June 14, 2024
Cannabis Cultivation Market

Cannabis Cultivation Market is Estimated to Witness High Growth Owing to Advancement in Cannabis Cultivation Technology

Cannabis cultivation involves growing and cultivating cannabis plants for medical and recreational use. Cannabis has been cultivated for its medicinal and recreational properties for thousands of years. It is a psychoactive drug derived from the Cannabis sativa plant. The plant contains over 100 different cannabinoids and terpenes which have therapeutic benefits for treating various medical conditions such as chronic pain, anxiety, depression, epilepsy, cancer, and other neurological disorders. Advances in cannabis cultivation technology such as indoor cultivation, precision horticulture, and process automation have made cannabis cultivation more efficient with higher yields.

The Global cannabis cultivation market is estimated to be valued at US$ 18.53 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the cannabis cultivation market are IMBiotechnologies Ltd., ABK Biomedical Inc., EmboMedics, Guerbet, Boston Scientific Corporation, Medtronic Plc., Varian Medical Systems, Inc., Terumo Corporation, Merit Medical Systems, Inc., Cook Group, and Johnson & Johnson. The legalization of medical and recreational cannabis in many countries has opened opportunities for market players to expand their operations. Advancements such as hydroponics, artificial lights, and autonomous harvesting have improved cultivation efficiency and product quality. Technological advancements help reduce production costs and optimize resource utilization in cultivation facilities.

Market drivers

Increasing legalization of medical and recreational cannabis across countries is a major driver for the Cannabis Cultivation Market Growth. As of 2022, 38 states in the US have legalized medical marijuana and 19 states have allowed adult-use. Rising acceptance of cannabis in treating various medical conditions is also fueling the demand. Growing demand for cannabis-based products due to increased consumption for therapeutic and recreational purposes is expected to boost market growth over the forecast period.

Current challenges in Cannabis Cultivation Market

The cannabis cultivation market is still facing many challenges. Regulatory hurdles across different regions continue to hamper the growth of the industry. Licensing and authorization process remains complex in various countries and states. Lack of unified legal framework at the global level is also a major roadblock for the market. Shortage of skilled workforce and technical know-how are posing operational challenges for cannabis growers. High production costs also remain a key concern due to the expensive and regulated cultivation process.

SWOT ANALYSIS

Strength: Growing medical applications of cannabis is driving the demand. Technological advancements are helping cultivators improve yield and quality.

Weakness: Regulatory uncertainty is a major issue. Market is highly fragmented with many small cultivators.

Opportunity: Favorable reform policies will accelerate the market growth worldwide. Potential of cannabis-infused food and drinks offer new opportunities.

Threats: Risk of oversupply can hurt prices. Public perception challenges still remain in some regions. black market trade continues to threaten the legitimacy of legal Cannabis industry.

Geographically, North America dominated the cannabis cultivation market in terms of value in 2021. The U.S. accounted for the major share due to growing legalization of cannabis at the state level.
Europe and Latin America are also lucrative markets and are expected to witness fastest growth during the forecast period driven by cannabis legalization reforms.

The Asia Pacific region offers high growth potential for cannabis cultivation market. Countries like Australia, Thailand, Malaysia, South Korea are emerging as highly promising markets with growing liberalization of medical cannabis. Supportive regulations in the region along with increase in R&D activities are fueling the APAC market growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it