Industrial Cannabis Market Size, Growth & Latest Trends

In the US, medical cannabis is regulated by every state, with more than two-thirds of states, plus the District of Columbia, legalizing it for medical use and more considering licensing for official usage. The Food and Drug Administration has granted approval to cannabis-based treatments to manage rare types of epilepsy such as Dravet syndrome and Lennox-Gastaut syndrome. Worldwide, there is an on-going discussion about moral and ethical concerns, but the acceptance of medical cannabis continues to be on the rise. Cannabidiol (CBD), an extract of cannabis with little to no psychoactive properties, is considered to be a safe and effective treatment for insomnia, anxiety, epilepsy, spasticity, chronic pain, and inflammation. Epidiolex, a cannabis product approved by the FDA, is known to reduce seizure frequency and severity significantly. There is international acceptance of a combination product called Sativex containing CBD and THC for spasticity associated with multiple sclerosis. THC-containing medications that are FDA-approved for treating chemotherapy-associated nausea and appetite loss associated with AIDS are dronabinol and nabilone. There is promising evidence that full-spectrum cannabis extract and CBD have therapeutic potential benefits for managing anxiety, pain, inflammation, and symptoms of viral infection, with fewer side effects than other common medications. For example, in June 2025, Tilray Medical released new pharmacokinetic evidence concerning THC and CBD formulations, along with augmenting its European distribution after the Italian Ministry of Health issued additional approvals. This clearly extends Tilray's ability to supply quality-controlled therapeutic products. Panaxia Pharmaceutical Industries, of Israel, is establishing a transaction footprint in Europe, having successful tenders to supply its products to distributors in France, Germany, and Cyprus, while simultaneously accelerating clinical trials for the sublingual tablets and metered-dose inhalers for consistent dosing. Finally. Ananda Pharma is advancing proprietary CBD-based drug candidates to treat chemotherapy-induced neuropathy and inflammatory pain and has moved into Phase II studies required for regulatory approval. On the supply side, Ondara in Spain received cultivation and production licenses in July 2025 from the Spanish Medicines Agency to significantly increase the output of medicinal cannabis in Soria, which reinstated more than 40 jobs and reinforced Europe's local supply chain. Together, these advances highlight how an expanding therapeutic use or category - with supporting clinical evidence, regulatory approval, and supply chain stores - removes cannabis product barriers as countries and companies innovate to meet higher patient and healthcare demand.

The stigmatization of cannabis is a major barrier to the growth of the global cannabis market. The number of countries that have legalized medicinal and recreational cannabis is growing. Regardless, even with increasing legalization, some of the negative perceptions associated with cannabis use (for instance, that cannabis is linked to crime, addiction, and deterioration of morality) remain among certain segments of the public, civic leaders, policymakers, and healthcare practitioners. This stigma will discourage some prospective patients from using cannabis-based therapies, will limit their interest in investing in cannabis, and will prevent healthcare providers from prescribing or endorsing cannabis-based therapies. For example, the UNODC World Drug Report 2024 ensures that cannabis is seen as a drug of dependence and as a gateway drug in certain areas of the globe (UNODC, 2024), which is inconsistent with the increasing evidence to show the medicinal benefits of cannabis. Similarly, the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) briefing "Explaining Medical Cannabis" (EMCDDA, 2023) repeats that stigma from the general public in some parts of Europe and stigma from policymaking limited the proliferation of availability of medical cannabis, with some countries still hesitating on its approval as part of their national health system. Even in the US, although legalization has progressed where legislation has passed to legalize cannabis, the FDA's limited acknowledgment of FDA-registered products (the FDA does not allow non-FDA cannabis products as part of their use) is a mark of caution - a situation which is repeated within health settings as evidenced within the health response to the COVID-19 pandemic where caution was the guiding force in many health care settings. Furthermore, the National Institute on Drug Abuse (NIDA) continues to publicize potential risks associated with long-term recreational cannabis use, thus intensifying concerns in conservative communities and among some policymakers. This ongoing social and regulatory stigma not only alters consumption behavior but also affects policy decisions, including healthcare integration and market development - ultimately hindering the growth of the cannabis industry around the world.

Edibles mostly come in gummies and chocolates, but are among the fastest-growing and most valuable sectors of the cannabis industry. Edibles are easy-to-consume, convenient, discreet, and smoke-free, and this is why the edibles market is growing quickly. The National Cannabis Industry Association (NCIA) reported in a 2023 cannabis market report, the demand and sales of edibles, especially gummies and chocolates, continued to rise due to convenience, consistent dosages, and long shelf-life. The Canadian government’s Cannabis Act regulations, updated in 2020, allowed cannabis-infused edibles with a 10mg THC per package limit, and the segment gained marked market share, particularly among new users and occasional users. The Marijuana Enforcement Division (MED) in Colorado reported record edible sales from 2020 to 2022, with gummies making up the biggest slice of the market share. Top brands, such as Wyld and Kiva Confections, have successfully taken their THC- and CBD-infused edibles across various states that legalized cannabis. The trend toward micro-dosing and wellness-related edibles continues to take root, while AB InBev and Tilray invested USD 100 million in a partnership to produce cannabis-infused beverages in the Canadian market, where Coca-Cola, Constellation Brands, Gfarmalabs, MPX, Sprig, and many others are expanding. As legal cannabis markets grow globally, edibles will continue to be a large and growing segment due to both recreational markets and therapeutic markets to support consumers through stress, sleep, and pain management.

Water use continues to be one of the biggest issues for the cannabis market, especially in large-scale and indoor cultivation. The California Department of Fish and Wildlife (CDFW) said that a cannabis plant can use as much as 22 liters of water per day during the peak growing cycle, much more than most crops. Water is particularly relevant in states like California that face dilemmas related to water scarcity, where these crops are subject to drought conditions and extensive regulations. Additionally, when unregulated, the US Department of Agriculture (USDA) has raised concerns about cannabis cultivation depleting local water reserves and ecosystem disruptions. Another important issue is controlling the quality of the product throughout cultivation. Cannabis can react dramatically just with minor changes to temperature, humidity, water quality, and nutrients, leading to different cannabinoid and terpene profiles. The National Cannabis Industry Association (NCIA) says that even slight changes in environmental conditions can affect a plant’s chemical composition, which can change potency, taste, and therapeutic qualities. Alterations to composition can, in turn, affect the potency, flavor, and therapeutic value of the product. This fluctuation results in inconsistency for medicinal patients who need the same dosages reliably and recreational users who want the same experience every time. To combat this issue, the California Department of Cannabis Control (DCC) has imposed stringent environmental and quality control regulations, especially with strategic water-use reporting, sustainable water use, and mandatory product testing.