The U.S. cannabis market size was valued at $13.2 billion in 2022 and is expected to grow at a compound annual rate of 14.2% from 2023 to 2030, according to Lowell Farms Inc.
California-based Lowell Farms has vertically integrated operations that include large-scale cultivation, extraction, processing, manufacturing, branding, packaging, and wholesale distribution to retail dispensaries.
According to the company, increasing legalization of cannabis and growing acceptance of its use for medical purposes are the key factors driving market growth.
Increasing research into the use of cannabis and its medicinal properties has led to an increase in its use to treat various chronic conditions such as chronic pain and nausea from chemotherapy.
An increasing number of companies are entering local markets to meet the growing demand for cannabis and is one of the factors supporting the growth of the market.
At the same time, the dynamism of new companies in the United States is driving the growth of the cannabis market.
Other factors contributing to the growth are favorable cultivation regulations that help to meet the demand for biomass in the United States.
Cannabis market
States such as Florida, Oregon, Nevada, California, Washington, and Colorado are major cannabis producers, owing to favorable climatic conditions and legalization of medical marijuana.
In addition, the increasing number of companies engaged in the cannabis business due to the ease with which wholesale cannabis procurement and product development can be carried out is driving the growth of the market in the United States.
The Covid-19 pandemic led to reduction in strategic instances and revenue for several players.
Factors responsible for the reduction in revenue include strict trade regulation and supply chain disruption due to the U.S. blockade.
Despite the increase in the number of cannabis users during the pandemic, there has also been a significant reduction in price, leading to an overall decline in the total size of the revenue-based market.
However, with the improving situation in the region, there is an increase in strategic developments by major players, and this trend is expected to drive growth.
Positive guidance provided by the FDA for the continuation of cannabis-related R&D activities is also expected to drive the growth of the U.S. cannabis market in the coming years.
