Cannabis Cultivation Market Size, Share & Trends Analysis Report by Biomass

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Global Cannabis
Cultivation
MARKET ESTIMATES & TREND ANALYSIS
FROM 2016 TO 2027
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Global Cannabis
Cultivation Market
MARKET ANALYSIS & SEGMENT FORECAST
FROM 2020 TO 2027
Market by Biomass: Hemp, Marijuana
Market by application: Medical Consumption, Recreational Consumption, Industrial
Consumption
Copyright © 2021 Grand View Research, Inc., USA

All Rights Reserved. This document contains highly confidential information and is the sole
property of Grand View Research. No part of it may be circulated, copied, quoted, or otherwise
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Table of Contents
CHAPTER 01 Research Methodology ................................................................ 10
1.1 Research Process ............................................................................................... 10
1.1.1 INFORMATION PROCUREMENT ...................................................................................................... 12
1.2 Information or Data Analysis ................................................................................ 14
1.3 Market Formulation & Validation .......................................................................... 18
1.3.1 REGION MARKET: CAGR CALCULATION ......................................................................................... 18
1.4 Region Based Segment Share Calculation ................................................................. 18
1.5 List of Secondary Sources ..................................................................................... 19
CHAPTER 02 Executive Summary..................................................................... 21
2.1 Market Summary ............................................................................................... 22
CHAPTER 03 Global Cannabis Cultivation Market Variables, Trends, & Scope
............................................................................................................................ 23
3.1 Market Segmentation .......................................................................................... 23
3.2 Penetration & Growth Prospects Mapping ................................................................ 24
3.2.1 MARKET DRIVER ANALYSIS ............................................................................................................ 25
3.2.1.1 Growing legalization of cannabis in various countries ......................................................... 25
3.2.1.2 Increasing demand of cannabis, driving cannabis cultivation across the globe ................ 26
3.2.2 MARKET RESTRAINTS ANALYSIS .................................................................................................... 27
3.2.2.1 Legalization of medical cannabis only for selected indications ........................................... 27
3.2.2.2 shortage of Supply of medical cannabis in various countries ............................................. 28
3.2.3 MARKET CHALLENGES .................................................................................................................... 28
3.2.3.1 Illicit cananbis trade................................................................................................................ 28
3.2.3.2 The widening demand and supply gap .................................................................................. 28
3.3 Global Cannabis Cultivation Regulatory Scenario, by country ....................................... 30
3.3.1 U.S. ................................................................................................................................................... 30
3.3.1.1 Overview .................................................................................................................................. 30
3.3.1.2 Cultivation................................................................................................................................ 30
3.3.1.3 Regulatory Bodies Involved .................................................................................................... 30
3.3.2 CANADA ............................................................................................................................................ 30
3.3.2.1 Overview .................................................................................................................................. 30
3.3.2.2 Cultivation................................................................................................................................ 30
3.3.2.3 Production ............................................................................................................................... 31
3.3.3 UK ..................................................................................................................................................... 31
3.3.3.1 Overview .................................................................................................................................. 31
< Back to Table of Contents Global Cannabis Cultivation Market Analysis and Segment Forecast to 2027
V0.1 ©Grand View Research, Inc., USA. All Rights Reserved
1
3.3.3.2 Cultivation/Production ............................................................................................................ 31
3.3.4 GERMANY ......................................................................................................................................... 32
3.3.4.1 Overview .................................................................................................................................. 32
3.3.5 ITALY ................................................................................................................................................. 33
3.3.5.1 Overview .................................................................................................................................. 33
3.3.5.2 Cultivation................................................................................................................................ 33
3.3.6 THE NETHERLANDS ......................................................................................................................... 33
3.3.6.1 Overview .................................................................................................................................. 33
3.3.6.2 Cultivation................................................................................................................................ 33
3.3.7 CZECH REPUBLIC............................................................................................................................. 34
3.3.7.1 Overview .................................................................................................................................. 34
3.3.8 CROATIA ........................................................................................................................................... 34
3.3.8.2 Regulations for Patients ......................................................................................................... 35
3.3.9 SWITZERLAND ................................................................................................................................. 35
3.3.9.1 Overview .................................................................................................................................. 35
3.3.10 FRANCE .......................................................................................................................................... 35
3.3.10.1 Overview ................................................................................................................................ 35
3.3.10.2 Cultivation/Production ......................................................................................................... 36
3.3.10.3 Regulatory Bodies Involved .................................................................................................. 36
3.3.11 SPAIN ............................................................................................................................................. 36
3.3.11.1 Overview ................................................................................................................................ 36
3.3.12 AUSTRALIA ..................................................................................................................................... 36
3.3.12.1 Overview ................................................................................................................................ 36
3.3.12.2 Cultivation ............................................................................................................................. 37
3.3.13 NEW ZEALAND ............................................................................................................................... 37
3.3.13.1 Overview ................................................................................................................................ 37
3.3.14 THAILAND....................................................................................................................................... 38
3.3.14.1 Overview ................................................................................................................................ 38
2
3.3.15 JAPAN ............................................................................................................................................. 38
3.3.15.1 Overview ................................................................................................................................ 38
3.3.16 SOUTH KOREA ............................................................................................................................... 39
3.3.16.1 Overview ................................................................................................................................ 39
3.3.17 CHINA ............................................................................................................................................. 39
3.3.17.1 Overview ................................................................................................................................ 39
3.3.18 INDIA .............................................................................................................................................. 40
3.3.18.1 Overview ................................................................................................................................ 40
3.3.19 COLOMBIA...................................................................................................................................... 40
3.3.19.1 Overview ................................................................................................................................ 40
3.3.20 MEXICO .......................................................................................................................................... 41
3.3.20.1 Overview ................................................................................................................................ 41
3.3.21 URUGUAY ....................................................................................................................................... 42
3.3.21.1 Overview ................................................................................................................................ 42
3.3.22 CHILE.............................................................................................................................................. 43
3.3.22.1 Overview ................................................................................................................................ 43
3.3.23 ISRAEL............................................................................................................................................ 43
3.3.23.1 Overview ................................................................................................................................ 43
3.3.24 SOUTH AFRICA ............................................................................................................................... 44
3.3.24.1 Overview ................................................................................................................................ 44
3.4 Global Cannabis Cultivation Market – PESTLE Analysis ............................................. 45
3.5 Industry Analysis – Porter’s .................................................................................. 46
3.6 Opportunity Analysis (2016-2020-2027) .................................................................... 47
3
3.7 Producer/Cultivator Selling Price Analysis, 2019 and Future Trends ............................... 48
CHAPTER 04 Cannabis Cultivation Market: Biomass Estimates & Trend
Analysis .............................................................................................................. 50
4.1 Cannabis Cultivation Market: Biomass Movement Analysis .......................................... 51
4.2 Cannabis Cultivation Market: Biomass Analysis ........................................................ 52
4.2.1 HEMP................................................................................................................................................ 52
4.2.1.1 Hemp Market Estimates and Forecasts, 2016 - 2027 (USD Million).................................. 52
4.2.2 MARIJUANA ...................................................................................................................................... 53
4.2.2.1 Marijuana Market Estimates and Forecasts, 2016 - 2027 (USD Million)........................... 53
CHAPTER 05 Cannabis Cultivation Market: Application Estimates & Trend
Analysis .............................................................................................................. 54
5.1 Cannabis Cultivation Market: Application Movement Analysis...................................... 55
5.2 Cannabis Cultivation Market: Application Analysis .................................................... 56
5.2.1 RECREATIONAL CONSUMPTION ..................................................................................................... 56
5.2.1.1 Recreational Consumption Market Estimates and Forecasts, 2016 - 2027 (USD Million)56
5.2.2 MEDICAL CONSUMPTION ................................................................................................................ 57
5.2.2.1 Medical Consumption Market Estimates and Forecasts, 2016 - 2027 (USD Million) ....... 57
5.2.3 INDUSTRIAL CONSUMPTION ........................................................................................................... 58
5.2.3.1 Industrial Consumption Market Estimates and Forecasts, 2016 - 2027 (USD Million)..... 58
CHAPTER 06 Cannabis Cultivation Market: Regional Estimates & Trend
Analysis, by Biomass Type & Application .......................................................... 59
6.1 Global Cannabis Cultivation Market Share, by region, 2019 & 2027 ................................ 60
6.1.1 NORTH AMERICA ............................................................................................................................. 61
6.1.1.1 North America cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) ............................................................................................................................................... 62
6.1.1.2 U.S. ........................................................................................................................................... 62
6.1.1.2.1 U.S. cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) .... 63
6.1.1.3 Canada .................................................................................................................................... 63
6.1.1.3.1 Canada cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
65
6.1.2 EUROPE ............................................................................................................................................ 65
6.1.2.1 Europe cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) ............................................................................................................................................... 66
6.1.2.2 UK............................................................................................................................................. 66
6.1.2.2.1 UK cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) ...... 67
6.1.2.3 Germany .................................................................................................................................. 67
6.1.2.3.1 Germany cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
68
6.1.2.4 Italy........................................................................................................................................... 69
4
6.1.2.4.1 Italy cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) .... 70
6.1.2.5 France ...................................................................................................................................... 70
6.1.2.5.1 France cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)71
6.1.2.6 Spain ........................................................................................................................................ 71
6.1.2.6.1 Spain cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) . 72
6.1.2.7 Netherlands ............................................................................................................................. 73
6.1.2.7.1 Netherlands cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) 74
6.1.2.8 Croatia ..................................................................................................................................... 74
6.1.2.8.1 Croatia cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
75
6.1.2.9 Switzerland .............................................................................................................................. 75
6.1.2.9.1 Switzerland cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) 76
6.1.2.10 Czech Republic ..................................................................................................................... 77
6.1.2.10.1 Czech Republic cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) 78
6.1.3 ASIA PACIFIC .................................................................................................................................... 78
6.1.3.1 Asia Pacific cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) ............................................................................................................................................... 79
6.1.3.2 Australia ................................................................................................................................... 79
6.1.3.2.1 Australia cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
80
6.1.3.3 China ........................................................................................................................................ 80
6.1.3.3.1 China cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) . 81
6.1.3.4 Japan ....................................................................................................................................... 82
6.1.3.4.1 Japan cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION). 82
6.1.3.5 South Korea ............................................................................................................................ 83
6.1.3.5.1 South Korea cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) 83
6.1.3.6 India ......................................................................................................................................... 83
6.1.3.6.1 India cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) .. 84
6.1.3.7 New Zealand............................................................................................................................ 85
6.1.3.7.1 New Zealand cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) 85
6.1.3.8 Thailand ................................................................................................................................... 86
6.1.3.8.1 Thailand cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
87
6.1.4 LATIN AMERICA ................................................................................................................................ 87
6.1.4.1 Latin America cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD
MILLION) ............................................................................................................................................... 88
6.1.4.2 Uruguay.................................................................................................................................... 88
6.1.4.2.1 Uruguay cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
89
6.1.4.3 Chile ......................................................................................................................................... 89
6.1.4.3.1 Chile cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) .. 90
6.1.4.4 Colombia.................................................................................................................................. 90
5
6.1.4.4.1 Colombia cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
91
6.1.4.5 Mexico...................................................................................................................................... 92
6.1.4.5.1 Mexico cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
92
6.1.5 MIDDLE EAST & AFRICA .................................................................................................................. 93
6.1.5.1 Middle East & Africa cannabis cultivation market estimates and forecasts, 2016 – 2027
(USD MILLION) ...................................................................................................................................... 94
6.1.5.2 Israel ........................................................................................................................................ 94
6.1.5.2.1 Israel cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) . 95
6.1.5.3 South Africa ............................................................................................................................. 96
CHAPTER 07 Competitive Landscape ............................................................... 97
7.1 Company Profiles .............................................................................................. 97
7.1.1 PACIFIC CANNABIS GROWERS, INC. ............................................................................................... 97
7.1.1.1 Company overview .................................................................................................................. 97
7.1.1.2 Strategic Initiatives ................................................................................................................. 97
7.1.2 ATLAS GROWERS ............................................................................................................................. 98
7.1.2.2 Strategic initiatives ................................................................................................................. 98
7.1.3 CANNTRUST HOLDINGS, INC. ......................................................................................................... 99
7.1.3.2 Financial performance ............................................................................................................ 99
7.1.3.3 Strategic initiatives ...............................................................................................................100
7.1.4 THE HYDROPOTHECARY CORPORATION ......................................................................................101
7.1.4.1 Company overview ................................................................................................................101
7.1.4.2 Financial performance ..........................................................................................................101
7.1.5 BETTER HOLDINGS ........................................................................................................................103
7.1.6 CANOPY GROWTH CORPORATION ................................................................................................104
7.1.7 APHRIA, INC ...................................................................................................................................106
7.1.8 AURORA CANNABIS .......................................................................................................................108
7.1.9 TILRAY ............................................................................................................................................111
6
7.1.10 ORGANIGRAM HOLDINGS, INC. ..................................................................................................114
7.1.10.1 Company overview ..............................................................................................................114
7.1.10.2 Financial performance .......................................................................................................114
7.1.10.3 Strategic initiatives .............................................................................................................115
7.1.11 THE CRONOS GROUP ..................................................................................................................116
7.1.11.1 Company overview ..............................................................................................................116
7.1.11.2 Financial performance .......................................................................................................116
7.1.11.3 Strategic Initiatives .............................................................................................................117
7
Index of Figures
Fig.1 Market research process ...................................................................................................................... 11
Fig.2 Information procurement ...................................................................................................................... 12
Fig.3 Primary research pattern ...................................................................................................................... 14
Fig.4 Market research approaches ............................................................................................................... 15
Fig.5 Value chain-based sizing & forecasting ............................................................................................... 16
Fig.6 QFD modelling for market share assessment ..................................................................................... 17
Fig.7 Market formulation & validation .......................................................................................................... 18
Fig.8 Global cannabis cultivation market snapshot, 2019 (USD Million) ................................................... 22
Fig.9 Global cannabis cultivation market segmentation ............................................................................. 23
Fig.10 Penetration & growth prospects mapping for cannabis cultivation................................................. 24
Fig.11 Global cannabis cultivation market driver impact ............................................................................ 25
Fig.12 Global cannabis cultivation market restraints impact ...................................................................... 27
Fig.13 Global cannabis cultivation market – PESTLE analysis.................................................................... 45
Fig.14 Global cannabis cultivation market – Porter’s Analysis ................................................................... 46
Fig.15 Opportunity analysis (USD Million) ..................................................................................................... 47
Fig.16 Cannabis cultivation market, biomass outlook: Key takeaways ...................................................... 50
Fig.17 Cannabis cultivation market: biomass movement analysis (2019 & 2027) (USD Million) ........... 51
Fig.18 Hemp market estimates and forecasts, 2016 – 2027 (USD Million) ............................................. 52
Fig.19 Marijuana market estimates and forecasts, 2016 – 2027 (USD Million) ...................................... 53
Fig.20 Cannabis cultivation market, application outlook: Key takeaways ................................................. 54
Fig.21 Cannabis cultivation market: Application movement analysis (2019 & 2027) .............................. 55
Fig.22 Recreational consumption market estimates and forecasts, 2016 – 2027 (USD Million) ........... 56
Fig.23 Medical consumption market estimates and forecasts, 2016 – 2027 (USD Million) ................... 57
Fig.24 Industrial consumption market estimates and forecasts, 2016 – 2027 (USD Million)................. 58
Fig.25 Regional marketplace: Key takeaways .............................................................................................. 59
Fig.26 Cannabis cultivation market: regional outlook, 2019 & 2027 ........................................................ 60
Fig.27 North America cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD Million)
......................................................................................................................................................................... 62
Fig.28 U.S. cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) ........... 63
Fig.29 Canada cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD Million) ........ 65
Fig.30 Europe cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)...... 66
Fig.31 UK cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ................. 67
Fig.32 Germany cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ....... 68
Fig.33 Italy cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ............... 70
Fig.34 France cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) .......... 71
Fig.35 Spain cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ............ 72
Fig.36 Netherland’s cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) 74
Fig.37 Croatia cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) .......... 75
Fig.38 Switzerland cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) .. 76
Fig.39 Czech Republic cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
......................................................................................................................................................................... 78
Fig.40 Asia Pacific cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ... 79
Fig.41 Australia cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ....... 80
Fig.42 China cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ............ 81
Fig.43 Japan cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ............ 82
Fig.44 South Korea cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) . 83
Fig.45 India cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) .............. 84
Fig.46 New Zealand cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) 85
8
Fig.47 Thailand cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ....... 87
Fig.48 Latin America cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)88
Fig.49 Uruguay cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ........ 89
Fig.50 Chile cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million).............. 90
Fig.51 Colombia cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION) .. 91
Fig.52 Mexico cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) .......... 92
Fig.53 Middle East & Africa cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD
Million) ............................................................................................................................................................. 94
Fig.54 Israel cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million) ............. 95
Index of Tables
Table 1 List of secondary sources ................................................................................................................. 19
Table 2 Average price of marijuana per mg, by country, 2019 – 2026 (USD) ........................................... 48
Table 3 Average price of hemp per mg, by country, 2019 – 2026 (USD) .................................................. 49
9
CHAPTER 01 Research Methodology
1.1 Research Process
Our research methodology entails an ideal mixture of primary and secondary initiatives. Key steps
involve in the process are listed below:
• Information procurement
The stage involves the procurement of market data or related information via different sources &
methodologies.
• Information analysis
This step involves the analysis & mapping of all the information procured from the previous step. It
also encompasses the analysis of data discrepancies observed across various data sources.
• Market formulation
The final step entails the placement of data points at appropriate market spaces to deduce viable
conclusions. Analyst perspective & subject matter expert based heuristic form of market sizing also
plays an integral role in this step.
• Validation & publishing
Validation is the most important step in the process. Validation & re-validation via an intricately
designed process helps us finalize data-points to be used for final calculations.
The movement from step – 1 and step – 2 is bi-directional in nature. The process follows to & fro
from both the ends. This is an integral data filtration technique used by GVR. The validation & market
formulation steps are also reversible in nature. They are run parallel to ensure data accuracy and
process flexibility.
The process of market sizing & data point identification runs throughout the report schedule. The
process moves from Step 1&2 to Step 3&4, while keeping the steps 1&2 and 3&4 reversible. The
cycle of market sizing & variable identification also keeps repeating until every data point is duly
validated and is fit for publishing.
10
Fig.1 Market research process
INFORMATION INFORMATION MARKET VALIDATION &

