Cannabis - South Korea

South Korea

The Cannabis market in South Korea is projected to reach a revenue of US$460.80m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.75%, resulting in a market volume of US$527.80m by 2029.
In global comparison, in the United States is expected to generate the most revenue with US$42.98bn in 2024.
In relation to the total population figures, per person revenues of US$70.39 are generated in 2024.
South Korea's strict regulations on cannabis make it challenging for the market to thrive, with limited access and heavy penalties for possession and consumption.

Key regions: United States, Canada, Netherlands, Germany, Thailand

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Analyst Opinion

The Cannabis market in South Korea has been experiencing significant growth and development in recent years.

Customer preferences: South Korean consumers are increasingly seeking out alternative health and wellness products, leading to a growing interest in cannabis-based products. The shift towards more natural and holistic remedies has driven demand for CBD products in particular.

Trends in the market: One notable trend in the South Korean Cannabis market is the rising popularity of beauty and skincare products infused with CBD. As South Korea is known for its innovative skincare industry, the incorporation of CBD into beauty products has resonated well with consumers looking for new and effective solutions.

Local special circumstances: In South Korea, the regulatory environment around cannabis remains strict, with recreational use being illegal. However, the government has taken steps to legalize medical cannabis under certain conditions, paving the way for the growth of the market. This unique regulatory landscape has created opportunities for companies to enter the market with medical cannabis products.

Underlying macroeconomic factors: The growing acceptance of CBD products in South Korea is also influenced by broader global trends towards cannabis legalization and destigmatization. As more countries around the world embrace the medicinal benefits of cannabis, South Korea is following suit, albeit with caution and regulation in place. This alignment with global attitudes towards cannabis is shaping the market landscape in the country.

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.