Industry Analysis

Cannabis / Cannabis Products Market Size Overview

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The cannabis market size in the United States is expected to reach $29.16 billion by 2025, expanding at a CAGR of 14.5% from 2019 to 2025. Relaxation, stress relief, enjoy social experiences, reduce anxiety, and improve sleep quality are the most common reasons for cannabis consumption among adults in the United States.

Market Overview

  • In 2018, the cannabis market in the United States reached $11.3 billion, growing at a CAGR of 14.5% between 2019 and 2025. Thus, we calculated the estimated 2025 market size by using this calculator. The market is expected to reach $29.16 billion by 2025.
  • Thirty-three states and the District of Columbia “have legalized marijuana for medical, recreational, or both purposes,” as of 2019.
  • According to an estimate for 2022, the top states in terms of cannabis market size are California ($7.7 billion), Washington ($2.7 billion), and Colorado ($2.5 billion). The full breakdown is presented below.

States

  • Another estimate for 2022 shows that the most common sales channel for CBD products will be online, accounting for 41% of sales. Smoke shops and natural/specialty retails will be second and third, representing 28% and 20%, respectively. Nine percent of sales will be done through drug stores, while only 2% of sales will be done through mass-market retailers.

Reasons to Consume Cannabis and Cannabis Products

Cannabis

  • Relaxation is the most common reason for cannabis consumption among adults, with 55% of cannabis consumers saying they consume it to relax. Stress relief (40%), enjoy social experiences (40%), reduce anxiety (30%), and improve sleep quality (29%) are the most common reasons for cannabis consumption among adults in the United States. The full breakdown is presented below.

Reasons

  • New Frontier Data’s 2018 Cannabis Consumer Survey was conducted on 3,000 self-identifying cannabis consumers, with 32% of consumers are medical consumers, and 68% of consumers are recreational consumers. The survey found that 33% “of cannabis consumers reported using it only recreationally, while 10% said they used it exclusively for medical purposes.” The reasons for consumption are broken down as follows:
  • Medical consumers:
    • Manage pain: 66%
    • Replacing a prescription pain medication: 48%
    • Replacing an over-the-counter pain medication: 41%
  • Recreational consumers:
    • Manage pain: 30%

Reasons

CBD Products

  • In the United States,40% of consumers use CBD products for chronic pain. They also use it “for anxiety (20%), insomnia (11%), arthritis (8%), and migraines (5%).” Moreover, 36% of consumers used CBD to replace pharmaceutical opioids.
  • The Harris Poll provided the breakdown of CBD consumption reasons by gender. Women are more likely to use CBD products for relaxation. The full chart is presented below.

Gender

Acceptance of Cannabis over the Past 20 Years

  • Despite our exhaustive research through government databases, industry-related studies, market reports, statistic portals/databases, and trusted media articles, we were unable to identify how the acceptance of cannabis has changed over the past 20 years. While a direct answer is publicly unavailable, we were able to find how the perception of marijuana has changed over time. Thus, we presented our findings as a proxy.
  • In 1969, when asked whether marijuana should be legal or not, only 12% of residents in the United States said marijuana should be made legal. About 30 years later, in 2000, 31% of residents in the United States said marijuana should be made legal. By 2014, the percentage of US residents that think marijuana should be legal jumped to reach 50%. In 2017, nearly 60% of US residents supported the legalizing of recreational marijuana. The chart below highlights how legalizing recreational marijuana is gaining support over the last 50 years.

Legal?

  • In 1977, 60% of people in the United States linked marijuana to hard drug usage, compared to 40% in 2013. “Seven in 10 people (72 percent) who said they had not tried marijuana in 1977 believed it was a gateway drug, but that dropped to 50 percent by 2013.”
  • Moreover, in 2006, about 50% of US residents said that the use of marijuana is immoral. By 2013, only 35% of residents think the use of marijuana is immoral.
GLENN TREVOR
Glenn is the Lead Operations Research Analyst at Simple Manifestation with experience in research, statistical data analysis and interview techniques. A holder of degree in Economics. A true specialist in quantitative and qualitative research.

Cannabis Market Size: 2021-2025 Forecast

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