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

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.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Medical marijuana growers continue to benefit from the steadily aging population
  • Due to greater consumer acceptance and demand, more companies have entered the industry
  • An increase in per capita disposable income is projected to drive demand for industry products
  • Industry Analysis & Industry Trends

    Over the five years to 2016, the Medical and Recreational Marijuana Growing industry has experienced a surge in industry revenue thanks to favorable legislation toward growing and distributing cannabis for medical purposes. Furthermore, consumer trends toward legitimizing the use of alternative medical treatments such as cannabis have also boosted demand for industry products. Furthermore, the industry is expected to be boosted by a number of states legalizing recreational use of marijuana. While regulation for the industry remains vague and often contentious due to the federal government's standards on controlled substances, growing demand for the industry's products is expected to continue over the five years to 2021.

    Industry Report - Industry Investment Chapter

    The Medical & Recreational Marijuana Growing industry has a medium level of capital intensity. For every $1.00 spent on labor, operators spend an average of $0.27 on capital expenditure, though the level of capital expenditures varies between outdoor and indoor growers. Outdoor growers follow standard cultivation techniques that other farmers use, which require low capital expenditure. By contrast, indoor growers require a slightly higher level of capital expenditures, which are typically spent on hydroponic techniques, lighting and humidity controls. The majority of industry revenue is allocated in the form of wages toward labor costs, as marijuana cultivation requires significant manual labor. Mor

    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..

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Demographic boost and recreational facilities
  • Changing attitudes and rising incomes
  • Regulation and profit
  • Chart: Revenue Growth

  • Industry Outlook
    Regulation concerning recreational marijuanaOlder 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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Fertilizer Manufacturing
  • Lighting & Bulb Manufacturing
  • Pesticide Manufacturing

  • 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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Medical & Recreational Marijuana Growing Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of adults aged 50 and older (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • 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.
  • Why buy this report?

    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.

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