PROCUREMENT ANALYSIS FORMULATION PUBLISHING
The stage involves the This step involves the The final step entails the Validation is the most
procurement of market analysis & mapping of all placement of data points at important step in the
data or related information the information procured appropriate market spaces in process. Validation & re-
via different sources & from the previous step. It an attempt to deduce viable validation via an intricately
methodologies. also encompasses the conclusions. Analyst designed process helps us
analysis of data perspective & subject matter finalize data-points to be
discrepancies observed expert based heuristic form of used for final calculations.
across various data market sizing also plays an
sources. integral role in this step.
The movement from step 1 and step 2 is bi-directional in The validation & market formulation steps are also reversible in
nature. The process follows a to & fro from both the ends. This nature. They are run parallel to ensure data accuracy and process
is an integral data filtration technique used by GVR. flexibility.
The process of market sizing & data point identification runs throughout the report schedule. The process moves from Step 1&2to Step
3&4, while keeping the steps 1&2 and 3&4 reversible. The cycle of market sizing & variable identification also keeps repeating until
every data point is duly validated and is fit for publishing.
11
1.1.1 INFORMATION PROCUREMENT
Fig.2 Information procurement
Data Triangulation Technique
PRIMARY RESEARCH INFORMATION PROCUREMENT PURCHASED DATABASE
Primary interviews with industry experts, The stage involves the procurement of We buy access to paid databases like
freelance consultants, manufacturers, market data or related information via Hoover’s and Factive to gain access to
distributors and resellers & system different sources & methodologies such company financials, industry information,
integrators. Interviews are largely based as primary interviews, paid and internal and industry journal publications
on tele-interviews and online surveys databases and secondary sources
SECONDARY SOURCES GVR’S INTERNAL DATABASE THIRD PARTY PERSPECTIVE
Includes government statistics published Includes historic market databases, case Analysis of investor analyst reports,
published by organizations like World studies, internal audit reports, & archives. broker reports, government quotes, key
Bank, IEEE publications, EE Times, Pertinent data such as average selling opinion leaders, research institutes &
company filings, investor documents, price, manufacturing cost, shipments etc. academic centres
whitepapers and use cases are also taken into account. We have a
dedicated team of analysts updating &
maintaining these databases
12
Information procurement is one of the most extensive stages in our research process. As illustrated in
the figure above, the techniques can broadly be categorized into five sections, as stated below:
Purchased database:
• Includes company databases such as Hoover’s: This helps us identify financial information,
industry competitive landscape, and structure of the market participants. Also, it serves as
an important step in market sizing, especially, in case of commodity-flow techniques.
• Industry databases, e.g., Factiva, helps us gain access to industry statistics, and KoL
opinions & formulate conclusions.
• Other sources include SME journals, pertinent databases from third-party vendors to gain
insights into:
o Usage rates
o Product statistics
o Potential market related statistics
o Information on unmet needs
o Investment information or opportunity-based statistics
GVR’s Internal Database
• Includes our internal database of data points, collected because of previous research & studies
and information made available via our database management team
• Also includes internal audit reports & archives
Secondary sources:
• A list of secondary sources along with the information extracted from them will be available in
the final deliverable
• Notable examples include white papers, government statistics published by organizations like
WHO, NGOs, World Bank etc., KoL publications, company filings, investor documents etc.
Third Party Perspective:
• This section includes market derivation through investor analyst reports, broker reports,
academic commentary, government quotes & wealth management publications.
13
Primary Research:
Fig.3 Primary research pattern
Interviews with raw material

suppliers and manufacturers
Interview Scope
The primary interviews ▸ Research tools: Questionnaire
and surveys derive based research and telephonic
directions from extensive discussions
Interviews with manufacturers,
secondary research. ▸ Database: Paid vendors,
distributors, researchers and LinkedIn, Hoover’s, Factiva,
Secondary research is a representatives of regulatory Sources extracted from
continuous process and is bodies previous pertinent studies
conducted at each level ▸ Regional scope: All countries
within the scope of the study.
along the value chain. Interviews of KoLs from non-
English speaking countries are
Interviews with healthcare conducted via our vendors and
practitioners, industry experts questionnaires
& independent consultants
Note: GVR Representation
1.2 Information or Data Analysis

Information procured from secondary and primary initiatives are then, analyzed by using the
following tools/models: (a partial list)
• Identifying variables and establishing market impact
• Establishing market trends
• Analyzing future opportunities and market penetration rates by understanding product
commercialization, etc.
• Analyzing reimbursement/regulatory trends and changes in market dynamics to establish
future growth
• Analyzing sustainability strategies adhered by market participants to determine future
course of the market
• Analyzing historical market trends and super-imposing them on the current and future
variables to determine year-on-year trends
• Understanding consumer base, procedure trends, and regulatory framework
• Keeping a track of technological advancements in individual segments
• Base numbers are established by analyzing the following:
o Company revenues and market share (this list generally includes the analysis of
revenue published by publicly listed manufacturers)
o Derivation of market estimates via analyzing parent markets (bottom-up approach)
14
Fig.4 Market research approaches
Bottom – up demand approach
Total
Market
• Demand estimation of each product across countries/regions summed to

Product A form the total market
Product B1 • Variable analysis for demand forecasting
Product B Product B • Demand estimation via analyzing paid databases, company financials either
via annual reports or paid databases
Product B2
• Primary interviews for data revalidation and insight collection
Top – down demand approach
Overall market
Regional market Demand at sub- • Used extensively for new product forecasting or analyzing penetration levels
category level • Tools used involve product flow & penetration models
Regional • Use of regression multi-variate analysis for forecasting
Sub – category market
• Involves extensive use of paid and public databases
market Demand at a
country level • Primary interviews & vendor-based primary research for variable impact
analysis
Combined approach
Derived via commodity flow & demand/consumption
Total Overall market models
Market Demand at sub-
Product B1 Regional market category level
Product B Regional market
Product A
Product B2 Demand at a
Sub–category country level
market
Product B
15
Fig.5 Supply chain-based sizing & forecasting
Supply-chain-based sizing & forecasting
Demand –
Supply – side
side
Estimates
Estimates
Demand – side
Estimates
Supply – side
Estimates
•Company revenue estimation via referring to annual •Identifying parent markets and ancillary markets
reports, investor presentation, and Hoover’s
•Segment penetration analysis to obtain pertinent
•Segment revenue determination via variable analysis revenue/volume
and penetration modeling
•Procedure volumes, usage rates to derive market size
•Competitive benchmarking to identify market leaders
and their collective revenue shares •Heuristic forecasting with the help of subject matter
experts
•Forecasting via analyzing commercializing rates, pipeline,
market initiatives, distribution networks, etc. •Forecasting via variable analysis
Note: GVR representation
16
The following techniques outline our research methodology:
Model selection: Demand based bottom-up approach and usage rates-based approach
• Penetration modeling for products
• Determining and forecasting penetration via analyzing product features, proposed pricing,
availability of internal and external substitutes etc.
• Heuristic estimation of year-on-year sales by conducting primary interviews with:
o Healthcare practitioners
o Industry experts & KoLs
o Distributors
• Product sizing and forecasting by following a diffusion model based on S-curve growth
• Analysis of current usage rates and patterns to determine substitution rates
• Regression and variable analysis
• Identifying variables and assigning impact to determine growth)
• QFD modeling for market share assessment (an example cited in the figure below)
• Referring to historic data to establish base estimates
• Using exponential smoothing for forecasting
• User size-based penetration
• Analyzing current needs and determining penetration to estimate market size or sales
• Using unmet needs and capitalization rates to determine growth
Trend analysis (based on year-on-year trending models)
Fig.6 QFD modelling for market share assessment
Consumer
Current
Score Derived by QFD Price Efficacy Rate Future Prospects Preference Index
Penetration
(CPI)
Product A 10 9 7 9 6
Product B 8 9 4 6 5
Product C 10 7 1 7 9
Product D 4 8 10 9 4
Product E 8 6 6 3 1
Weightage in terms of Percentage (%) Market shares as calculated for initial research purposes
Price 25% Average Score Relative market share
Efficacy Rate 25% Product A 8.3 24.48%
Current Penetration 25% Product B 6.6 19.47%
Product C 6.6 19.32%

Future Prospects 10%
Product D 7.0 20.65%
Consumer Preference
15%
Index (CPI) Product E 5.5 16.08%
Total 100% Total 33.9
Note: The above-illustrated figure is for representation purposes only. Attribute selection and score rendering is an extensive process involving rigorous primary
and secondary research
17
1.3 Market Formulation & Validation
Fig.7 Market formulation & validation
Step 2: Data
Analysis
• This step involves the finalization of market numbers. This step on an interval level is designed to manage outputs from the
data analysis step
Market • Data normalization
Formulation • The final market estimates & forecasts are then aligned and sent to industry experts
• In-panel quality control manager for validation
• This step also entails the finalization of the report scope and data representation pattern
The process entails multiple levels of validation.

