Recreational Cannabis Global Market Report 2025

The recreational cannabis market size has grown strongly in recent years. It will grow from $2.11 billion in 2024 to $2.24 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to shifting societal attitudes, economic impact and tax revenue, medical cannabis as a precursor, cannabis tourism and hospitality industry.

The recreational cannabis market size is expected to see strong growth in the next few years. It will grow to $3.06 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to the expansion of legalization globally, innovations in cannabis product offerings, integration of cannabis into mainstream culture, health and wellness trends, research and development in cannabinoids. Major trends in the forecast period include focus on wellness and health, sustainability practices, regulatory evolution, social consumption spaces, collaborations and partnerships.

The forecast of 8% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This may have a direct effect on the US by interrupting the flow of terpene extraction systems and THC testing equipment from Canada and Portugal, which could lead to product consistency challenges in legal cannabis markets. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The anticipated rise in the prevalence of neurological disorders is set to drive the growth of the recreational cannabis market. Neurological disorders, which affect the central and peripheral nervous systems, encompass conditions involving the spinal cord, nerves, and the brain. Common types include Alzheimer's disease, epilepsy, seizures, and Parkinson's disease. Cannabis has shown efficacy in treating neurological conditions by regulating calcium homeostasis and reducing neuroinflammation. For example, a December 2022 report from the Parkinson's Foundation, a US-based non-profit organization focused on Parkinson's disease, revealed an increase in the Parkinson's disease incidence rate to nearly 90,000 diagnoses per year, up from previous estimates of 60,000 yearly diagnoses. Consequently, the growing prevalence of neurological disorders is a significant factor propelling the growth of the recreational cannabis market.

The shifting societal attitudes toward cannabis use are expected to drive the growth of the recreational cannabis market in the future. These attitudes reflect the prevailing perceptions, beliefs, and opinions within a community regarding the acceptance, legality, and social norms related to cannabis consumption. For example, in August 2024, the National Institute of Health (NIH), a US-based medical research center, reported that among adults aged 19-30, 42% indicated they used cannabis in 2023, with 29% having used it in the past month and 10% using it daily. Similarly, usage rates were reported among those aged 35 to 50. Therefore, the evolving societal attitudes toward cannabis are propelling the growth of the recreational cannabis market.

The prominence of product innovations has risen as a key trend, with major companies strategically focusing on the development of innovative products to reinforce their market standing. Illustratively, in June 2023, Aurora Cannabis Inc., a licensed cannabis producer based in Canada, introduced a range of innovative recreational cannabis products. This lineup includes Lil' Bits Sour Grape and Sour Watermelon (10 x 1mg edibles), Mango XL Vape, Signature Hash, among others. The Lil' Bits Sour Grape and Sour Watermelon Low Dose Edibles offer delectable flavors in a snackable form, catering to novice users or those interested in micro-dosing. These products feature crowd-pleasing, nostalgic flavors with minimal to no aftertaste from cannabis. Mango XL Vape (510-1.2g) utilizes a unique blend of quality resin enriched with botanical terpenes, providing a full-spectrum and full-flavor vaping experience. The Signature Hash (2g) represents a groundbreaking bubble hash blend, setting new standards for malleability and burnability.

Recreational cannabis, also referred to as adult-use marijuana, denotes any component of the cannabis plant, whether alive or not, consumed for intoxicating purposes rather than medicinal benefits. Tetrahydrocannabinol (THC) is a compound present in cannabis products responsible for altering mood and impairing cognitive functions and coordination.

The range of products within recreational cannabis includes oils, transdermal patches, tablets, capsules, vapes, suppositories, tinctures, creams, edibles, and more. Oil, in this context, represents a diverse array of compounds characterized by their unctuous, viscous, flammable nature, liquid state at room temperature, and solubility in ether or alcohol but not water. These compounds predominantly contain tetrahydrocannabinol (THC), cannabidiol (CBD), or a balanced combination of both, administered orally, topically, through inhalation, rectally, or sublingually. These applications cover a spectrum including chronic pain, cancer, mental health conditions, sleep management, among others. End users encompass pharmaceuticals, food and beverage, tobacco, personal care, as well as research and development entities.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and emerging trade disputes in spring 2025 are having a profound impact on the agriculture sector by driving up the costs of essential inputs such as seeds, fertilizers, and machinery components sourced from international markets. Higher duties on imported agrochemicals and farm equipment have substantially increased operational expenses for farmers. At the same time, retaliatory tariffs from key global buyers have reduced demand for major U.S. agricultural exports, including corn, wheat, and dairy, straining farm incomes. In response, many producers are exploring crop diversification, investing in precision agriculture to optimize resource use, and calling for government support through subsidies and improved trade access.

The recreational cannabis market research report is one of a series of new reports that provides recreational cannabis market statistics, including recreational cannabis industry global market size, regional shares, competitors with a recreational cannabis market share, detailed recreational cannabis market segments, market trends and opportunities, and any further data you may need to thrive in the recreational cannabis industry. This recreational cannabis market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies within the recreational cannabis market are also channeling their efforts into innovative methods, such as online platforms and delivery services, to solidify their market position. Online platforms and delivery services contribute to enhanced accessibility, convenience, and efficiency within the recreational cannabis sector, aligning with the digital age. As an example, in August 2023, Canterra, a US-based company, initiated licensed cannabis delivery in Western New York. Their online platform enables customers in various counties to explore and purchase adult-use recreational cannabis. With a focus on customer education, Canterra aims to revolutionize the cannabis shopping experience by offering a user-friendly interface, an extensive product catalog, and a seamless purchasing process. This strategic approach reflects the industry's commitment to leveraging technology and convenience to meet evolving consumer demands.

In June 2023, Tilray Brands, a prominent cannabis and beverage alcohol company based in the US, completed the acquisition of Hexo Corporation for an estimated $56 million. This strategic move enhances Tilray's market dominance in Canada's cannabis sector, enabling the combined entity to maximize sales, refine marketing strategies, and bolster distribution networks. This acquisition aims to fortify Tilray's commercial presence and expedite its expansion in capturing a larger market share. Hexo Corporation, the acquired entity, is a renowned Canadian recreational cannabis producer.

Major companies operating in the recreational cannabis market include The Cronos Group, Verano Holdings, Cresco Labs Inc., SNDL Inc., Medical Marijuana Inc., Tilray Inc., 22nd Century Group, Aurora Cannabis Inc., Canopy Growth Corporation, Columbia Care, PharmaCann Inc., Village Farms International Inc, Indiva Limited, VIVO Cannabis Inc., TerrAscend Corp., Acreage Holdings, HEXO Corp, 4Front Ventures, C3 Industries, TILT Holdings, Maricann Inc., Organigram Holding Inc., Ascend Wellness Holdings, Curaleaf Holdings Inc., Trulieve Cannabis, Green Thumb Industries.

North America was the largest region in the recreational cannabis market in 2024. The regions covered in the recreational cannabis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the recreational cannabis market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The recreational cannabis market consists of sales of cannabis indica and cannabis sativa. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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