Recreational Cannabis - North America

Revenue in the Recreational Cannabis market market in North America is forecasted to reach US$31.53bn in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 3.97%, leading to a market volume of US$38.31bn by 2029.
When compared globally, the United States is expected to generate the highest revenue (US$24.96bn in 2024).
In terms of per capita figures, each person in North America is projected to generate revenues of US$2.25k in 2024.
In the United States, the Recreational Cannabis market is booming with innovative products and expanding legalization creating a lucrative industry landscape.

Definition:
The Recreational Cannabis market encompasses products derived from the cannabis plant that are used for leisure or personal enjoyment. These products can include dried flowers, oils, edibles, tinctures, and topicals. The availability of these products is subject to the regulations in each country or state, and they can be obtained from dispensaries, retail stores, or online platforms. Consumption methods vary, and can include smoking, vaporizing, eating, or applying topically.

Structure:
The Recreational Cannabis market is a subset of the broader cannabis market, which also includes medical and pharmaceutical cannabis as well as CBD products. The Recreational Cannabis market specifically pertains to products used for personal enjoyment, as opposed to the medical and pharmaceutical markets which focus on products used for treating medical conditions. The market includes various forms of cannabis such as flowers, concentrates, edibles, and topicals.

Additional information:
The 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).

Cannabis containing THC used for recreational purposes
Extracts
Dried cannabis
Edibles
Beverages

Medical cannabis
Pharmaceutical cannabis
CBD Products

The Recreational Cannabis market in North America has been experiencing significant growth and development in recent years.

Customer preferences: Consumers in North America are increasingly favoring high-quality cannabis products with diverse strains and potency levels. They are also showing a preference for convenient consumption methods such as edibles, oils, and vaporizers. Additionally, there is a growing demand for organic and sustainably sourced cannabis products among environmentally conscious consumers.

Trends in the market: In Canada, the legalization of recreational cannabis in 2018 has paved the way for a flourishing market with a wide range of products available to consumers. The country has seen a surge in cannabis tourism, with visitors flocking to explore cannabis-friendly regions and participate in guided tours of production facilities. On the other hand, in the United States, the market is characterized by a patchwork of state-level regulations, leading to varying degrees of accessibility and product offerings across different regions. Some states have embraced full legalization, while others maintain more restrictive policies.

Local special circumstances: In Mexico, the recent legalization of recreational cannabis presents a unique opportunity for market growth and investment. The country's large population and strategic location make it a promising market for cannabis companies looking to expand their operations. Mexico's legalization also has the potential to disrupt the illicit cannabis trade and generate significant tax revenue for the government.

Underlying macroeconomic factors: The growing acceptance and legalization of recreational cannabis in North America are driven by shifting societal attitudes, economic benefits, and potential tax revenues. Governments are increasingly recognizing the economic potential of the cannabis industry and are taking steps to regulate and capitalize on this emerging market. Additionally, the COVID-19 pandemic has further accelerated the growth of the recreational cannabis market, with many consumers turning to cannabis products for stress relief and relaxation during uncertain times.

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.