Cannabis

In Japan, the revenue in the Cannabis market is forecasted to reach US$365.60m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -1.86%, leading to a market volume of US$332.90m by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$42.98bn in 2024).
In terms of per person revenues in 2024, US$21.21 is generated relative to the total population figures.
In Japan, the Cannabis market is gradually emerging as regulations around CBD products are being relaxed, paving the way for potential growth in the industry.

Definition:
The Cannabis market covers products derived from the cannabis plant used for medical or recreational purposes. These products may include dried flowers, oils, edibles, tinctures, and topicals. Depending on the regulations in each country or state, these products are provided by dispensaries, pharmacies, and/or online platforms. They may be consumed in the form of smoking, vaporizing, eating, or applying topically.

Structure:
The market includes Medical, Pharmaceutical, and Recreational Cannabis as well as CBD Products. The Medical and Pharmaceutical Cannabis markets include products used to treat conditions such as chronic pain, mental disorders, and other medical conditions. The Recreational Cannabis and the the CBD Products markets include products used for personal enjoyment or leisure purposes. All cannabis markets include various forms of cannabis such as flowers, concentrates, edibles, and topicals.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C), companies (B2B), and governments (B2G).

Company examples: Canopy Growth Corporation, Aurora Cannabis, Curaleaf Holdings, Tilray, Green Thumb Industries, Trulieve Cannabis, Verano Holdings.

Recreational Cannabis
Medical Cannabis
Pharmaceutical Cannabis
CBD Products

Illegal cannabis
Cannabis cultivated for private use

The Cannabis market in Japan is seeing a gradual but steady development, influenced by changing customer preferences, evolving trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Japan are increasingly showing interest in Cannabis products for various purposes such as medicinal use, relaxation, and wellness. The shift towards more natural and holistic remedies is driving the demand for Cannabis-derived products in the market. Additionally, the growing awareness about the potential benefits of Cannabis is attracting a wider customer base.

Trends in the market: One of the notable trends in the Cannabis market in Japan is the rising popularity of CBD products. CBD, known for its non-psychoactive properties, is being incorporated into various products including skincare, supplements, and beverages. This trend aligns with the global movement towards wellness and self-care, driving the demand for CBD-infused products in Japan. Moreover, the increasing acceptance and normalization of Cannabis in society are contributing to the growth of the market.

Local special circumstances: Japan has strict regulations surrounding Cannabis, with laws prohibiting the recreational use of marijuana. However, there is a growing acceptance of Cannabis for medical and research purposes, leading to the legalization of medical Cannabis under certain conditions. This unique regulatory environment presents both challenges and opportunities for businesses operating in the Cannabis market in Japan. Companies must navigate the complex legal landscape while capitalizing on the growing acceptance of Cannabis for specific applications.

Underlying macroeconomic factors: The economic landscape in Japan, characterized by a mature consumer market and a strong emphasis on innovation, is influencing the development of the Cannabis market. As the country grapples with an aging population and changing healthcare needs, there is a growing demand for alternative healthcare solutions, including Cannabis-based products. Furthermore, the presence of established industries such as technology and healthcare is driving innovation in the Cannabis sector, leading to the development of new products and delivery methods to cater to evolving consumer preferences.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.