All these steps are run in parallel and the study is
forwarded for publishing only if all three levels
Multi-level Data Validation
render validated results.

Level 1: In-panel QC team
validation Post –
Wait for
Move to launch
Validated complete
publishing market
validation
Level 2: Validation by Industry
Output monitoring
Experts & KoLs
Partial Move to
Level 3: Validation by multiple Validation step 2
data analysis models
(triangulation)
1.3.1 REGION MARKET: CAGR CALCULATION

► The CAGR for this market is calculated based on following factors:
• Growth in revenue
• Growth rate of ancillary and parent market
• Growth in target population
• Growth in the region
1.4 Region Based Segment Share Calculation

► Market penetration, usage pattern, and expected market consumers were studied to
understand market growth in the region
► The trends observed were then applied to the market segments individually. The sum of average
costs was studied to obtain the market estimate for 2019
► The market was divided into the following segments:
▪ Biomass
▪ Application
18
► Through primary interviews and annual reports analysis, it was validated that in 2019, the hemp
segment held a high market share. Data mining through industry journals and white papers by
leading market players helped in finalizing the estimates.
► CBD products penetration, type availability in the market, key advantages offered, and
upcoming legalizations along with strategies implemented by market players were studied to
estimate the market share of each segment
► In product type segmentation, market shares were allotted by studying the usage of cannabis in
the country and applying the weighted average calculation to these. Along with costs, factors
such as usability ratio and penetration rate of the above-mentioned were analyzed.
► The share for segments was calculated based on the following factors:
o Cost
o Awareness
o Cost efficiency
o Product accessibility
o Reliability
o Usage rate
o Penetration (depending on the availability)
1.5 List of Secondary Sources

List of secondary sources include but are not limited to:
Table 1 List of secondary sources

Source Information Extracted
Total population
The World Health Organization (WHO) Regional population
Healthcare expenditure per capita of countries
The Organization for Economic Co- Geriatric population
operation and Development (OECD) Economic growth of developing regions
Country-wise population
United Nations Population Network
Geriatric population breakdown
Trends being followed in the hemp industry

Journals
Currently used products and their performance portfolio
Financial data
Hoover’s
Company profile
Bloomberg Revenue data
19
Strategic initiatives
National Health Services Information regarding government initiatives and regulation
Technical aspects of devices
Prices
Product Brochures Country-wise availability
Product profiling and advantages
Launch and strategic initiatives
Country wise breakdown of population, number of hospitals and

Eurostat
diseases in European countries
World Bank Population in various countries
20
CHAPTER 02 Executive Summary
The global cannabis cultivation market was valued at USD 123.9 billion in
Growing legalization 2019 and is anticipated to grow at a CAGR of 14.3%. The use of cannabis for
and adoption of medical purposes is widely being adopted in countries such as the U.S,
cannabis for
Canada, Croatia, Italy, Czech Republic, Germany, Austria, Poland, Australia,
treatment of chronic
diseases are the key Colombia, Uruguay, and Israel. Countries such as Canada, the U.S., Columbia,
factors driving the and Uruguay have gained a strong foothold in cannabis production, while
global cannabis Israel is focusing on R&D and supplying the relevant technology to other
cultivation market countries. As countries begin to liberalize laws related to cannabis, the market
is expected to witness a surge in demand.
Based on biomass, cannabis cultivation market is classified into hemp and

Hemp segment
accounted for the marijuana. Hemp segment dominated the market in 2019 with a revenue of
largest share of the USD 117.0 billion, and high efficacy of hemp-derived products is one of the
market in 2019, pivotal factors for the segment’s large share. On the other hand, marijuana
while marijuana segment is anticipated to witness the fastest growth with a CAGR of 18.8%
segment is likely to
witness the fastest
over the forecast period, owing to increasing adoption of marijuana due to its
growth in the coming medical benefits coupled with growing legalization of marijuana for medical &
years adult use, which is expected to boost market growth of this segment.
Based on application areas, the market is broadly categorized as adult

consumption, medical consumption, and industrial consumption. The largest application segment is
industrial consumption, which held a share of 93.8% in 2019, owing to growing applications of
marijuana and hemp in various industries, such as pharmaceuticals, personal care & cosmetics,
nutraceuticals, and food & beverages. On the other hand, medical consumption segment is expected
to witness the fastest growth rate over the forecast period owing to increasing need for cannabis for
treatment of chronic pain; mental disorders, such as anxiety; and sleep disorders across the globe.
Based on geography, Asia Pacific dominated the cannabis market in 2019 with a revenue of USD
51.0 billion and is expected to grow at a lucrative rate over the forecast period. This can be
attributed to presence of large hemp cultivations in the region. This is further driven by growing
legalization of marijuana for medical purposes in the region, which considerably increases product
adoption. Competition among the existing players is very high as very few companies have the
technological skill, financial power, and legal clearance to venture into large-scale
manufacturing/production of cannabis. Some players are Canopy Growth Corporation; Aphria, Inc.;
Aurora Cannabis; Tilray; The Cronos Group; Organigram Holding, Inc.; Better Holdings; Pacific
Cannabis Growers; Atlas Growers; CannTrust Holdings; and The Hydropothecary Corp. The growing
demand is expected to favor entry of several new players in the future.
21
2.1 Market Summary
Fig.8 Global cannabis cultivation market snapshot, 2019 (USD Million)
140,000.0 Segment Key facts

Region Biomass Application
North America accounts for largest share in
the legal cannabis market owing to early
Country: North America (largest
120,000.0 legalization of medical and recreational
segment)
marijuana in the country and large customer
3,212.4
pool
4,477.9
48,744.4
100,000.0
Increased adoption of cannabis-based
products coupled with rising demand of
Product Type: Hemp (largest segment)
cannabis for various medical conditions is
80,000.0 driving the demand for this segment.
117,020.7
23,513.6
123,874.2
High demand for cannabis and its derivates in
116,183.9
various applications such as pharmaceuticals,
60,000.0 Application: Industrial Consumption
nutraceuticals, personal care & cosmetics and
(largest segment)
food & beverages is anticipated to boost the
market growth.
40,000.0
51,007.3
Drivers Restraints
6,853.5
20,000.0 • Legalization for selected medical

• Growing legalization of cannabis in
37.1
indications only
571.8
various countries • Supply shortage of medical

• Increasing demand of cannabis marijuana
- driving cannabis cultivation across
the globe
• Growing legalization of medical
cannabis in various countries
Source: Industrial Journals, KOL interviews, consumer survey reports, and GVR analysis
22
Global Cannabis Cultivation Market
CHAPTER 03
Variables, Trends, & Scope

3.1 Market Segmentation
Fig.9 Global cannabis cultivation market segmentation
BIOMASS APPLICATION REGION
Hemp Medical Consumption North America
Marijuana Recreational Consumption Europe
Industrial Consumption Asia Pacific
Central & South America
Middle East & Africa
The global cannabis cultivation market has been segmented based on biomass and application. The
market, based on biomass, is segmented into hemp and marijuana. Based on its point of application,
the market is further classified into medical consumption, recreational consumption, and industrial
consumption. Based on geography, the market is segmented into North America, Europe, Asia Pacific,
Latin America, and Middle East & Africa.
23
3.2 Penetration & Growth Prospects Mapping
Fig.10 Penetration & growth prospects mapping for cannabis cultivation
Uncharted territories Segment spearhead

Growth Rate (Low to High along the axis)
Hemp Marijuana
The no go zone Mature
Market Share (Low to High along the axis)

Bubble size indicates market size
Source: GVR analysis and estimates
In 2019, the hemp segment accounted for majority of market share. The presence of favorable
regulations pertaining to hemp cultivation in various countries, such as China & India and some
European countries, which cultivate their hemp as well as hemp-based products, has supported the
growth of this segment. Industrial hemp has been a source of oilseed & fibers for ages and is used in
the production of a large variety of consumer products. There are over 30 countries that grow industrial
hemp as an agricultural crop, which is exported all around the world. The hemp segment is expected to
remain dominant and spearhead the market over the forecast period, owing to the high demand for
hemp in various applications and its nonpsychoactive property. On the other hand, the marijuana
segment is anticipated to grow at a lucrative rate, owing to the growing legalization of marijuana for
medical and adult use. However, owing to the stringent regulations for marijuana, due to the presence
of psychoactive agent THC in a higher amount, the market share of marijuana is smaller.
24
3.2.1 MARKET DRIVER ANALYSIS
Fig.11 Global cannabis cultivation market driver impact

High
Growing legalization
of cannabis in
various countries
Medium
Increasing demand
of cannabis driving
cannabis cultivation
across the globe
Low
Current impact Short-term impact Long-term impact
3.2.1.1 GROWING LEGALIZATION OF CANNABIS IN VARIOUS COUNTRIES

The cannabis market is highly regulated, and its medical & adult use is still considered illegal in most of
the countries. With medical marijuana being legalized in 30 U.S. states and ongoing political movement
supporting the legalization of medical marijuana across several other states in the U.S., many other
states are expected to legalize it. Other countries that have legalized medical marijuana are Canada,
Israel, and some countries in Europe & South America. Legalization of medical marijuana by these
countries owing to its multiple therapeutic applications is expected to promote revenue growth.
Furthermore, several countries, e.g., the Netherlands, have relaxed laws on the use of marijuana,
whereas some have decriminalized its use and are now moving toward complete legalization.
Furthermore, the demand for hemp is rapidly growing, as many developed countries have legalized the
cultivation and processing of hemp after recognizing the levels of CBD present in it, which is leading to
increased demand for hemp extracts for various application in several sectors, including
pharmaceuticals, cosmetics, nutraceuticals, and food & beverage. Hemp is regarded as an agricultural
commodity that is produced in over 40 countries. It is a strain of Cannabis sativa, part of genus
cannabis, with THC content as low as 0.3%. Countries such as China, Canada, France, Chile, South
Korea, Ecuador, Croatia, Czech Republic, Mongolia, Romania, and Russia are some of the major
producers of hemp across the world. Thus, growing legalization of marijuana and hemp in various
countries is driving the cannabis cultivation market.
25
In addition, legalization of cannabis in various geographies has also increased the adoption of cannabis
for medical purposes in those countries. For instance, in 2017, after the legalization of marijuana for
medical purposes in Germany, there was a significant increase in the number of patients opting for
medical cannabis as a treatment. According to a 2019 report published by Bank of Montreal, the
number of cannabis patients post legalization of medical cannabis in Germany increased from 1,000 to
around 30,000 to 50,000. Thus, increasing number of countries legalizing cannabis is anticipated to
lead to a rise in the number of cannabis consumers, thereby boosting cultivation of cannabis to meet
the increasing demand.
3.2.1.2 INCREASING DEMAND OF CANNABIS, DRIVING CANNABIS CULTIVATION ACROSS THE

