Table of Contents
Overview
New York, NY – July 04, 2025 – The US Cannabis Market size is expected to be worth around US$ 115.1 Billion by 2034 from US$ 38.4 Billion in 2024, growing at a CAGR of 11.6% during the forecast period 2025 to 2034.
The U.S. cannabis market is experiencing steady growth, driven by rising consumer demand, progressive regulatory changes, and increasing acceptance of cannabis for both medical and recreational use. Ongoing state-level legalization efforts and discussions surrounding federal policy reforms have created a more favorable business environment, supporting broader industry participation and investment.
Medical cannabis remains a key segment of the market, with patients increasingly using it for chronic conditions such as pain management, anxiety, epilepsy, and cancer-related symptoms. At the same time, recreational cannabis is gaining widespread popularity as consumer preferences shift toward plant-based wellness alternatives and non-traditional health products.
The market is also being shaped by the diversification of product offerings, including edibles, concentrates, topicals, and beverages. Dispensaries continue to serve as the primary distribution channel, though e-commerce and home delivery services are expanding, particularly in response to changing consumer behaviors and convenience demands.
Market participants are focusing on enhancing cultivation techniques, ensuring compliance with state regulations, and investing in research to improve product safety and efficacy. As more states move toward legalization and public support continues to rise, the U.S. cannabis market is expected to maintain its upward trajectory, offering significant opportunities for growth and innovation across the supply chain.

Key Takeaways
- In 2024, the U.S. cannabis market recorded substantial revenue growth, supported by a robust compound annual growth rate (CAGR) of 11.6%. The market is projected to expand significantly and reach notable figures by 2033.
- By source, the market is categorized into hemp and marijuana. Marijuana emerged as the leading segment in 2023, accounting for 58.3% of the overall market share, indicating strong consumer preference and broader acceptance across various applications.
- In terms of derivatives, the market is segmented into CBD, THC, and other components. CBD held a dominant position, capturing 63.4% of the total market share, driven by its widespread use in wellness and therapeutic products.
- Regarding cultivation methods, the U.S. cannabis market is divided into indoor, greenhouse, and outdoor cultivation. Among these, indoor cultivation led the segment with 52.5% of the total revenue, reflecting the demand for controlled environments and high-quality yield production.
- In the end-use category, the market is segmented into industrial, medical, and recreational applications. Recreational use held the highest share at 55.7%, indicating the growing legalization of adult-use cannabis and increasing consumer adoption across multiple states.
Segmentation Analysis
- Source Analysis: In 2023, the marijuana segment led the U.S. cannabis market with a 58.3% share, driven by rising demand for both recreational and medicinal use. Legalization across more states and increasing societal acceptance continue to support this growth. Additionally, the development of marijuana-based therapeutic products for pain and anxiety, along with improved cultivation practices and diversified product offerings, is expected to strengthen the segment’s dominance in the coming years.
- Derivatives Analysis: CBD accounted for 63.4% of the U.S. cannabis derivatives market, driven by increasing demand across wellness, pharmaceutical, and cosmetic applications. Its popularity stems from its therapeutic potential, including pain relief, anxiety reduction, and anti-inflammatory properties. As legalization spreads and awareness grows, CBD-based products such as tinctures, oils, and edibles are expected to see significant growth, particularly among health-conscious consumers seeking natural remedies over conventional pharmaceuticals.
- Cultivation Analysis: Indoor cultivation dominated the U.S. cannabis market with 52.5% revenue share, owing to the ability to precisely control environmental conditions, resulting in higher-quality products. Year-round growing potential and consistent output make indoor methods attractive, especially for medicinal and premium-grade cannabis. The adoption of advanced techniques like hydroponics and automated systems is expected to further support this segment’s expansion as demand for standardized, high-yield cannabis increases.
- End-use Analysis: Recreational use emerged as the leading end-use segment, accounting for 55.7% of revenue due to rising legalization and shifting public attitudes. Increasing consumer interest in edibles, concentrates, and other recreational products has accelerated market growth. As cannabis becomes more mainstream, expanded retail access and delivery services are likely to enhance availability and convenience, further boosting the recreational segment’s share in the U.S. cannabis industry.
Market Segments
By Source
- Hemp
- Hemp Oil
- Industrial Hemp
- Marijuana
- Flower
- Oil & Tinctures
By Deriviatives
- CBD
- THC
- Others
By Cultivation
- Indoor Cultivation
- Greenhouse Cultivation
- Outdoor Cultivation
By End-use
- Industrial Use
- Medical Use
- Chronic Pain
- Depression & Anxiety
- Arthritis
- Others
- Recreational Use
Key Player Analysis
Leading companies in the U.S. cannabis market are driving growth through strategic mergers and acquisitions, geographic expansion, and diversification of product portfolios. By acquiring regional operators, these companies strengthen their market presence and improve operational efficiency. Expansion into high-demand states and underserved regions enables access to broader consumer segments and emerging opportunities.
