The key factors such as legalization of medical cannabis, increasing awareness of medical cannabis through conferences, symposia, and workshops, and growing medicinal application of cannabis boosting the market over the years. The North America region is the fastest growing market among the all regions and is expected to grow with CAGR of 35.3%. This market is expected to reach to US$ 67,915.6 in 2027 from US$ 4,518.7 Mn in 2018. The growth in North America is characterized by increase in the approval of cannabis medicinal products. Moreover, increasing number of companies offering medicinal cannabis, growing medicinal applications of cannabis and increasing key factors contributing to the growth of cannabis market.
The United States is anticipated to be the main driving force of growth of use of medical cannabis. 30 states of the United States of America have legalized the use of cannabis. These 30 states comprises of 60% of total population and have approved use of medical marijuana. This has become the driving force for the growth of cannabis testing marked in the entire North America region. Currently more than 8000 active licenses for cannabis businesses in USA. It is the only country with such number of market players. Europe is another region which has shown a decent growth rate for cannabis testing market. There has been an increase in the process of legalization of cannabis in European countries. In November 2018, Government of UK announced that medicinal cannabis is legal. The main force for growth in demand of cannabis is because of the use of cannabis in pesticides in Europe. Growing number of cannabis testing laboratories have fuelled the demand for cannabis in the Europe region. There has been significant rise in investments in cannabis testing labs and recent law changes which have led to acceptance of marijuana and cannabis. Thus, due to growing legalization of cannabis, the cannabis testing market is expected to grow at rapid pace.
The medicinal and recreational cannabis industries are growing at rapid pace, and is expected to witness tremendous growth by 2025. Growing acceptance of cannabis is driving the industry and is accelerating growth in drug development and medicine as well as regulatory guidance. The cannabis industry is witnessing rapid growth owing to higher sales. The cannabis consumer demographic is growing ever more diverse. The average cannabis consumer is now middle-aged, with more women and seniors consuming weed in its various forms. This means that the market is growing and demand within the market is shifting to alternative products. Also different cannabis products are gaining importance and are achieving a substantial market share. Vapes are one of the hottest cannabis products in 2019. According to BDA Analytics, in the first quarter of 2018, vape sales grew 69 percent total. CBD vape sales alone rose 105 percent over the same period. Furthermore, edibles of either THC or CBD variety are also gaining popularity across all legal states. Moreover consumers and investors are also focusing on infused beverages. Big investors such as, Anheiser Bush and Coca Cola have entered into talks to develop and invest in infused beverages.
The global cannabis market, based on the product type was segmented into flower, concentrates and others. In 2018, the flowers held a largest market share of the cannabis market, by product type. However, the concentrates segment is expected to witness the highest CAGR of 36.0% over the coming years. The flowers hold a major share in the cannabis market as highest levels of cannabinoids are found in the leaves and flowers of cannabis. On the other hand, the concentrates of marijuana have higher proportions of terpenes and cannabinoids as compared to naturally occurring cannabis flowers, which accounts for its fastest growth in the global cannabis market.
During the year 2016 to 2019, various companies have made organic growth strategies in the market there are operating. Some of the activities undertaken by the company, which have promoted its growth are, product launches, product approvals and others. Companies such as VIVO Cannabis, Medical Marijuana, Inc. and others have been implementing various strategies that have helped the growth of the company and in turn have brought about various changes in the market. For instance, in August 2019, Medical Marijuana, Inc., launched the world’s first-ever cannabis-derived nutraceutical products, brands and supply chain, announced that its subsidiary Dixie Botanicals has released new watermelon-flavored cannabidiol (CBD) gummies in response to a growing market demand for edible CBD products.
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