GLOBE
The use of cannabis for medical purposes is increasing worldwide owing to recent legalizations in
various countries. Medical cannabis is used for treatment of patients suffering from chronic
conditions such as Alzheimer’s disease, Parkinson’s disease, arthritis, cancer, and neurological
conditions, such as epilepsy, depression, & anxiety. Thus, wide applications of medical cannabis
have led to an increase in its adoption for treatment of various chronic conditions. Furthermore,
high prevalence of cancer is expected to be one of the factors driving the market during the forecast
period. For instance, according to WHO, cancer is the second-leading cause of deaths globally and
was responsible for about 8.8 million deaths in 2015. In addition, growing burden of chronic pain
and increasing requirement of pain management therapies are expected to drive the demand for
cannabis over the forecast period. This is expected to lead to an increase in the cultivation of
cannabis to meet the high demand.
In addition, due to cannabis being slowly accepted in various countries, some liberal countries such
as Canada, Uruguay, and certain states of the U.S. have legalized recreational use of cannabis. As
recreational cannabis is easily available in the market at an economical price, the demand for the
same has increased exponentially. For instance, according to a survey conducted by Yahoo News
and Marist College, in 2017, there were over 55 million adults in the U.S. utilizing marijuana in any
given month. Many of these consumers used marijuana for recreational use, and there were around
2 million medical marijuana users in the country. This signifies the growing preference and demand
for recreational cannabis in the country, which is expected to impel cannabis cultivation to meet the
growing demand.
26
3.2.2 MARKET RESTRAINTS ANALYSIS
Fig.12 Global cannabis cultivation market restraints impact

High
Legalization of
medical cannabis
only for selected
indications
Medium
Supply shortage
of medical
cannabis in
various countries
Low
Current impact Short-term impact Long-term impact
3.2.2.1 LEGALIZATION OF MEDICAL CANNABIS ONLY FOR SELECTED INDICATIONS

In some countries, medical cannabis has been legalized for treatment of several indications including
glaucoma, HIV, cancer, and congenital disorders. However, despite legalization in various countries,
several countries have legalized medical marijuana only for certain indications. For instance, in Croatia,
usage of marijuana is legal among patients suffering from AIDS, cancer, multiple sclerosis, and epilepsy.
Moreover, in Queensland and Australia, medical marijuana can be only used for indications such as
severe muscle spasms, chemotherapy-induced nausea & vomiting, and epilepsy with severe seizures &
palliative care. In addition, in the Netherlands, usage of marijuana is legal among patients suffering
from AIDS, cancer, chemotherapy-induced nausea & vomiting, multiple sclerosis, neuropathic pain, and
tics related to Tourette’s syndrome. However, other chronic conditions, such as rheumatism and
Crohn’s disease, are not included in the list, despite several published positive clinical research. This
limited scope of application in several countries is expected to impede market growth and limit the
cultivation of cannabis.
27
3.2.2.2 SHORTAGE OF SUPPLY OF MEDICAL CANNABIS IN VARIOUS COUNTRIES
With legalization of medical cannabis in various countries, its demand across the globe has increased.
With this increase in demand, the supply of medical cannabis is expected to increase in the market,
boosting its cultivation. However, high demand for medical cannabis has led to a bottleneck in supply
chain in various countries. This is primarily due to significant increase in cannabis demand and
cultivation ban in the countries. For instance, there was shortage across Pennsylvania 2 weeks into the
sale of medical cannabis. Moreover, lucrative markets such as Germany face shortage of medical
cannabis, which compels patients to pay higher prices. For instance, in 2019, according to Bank of
Montreal, patients in Germany were paying higher average prices than Canadian patients. This higher
price may be due to the shortage in supply. Thus, supply of medical cannabis is inadequate with respect
to its high demand, which is expected to hinder market growth.
3.2.3 MARKET CHALLENGES

3.2.3.1 ILLICIT CANANBIS TRADE
With legalization of cannabis in various countries, its demand across the globe has increased. With the
hype created with respect to cannabis, its demand was expected to increase significantly after its
legalization. Cannabis businesses in the legalized states of the U.S. produced/cultivated in anticipation
of this exponential increase in demand. However, the demand has not increased at the expected rate in
these states. This has created cannabis surplus in states of California and Colorado. For instance,
according to California Department of Food and Agriculture, the state produces around 15.5 million
pounds of cannabis when compared to consumption of just 2.5 million pounds. Moreover, interstate
export of cannabis in the U.S. is prohibited. Therefore, this cannabis surplus is exported to other states
via illicit channels. These factors aid in growth of illicit cannabis trade, ultimately hampering the legal
cannabis market in the U.S. In addition, many other countries are witnessing growth of illicit cannabis
market. For instance, according to Statistics Netherlands, around 20% of illegal cultivators of cannabis
were caught in 2015. This is a significant percentage and better legalization laws regarding cannabis
can help in curbing illicit cultivation market.
In addition, there are ambiguous cannabis cultivation laws, which require countries, such as Germany,
to import cannabis from countries such as Canada & the Netherlands. This leads to high cannabis
import costs, which reflects as the final cannabis pricing in the retail market. This is expected to drive
consumers to seek illicit channels of cannabis, which would sell cannabis at much cheaper rates. This is
anticipated to hinder cannabis cultivation market in such countries, even if the drug has been legalized
for medical use.
3.2.3.2 THE WIDENING DEMAND AND SUPPLY GAP

The demand and supply gap of cannabis is expected to widen in the coming years. However, by the end
of 2027, it is expected to reach saturation and the scenario is anticipated to remain the same for the
next few years. The supply of cannabis is expected to witness steady growth during the forecast period
due to increasing number of players in the market. Furthermore, constantly improving (well-defined)
regulatory framework and development of novel production technologies (hydroponic growing systems &
growing chambers) & drying & curing technologies are factors expected to bridge the demand–supply
gap.
28
According to our research, currently, the demand for cannabis outpaces the supply. This scenario is
expected to remain the same for the next few years. The demand for cannabis is expected to witness
saturation and its growth rate will start to decline in the latter half of the forecast period. This would be
a result of indigenous production in various countries, which will increase the supply, providing the
market with enough products to meet the demand. Various countries have started producing marijuana,
and it is estimated that they will start cultivating cannabis domestically in the next few years. This is
expected to help reduce the dependence on imports, boosting the supply of domestically cultivated
cannabis. In addition, growing legalization of hemp for CBD production is further expected to boost the
supply owing to growing number of businesses using hemp for producing high-quality extracts & finished
goods. This growing demand and limited penetration are among the factors anticipated to create growth
opportunities for hemp producers worldwide.
Moreover, countries such as Israel, Colombia, and Uruguay are expected to be some of the leading
marijuana exporters during the forecast period. In addition, the 2018 Farm Bill legalized the production
of hemp in the U.S. with some set regulations and parameters, which is expected to boost the supply of
hemp in the coming years. Some European and Asian countries have started producing cannabis, which
is anticipated to lead to robust growth of ancillary businesses, such as cannabis processing, supply &
distribution, R&D, legal, & consulting, in the next few years.
Therefore, the demand and supply disparity are expected to reduce soon, thereby boosting growth of
the market in the coming years.
29
3.3 Global Cannabis Cultivation Regulatory Scenario, by country
3.3.1 U.S.
3.3.1.1 OVERVIEW
• Legalization of marijuana varies across states in the U.S. As of January 2020, marijuana for
recreational use has been legal in various states of the U.S., including Vermont, Washington,
Alaska, Colorado, Massachusetts, Maine, California, Michigan, Nevada, Oregon, and the District
of Columbia.
• Medical marijuana is legal in 29 U.S. states. However, use of marijuana is illegal at a federal
level, thus, most of the banks are recommended to not have any involvement with companies
engaged in marijuana-related businesses.
• In November 2019, the House Judiciary Committee approved a bill that removed marijuana from
Schedule 1 of the Controlled Substances Act at the federal level in the country.
3.3.1.2 CULTIVATION
Laws pertaining to cultivation of marijuana vary across the U.S. states. States such as California,
Nevada, Oregon, Washington, Massachusetts, and Michigan are the top marijuana cultivators. In
addition, home cultivation laws differ from state to state. According to Arizona state laws, the cultivation
of cannabis is permitted only for medical purposes and at a time up to 12 plants can be grown.
3.3.1.3 REGULATORY BODIES INVOLVED

The FDA and the Drug Enforcement Administration (DEA)
3.3.2 CANADA
3.3.2.1 OVERVIEW
Marijuana for medical and adult use has been approved in the country
3.3.2.2 CULTIVATION
• According to Cannabis Regulations in Canada, entities are required to obtain a license for
cultivation, processing, analytical testing, and sale of cannabis as well as for research on
cannabis. These licenses are stated in paragraph 8(1) of the Cannabis Regulations of Canada.
There are three types of cultivation licenses: licenses for micro cultivation, standard cultivation,
and a nursery.
• According to paragraphs 11(1) & 14(1) of the Cannabis Regulations of Canada, a license holder
for standard cultivation, micro cultivation, or nursery of cannabis can:
o Possess cannabis
o Obtain different types of cannabis, such as cannabis plants, dried cannabis, & plant
seeds by cultivation, propagation, and harvesting of crude cannabis
o Test plants to obtain cannabis by altering their physical & chemical properties
o Legally sell cannabis
30
3.3.2.3 PRODUCTION
• According to paragraphs 11(5)(a)(ii) and 14(5)(a)(ii) of the Cannabis Regulations of Canada, a

license holder for standard cultivation, micro cultivation, or a cannabis nursery, whose license
authorizes the sale of cannabis, can sell & distribute cannabis plant and seeds to other license
holders for processing, micro- or standard cultivation, analytical testing, and research.
• The standard process for license and cannabis cultivation:
o According to paragraph 17(1), a standard license holder for cannabis processing can:
▪ Possess cannabis
▪ Produce cannabis other than obtaining it from cultivation, propagation, or
harvesting
▪ Sell cannabis
o According to paragraph 17(2), a micro cultivation license holder for cannabis processing
can:
▪ Possess cannabis
▪ Produce cannabis other than obtaining it by synthesis or cultivation, propagation,
and harvesting
▪ Sell cannabis
o According to paragraph 28(1), a license holder for research is also authorized to produce
cannabis. In addition, production of cannabis is regulated by good production practices,
according to part 5 of Cannabis Regulations of Canada. This includes general provisions
for sale, distribution, exportation, Standard Operating Procedures (SOPs), pest control
products, storage, filtration of air, equipment, sanitation, quality assurance, and other
procedures used in production of cannabis.

The regulatory bodies involved in Cannabis Regulations of Canada are subsections of Controlled Drugs
and Substances Act, Food and Drugs Act, and Cannabis Act.
3.3.3 UK
3.3.3.1 OVERVIEW
Cannabis is a class II drug in the UK; thus, its possession, sale, and import & exports are prohibited. In
November 2018, cannabis was legalized in the country for medical purposes, thus cannabis can be
procured on prescription basis in the UK.
3.3.3.2 CULTIVATION/PRODUCTION
• It is an offense to cultivate any plant belonging to the genus cannabis, except in case of home
rule license.
• In the UK, two separate licenses are provided for cannabis cultivation, depending on the variety
of cannabis that is being cultivated.
31
• According to the Home Office policy, licenses may be issued for cultivation of cannabis with low
Tetrahydrocannabinol (THC) content. In addition, this policy is only valid for the noncontrolled
parts of the cannabis plant, which includes fiber and hemp seeds for commercial purposes.

NHS England and the Advisory Council on the Misuse of Drugs (ACMD)
3.3.4 GERMANY
3.3.4.1 OVERVIEW
Medical marijuana is legal in the country; however, its consumption for adult use is illegal. Medical
marijuana can be obtained only through a doctor’s prescription.
The government legalized marijuana in 2017 and established the National Cannabis Agency as part of
the German Federal Institute for Drugs and Medical Devices (BfArM). The government initiated a tender
process through which companies could apply for a cultivation license.
The tender process comprised two steps:

• The applicant had to qualify for cultivating cannabis in Germany
• The applicant had to demonstrate the ability to cultivate cannabis in Germany
Later, there were minor changes in the tender process, which led to disqualification of existing
applicants as they could not meet the new preconditions in the given duration. Therefore, in March
2018, the BfArM was ordered to stop the tender.
In July 2018, BfArM’s cannabis agency established a new one-step application process. Applicants of
the first tender process could now use their previous documents for obtaining license. The precondition
for application was changed by BfArM, with need for a referral from experts changed to requiring
experience in growing and processing of medicinal plants.
The National Cannabis Agency further increased the quantity of cannabis that could be cultivated
annually, from 1,000 kg per year to 2,600 kg per year. This new law increased access to cannabis and
favors domestic production.

