The cannabis industry has flourished over the past several years, both domestically and internationally. As of the end of the year 2023, a review of the cannabis market may be timely. This market analysis will examine five key aspects: production, industry regulations, consumer demand, demand forecasts, and the outlook for the future.
Production
Over the past decade, production levels for cannabis have sky rocketed. Companies in North America, South America, Europe, and Oceania are now producing high-quality, potent cannabis products. In the US, for example, total cannabis production rose from more than 3.2 tons in 2018 to close to 8 tons in 2023. However, production levels are still relatively low in comparison to other drugs such as alcohol, opioids, and tobacco.
Regulations
At the same time, cannabis has continued to gain legal recognition in more countries. Cannabis has been legalized or decriminalized across many parts of North and South America, Europe and Oceania, while several other countries are expected to follow suit in the near future.
Consumer Demand
The rise in production has coincided with increased consumer demand. According to market research, global cannabis demand is expected to reach $24.7 billion by 2031. This is largely driven by increased awareness of the health benefits of cannabis use, increasing acceptance of the drug, and the development of new products.
Demand Forecasts
Looking forward, the demand for cannabis is expected to remain largely positive. In particular, demand is expected to rise sharply in regions where regulations are rapidly liberalizing. North and South America, Asia Pacific, and Europe are all expected to see strong growth in the near future.
Outlook
Overall, the outlook for the cannabis market is positive, as increased regulation and consumer demand are expected to catalyze production growth and revenue levels. In particular, the development of new products, from edibles to vaping devices, will further help to drive the market.
As the market continues to grow, investors and companies in the space should gain access to increased opportunities for growth and development. This, in turn, could help to propel the industry into the mainstream in the years to come.