What Has Been the Progress and Growth of the Recreational Cannabis Market in Recent Years?
The recreational cannabis market has seen considerable growth due to a variety of factors.
•In recent years, the size of the recreational cannabis market has seen robust growth. It is anticipated to escalate from $2.11 billion in 2024 to $2.26 billion in 2025, with a compound annual growth rate (CAGR) of 7.2%.
The upsurge during the historic period can be credited to changes in societal views, economic implications and tax revenue, the introduction of medical cannabis, as well as the influence of the cannabis tourism and hospitality industry.
What Can Be Expected from the Recreational Cannabis Market in the Coming Years?
The recreational cannabis market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the recreational cannabis market is predicted to expand significantly over the coming years, reaching a value of $3.13 billion by 2029. This represents a compound annual growth rate (CAGR) of 8.5%.
The anticipation of increased growth throughout the forecast period is largely due to global legalization efforts, advancements in cannabis product development, the integration of cannabis into mainstream culture, as well as health and wellness trends and ongoing investigations into cannabinoids. Trending factors likely to impact the forecast period include increased emphasis on health and wellness, the implementation of sustainability practices, evolving regulations, the establishment of social consumption spaces, and industry collaborations and partnerships.
What Are The Leading Drivers Of Growth In The Recreational Cannabis Market?
The growing incidence of neurological disorders is anticipated to drive the expansion of the recreational cannabis market. Neurological disorders, which include ailments like Alzheimer's disease, Epilepsy, seizures, and Parkinson's disease, are medical conditions that affect the central and peripheral nervous systems, including the spine, the nerves, and the brain. The therapeutic properties of cannabis, such as controlling calcium homeostasis and reducing neuroinflammation, play a significant role in treating these neurological conditions. For instance, as reported by the Parkinson's Foundation, a US-based non-profit organization dedicated to the care of Parkinson's disease patients, in December 2022, the incidence rate of Parkinson's disease (PD) saw a surge to almost 90,000 diagnoses per year, a significant rise from the earlier 60,000 annual diagnoses. Hence, the rising occurrence of neurological disorders is fueling the momentum of the recreational cannabis market.
How Are The Segments Defined Within The Global Recreational Cannabis Market?
The recreational cannabis market covered in this report 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
Subsegments:
1) By Oils: Cannabis Oil, CBD Oil, THC Oil
2) By Transdermal Patches: THC Transdermal Patches, CBD Transdermal Patches
3) By Tablets: THC Tablets, CBD Tablets
4) By Capsules: THC Capsules, CBD Capsules
5) By Vape: Vape Pens, Vape Cartridges, Disposable Vape Devices
6) By Suppositories: THC Suppositories, CBD Suppositories
7) By Tinctures: THC Tinctures, CBD Tinctures
8) By Creams: Topical Creams, Pain Relief Creams
9) By Edibles: Gummies, Chocolates, Beverages
10) By Other Products: Cannabis-Infused Honey, Bath Bombs, Pre-Rolls
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How Are New Trends Expected To Influence The Growth Of The Recreational Cannabis Market?
Product innovations are currently trending and gaining traction in the recreational cannabis industry. To solidify their place in the market, major corporations in the recreational cannabis industry are focusing on developing innovative offerings. Aurora Cannabis Inc., a licensed cannabis producer in Canada, for instance, launched a new range of inventive recreational cannabis products in June 2023. The lineup included products like Lil' Bits Sour Grape and Sour Watermelon (10 x 1mg edibles), Mango XL Vape, Signature Hash among others. Lil' Bits Sour Grape and Sour Watermelon Low Dose Edibles come with inviting flavors in a bite-sized, snackable form, making them a perfect choice for beginner users or micro-dosers. They offer popular, nostalgic tastes with barely any aftertaste of cannabis. Mango XL Vape (510–1.2g) is a product having a unique blend of high-quality resin exclusive to the company, enhanced with botanical terpenes, offering a full-bodied, flavorful experience. Signature Hash (2g) is a revolutionary bubble hash blend that sets a new standard for versatility and combustion.
Who Are the Key Players in the Recreational Cannabis Market?
Major companies operating in the recreational cannabis market include:
• 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.
• 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
What Is The Most Dominant Region In The Recreational Cannabis Market?
North America was the largest region in the recreational cannabis market in 2024. The regions covered in the recreational cannabis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
