The potential of the global legal cannabis industry is a topic of much discussion. Here’s an overview of several emerging sub-sectors within this burgeoning industry.
Overall, the global legal cannabis industry is still in its infancy. Currently, 57 countries have legalized some form of medical cannabis, and six countries have approved measures for adult-use cannabis. However, only a few of these countries have established robust cannabis business models, indicating significant untapped potential in the industry.
According to New Frontier Data researchers, over 260 million adults worldwide consume cannabis at least once a year. It is estimated that global cannabis consumers spent approximately $415 billion on high-THC cannabis in 2020, with this figure expected to rise to $496 billion by 2025. Grand View Research predicts that the global legal cannabis market will be worth $21 billion in 2023, $26 billion in 2024, and is projected to reach $102.2 billion by 2030, with a compound annual growth rate (CAGR) of 25.7% from 2024 to 2030. However, 94% of the money spent by cannabis consumers in 2020 went to unregulated sources, highlighting that the legal cannabis industry is indeed in its early stages. Regionally, renowned cannabis economist Beau Whitney estimates that the cannabis market in Central and South America is worth $8 billion, with a significant portion still unregulated.
Rise of Pet CBD and Cannabis Products
The diversification of hemp plant uses is adding new dimensions to the emerging legal cannabis industry. Beyond products for human patients and consumers, other parts of the hemp plant can be used to create products for pets and other animals. For instance, Brazilian regulators recently approved licensed veterinarians to prescribe cannabidiol (CBD) products for animals. According to a recent industry analysis by Global Market Insights, the global CBD pet market was valued at $693.4 million in 2023 and is expected to grow at a CAGR of 18.2% from 2024 to 2032. Researchers attribute this growth to “increasing pet ownership and growing awareness and acceptance of the potential therapeutic benefits of hemp-derived CBD for pets.” The report states, “The dog segment led the CBD pet market in 2023 with the highest revenue of $416.1 million and is expected to maintain dominance with significant growth throughout the forecast period.”
Growing Demand for Hemp Fiber
Non-consumable hemp products are also poised to become a significant business in the future. Hemp fiber can be used to produce clothing and other textiles, representing a vast industry. Market analysts estimate that the global hemp fiber market was worth $11.05 billion in 2023 and is expected to rise to $15.15 billion by the end of this year. The industry is projected to grow exponentially in the coming years, reaching a global value of $50.38 billion by 2028.
Consumable Hemp Products
The consumable hemp product industry is also growing rapidly, with some sub-sectors expanding faster than others. Hemp tea, made from the buds, leaves, stems, flowers, and seeds of the hemp plant, has an earthy and slightly bitter taste with a unique relaxing aroma. Rich in antioxidants and CBD, hemp tea is gaining popularity. Allied Analytics predicts that the global hemp tea sub-sector was valued at $56.2 million in 2021 and is expected to reach $392.8 million by 2031, with a CAGR of 22.1% during the forecast period. Another notable example is the hemp milk industry. Hemp milk, a plant-based milk made from soaked and ground hemp seeds, has a smooth texture and nutty flavor, making it a versatile alternative to dairy milk. Known for its health benefits, hemp milk is rich in plant protein, healthy fats, and essential minerals. Evolve Business Intelligence estimates that the global hemp milk industry was valued at $240 million in 2023 and is expected to grow at a CAGR of 5.24% from 2023 to 2033. The organic shelled hemp seed market alone is projected to exceed $2 billion in 2024. Organic shelled hemp seeds are a significant source of protein and a sustainable alternative to animal protein.
Cannabis Seeds
A major aspect of global adult-use cannabis reform is allowing adults to cultivate a certain number of cannabis plants. Adults in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa can now legally grow cannabis in private residences. This liberalization of personal cultivation has, in turn, expanded the cannabis seed industry. Allied Analytics notes in a recent market report analysis, “The global cannabis seed market was valued at $1.3 billion in 2021 and is expected to reach $6.5 billion by 2031, with a CAGR of 18.4% from 2022 to 2031.” In Germany, since April 1, adults can grow up to three cannabis plants in private residences. A recent YouGov poll found that 7% of respondents had purchased various cannabis seeds (or clones) since the legalization took effect, with an additional 11% planning to procure cannabis genetics in the future. This increased demand for cannabis seeds among German consumers has driven a surge in sales for European cannabis seed banks.
Medical Cannabis as a Major Driver
The growing recognition of cannabis’s unique therapeutic advantages and a shift towards natural and holistic therapies are driving demand for medical cannabis products. Many patients are turning to medical cannabis as an alternative treatment for various health conditions. Extensive research on the medical uses of cannabinoids, including CBD and THC, has also spurred a surge in legal cannabis use. Scientific studies have shown that many diseases, such as multiple sclerosis, epilepsy, and chronic pain, can be treated with cannabis. As more clinical research demonstrates the efficacy of cannabinoids, medical cannabis is increasingly seen as a viable alternative to traditional medications. Indeed, the medical cannabis market is experiencing rapid growth and evolution worldwide. Statista Market Insights predicts that global medical cannabis market revenue will reach $21.04 billion by 2025, with a CAGR of 1.65% from 2025 to 2029, and is expected to grow to $22.46 billion by 2029. Compared to the global market, the United States is expected to generate the highest revenue of $14.97 billion in 2025.
Opportunities Abound
As the global legal cannabis industry continues to expand, consumers are seeking alternatives for both medical and recreational use. Increasing social acceptance and changing attitudes towards cannabis are driving demand in the legal cannabis market, creating favorable prospects for the industry and presenting new opportunities for investors and entrepreneurs.
Post time: Mar-14-2025