The global cannabis market is projected for substantial growth, with its valuation expected to reach US$148.9 billion by 2031. This forecast, detailed in a report by Allied Market Research published on April 30, 2026, via PRNewswire, indicates a compound annual growth rate (CAGR) of 20.1% from 2022 to 2031. The expansion is attributed to several factors, including evolving regulatory frameworks, increasing awareness among health professionals and consumers regarding therapeutic benefits, and a supportive investment ecosystem.
Global Cannabis Market Expansion
The Allied Market Research report, titled ‘Cannabis Market by Product Type (Buds or Marijuana Flower, Cannabis Extracts), by Compound (THC-Dominant, Balanced THC & CBD, CBD-Dominant), by Application (Medical, Recreational, Others): Global Opportunity Analysis and Industry Forecast, 2022–2031,’ highlights the significant trajectory of the market. Valued at US$25.7 billion in 2021, the market’s projected growth reflects profound structural changes across global regulatory, scientific, and consumer landscapes. The report identifies key drivers:
- Increased legalization of cannabis in a growing number of countries.
- Rising consumer and professional awareness regarding the health benefits of cannabinoids like CBD and its expanding therapeutic applications.
- Innovation in product development, leading to a broader range of cannabis offerings.
Key Market Segments and Growth Drivers
Analysis of the market segments reveals specific areas of growth:
- Product Type: Cannabis extracts emerged as the leading product segment, generating US$13,794.3 million in 2021 and projected to reach US$82,309.1 million by 2031, with a CAGR of 20.4%. This segment held a 66.7% share in 2021 and is expected to maintain its dominance.
- Compound: The balanced THC & CBD segment accounted for US$11,976.5 million in 2021, with projections to reach US$67,909.8 million by 2031 at a CAGR of 19.8%. Notably, the THC-dominant segment is anticipated to report the highest CAGR of 20.4% during the forecast period.
- Application: While the recreational segment contributed the highest revenue in 2021, the medical cannabis application segment is projected to exhibit the fastest growth, registering a CAGR of 21.1% over the forecast period. This indicates a strong and accelerating demand for cannabis in therapeutic contexts, including for conditions such as chronic pain, epilepsy, multiple sclerosis, and post-traumatic stress disorder.
Regional Dynamics in the Cannabis Sector
Geographically, market growth is varied:
- North America: This region was the largest revenue generator in 2021, with US$22,115.3 million, and is estimated to reach US$104,403.3 million by 2031, growing at a CAGR of 18%. This dominance is attributed to the legalization of cannabis for medical and, in some jurisdictions, recreational use in the U.S. and Canada, alongside increased research and development activities into medicinal applications.
- LAMEA (Latin America, Middle East, and Africa): The LAMEA region is anticipated to record the fastest CAGR of 32.3% during the forecast period. Countries like Colombia, Brazil, and Uruguay, the first nation to fully legalize cannabis, are noted as important producers with developing regulatory frameworks, presenting significant production and consumption opportunities.
- Europe: The European cannabis industry is a strategically important market, supported by increasingly favorable regulation in many countries and a growing patient base with improved access to medical cannabis treatments, particularly in Germany, the Netherlands, and the UK.
- Asia-Pacific: This region represents a significant emerging opportunity. New Zealand is evolving into a legal market for commercial cannabis, while China, already a powerhouse in industrial hemp, is expected to become a major market for industrial cannabis.
Industry Landscape and Strategic Developments
The competitive landscape of the global cannabis market includes major players such as Medical Marijuana Inc., Tilray, Green Thumb Industries, Ecofibre Limited, Aurora Cannabis Inc., Organigram Holdings Inc., and Canopy Growth Corporation. These companies are implementing strategies including joint ventures, collaborations, expansions, and new product launches to enhance their market share. The report also notes increased investor interest, driven by the expansion of the consumer base and ongoing advancements in manufacturing, distribution, and sales within the cannabis sector. Further research into the medical use of cannabis and safe consumption methods continues to drive innovation and market expansion.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Hemp Gazette does not provide medical recommendations, diagnoses, or treatment plans. Always consult a qualified healthcare practitioner before making any decisions regarding your health or any medical condition. Statements concerning the therapeutic uses of hemp, cannabis, or cannabinoid-derived products have not been evaluated by Australia’s Therapeutic Goods Administration (TGA). Medicinal cannabis products in Australia are accessed via prescription pathways under TGA regulation.
