabis market is expected to reach $2.6 billion in 2027 at a CAGR of 7%.
The increasing prevalence of neurological disorders is expected to propel the growth of the recreational cannabis market going forward. The neurological disorder is a medical condition affecting the central and peripheral nervous systems. It involves the spinal cord, the body's nerves, and the brain. The common types of neurological disorders include Alzheimer's disease, Epilepsy, seizures, and Parkinson's disease. These conditions of neuro are cured by cannabis, which helps in treating neurological conditions by controlling calcium homeostasis and lessening neuroinflammation. For instance, in May 2020, according to the Centers for Disease Control and Prevention, a US-based government agency, an estimated 5.8 million Americans 65 and older have Alzheimer's disease, and by 2060, it is projected to nearly triple to 14 million. Additionally, at 65, the number of individuals with the disease doubles every five years. Furthermore, in December 2022, according to the Parkinson's Foundation report published in 2022, a US-based non-profit organization working for Parkinson's disease patients, the PD (Parkinson's disease) incidence rate increased to nearly 90,000 diagnoses per year from the previous estimates of 60,000 diagnoses yearly. Therefore, the increasing prevalence of neurological disorders is driving the growth of the recreational cannabis market.
Major players in the recreational cannabis market are The Cronos Group, Verano Holdings, Cresco Labs Inc., SNDL Inc., Medical Marijuana Inc., Tilray Inc., 22nd Century Group, Aurora Cannabis Inc., Canopy Growth Corporation, Columbia Care, PharmaCann Inc., Perrigo, Village Farms International Inc, Indiva Limited, VIVO Cannabis Inc., TerrAscend Corp., Acreage Holdings, HEXO Corp, 4Front Ventures, C3 Industries, TILT Holdings, Maricann Inc., Organigram Holding Inc., Ascend Wellness Holdings, Curaleaf Holdings Inc., Trulieve Cannabis, Green Thumb Industries, and Geron Corporation.
Product innovations have emerged as a key trend gaining popularity in the recreational cannabis market. Major companies operating in the recreational cannabis market are concentrating on creating innovative products to strengthen their position in the market. For instance, in June 2023, Aurora Cannabis Inc., a Canada-based licensed cannabis producer, launched a lineup of innovative recreational cannabis products, including Lil' Bits Sour Grape and Sour Watermelon (10 x 1mg edibles), Mango XL Vape, Signature Hash, and others. Lil' Bits Sour Grape and Sour Watermelon Low Dose Edibles give delectable flavor in a snackable form, making them ideal for novice users or micro-dosing. It features crowd-pleasing, nostalgic flavors with little to no aftertaste from the cannabis. Mango XL Vape (510–1.2g) uses a blend of quality resin unique to the company and enriched with botanical terpenes to provide a full-spectrum, full-flavor experience. Signature Hash (2g) is a ground-breaking bubble hash blend that raises the benchmark for malleability and burnability.
In June 2023, Tilray Brands, a US-based cannabis and beverage alcohol company, acquired Hexo Corporation for roughly $56 million. The acquisition strengthens Tilray's leadership position in the Canadian cannabis market with combined business the chance to optimize its sales, marketing, and distribution networks to strengthen Tilray's commercial footprint and accelerate market share growth. Hexo Corporation is a Canada-based recreational cannabis producer.
North America was the largest region in the recreational cannabis market in 2022. The regions covered in recreational cannabis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the recreational cannabis market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The recreational cannabis market consists of sales of cannabis indica and cannabis sativa. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The recreational cannabis market research report is one of a series of new reports from The Business Research Company that provides recreational cannabis market statistics, including recreational cannabis industry global market size, regional shares, competitors with a recreational cannabis market share, detailed recreational cannabis market segments, recreational cannabis market trends and opportunities, and any further data you may need to thrive in the recreational cannabis industry. This recreational cannabis market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.