The BfArM—a regulatory agency in Germany—oversees cannabis application processes as prescribed by
international drug treaties.
32
3.3.5 ITALY
3.3.5.1 OVERVIEW
• Marijuana is legal in the country for medical and industrial purposes. However, possession of
marijuana for adult use is still illegal in the country.
•
• Physicians in the country provide patients with prescriptions for marijuana, which must be
bought from a licensed pharmacy.
• The ministry of health allows the production, sale, export, and purchase of cannabis, along with a
list of licensed cannabis companies. Initially, cannabis was imported from the Netherlands by the
Office of Medical Cannabis. In 2016, the local production of cannabis began in the Military
Pharmaceutical Establishment located in Florence. Cannabis-based medicines, such as
dronabinol, nabilone, and Sativex, are produced in the country.
3.3.5.2 CULTIVATION
Italy does not allow patients to cultivate marijuana; however, they can carry medical cannabis. In 2019,
the Supreme Court of Italy announced that cultivation of marijuana on a small scale for personal use is
permitted.

The Superior Health Institute monitors prescriptions and annual data on patients using cannabis, while
the State Cannabis Organization evaluates the amount of cannabis required for the next year.
3.3.6 THE NETHERLANDS

3.3.6.1 OVERVIEW
• The use or sale of cannabis is illegal in the country. However, it has been legalized for medical
purposes.
• Legal marijuana can be purchased and consumed by adults in the country only in licensed coffee
shops. These coffee shops need to follow certain rules while selling marijuana to consumers:
o They cannot sell more than 5 grams of cannabis per day, per person
o Sale of marijuana to a minor is not allowed
o They should have a trade stock less than 500 grams
o Sale of alcohol in coffee shops is not allowed
o Selling marijuana to tourists is not allowed
3.3.6.2 CULTIVATION
• Cannabis cultivation is illegal in the country; however, cultivating five plants for personal use, per
person is decriminalized
33
• Anyone found cultivating a higher number of plants can be sentenced to several years of
imprisonment
• Sale and purchase of cannabis seeds is legal in the country.
• Recently, parliament member Vera Bergkamp put forth the legislation regarding legalization of
cannabis cultivation, which was approved in the lower house. As of April 2021, it is approved by
the upper house of the parliament in the Canada and Uruguay, with an uncertain result. If the
cultivation of cannabis is legalized, the number of cultivators in the Netherlands would increase,
reducing end-user dependence on black markets.

The Office of Medical Cannabis (OMC) is the government authority responsible for production of
cannabis for scientific medical & purposes in the country. It also distributes medical cannabis to
universities, pharmacies, and research institutes.
3.3.7 CZECH REPUBLIC

3.3.7.1 OVERVIEW
• Medical marijuana has been legalized in the country since December 2012 and is provided on
prescription
• It is decriminalized in the country for adult use as carrying around 10 grams of marijuana or
cultivating around 5 plants is allowed in the country.
Although the country legalized medical cannabis in 2013, there is no clear process to acquire licenses
for production, sale, or purchase of cannabis products. Therefore, there is uncertainty about the scope
and potential of legalization. It is prohibited to cultivate more than 5 plants per individual for private
consumption.

The Government Council for Drug Policy Coordination (GCDPC) coordinates and formulates marijuana
drug policy in the country.
3.3.8 CROATIA
Cultivation of cannabis for recreational purposes is banned in Croatia; however, use of medical
cannabis is legal in the country. Furthermore, in April 2019, Amendments to the Act on Combating
Drugs Abuse led to liberalization of cultivation and production of cannabis with low THC content for
medical purposes only in the country.
In addition, as of February 2020, a bill for legalization of cannabis for recreational purposes has been
proposed in front of the Croatian Democratic Union. The bill will allow cultivation of nine cannabis plants
with high THC content for private or personal use. However, the final decision is pending, and the bill
has been put forth for debate in the Union.
34
3.3.8.2 REGULATIONS FOR PATIENTS
• Patients with prescription from doctors can possess marijuana, but it should only be in oil,
topical, edible, or tea form
• Cannabis use is allowed for medical conditions such as:

▪ Cancer
▪ Multiple sclerosis
▪ AIDS
▪ Epilepsy

The Ministry of Health is responsible for regulating cannabis-related activities, such as its import and
consumption.
3.3.9 SWITZERLAND
3.3.9.1 OVERVIEW
Adult use of marijuana is illegal in the country. However, purchase and consumption of marijuana with
low THC levels has been decriminalized for medical as well as recreational use. Citizens who consume
marijuana illegally face a fixed penalty of USD 102.79. However, there is no penalty on possessing up to
10 grams of marijuana.
• Medicinal cannabis is produced in Switzerland by domestic cultivators or is acquired through

imports
• Special permission is required for manufacturing cannabis products that have THC content of
more than 1%
• Cannabis cultivation for personal use is permitted in the country with restrictions on THC content
up to 1%. In addition, industrial hemp cultivation is permitted in the country, with certain
restrictions.

The Federal Office of Public Health (FOPH) grants permission for use of marijuana in the country.
Furthermore, the Swiss Agency for Therapeutic Products (Swissmedic) also responsible for marijuana
regulations in the country.
3.3.10 FRANCE
3.3.10.1 OVERVIEW
• Recreational use of marijuana is illegal in the country. However, the use of cannabis for medical
purposes has been legalized.
• The possession of cannabis for personal or recreational purposes is considered a criminal
offence and the offender is liable to pay a heavy fine & may face imprisonment of up to 1 year.
35
• Cultivation of cannabis for any purpose, medical, personal, or recreational, is strictly prohibited in
the country
• In France, cultivation, import, export, industrial, and commercial use of the Cannabis sativa L.
varieties with less than 0.2% THC content is legal
• The determination of delta-9-THC content should be carried out in accordance with the European
Community method.

The National Agency for the Safety of Medicines (ANSM) is responsible for the regulation of safety of
medicines and other health-related products.
3.3.11 SPAIN
3.3.11.1 OVERVIEW
• Adult or recreational use of marijuana is decriminalized in the country. However, possession or

utilization of cannabis at public places is prohibited.
• The autonomous community of Catalonia, Spain, has different laws pertaining to cannabis. In
2017, the Catalonian government sanctioned consumption, distribution, and cultivation of
cannabis for members of designated clubs.
• In January 2018, Ministry of Health granted permission to five companies to grow cannabis for
therapeutic and research purposes
• The Spanish Agency for Medicines and Health Products (AEMPS) has permitted Alcaliber to
cultivate, manufacture, import & export, distribute, & trade Cannabis sativa and its products
• The agency has also permitted DJT Plants Spain S. L. to produce and export seeds and cuttings
of cannabis plants.
• Cannabis cultivation for personal use is permitted in the country. Cultivation at a private space
and in limited quantities is allowed. However, the exact number of plants permitted is not
specified.

The Spanish Agency of Medicines and Health Products (AEMPS), Ministry of Health
3.3.12 AUSTRALIA
3.3.12.1 OVERVIEW
Australia approved the use of marijuana for medical purposes in 2016, but the country is still at a
standstill in terms of legalizing it for recreational use.
36
3.3.12.2 CULTIVATION
• According to the Office of Drug Control (ODC) under the Department of Health, the country grants
licenses to individual cultivators of cannabis. As the cultivation scheme is new, sponsored import
of cannabis is still allowed via licenses.
• The laws for cultivation differ from state to state. For instance, in South Wales, the penalty for
cultivation is decided based on number of plants, irrespective of size & strain, while in Tasmania,
possession of any controlled plants is considered an offense.
• Moreover, there is no set limit to medical cannabis license grants that can exist. However, a
license will only be granted to a cultivator or producer who will be supplying cannabis to a
manufacturer with ODC medicinal cannabis manufacturing license or to a researcher who has
appropriate authorization for research purposes.
• The laws for cultivation differ from state to state. For instance, in South Wales, the penalty for
cultivation is decided based on number of plants, irrespective of size and strain.

Regulatory bodies involved are the Office of Drug Control (ODC) within the Federal Department of Health
and the Therapeutic Goods Administration (TGA). Other state and territory government departments are
also responsible for regulation of cannabis.
3.3.13 NEW ZEALAND

3.3.13.1 OVERVIEW
Marijuana was classified as an illegal drug under the Misuse of Drugs Act 1975 in the country.
Possession, usage, and supply of the drug were subject to penalties ranging from fines to years of
imprisonment. The use of medical cannabis has been legalized in New Zealand since December 2018,
when the government passed a law to make medical cannabis available to the large patient population
suffering from chronic pain. However, its usage for recreational purposes is tightly regulated in the
country, but the government planned to hold a referendum in November 2020 to legalize it for
recreational use.
Currently, only one cannabis-based medicine, i.e., Sativex, has been approved for doctors to prescribe
to authorized patients. Other medical cannabis products need approval from the Ministry before they
are prescribed to patients.
The cultivation of marijuana has still not been legalized in the country. However, commercial cultivation
& manufacturing of cannabis and its products as per license is anticipated to commence from April 1,
2020, under The Misuse of Drugs (with respect to Medicinal Cannabis) Regulations 2019. This
regulation is expected to replace The Misuse of Drugs Act of 1975 and the Medicines Act of 1981.

The Ministry of Health (New Zealand) and the New Zealand Medical Cannabis Council (NZMCC)
37
3.3.14 THAILAND
3.3.14.1 OVERVIEW
• Thailand has legalized marijuana in the country for medical and research purposes since it
passed a bill in December 2018. It is now planning to produce and distribute marijuana for
patients and medical practitioners who want to prescribe it.
• Marijuana products can be exported from the country. In addition, local and foreign travelers in
the country can also access medical marijuana.
• In September 2019, the researchers of Northern Thailand’s Maejo University planted 12,000
marijuana seedlings from a newly developed strain of marijuana—Issara—in their medical
marijuana facility at Chiang Mai. The seeds of these plants were provided by the Department of
Medical Service.
• Moreover, the government is planning to allow the local population to grow six cannabis plants in
their backyard like any other herb.

Thai Food and Drug Administration (FDA)
3.3.15 JAPAN
3.3.15.1 OVERVIEW
Production, sale, and possession of medical marijuana products is illegal in the country. Sale and
possession for recreational purposes is also illegal. Anyone found in possession of the drug may be
punished for up to 10 years and a certain amount of fine can be imposed. However, Cannabidiol (CBD)
oil is legal in the country, which has led to a significant increase in its consumption. In addition, to be
sure about the THC content in CBD oil, the government urges citizens to buy oil produced within the
country.
Cultivation of marijuana is strictly prohibited in the country

Japanese Medical Marijuana Association
38
3.3.16 SOUTH KOREA
3.3.16.1 OVERVIEW
South Korea is the first country in East Asia to legalize medical cannabis. This was done in November
2018 to grant access to the patient population in the country. However, the law enabling import of few
cannabis drugs—Epidiolex, Marinol, Sativex, & Cesamet—came into effect in March 2019, when the
government allowed import for patients suffering from conditions such as multiple sclerosis, cancer,
epilepsy, and HIV/AIDS. The country is planning to expand the indications of medical cannabis.
The government has not yet taken any decision pertaining to cannabis production & cultivation and is
planning to import medicine from foreign countries to meet the increasing demand. As cannabis drugs
would be imported, it is a major opportunity for foreign companies, such as Tilray, Aurora Cannabis, and
Canopy Growth Corporation, to establish trade in the country.

Ministry of Food and Drug Safety (MFDS) and Korea Cannabinoid Association
3.3.17 CHINA
3.3.17.1 OVERVIEW
Adult use of marijuana is illegal in the country. In addition, the use of cannabis for medical purposes is
strictly prohibited.
• The Chinese government strictly prohibits the cultivation of cannabis or marijuana for
medical as well as recreational purposes. Furthermore, it is illegal to cultivate cannabis at
home for personal or private use.
• China is the largest hemp cultivator in Asia, producing nearly half of the world’s hemp. The
country exports nearly 90% of its produce to the U.S., Germany, the UK, the Netherlands, and
Japan.
• China has a long tradition with respect to cannabis and its derivatives. The recent trends in
CBD industry encouraged China to enter the lucrative market. Regarding this, China has
allowed cultivation of hemp in three provinces—Yunnan, Heilongjiang, and Jilin.
• Yunnan and Heilongjiang province of China are allowed to cultivate hemp and process for
CBD production under strict government supervision.

China’s Ministry of Agriculture and Rural Affairs (MARA) and the Ministry of Public Security of China
39
3.3.18 INDIA
3.3.18.1 OVERVIEW
• Adult use of cannabis as well as medical use of cannabis are prohibited in India. However, the
use of Bhang during religious festivals such as Holi poses an ambiguity to the current status of
cannabis law in the country.
• In addition, according to Narcotic Drugs and Psychotropic Substances Act of India, the
possession and use of cannabis is strictly illegal in the country.
In 2018, Uttarakhand sanctioned cultivation of hemp for commercial purposes. Later, Uttar Pradesh
became the second state to legalize cultivation of hemp for commercial purposes.
The cultivation of cannabis in the country is only allowed for research, scientific, or industrial purposes.
With respect to cultivation of cannabis even for these purposes, a formal permission from the Indian
government is necessary. However, illegality of cultivation of cannabis becomes a bit ambiguous, since
the plant grows abundantly in the wild regions of the country, such as Himachal Pradesh.

