Cannabis

In Sri Lanka, revenue in the Cannabis market is forecasted to reach US$41.54m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.31%, leading to a market volume of US$42.19m by 2029.
When looking at global comparisons, the United States is expected to generate the highest revenue (US$42.98bn in 2024).
In terms of per person revenues, US$160.30 is generated in 2024 relative to the total population.
Sri Lanka's cannabis market shows potential for growth as the country explores legalizing medicinal cannabis products for domestic consumption.

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

Amid changing regulations and growing acceptance, the Cannabis market in Sri Lanka is experiencing notable developments.

Customer preferences: Consumers in Sri Lanka are increasingly seeking natural and alternative remedies, driving interest in Cannabis products. The shift towards wellness and holistic health practices is influencing consumer preferences, leading to a growing demand for Cannabis-based products in the market.

Trends in the market: One of the key trends in the Cannabis market in Sri Lanka is the emergence of new product offerings catering to various consumer needs. From medicinal purposes to recreational use, the market is witnessing a diversification of Cannabis products to meet the evolving demands of customers. Additionally, there is a notable trend towards the cultivation of Cannabis for both domestic consumption and export purposes, indicating a potential economic opportunity for the country.

Local special circumstances: Sri Lanka's unique cultural and historical relationship with Ayurveda, the traditional medicine system, plays a significant role in shaping the Cannabis market. The country's rich heritage in herbal medicine provides a foundation for the acceptance and integration of Cannabis-based products in the local market. Furthermore, the government's efforts to explore the economic potential of Cannabis cultivation while ensuring regulatory control contribute to the market's development in a structured manner.

Underlying macroeconomic factors: The macroeconomic landscape in Sri Lanka, including factors such as changing regulatory environment, economic stability, and international trade relations, influences the growth trajectory of the Cannabis market. As the market continues to evolve, these macroeconomic factors will play a crucial role in shaping the future dynamics of the Cannabis industry in Sri Lanka.

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.