Product diversification remains a key strategy, with a growing focus on edibles, cannabis-infused beverages, and wellness-oriented offerings to meet shifting consumer preferences. Collaborations with well-known brands and public figures further enhance market visibility and brand trust. Moreover, investments in sustainable cultivation practices and strict adherence to evolving regulatory requirements are crucial for ensuring long-term business viability and industry credibility.
Curaleaf stands out as a prominent player in the U.S. cannabis market, operating across multiple states with a broad portfolio of medical and adult-use cannabis products. Its offerings include flower, concentrates, edibles, and topicals, marketed under several well-recognized brand names. The company has significantly expanded its market footprint through strategic acquisitions, including the purchase of Grassroots Cannabis, which enhanced its national retail presence.
Curaleaf emphasizes innovation, customer education, and community engagement. With a strong focus on quality, compliance, and responsible operations, the company continues to play a pivotal role in shaping the future of the U.S. cannabis industry.
Emerging Trends
- Rising Prevalence of Use: The number of U.S. adults using cannabis has grown noticeably. In 2021, an estimated 52.5 million people about 19 percent of Americans used cannabis at least once; by 2022, that figure had risen to approximately 61.9 million (about 19.5 percent) of the population. This upward shift can be attributed to expanding legal access, evolving social attitudes, and broader product availability.
- Diversification of Consumption Methods: While smoking remains the most common route (79.4 percent of current users in 2022), alternative methods are becoming more prevalent: 41.6 percent reported eating cannabis in edibles, 30.3 percent reported vaping, and 14.6 percent reported dabbing concentrates. Nearly half (46.7 percent) of consumers reported using two or more methods, reflecting a trend toward personalized dosing and tailored effects.
- Youth and Young Adult Patterns: Cannabis use among adolescents and young adults remains high. In 2022, 30.7 percent of U.S. 12th graders reported using cannabis in the past year, and 6.3 percent used it daily. Among adults aged 18–24, about one in four reported current use, and roughly one in eight reported daily use, underscoring ongoing concerns about early initiation and its potential impact on brain development.
- Federal Policy Developments: Federal rescheduling of marijuana is under active consideration. In January 2024, the Department of Health and Human Services completed a review recommending that cannabis be moved from Schedule I to Schedule III of the Controlled Substances Act. A public hearing initially set for January 21, 2025, was postponed pending further procedural steps. This policy shift could significantly affect research, banking, and interstate commerce.
Use Cases
- Medical Treatment of Epilepsy: The first FDA-approved cannabis-derived drug, Epidiolex, has been used since June 25, 2018, for treating seizures in Lennox–Gastaut and Dravet syndromes in patients aged two years and older. Clinical trials demonstrated that approximately 80 percent of patients on Epidiolex experienced a reduction in seizure frequency, compared to about 50 percent on placebo.
- Management of Chemotherapy-Induced Nausea and AIDS-Related Anorexia: Synthetic THC products Marinol and Syndros are approved for nausea and vomiting associated with cancer chemotherapy and for anorexia related to weight loss in AIDS patients. Another synthetic analogue, Cesamet (nabilone), is also approved for chemotherapy-induced nausea. These three drugs collectively serve tens of thousands of patients annually who do not respond adequately to conventional antiemetics.
- Recreational and Wellness Applications: Beyond medical uses, cannabis is employed by millions for relaxation, stress relief, and social enjoyment. In 2022, 15.3 percent of adults (about 40 million people) reported current use, with 8.2 percent using daily or almost daily. Different product formats smoking flower, infused edibles, vaping cartridges, and concentrated extracts are selected based on desired onset and duration of effects.
- Public Health Surveillance and Safety Monitoring: Cannabis-involved emergency department visits among individuals aged ≤ 24 years totaled 539,106 from December 2018 to January 2023, averaging up to 2,813 visits per week among 15–24 year-olds at peak. This use case underscores the importance of public health strategies to monitor adverse events and guide education efforts, especially as new product types and higher-potency formulations enter the market.
Conclusion
The U.S. cannabis market is undergoing robust expansion, driven by evolving regulations, rising consumer acceptance, and increasing demand across medical and recreational segments. Strong market performance is supported by diversification in product offerings, advanced cultivation methods, and strategic activities by key players.
Emerging trends, including broader consumption patterns and federal policy developments, indicate continued industry transformation. Additionally, validated medical applications and growing wellness use reinforce cannabis’s role in healthcare and lifestyle sectors. As legalization progresses and public engagement increases, the market is expected to sustain long-term growth, offering wide-ranging opportunities across the supply chain for stakeholders and investors alike.
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