The Indian Industrial HEMP Association (IIHA) and Food Safety and Standards Authority of India (FSSAI)
3.3.19 COLOMBIA
3.3.19.1 OVERVIEW
The medical use of cannabis is legal in Colombia since 2015. The country has decriminalized the use of
cannabis for recreational purposes.
Cultivation for Personal Use
• In Colombia, a person can grow up to 20 plants (per residence) for personal use and is not
allowed to sell it. The cultivation of more than 20 cannabis plants is a punishable offence with
64 to 108 months in prison. Above this number of plants, the prison sentence is 96 to 216
months.
Cultivation for Commercial Use:
• The Colombian government has pioneered in establishing four types of licenses that can be
issued to cultivators. The cannabis that is cultivated in Colombia is only for products to be sold in
the form of oils & creams in the country and not as flowers.
• In Colombia, there are four types of licenses:
• Licencia de fabricación de derivados de cannabis (Ministerio de Salud)
o This license is obligatory for cannabis cultivation
• Licencia de uso de semillas para siembra (Ministerio de Justicia)
40
o This license is required to possess cannabis seeds
• Licencia de cultivo de plantas de cannabis psicoactivo (Ministerio de Justicia)
o The license is mandatory for the cultivation of psychoactive plants. It includes:
▪ Production of seeds
▪ Manufacturing derivatives
▪ Scientific purpose
▪ Storage purpose
• Licencia de cultivo de plantas de cannabis no psicoactivo (Ministerio de Justicia)
o This particular license is required for cultivation of the nonpsychoactive plants. It
comprises the following:
▪ Production of seeds
▪ Grain production
▪ Manufacturing derivatives
▪ Scientific purpose
▪ Storage purpose

The Colombia National Food and Drug Surveillance Institute (INVIMA) and the Office of Control and
Oversight of Chemical Substances and Drugs are involved in regulating the use as well as distribution of
cannabis in Colombia.
3.3.20 MEXICO
3.3.20.1 OVERVIEW
The recreational or adult use of cannabis is strictly prohibited in the country. However, medical cannabis
was made legal in Mexico in 2017, as the bill legalizing it received support in both the Mexican House of
Representatives and its Senate.
Cannabis for Patients
• Patients in Mexico can avail medical cannabis under the medical marijuana program
• The Ministry of Health, which is commissioned by the Mexican government, is responsible for
creating regulations and other criteria for the program
• The major stipulation laid out in this program is that all medical marijuana must contain less
than or equal to 1% of THC
• The program is in development phase, hence the Federal Commission for the Protection Against
Health Risks (COFEPRIS) grants permits to laboratories to produce marijuana-based medications
• Patients who need medical marijuana must obtain prescription from a qualified physician
• The prescription is valid for a short duration and needs renewal
41
The health licenses for cultivation, harvesting, and production of cannabis in the Mexican territory are
exclusively limited to medical & research purposes. The laws pertaining to cannabis in Mexico are not
that well-regulated and go through a secondary regulation by Federal Commission for the Protection
against Health Risks. Cannabis can be only imported in Mexico for medical purposes or for scientific
research.
The Cannabis Law Bill permits each shareholder to produce a maximum of 480 gm of cannabis per
year. Similarly, individuals who are interested in medical cannabis can grow up to 20 cannabis plants,
which should not exceed 480 gm per year on private property in Mexico.

The regulatory bodies involved for Cannabis Regulations in Mexico are Federal Commission for
Protection against Sanitary Risks (COFEPRIS) and Mexican Institute of Cannabis (IMCANN).
3.3.21 URUGUAY
3.3.21.1 OVERVIEW
Adult or recreational use and medical use of cannabis is legal in the country. Uruguay is the first country
in the world to legalize cannabis for both medical and recreational purposes.
Cannabis Possession
• Cannabis is available to citizens who are 18 or above through government-run pharmacies

• An individual can purchase up to 40 grams per month from these pharmacies
• As per the new regulations, the new limit is 10 grams per week
• Pharmacies are not allowed to advertise or promote cannabis to public
Cannabis Cultivation for Personal Use
• Each Uruguayan citizen can grow up to six plants at home

• These plants should not yield more than 480 grams (17 ounces) of marijuana per year
Cannabis Cultivation for Commercial Use
• There are only two approved and commercially available strains of cannabis with a THC limit of
9%
• As of 2018, there were only two producers in the market, resulting in shortage of cannabis. Thus,
the government decided to allow other cultivators to enter the market.
• In February 2019, the officials initiated issuing applications for producers to grow marijuana for
commercial or industrial purposes
• The approved growers have a quota of production of 2,000 kilograms annually of dried flowers,
and growers were to be assigned about 3 hectares of government-owned land for cultivating
cannabis
42
• In addition, as per the law, cultivation should be undertaken indoors in the country.

The Institute for the Regulation and Control of Cannabis (IRCCA)
3.3.22 CHILE
3.3.22.1 OVERVIEW
Chile currently does not have any medical cannabis program. Instead, it allows patients to get medical
cannabis if they have a prescription for it. Pharmacies are the only source of medical cannabis in the
country. Furthermore, the personal or private use of cannabis has been decriminalized since 2005.
Cultivation for Personal Use
Patients who cannot afford to buy medical cannabis can grow a small amount of cannabis in their
homes, although the regulations regarding at-home cultivation are somewhat unclear in the country.

The Public Health Institute (ISP), Ministry of Health is responsible for enforcement of regulations
regarding pharmaceutical products, including medical devices & biologics.
3.3.23 ISRAEL
3.3.23.1 OVERVIEW
The recreational use of cannabis is illegal and strictly prohibited in the country. However, the utilization
of cannabis for medical purposes is permitted in Israel. Furthermore, possession of any kind of harmful
drug, including cannabis, is prohibited in the country. The exception to this is the cannabis provided by
an authorized medical professional.
The licenses for cannabis cultivation in Israel will be approved by Israel’s Health Ministry and the police.
Israel has launched medical marijuana program that aims at providing patients relief from several
medical conditions. In addition, the cultivation of cannabis is considered an offence by the Drugs
Ordinance. In 2017, the severity of the offence of cultivation of cannabis for personal use was reduced,
however, it remains a violation of law.

The Ministry of Health – the IMCA
43
3.3.24 SOUTH AFRICA
3.3.24.1 OVERVIEW
The recreational use of cannabis is decriminalized in the country. However, the utilization of cannabis
for medical purposes is legal and permitted in South Africa. Furthermore, in 2018, the constitutional
court of South Africa announced that possession and consumption of cannabis for personal use & in
private will be allowed in the country. The use of cannabis and its consumption in public places remains
an offence.
In 2018, the cultivation of cannabis for personal purposes was sanctioned in the country and it should
be limited to personal use or for private consumption. However, the exact quantities are not mentioned
by the government.

The government of South Africa and Cannabis Development Council of South Africa (CDCSA) are
organizations responsible for creating a framework for production of cannabis. Furthermore, the
organization is responsible for assisting the government in policymaking.
44
3.4 Global Cannabis Cultivation Market – PESTLE Analysis
Fig.13 Global cannabis cultivation market – PESTLE analysis
Strengths: Presence of favorable government initiatives to decriminalize and legalize the use of cannabis for
medical issues is a strong driver of the market. In the U.S., over 30 states have legalized the use of medical cannabis, and in EU more than
5 countries have legalized the use of medical cannabis. Favorable government initiatives and increasing demand aid in increasing cannabis
cultivation
Opportunities: The market demand is expected to surge rapidly due to changes in government policies. Several new start-ups
Political & Legal are venturing in the research & development and manufacturing of the cannabis. The number of applications for which
cannabis is prescribed are expected to increase, thereby opening up new revenue channels for the players.
Threats: Presence of stringent quality standards, import & export regulations, and licensing restrictions are expected to hamper
cannabis growth prospects
Strengths: Growing awareness about the benefits of medical cannabis and a positive social acceptance are encouraging several
new patients to include medical cannabis in their treatment regime which is ultimately requiring increase in production.
Weaknesses: Low social acceptance in Asian & Middle Eastern economies and criminalization of the drug as a narcotic substance is a
key factor restraining market growth. Moreover, high legal and regulatory hurdles also favor the illegal trade which sponsor criminal
Economic activities
Opportunities: Growing collaboration between the federal government and the state governments in the U.S. can be considered as
a major step in opening up the market for more number of patients. The growing disposable income levels also enable the
patients to have access to high quality products. Also, cultivation in Latin American countries is expected to increase exponentially owing to
cheap labor costs and affordable cannabis prices. This is anticipated to make countries such as Colombia, global exporters of the cash crop.
Strengths: The rapid changes in agricultural automation are expected to result in higher yield & quality and reduction in wastage of
resources. Increase in yield quantity and quality are also expected to put the prices on the upward trend to some extent.
Weaknesses: Since the market is highly niche, the involvement of private players with respect to technology, is not growing at a significant
Technological pace
Opportunities: Improvement in technology transfer and Intellectual Property Rights (IPR) policies can significantly enhance cross-border
trade and open up the market for several new players.
Source: GVR analysis
45
3.5 Industry Analysis – Porter’s
Fig.14 Global cannabis cultivation market – Porter’s Analysis
THREAT OF NEW ENTRANTS: MODERATE

BARGAINING POWER OF BUYERS : LOW COMPETITIVE RIVALRY : HIGH
Threat of new entrants is expected to be moderate

during short term and can have a higher impact over Bargaining power of buyers is anticipated to remain Industrial rivalry is expected to remain high among the
the long term. Due to legalization of cannabis for low. As cultivation, procurement, and distribution of market participants. The cultivation market is
medical use in various countries, the market is cannabis is authorized and controlled by government expanding at a rapid pace as more number of states in
expected to witness a sharp spike in demand over the agencies, the patient needs to obtain a prescription the U.S., and countries such as Germany & Australia,
next few years. Furthermore, on account of the various from the physician for procuring limited quantity of the legalize medical use of cannabis. The first movers in
barriers in cross-border trade, the entry of new regional cannabis or its derived products. The prices of these the market are expected to capitalize by increasing
players is expected to favor the reduction of prices, products have a similar range owing to limited number their regional presence and secure market share.
improve the supply, and boost the consumption over of distributors and strict regulations.
the next few years. This, in turn will increase the
number of new entrants in the market.
THREAT OF SUBSTITUTES : LOW BARGAINING POWER OF SUPPLIERS: LOW
The threat of substitutes in this market is expected to The bargaining power of suppliers is expected to
remain low over the forecast period. Medical cannabis remain low over the forecast period, as the suppliers
itself is used as a suitable alternative to other drugs typically enter in long-term and predetermined
such as opioids & codeine. Synthetically manufactured contracts with the cultivators associated with federal
cannabinoids are viewed as internal substitutes for and state governments of countries. Moreover,
cannabis. However, their adoption is anticipated to advancements in technology required for cannabis
remain low. Therefore, the threat of substitutes is cultivation is expected to somewhat increase the
expected to remain low. supplier power in coming years.
Source: GVR analysis
46
3.6 Opportunity Analysis (2016-2020-2027)
Fig.15 Opportunity analysis (USD Million)
400,000.0
350,000.0
358,764.9
300,000.0
250,000.0
200,000.0 Opportunity
Growth
USD 234,890.7 Mn
150,000.0 USD 44,229.4 Mn
100,000.0 123,874.2
79,644.8
50,000.0
-
2016 2019 2027
The market is estimated to grow at a CAGR of 15.8% from 2016 to 2019 with an incremental
opportunity of USD 44,229.4 million. The market is further expected to grow at a CAGR of 14.2% from
2019 to 2027 with an incremental opportunity of USD 234,890.7 million.
47
3.7 Producer/Cultivator Selling Price Analysis, 2019 and Future Trends
Table 2 Average price of marijuana per mg, by country, 2019 – 2026 (USD)
2019 2020 2021 2022 2023 2024 2025 2026 2027
Country
E F F F F F F F F
U.S. 0.004 0.004 0.003 0.003 0.003 0.003 0.003 0.003 0.002
Canada 0.007 0.007 0.007 0.007 0.007 0.007 0.007 0.006 0.006
UK 0.006 0.006 0.006 0.005 0.005 0.005 0.004 0.004 0.004
Germany 0.003 0.003 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Italy 0.007 0.007 0.006 0.006 0.005 0.005 0.005 0.004 0.004
Czech Republic 0.003 0.003 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Netherlands 0.014 0.010 0.010 0.010 0.010 0.010 0.010 0.010 0.010
Switzerland 0.013 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.004
Australia 0.023 0.019 0.016 0.014 0.013 0.012 0.011 0.011 0.011
Thailand - 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050
Mexico 0.006 0.006 0.006 0.006 0.006 0.006 0.006 0.005 0.005
Chile 0.005 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004
Colombia 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Uruguay 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.000 0.000
Israel 0.002 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001
Source: Primary Interviews, Grand View Research
48
Table 3 Average price of hemp per mg, by country, 2019 – 2026 (USD)
2019 2020 2021 2022 2023 2024 2025 2026 2027
Country
E F F F F F F F F
U.S. 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
Canada 0.003 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002
UK 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Germany 0.007 0.007 0.006 0.006 0.006 0.006 0.006 0.006 0.006
France 0.005 0.005 0.005 0.004 0.004 0.004 0.004 0.004 0.004
Italy 0.005 0.005 0.005 0.004 0.004 0.004 0.004 0.004 0.004
Czech Republic 0.009 0.008 0.007 0.006 0.006 0.006 0.006 0.006 0.006
Croatia 0.007 0.007 0.006 0.006 0.006 0.006 0.006 0.006 0.006
Netherlands 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.002
Spain 0.005 0.005 0.005 0.004 0.004 0.004 0.004 0.004 0.004
Switzerland 0.002 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001
China 0.005 0.005 0.004 0.004 0.004 0.004 0.004 0.004 0.004
Japan 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003
India 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090
Australia 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004
New Zealand 0.005 0.005 0.005 0.005 0.004 0.004 0.004 0.004 0.004
South Korea 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001
Thailand - 0.025 0.025 0.025 0.025 0.025 0.025 0.025 0.025
Chile 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001
Colombia 0.002 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001
Uruguay 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001
Israel 0.040 0.037 0.035 0.034 0.032 0.032 0.031 0.030 0.030
South Africa 0.007 0.007 0.007 0.007 0.007 0.007 0.007 0.007 0.007
49
Cannabis Cultivation Market: Biomass Estimates &
CHAPTER 04
Trend Analysis
Fig.16 Cannabis cultivation market, biomass outlook: Key takeaways
Product Type Segment Product Type Segment Trends
350,000.0
300,000.0
• Revenue estimates at USD
117,020.7 Mn in 2019
Hemp • Expanding at CAGR of 13.9% 250,000.0
between 2020 to 2027
Revenue (USD Mn)

