New highs: Growing acceptance of medical and recreational marijuana will fuel industry expansion

Over the five years to 2017, the Medical and Recreational Marijuana Growing industry has experienced a surge in industry revenue thanks to favorable legislation regarding the growing and distributing of cannabis for medical purposes. Furthermore, the industry has been boosted by several states legalizing recreational use of marijuana. Though industry regulation is not consistent nationwide, and often contentious due to the federal government's classification of marijuana as a Schedule I controlled substance, regulations are expected to become increasingly liberal over the five years to 2022. This growth is expected to be further boosted by anticipated rises in disposable income levels, as well as a growing baby boomer population, a major market for medicinal industry products...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
26.1%
Forecast Growth 17-22
Profit
Employment
791,098
Businesses
209,608
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Legislative victories fueled strong growth for industry operations and provided many opportunities for growth
  • Strong demand growth caused more companies to enter this industry
  • Increasing levels of discretionary income are projected to support continued demand
  • Industry Report - Industry Key Buyers Chapter

    The Medical and Recreational Marijuana Growing industry has a very low level of market share concentration. In 2017, the four largest operators are expected to account for less than 10.0% of revenue. By law, in the majority of states where medical marijuana is legal, industry operators must be a part of nonprofit marijuana collectives (also known as dispensaries) to grow marijuana. Industry operators are known as vendors and must also possess medical marijuana cards for the state where they operate. Additionally, because the sale of marijuana is still prohibited everywhere except the eight states that legalized recreational marijuana, vendors in all other states only provide marijuana to the collective in exchange for donations. All vendors are independent and privately operated. All...purchase to read more.

    Additional Insights for the Medical & Recreational Marijuana Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Medical & Recreational Marijuana Growing Industry are

  • Ability to attract community support
  • Development of effective marijuana strains
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Regulation and Per capita disposable income in the Medical & Recreational Marijuana Growing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Medical & Recreational Marijuana Growing Industry?

    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, who grow medical and recreational marijuana on a for-profit basis.

    Industry Products
  • Indica marijuana products
  • Sativa marijuana products
  • Industry Activities
  • Growing marijuana for medical use
  • Growing marijuana for legal recreational use
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Regulation
  • Per capita disposable income
  • Number of adults aged 50 and older
  • External competition

  • Current Performance
  • Medical marijuana spurs growth
  • Recreational growth opportunities
  • Changing attitudes and rising incomes
  • Regulation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation concerning recreational marijuana
  • Older population boosts demand for medical cannabis
  • Table: Medical & Recreational Marijuana Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Medical & Recreational Marijuana Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Consumers

  • Key Selling Industries
  • Fertilizer Manufacturing
  • Lighting & Bulb Manufacturing
  • Pesticide Manufacturing
  • Snack Food Production

  • Products & Services
  • Indica marijuana products
  • Sativa marijuana products
  • Chart: Medical & Recreational Marijuana Growing Industry Products and Services Segmentation

  • Demand Determinants
  • Government regulation
  • Income and demographics

  • Major Markets
  • Medical marijuana patients with severe pain
  • Recreational marijuana customers
  • Medical marijuana patients with muscle spasms
  • Medical marijuana patients with severe nausea
  • Medical marijuana patients with cancer
  • Medical marijuana patients with other symptoms
  • Medical marijuana patients with seizures
  • Chart: Major Market Segmentation for the Medical & Recreational Marijuana Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilities, depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Medical & Recreational Marijuana Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Medical & Recreational Marijuana Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Medical & Recreational Marijuana Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Medical & Recreational Marijuana Growing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total recreation expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cannabis
  • Cannabis is a drug produced from the Cannabis sativa (commonly known as hemp) or Cannabis indica plant, which is related to nettles and hops.
  • Dispensary/Collective
  • A medical marijuana collective is comprised of patients that provide medical marijuana to each other on a nonprofit basis. It is the standard legal organization for growers in most states.
  • Marijuana
  • The dried leaves and flowering tops of the pistillate hemp plant that yield tetrahydrocannabinol and are smoked in cigarettes for their intoxicating effect.
  • Vendor
  • A member of a marijuana collective that provides medical marijuana to other collective members on nonprofit basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Medical & Recreational Marijuana Growing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Medical & Recreational Marijuana Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Medical & Recreational Marijuana Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Medical & Recreational Marijuana Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear