Medical & Recreational Marijuana Growing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD4141Revenue
$23.8bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
268k
Businesses
81,676
Wages
$X.Xbn
Medical & Recreational Marijuana Growing in the US industry analysis
Medical and recreational marijuana growing in the United States has experienced substantial growth, with industry revenue surging at a CAGR of 20.4% to reach $23.8 billion over the past five years, including a gain of 9.7% in 2024 alone. Legislative victories during the pivotal 2016 and 2020 elections have facilitated the approval of marijuana for both medical and recreational use in numerous states, contributing to this growth. The acceptance of medical and recreational marijuana has reached an overwhelming 88.0% among US adults, while 57.0% support full adult use legalization, as per a recent Pew Research Center survey. This growing acceptance has opened unprecedented opportunities for growers and investors, fundamentally reshaping the industry landscape.
Trends and Insights
- The legalization and acceptance of medical and recreational marijuana have significantly boosted industry growth. This trend allows marijuana growers to expand operations and invest in advanced cultivation technologies to meet diverse consumer needs.
- The legalization and acceptance of recreational marijuana are driving market expansion despite existing regulatory challenges. As more states and countries legalize its use, wholesale distributors and dispensaries must navigate complex regulations and compliance requirements.
- Progressive legislation significantly boosts marijuana cultivation in the West and Southwest regions. Early legalization and supportive policies create a conducive business environment that promotes the growth of marijuana-growing establishments.
- The marijuana growing industry faces significant barriers to entry due to complex legal regulations and high start-up costs. These challenges make it difficult for new entrants, especially smaller businesses, to compete effectively.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 20.4 % over the past five years, to reach an estimated $23.8bn in 2024.
Trends and Insights
Federal uncertainty is hampering industry growth
- The ongoing debate over federal legalization is contributing to significant market uncertainty, affecting everything from business operations to investor confidence and slowing down the potential growth and development of the cannabis industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Federal legalization prospects could change everything
- Federal legalization would allow marijuana businesses to access traditional banking services, enabling them to secure loans, manage larger cash flows and leverage previously inaccessible financial growth opportunities.
Biggest companies in the Medical & Recreational Marijuana Growing in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Medical & Recreational Marijuana Growing in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Indica marijuana products, Sativa marijuana products and Hybrid marijuana products. Indica marijuana products is the largest segment of the Medical & Recreational Marijuana Growing in the US.
Trends and Insights
High demand for hybrid marijuana products
- Hybrid marijuana products are a crossbreed between Indica and Sativa strains of cannabis, aiming to offer a balance of effects from both strains. These strains often provide a unique blend of physical and psychological benefits that can cater to various user preferences.
- More insights available in the full report
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Competitors
- There are no industries to display.
Complementors
- Tobacco Growing in the US
- Distilleries in the US
- Cigarette & Tobacco Manufacturing in the US
- Brand Name Pharmaceutical Manufacturing in the US
International industries
- Global Pharmaceuticals & Medicine Manufacturing
Table of Contents
About this industry
Industry definition
This industry’s establishments grow marijuana for medical and recreational use. Most operators are nonprofit collectives that provide medical marijuana to other collective members. Transactions are typically conducted on a donation basis because the sale and distribution of marijuana is illegal in most states that permit medical marijuana. The industry also includes operators in Colorado and Washington, which grow medical and recreational marijuana on a for-profit basis.
What's included in this industry?
Growing marijuana for medical useGrowing marijuana for legal recreational useCompanies
Purchase this report to view all major companies in this industry.
Related Terms
CANNABISMARIJUANAVENDORDISPENSARY/COLLECTIVEIndustry Code
NAICS 11141 - Medical & Recreational Marijuana Growing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The legalization and acceptance of medical and recreational marijuana have significantly boosted industry growth. This trend allows marijuana growers to expand operations and...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The legalization and acceptance of recreational marijuana are driving market expansion despite existing regulatory challenges. As more states and countries legalize its use, ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Progressive legislation significantly boosts marijuana cultivation in the West and Southwest regions. Early legalization and supportive policies create a conducive business e...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The marijuana growing industry faces significant barriers to entry due to complex legal regulations and high start-up costs. These challenges make it difficult for new entran...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The medical and recreational marijuana growing industry is fragmented due to varying state regulations and the federal illegality of cannabis. These factors hinder nationwide...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Federal regulations are the biggest hurdle for medical and recreational marijuana growers. At the federal level, cannabis is classified as a Schedule I controlled substance u...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Market dynamics and regulatory compliance significantly impact the profitability of marijuana cultivation. Demand fluctuations, regulatory costs and the need for differentiat...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Medical & Recreational Marijuana Growing in the US industry in United States in 2024?
The market size of the Medical & Recreational Marijuana Growing in the US industry in United States is $23.8bn in 2024.
How many businesses are there in the Medical & Recreational Marijuana Growing in the US industry in 2024?
There are 81,676 businesses in the Medical & Recreational Marijuana Growing in the US industry in United States, which has grown at a CAGR of 30.6 % between 2019 and 2024.
Has the Medical & Recreational Marijuana Growing in the US industry in United States grown or declined over the past 5 years?
The market size of the Medical & Recreational Marijuana Growing in the US industry in United States has been growing at a CAGR of 20.4 % between 2019 and 2024.
What is the forecast growth of the Medical & Recreational Marijuana Growing in the US industry in United States over the next 5 years?
Over the next five years, the Medical & Recreational Marijuana Growing in the US industry in United States is expected to grow.
What does the Medical & Recreational Marijuana Growing in the US in United States include?
Growing marijuana for medical use and Growing marijuana for legal recreational use are part of the Medical & Recreational Marijuana Growing in the US industry.
How competitive is the Medical & Recreational Marijuana Growing in the US industry in United States?
The level of competition is high and increasing in the Medical & Recreational Marijuana Growing in the US industry in United States.