200,000.0
150,000.0
100,000.0
• Revenue estimates at USD 50,000.0

6,853.5 Mn in 2019
Marijuana • Expanding at CAGR of 18.8%
between 2020 to 2027
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Year
Marijuana Hemp
50
4.1 Cannabis Cultivation Market: Biomass Movement Analysis
Based on biomass, the cannabis cultivation market is classified into hemp and marijuana. Hemp
segment dominated the market in 2019 with a revenue of USD 117,020.7 million. The increasing
adoption of hemp & hemp-drived products and growing acceptance of hemp among the users due to its
low THC content is driving the demand for this segment. On the other hand, marijuana segment is
expected to witness the fastest growth with CAGR of 18.8%, owing to the growing legalization of
marijuana in various countries for medical and adult use along with a high patient base.
Fig.17 Cannabis cultivation market: biomass movement analysis (2019 & 2027) (USD Million)
High
Marijuana segment: Overall gain of

490 BPS between 2019 & 2027
Total incremental opportunity, USD

2027 321,408.6 37,356.2 30,502.8 million between 2019 &
2027
Medium
Low
Low
2019 117,020.7 6,853.5
Medium
Hemp segment: Overall decline of
490 BPS between 2019 & 2027
80% 85% 90% 95% 100%
204,387.9 million between 2019 &
2027
Hemp Marijuana
High
51
4.2 Cannabis Cultivation Market: Biomass Analysis
4.2.1 HEMP
Hemp, also known as industrial hemp, is a strain of Cannabis sativa, part of genus cannabis, with THC
content as low as 0.3%. Hemp-derived CBD finds application in several sectors, including
pharmaceuticals, cosmetics, nutraceuticals, and food & beverage. Hemp contains low THC and high
CBD. It is mainly used by people who intend to reap the medical benefits of cannabis without getting
intoxicated. Due to low THC in the oil, governments in many countries have legalized its sales. Hence,
the consumption of hemp is higher as compared to marijuana. For instance, Japan has not legalized
marijuana products, however, due to the low THC content, hemp CBD oil has been legalized.
Moreover, South Korea is using CBD oil in cosmetics owing to its non-psychoactive properties.
Marijuana is considered to be a narcotic drug, whereas hemp is nonnarcotic. Hence, governments in
many countries support its usage. Owing to this property, people have started producing CBD
nutraceuticals, both for human and animal consumption. In addition, hemp is being added to food &
beverages. For instance, a U.S.-based pizza company—Fornino—has created CBD hemp pizza, which
contains hemp oil.
4.2.1.1 HEMP MARKET ESTIMATES AND FORECASTS, 2016 - 2027 (USD MILLION)
Fig.18 Hemp market estimates and forecasts, 2016 – 2027 (USD Million)
350,000.0
300,000.0
321,408.6
282,965.7
250,000.0
129,546.8
248,056.0
117,020.7
200,000.0
102,915.1
216,626.9
89,455.4
189,945.6
74,842.1
150,000.0
166,099.2
146,252.7
100,000.0
50,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
52
4.2.2 MARIJUANA
Marijuana, technically known as Cannabis sativa, is an herb known to produce intoxicating effects when
consumed. The compound Tetrahydrocannabinol (THC) present in the plant is responsible for its
psychoactive effect. In addition, the plant contains more than 500 chemicals. The flower produced from
the plant is mainly used for medical or recreational (smoking) purposes. However, many times, the
flower is processed to produce oils and tinctures. Due to its effect, many countries have banned its
usage. However, due to the increasing patient population and its rich medical properties, governments
of many countries are either decriminalizing or approving its usage.
Marijuana is available in the forms of flower and oil. Dried cannabis flowers have been traditionally used
for smoking and obtaining medical benefits of cannabis. Traditionally, it has been used to alleviate
chronic pain and limit growth of cancer as well as stop the progression of Alzheimer’s disease.
Moreover, smoking cannabis is much more economical than purchasing oral products or tinctures and,
hence, most people prefer smoking. In addition, the onset of action post smoking cannabis is rapid.
Furthermore, it is being legalized for medical use in several countries.
Marijuana oil is used for treatment of cancer & nausea and can also be used for improvement of sleep
cycle and alleviating stress, pain, & anxiety. It is mostly used by people who refrain from smoking buds
due to their ill effects. The demand for marijuana oil is anticipated to increase over the forecast period,
as there has been a substantial increase in the number of patients preferring oil as compared to buds.
Moreover, children are being prescribed cannabis oils for certain conditions.
4.2.2.1 MARIJUANA MARKET ESTIMATES AND FORECASTS, 2016 - 2027 (USD MILLION)
Fig.19 Marijuana market estimates and forecasts, 2016 – 2027 (USD Million)
40,000.0
35,000.0
30,000.0 37,356.2
32,526.0
28,152.3
25,000.0
24,537.5
11,196.1
20,000.0
20,403.4
6,853.5
15,000.0
6,717.8
17,332.7
5,566.9
4,802.7
14,093.0
10,000.0
5,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
53
Cannabis Cultivation Market: Application Estimates &
CHAPTER 05
Trend Analysis
Fig.20 Cannabis cultivation market, application outlook: Key takeaways
Application Segment Application Segment Trends
350,000.0

Recreational 4,477.9 Mn in 2019 300,000.0
Consumption • Expanding at CAGR of
17.0% between 2020 to
2027
250,000.0
Revenue (USD Mn)

200,000.0

Medical 3,212.4 Mn in 2019 150,000.0
Consumption • Expanding at CAGR of
2027
100,000.0
50,000.0

Industrial 116,183.9 Mn in 2019 -
Consumption • Expanding at CAGR of 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
2027 Year
Medical Consumption Recreational Consumption Industrial Consumption
54
5.1 Cannabis Cultivation Market: Application Movement Analysis
The industrial consumption segment dominated the cannabis cultivation market in 2019 with a market
share of about 93.8%. The increasing demand for cannabis in various applications, such as
pharmaceuticals, cosmetics, nutraceuticals, and food & beverages, is expected to drive the adult-use
marijuana market growth over the forecast period. On the other hand, medical consumption segment is
expected to emerge as the fastest-growing application of cannabis cultivation with a CAGR of 18.7%
between 2020 and 2027.
Fig.21 Cannabis cultivation market: Application movement analysis (2019 & 2027)
High
Recreational Consumption segment:

17,818.0 Overall decline of 100 BPS between
2019 & 2027

2027 324,496.7 11,972.4 million between 2019 & 2027
Medium Medical Consumption segment:
Overall decline of 240 BPS between
2019 & 2027
16,450.2
14,605.6 million between 2019 & 2027
Low
3,212.4
Low
2019 116,183.9 Industrial Consumption segment:

Overall gain of 330 BPS between 2019
& 2027
4,477.9 Medium Total incremental opportunity, USD

208,312.7 million between 2019 & 2027
0% 20% 40% 60% 80% 100%
Medical Consumption Recreational Consumption

Industrial Consumption High
55
5.2 Cannabis Cultivation Market: Application Analysis
5.2.1 RECREATIONAL CONSUMPTION
Recreational consumption can be defined as any use of cannabis apart from gaining its medical
benefits. It mainly includes using cannabis for smoking, consuming it in the form of foods & beverages,
and dabbing for intoxication. Countries such as Canada, Uruguay, Colombia, and some states in the U.S.
have legalized marijuana for adult use. Through the legalization of marijuana for adult use,
governments are trying to eradicate the black market and gain a substantial amount of tax revenue,
which is levied on its sale. However, governments of many countries fear that legalizing adult use might
increase the crime rate in the country. Owing to this, they have not legalized it.
Moreover, legalization of cannabis for recreational purposes has driven the demand among both adult
users and medical users. In countries such as Canada and the U.S., where marijuana for adult use has
been legalized, the market has witnessed a dynamic shift from patients opting to use marijuana to adult
use instead of medical purposes. This can be attributed to their easy availability and low pricing. The
countries where reimbursement for medical marijuana is not available, this shift in trend is quite
evident.
5.2.1.1 RECREATIONAL CONSUMPTION MARKET ESTIMATES AND FORECASTS, 2016 - 2027

(USD MILLION)
Fig.22 Recreational consumption market estimates and forecasts, 2016 – 2027 (USD Million)
18,000.0
16,000.0
16,450.2
14,000.0
14,523.2
12,000.0 12,645.5
11,384.8
10,000.0
5,468.2
9,856.6
8,000.0
4,477.9
3,755.5
3,198.2
7,772.2
6,000.0
2,456.1
6,544.5
4,000.0
2,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
56
5.2.2 MEDICAL CONSUMPTION
Medical consumption of marijuana is referred to the use of marijuana for medical purposes. Currently,
marijuana is used on a large scale for treatment of chronic pain; mental disorders, such as anxiety; and
sleep disorders. The application of cannabis for medical use is increasing as the demand for cannabis
and products based on it is increases, and the legalization of medical cannabis is also growing in
various countries.
However, medical cannabis distribution is strictly regulated in certain countries by government

programs and, therefore, suppliers must maintain the required the products quantity. In addition, over
the years, medical application of cannabis has witnessed tremendous growth, as the number of
scientific studies supporting its benefits in the treatment of various diseases is increasing. For instance,
Israel is conducting thorough research on the medical benefits of cannabis. In countries where
marijuana is restricted, people have turned toward hemp-derived products to meet their medical needs.
Moreover, in recent years, several countries have legalized medical marijuana, but its prescription
depends on the physician’s choice and patient’s demand. As the number of countries legalizing medical
marijuana is increasing, the market is expected to witness lucrative growth over the forecast period.
5.2.2.1 MEDICAL CONSUMPTION MARKET ESTIMATES AND FORECASTS, 2016 - 2027 (USD
MILLION)
Fig.23 Medical consumption market estimates and forecasts, 2016 – 2027 (USD Million)
20,000.0
18,000.0
17,818.0
16,000.0
15,451.2
14,000.0
12,000.0
13,336.4
11,487.1
10,000.0
5,362.0
9,804.9
8,000.0
3,212.4
8,312.9
2,539.7
6,000.0
1,753.8
6,952.1
1,241.8
4,000.0
2,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
57
5.2.3 INDUSTRIAL CONSUMPTION
The industrial consumption application mainly comprises consumption by the companies that are using
cannabis or have obtained CBD and other cannabinoids to manufacture their products. This includes
pharmaceutical and wellness organizations as well as food & beverage companies. CBD oil and
tinctures obtained from the cannabis plant are used by pharmaceutical companies during the
production of medicines. For instance, in 2018, GW Pharmaceuticals introduced EPIDIOLEX—a CBD-
based oral solution for treating seizures. The company is using plant-derived CBD for producing its
prescription pharmaceutical formulations in the market.
Wellness companies are using derived CBD to create their range of nutraceuticals, cosmetics, food &
beverages, and other preparations. For instance, companies such as Isodiol International, Inc.; Elixinol;
& ENDOCA are buying CBD from producers and manufacturing CBD-infused gummies in various forms &
flavors. In addition, cosmetic companies, such as SAGELY NATURALS & CARE GARDEN, are selling CBD-
infused face and body care products in the market. This growing usage of cannabis and its derivatives
as raw material by companies to produce their products is anticipated to drive the market over the
forecast period.
5.2.3.1 INDUSTRIAL CONSUMPTION MARKET ESTIMATES AND FORECASTS, 2016 - 2027 (USD
MILLION)
Fig.24 Industrial consumption market estimates and forecasts, 2016 – 2027 (USD Million)
350,000.0
300,000.0
324,496.7
285,517.3
250,000.0
129,912.7
250,226.4
116,183.9
200,000.0
218,292.5
103,337.7
90,070.3
190,687.5
150,000.0
75,946.9
167,346.7
146,849.1
100,000.0
50,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
58
Cannabis Cultivation Market: Regional Estimates &
CHAPTER 06
Trend Analysis, by Biomass Type & Application

