The legal cannabis industry is comprised of the production and sale of the cannabis plant and products derived from it. Many companies in this sector began in supplying the medical market when that was all that existed. The legal markets in Uruguay, Canada, Thailand and the United States have led to new companies as well as expansion of previously medical only suppliers. Some of the hottest growing product segments are vaping products, edible and beverage products, and CBD (a cannabis-derived, non-psychoactive chemical with reputed health and wellness benefits).
Demand in both the U.S. and Canadian markets has not outpaced supply and many businesses have struggled because of plummeting prices. Recently, the DEA has proposed changing the status of cannabis in the U.S. from Schedule 1 to Schedule 3. Although this would not make cannabis federally legal, it would allow companies to take tax deductions that would improve profitability.
Sales of legal recreational cannabis in the United States from 2022 to 2028* (in billion U.S. dollars)
Further details: Visit original statistic Sales of legal recreational cannabis in the United States from 2022 to 2028* (in billion U.S. dollars)
Legal adult-use cannabis sales in the United States reached 33.6 billion U.S. dollars in 2023. The industry is expected to grow by an additional 14 percent in 2024 as large newly opened markets, such as New York, continue to mature.
The adult-use market is forecast to grow further and reach nearly 57 billion dollars in value by 2028.
Retail sales share of recreational marijuana in California as of March 2024, by segment
Further details: Visit original statistic Retail sales share of recreational marijuana in California as of March 2024, by segment
Flower, the raw, dried bud of the cannabis plant is still what most people think of when they hear of cannabis. As such, this segment of the cannabis market has remained the most dominant. Sales of flower comprised one third of the market in California, the largest single market in the world, in 2024.
Other segments such as vapes and pre-roll were not far behind, making up an additional an additional combined 44 percent.
Dollar sales growth of cannabidiol products in convenience stores in the United States in 2023, by segment
Further details: Visit original statistic Dollar sales growth of cannabidiol products in convenience stores in the United States in 2023, by segment
Cannabidiol (CBD), a non-psychoactive component of the cannabis plant has been one of the fastest growing products to come out of the commercialization of cannabis. Sales exploded after the passing of the Farm Bill in 2018 which legalized the production of hemp.
The initial wave of growth in CBD appears to be over, with many segments now shrinking. Vaping is bucking the trend, with sales of electronic smoking devices nearly doubling in 2023 compared to the previous year.
Revenue of Curaleaf from 2018 to 2023 (in million U.S. dollars)
Further details: Visit original statistic Revenue of Curaleaf from 2018 to 2023 (in million U.S. dollars)
Although the legal cannabis market is still in its infancy, there are several companies that have become standout leaders. The largest such company is Curaleaf, which produces cannabis products and operates dispensaries in the United States.
Although Curaleaf is headquartered Massachusetts and operates its dispensaries in the United States, the company’s stock is listed in Canada. This is because the company’s operations violate federal law, even if individual states allow it.
Cannabis is a genus of plants, some of which produce psychoactive effects when ingested and others which do not (hemp). The cannabis industry produces products from both types of plants.
The legal cannabis industry is made up of companies that sell unprocessed cannabis as well as products derived from the plant in countries that have removed legal barriers for sale. Because the first legal market in many countries was medical only, many companies started out focusing on that field and have since branched out to offer products to the recreational market as well.
Legalization of cannabis has given rise to a number of commercial products. There is of course plain dried flower, which is the traditional and still most common way to consume cannabis. Other growing segments are vaping, which involves heating the product to a level below combustion and edibles, which converts the cannabis into a form that can be swallowed by a consumer.
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