CLEVELAND, July 25, 2019 /PRNewswire/ US cannabis production — including licensed production of cannabis for marijuana and hemp — is forecast to see annual gains of over 23% in nominal terms through 2023, according to Cannabis: United States, a report recently released by Freedonia Focus Reports. Hemp is expected to account for over 90% of gains in total cannabis production, supported by the federal legalization of industrial hemp production through the 2018 Farm Bill.
Advances will also be bolstered by rapidly growing demand for products infused with cannabidiol (CBD), as well as by foreign trade action against US agricultural exports and low prices for farm products in the near term, which will cause many farmers to pivot toward the production of hemp. Recent legalization of Hemp will support growth.
More information about the report is available here:
U.S. demand for cannabis in all end uses is expected to grow 8.4% annually through 2023. Hemp demand is set to see expansive growth throughout the US, but legal marijuana will retain its dominant share of total cannabis demand. However, growth in supply has outpaced demand in some states, disrupting prices and the resultant demand in value terms.
These and other key insights are featured in Cannabis: United States. This report forecasts to 2028 US cannabis production in pounds and demand in nominal US dollars. Total production is segmented by product in terms of:
- commercial indoor
- commercial outdoor
- private-use residential
Total demand is also segmented by end-use product as follows:
- legal marijuana
To illustrate historical trends, total production and demand are provided for 2016-2018. Forecasts are provided for all segments for 2019-2023, with a five-year projection to 2028.
Production volumes and values in this report cover only the dry weight of usable cannabis plant, and exclude the value of downstream processing. While a significant portion of this marijuana production total is eventually sold through illicit channels, these volumes are included to avoid significant underreporting in the marijuana growing supplies market, which is discussed in separate reporting available from The Freedonia Group. This is particularly important for California – by far the country’s leading marijuana producer – which sees only about 20% of local production sold legally within the state. Excluded from this report is cannabis grown by unknown and unrecorded operations, marijuana grown illegally by individuals at home, and cannabis illegally imported into the US and sold on the black market.
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Consumer Goods reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
- total historical market size and industry output
- segmentation by products and markets
- identification of market drivers, constraints, and key indicators
- segment-by-segment outlook in five-year forecasts
- a survey of the supply base
- suggested resources for further study
The Freedonia Group