CANNABIS CULTIVATION MARKET ANALYSIS

Cannabis Cultivation MarketSize and Trends

The cannabis cultivation market size is expected to reach US$ 136 Bn by 2030, from US$ 42.9 Bn in 2023, at a CAGR of 17.9% during the forecast period. The global cannabis cultivation market consists of two primary product categories: marijuana and hemp. Marijuana is primarily cultivated for its psychotropic properties and is used recreationally or medicinally. It contains significant amounts of tetrahydrocannabinol, or THC, the main psychoactive compound in cannabis. Marijuana cultivation produces flower buds that can be smoked or consumed through other means like edibles. Hemp, on the other hand, contains only traces of THC but high amounts of cannabidiol, or CBD, which is touted for various therapeutic benefits without the intoxicating effects. Hemp is grown primarily for industrial uses through its strong fibers that are processed for various products ranging from textiles, papers, biofuels, and even construction materials. However, recently, hemp cultivation has also focused on producing CBD extracts that can be used in wellness products like oils, creams, and supplements. CBD extracts from hemp do not cause intoxication but may provide relief from issues like anxiety, insomnia and chronic pain.

The cannabis cultivation market is segmented by product type, method of cultivation, medical application, end use, and region. By end use, the market is segmented into medical, recreational, and others. The medical segment is expected to account for the largest share during the forecast period due to the growing consumer awareness about its medical benefits.

Cannabis Cultivation Market Trends:

• Consolidation of Cannabis Cultivation Facilities: The consolidation of cannabis cultivation facilities across global markets has significantly impacted operations in the cannabis cultivation industry. Over the past few years, there has been a notable trend of smaller cultivators being acquired by larger multi-state or multi-national operators. This consolidation allows large companies to realize economies of scale, which helps reduce production costs per unit significantly. It also grants them greater purchasing power for raw materials and equipment. For instance, in the U.S. cannabis market, companies like Curaleaf, Cresco Labs, Green Thumb Industries and Trulieve have been on an acquisition spree, acquiring dozens of smaller brands and cultivation licenses across different states.
• Increased Organic and Sustainable Cultivation Practices: The increased focus on organic and sustainable cultivation practices is having a significant influence on the global cannabis cultivation market. With consumers and regulators both demanding higher standards of environmental protection and public health safety, many cannabis growers are transitioning to organic methods. Organic farming techniques avoid the use of toxic synthetic pesticides, fertilizers, and GMOs. For cannabis cultivation, this means adopting practices like nutrient management from compost and cover cropping, as well as integrated pest management strategies that minimize pest damage through techniques such as crop rotation instead of chemical interventions. The benefits of organic cultivation includesreduced risks to nearby water sources from agricultural run-off and eliminating consumer exposure to potentially harmful residues. Several studies have also revealed that organically produced cannabis may have a more appealing cannabinoid and terpene profile for consumers. The premium prices and growing demand for organically certified cannabis products have created a major incentive for cultivators to adopt the higher costs of organic systems.