Recreational Cannabis - United States

United States

In 2024, the projected revenue in the Recreational Cannabis market is expected to reach US$24.96bn.
The market is anticipated to display a compound annual growth rate (CAGR 2024-2029) of 3.83%, leading to a market volume of US$30.12bn by 2029.
When compared globally, in the United States is poised to generate the highest revenue, with US$24.96bn in 2024.
On a per person basis, the revenue generated in 2024 amounts to US$3.32k.
The United States has seen a significant increase in the demand for recreational cannabis following the legalization in several states.

Key regions: Netherlands, Spain, Canada, South Africa, Australia

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Analyst Opinion

The Recreational Cannabis market in United States has been experiencing significant growth and development in recent years, driven by changing attitudes towards cannabis consumption and legalization efforts across several states.

Customer preferences: Consumers in the United States are increasingly favoring recreational cannabis products due to a shift in perception towards the plant's medicinal and wellness properties. With more states legalizing recreational cannabis, consumers are exploring a variety of products such as edibles, vapes, and topicals, seeking alternatives to traditional consumption methods.

Trends in the market: One prominent trend in the United States' Recreational Cannabis market is the rise of boutique and craft cannabis brands. These smaller-scale producers focus on quality, unique strains, and sustainable cultivation practices, catering to consumers looking for premium products. Additionally, the market is witnessing a surge in cannabis-infused beverages and wellness products as companies capitalize on the growing trend of incorporating cannabis into daily routines.

Local special circumstances: The United States' market is unique due to its state-by-state approach to cannabis legalization, leading to varying regulations and market landscapes across different regions. States like California and Colorado have well-established cannabis industries, while others are still in the early stages of legalization. This patchwork of regulations creates opportunities for businesses to innovate and adapt to local market demands.

Underlying macroeconomic factors: The growth of the Recreational Cannabis market in the United States is also influenced by macroeconomic factors such as job creation and tax revenue. The industry has created thousands of jobs in cultivation, retail, and ancillary services, contributing to economic growth. Furthermore, tax revenues generated from cannabis sales provide funding for public services and initiatives, making legalization an attractive option for states looking to boost their economies.

Methodology

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.