Cannabis is one of the fastest growing industries in the last decade, with the normalization of marijuana usage contributing to its significant growth. Manufacturers are now competing with one another to improve their extraction processes and develop the highest-quality product.
In this blog post, we'll explore the cannabis market valuation in North America, including its trends, growth, and demographics.
Cannabis In North America
The normalization of marijuana usage is largely due to advancements in technology and the introduction of social media. This has resulted in changing views towards marijuana, including by governments.
Many countries, particularly in North America, have started legalizing the use of cannabis. Canada has fully legalized cannabis consumption nationwide, while many states in the US, such as New York, California, Nevada, and Arizona, have followed suit.
Mexico is also gradually making progress towards legalizing recreational cannabis use, although it is currently only approved for medical purposes.
Cannabis US Market Valuation
The US cannabis market has grown exponentially over the past decade, driven largely by the legalization of recreational use in many states. The market is currently valued at over $33billion USD, with the majority of the market being driven by new adult users. It is projected to reach upwards of $53billion USD by 2026, with over 40% of potential new adult users expected to enter the market in the following years.
Cannabis Canadian Market Valuation
The Canadian market has also seen significant growth since the legalization of recreational use through the Cannabis Act in 2018. The market is currently worth over $4billion USD, with projections to reach $7.8billion USD by 2026. Since the legalization of recreational use, over half of the Canadian population (52%) have used cannabis, double the number of users in 2018.
Cannabis Mexican Market Valuation
The Mexican market is still dominated by the medical field, with a valuation of $4.8 million USD. However, the culture in Mexico is different from North America, and many individuals have not accepted the idea of recreational cannabis use. If the views and values of the culture change towards cannabis, the market could grow significantly over the years..
Cannabis Market Segmentation and Demographic
The cannabis market segmentation is divided into two main uses. Recreational, and medical use. In the earlier stages of the cannabis industry, the segmentation was dominated by the medical field with over 80% using cannabis for medical uses. In 2022, with the legalization of recreational use of cannabis in many locations, the segmentation has shifted dramatically to 65/35 split in favour of the medical segmentation.
The demographic for the cannabis market however is dominated by the younger and male demographic. Majority of the users are aged between 19-25 with being identified with a middle-class income.
Factors That Will Drive Cannabis Market Growth
The cannabis market is expected to grow significantly over the next decade. Factors that could influence the market drive for cannabis include:
Change of views in society
Demand of cannabis
Economic benefits for countries
Interested in learning more about the cannabis market and how you can improve your extraction techniques for a higher-quality and more cost-effective product? Reach out to the Maratek team today.