by The cannabis cultivation market involves cultivation of both hemp and marijuana plants for various commercial and medicinal purposes. Cannabis plants can be grown indoors as well as outdoors depending on the climate and legal parameters. Cannabis cultivation requires soil, nutrients, irrigation system, ventilation, lighting and other equipment. Indoor cannabis cultivation requires hydroponic and aquaponic systems along with artificial lighting such as LED lights or HPS lights. Outdoor cultivation involves use of natural sunlight and rain water. The cultivated cannabis is then processed to extract cannabidiols (CBD), tetrahydrocannabinol (THC) and other cannabinoids which find applications in pharmaceuticals, food & beverages, personal care and other industries.
The global Cannabis Cultivation Market is estimated to be valued at US$ 16.0828 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trends in the cannabis cultivation market include increasing legalization of marijuana across countries, adoption of advanced indoor farming technologies, use of tissue culture techniques for cannabis propagation, development of high-yield cannabis strains and growing adoption of organically-grown cannabis. Several countries like Canada, Germany, Italy, Australia, Uruguay, certain states of US and others have legalized the production and use of both medical and recreational marijuana which is supporting the growth of cannabis cultivation. Indoor facilities are adopting LED lighting solutions, Internet of Things (IoT) sensors and controlled environment agriculture techniques to boost yields. Tissue culture methods are being used to propagate cannabis at commercial scale while maintaining varietal purity. Organic cannabis produced without pesticides and fertilizers is gaining traction among health-conscious consumers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as initial capital requirement is high for cultivation of cannabis and licensing procedures are complex. However, with rising demand and legalization in more regions, threat is expected to increase over the forecast period.
Bargaining power of buyers: The bargaining power of buyers is moderate. Concentration of buyers across various industries keeps bargaining power in check. However, switching costs are low which enables buyers to negotiate on price terms.
Bargaining power of suppliers: The bargaining power of suppliers is low. Cannabis cultivation market has a large number of raw material suppliers and cultivators have opportunities to substitute between varieties.
Threat of new substitutes: The threat of new substitutes is low at present. However, ongoing R&D for new product varieties may pose threat in future as these are aimed at consumer preferences change.
Competitive rivalry: High competition exists among existing players and new entrants in the market.
Key Takeaways
The Global Cannabis Cultivation Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing legalization and growing adoption for medical and recreational purposes.
Regional analysis:
North America dominates the global Cannabis Cultivation Market currently. The US and Canada are the major contributors owing to growing legalization at state level and presence of key players in the region. Europe and Latin America are also lucrative markets which are expected to witness significant growth over the forecast period.
Key players: Key players operating in the Cannabis Cultivation Market are Tilray, Canopy Growth Corporation, Aurora Cannabis, Aphria, Cronos Group, Acreage Holdings, MedMen Enterprises, Curaleaf Holdings, Trulieve Cannabis Corporation, Organigram Holdings. Tilray is the world’s largest legally-owned cannabis company, serving millions of patients and consumers in 15 countries spanning five continents.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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