Fig.25 Regional marketplace: Key takeaways
North America
Revenue in 2018: $ 48,744.4 Mn
Revenue in 2027: $ 115,970.0 Mn
CAGR: 11.2% Europe
Notable markets : U.S., Canada
Revenue in 2018: $ 23,513.6 Mn
Revenue in 2027: $ 81,095.45 Mn
CAGR: 17.2%
Notable markets: Germany, Italy,
Spain, Czech Republic, Switzerland,
Croatia, Netherlands.
Latin America
Revenue in 2018: $ 571.8 Mn
Revenue in 2027: $ 4,113.8 Mn
CAGR: 28.9%
Notable markets: Chile, Uruguay,
Mexico, Colombia
Asia Pacific
Revenue in 2018: $ 51,007.3 Mn
Revenue in 2027: $ 156,675.2 Mn
MEA CAGR: 15.2%
Notable markets: Australia, China,
Thailand, New Zealand, India
CAGR: 37.2%
Notable markets: Israel

6.1 Global Cannabis Cultivation Market Share, by region, 2019 & 2027
Regional landscape for cannabis cultivation market comprises North America, Europe, Asia Pacific,
Latin America, and MEA. Asia Pacific accounted for the largest market revenue in 2019, valued at
USD 51,007.3 million, while MEA is expected to witness the fastest growth with a CAGR of 37.2%
between 2020 and 2027. This is due to presence of large hemp cultivation markets, such as China,
South Korea, India, and Australia. Furthermore, growing legalization marijuana for medical purposes
has influenced the demand of medical marijuana in the Asia Pacific countries.
However, in Middle East & African countries, the legalization of the medical marijuana is
accompanied by stringent rules and regulations regarding the sale & cultivation of marijuana. This
has limited the growth rate of cannabis cultivation in these countries. However, most of these
countries are expected to legalize cannabis cultivation or liberalize laws regarding the same, which
is anticipated to be a major factor for exponential growth in these economies.
Fig.26 Cannabis cultivation market: regional outlook, 2019 & 2027
High
910.3 Asia Pacific segment: Overall decline

Europe segment: Overall decline of 360
of 250 BPS between 2019 & 2027
BPS between 2019 & 2027
105,667.9 million between 2019 & 2027
2027 57,581.8 million between 2019 & 2027
115,970.0 81,095.5 156,675.2
Medium MEA segment: Overall decline of 20
Latin America segment: Overall decline
BPS between 2019 & 2027
of 70 BPS between 2019 & 2027
4,113.8 Total incremental opportunity, USD
873.2 million between 2019 & 2027
3,542.0 million between 2019 & 2027
Low
571.8
Low
2019 48,744.4 23,513.6 51,007.3
North America segment: Overall gain

37.1 of 700 BPS between 2019 & 2027
Medium
67,225.7 million between 2019 & 2027
0% 20% 40% 60% 80% 100%
North America Europe Asia Pacific

High
Latin America Middle East & Africa
60
6.1.1 NORTH AMERICA
North America is known to be the most progressive region with respect to cannabis and its products.
It has the highest number of cannabis companies and relaxed laws regarding the utilization of its
products. Although the consumption of cannabis is legal in most of the North American region,
regulations vary from country to country. For instance, cannabis is legal in the U.S. and Canada. They
are the global leaders in the cannabis industry; however, lower regions of the continent, such as
Central America and the Caribbean, have a different perspective toward cannabis. They have
extremely stringent laws related to hemp. Irrespective of its nonpsychoactive effects, hemp has been
considered in the same category as marijuana. Therefore, the utilization of hemp & cannabis
products and its cultivation remains illegal in majority of the lower regions of the North American
continent. For instance, Jamaica is the only country in the lower region with relaxed laws regarding
cannabis and hemp products & their cultivation.
Furthermore, North America has the highest number of cannabis companies in the world, with most
of them concentrated in the U.S. and Canada. The increasing number of companies in hemp and
cannabis businesses can be attributed to the ease with which wholesale procurement of hemp or
cannabis can be carried out & product development can be achieved. In addition, favorable
cultivation norms in the region are helpful in catering to the biomass demand in the region. Moreover,
due to legalization of cannabis and hemp products in the region, the market has grown. For instance,
a U.S.-based company, Elixinol, had a business worth USD 2 million in 2015 and reached almost USD
4 million in 2016. This indicates profitability in the market.
Furthermore, the supply chain management for many companies is less complicated due to tie-ups
with local growers. They are responsible for providing high-quality cannabis in accordance with
federal and state laws. Therefore, due to the diminished demand-supply gap and increasing number
of cannabis cultivators & product development companies owing to legalization, the market is
expected to witness lucrative growth over the forecast period.
61
6.1.1.1 NORTH AMERICA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS,
2016 – 2027 (USD MILLION)
Fig.27 North America cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD Million)
80,000.0
75,697.5
70,000.0
67,951.1
60,000.0
61,217.2
34,652.7
31,707.2
50,000.0
55,300.1
29,043.8
26,662.2
50,090.7
40,000.0
45,454.3
41,359.7
37,771.4
30,000.0
20,000.0
10,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.1.2 U.S.
The U.S. is one of the major countries for cultivation of cannabis, and it is among the countries
undertaking initiatives to legalize cannabis. Moreover, the country has the largest consumer base
owing to high awareness about cannabis. Introduction of 2018 Farm Bill that legalized hemp
products in the country and increase in preference for cannabis as well as hemp products are factors
boosting their cultivation in the country.
As of 2020, 22 states have legalized medical cannabis and 11 states have legalized recreational
cannabis. California was the first state to legalize the medical use of cannabis in the U.S. Some of the
other states followed suit and approved the use of cannabis for medical purposes, due to its high
demand by patients and increasing awareness regarding the medical benefits. Currently, nearly 57%
of adults in the U.S. are in favor of using cannabis for medical purposes. Cannabis extracts, such as
oils and tinctures, are mostly used for medical purposes, especially in treatment of inflammation,
pain, & cancer. Furthermore, in August 2016, the U.S. Drug Enforcement Administration (DEA)
decided to expand the supply of medical cannabis to research institutes. Following this change of
policy, an individual with a research protocol approved by the Department of Health and Human
Services can obtain federal authorization to grow cannabis for research purposes. This initiative is
likely to accelerate development of treatments involving medical cannabis. These factors are
boosting the cultivation of medical cannabis in the country.
62
In addition, some of the major states producing cannabis in the U.S. are Florida, Oregon, Nevada,
California, Washington, and Colorado. California and Nevada are the major producers of cannabis,
owing to favorable climatic conditions and legalization of medical marijuana. It has been observed
that laws in each state pertaining to cannabis cultivation are different. Moreover, interstate cannabis
export is not allowed, hence, states with surplus production of cannabis sometimes face losses. This
ban on interstate transportation of cannabis has increased illegal trafficking of drugs between states.
However, growing adoption of cannabis-based treatments and legalization of cannabis for
recreational purposes are likely to reduce trafficking.
Therefore, due to growing legalization of cannabis for recreational & medical purposes in the country,
rising awareness regarding usage of cannabis, and increasing demand for cannabis, the market is
likely to grow during the forecast period.
6.1.1.2.1 U.S. CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.28 U.S. cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
60,000.0
54,332.3
50,000.0
48,772.2
43,939.0
40,000.0
24,872.1
22,758.0
39,691.9
20,846.3
35,952.8
19,136.9
30,000.0
32,625.1
29,686.1
27,110.6
20,000.0
10,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.1.3 CANADA
In 1923, the Canadian government imposed a ban on marijuana under its Opium and Narcotics
Control Act. It was only in 2001 that the government legalized access to medical marijuana through
its Marijuana for Medical Access Regulations (MMAR). In August 2016, Canadian government
established Access to Cannabis for Medical Purpose Regulations (ACMPR), which replaced the
previous laws. In the past few years, Canada has been at the forefront of legalization of medical
marijuana.
63
Furthermore, the number of patients seeking medical marijuana therapy has significantly increased
in the past 2 years in Canada, owing to the legalization of medical marijuana. Moreover, direct
engagement of patients with marijuana cultivators in Canada has further increased the demand. In
addition, even authorized nurses can prescribe marijuana in Canada. Existing government programs
for monitoring and authorizing prescription of medical marijuana by doctors & nurses have enhanced
the ease of obtaining license for prescribers. Hence, increasing number of patients opting for medical
cannabis and rising number of cultivators are likely to fuel growth of the market soon.
Furthermore, Canada is one of the leading producers of cannabis, owing to legalization of cannabis
for medical and nonmedical use, increasing pot tourism in the country, and development of many
cannabis-based products such as oils & creams. In addition, local presence of major cannabis
producing or cultivating companies, such as Canopy Growth Corporation & Aurora Cannabis, &
Aphria, and investments made by noncannabis companies to support these cultivation companies
are some of the factors driving the market.
Moreover, a federal license is required for growing and cultivating cannabis plants commercially in
the country. In case of specific cannabis plants such as industrial hemp, authorized license for
cultivation would be issued in accordance with Industrial Hemp Regulations. A framework has thus
been established under these regulations for cultivation, production, and distribution of hemp. The
license holder may cultivate and sell hemp seeds & its derivatives for use in cosmetics and food
items. Such supportive initiatives by the government are expected to boost market growth in the
coming years.
However, despite having large processing and cultivation capacity, the country is facing problems as
the number of licenses provided for commercial cultivation is limited. For instance, for cannabis
cultivation in Canada, two types of facility licenses are provided—micro cultivation license and
standard cultivation license. Micro cultivation license is provided when growing facility has less than
or equal to 200 square meter area and any area greater than this is provided standard cultivation
license. Micro cultivation license was introduced in 2018 and requires less security compared to
large productions, making it an attractive opportunity for small entrepreneurs, whereas standard
cultivation license is provided if the cultivation area is greater than 200 square meter and has
appropriate security, surveillance, & storage facility. There has been a shortage of licensed cultivators
in the country, as many cultivators cannot meet the necessary mandates.
Therefore, due to favorable government reforms, rising adoption of medical cannabis for treatment,
and increasing number of cultivators & companies, the market is anticipated to grow at a substantial
rate during the forecast period.
64
6.1.1.3.1 CANADA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.29 Canada cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD Million)
45,000.0
40,000.0
40,272.5
35,000.0
37,602.7
34,882.0
30,000.0
31,826.6
28,416.6
14,091.7
25,000.0 11,336.8
24,688.6
20,000.0
20,887.2
8,411.9
6,233.2
15,000.0
10,000.0 17,276.4
5,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2 EUROPE
The Europe cannabis cultivation market is exhibiting lucrative growth owing to increasing demand
and availability of a greater variety of cannabis products. Many companies are seeking to enter the
growing cannabis market in European region. For instance, in 2019, Canopy Growth, a Canada-based
cannabis company, acquired Cafina, a producer, distributor, & exporter of cannabis in Spain. It is one
of the three companies authorized for cannabis operations in Spain. This acquisition would help
Canopy Growth create a strong foothold in Spain’s cannabis market. Furthermore, in 2019, Flowr
Group, a Canadian company, acquired Portugal’s cannabis cultivator, Holigen. This acquisition made
Flowr Group one of the top cultivators in Europe. An increase in such strategic mergers and
acquisitions by leading companies in Europe is expected to drive growth of market significantly in the
coming years.
Therefore, due to increase in consumption, rising awareness & positive attitude toward cannabis and
its products, and strategic investments by major companies in Europe, the market is expected to
grow at a substantial rate during the forecast period.
65
6.1.2.1 EUROPE CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.30 Europe cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
90,000.0
80,000.0
81,095.5
70,000.0
68,385.6
60,000.0
57,694.3
50,000.0
23,513.6
20,939.8
48,772.8
40,000.0
17,379.9
41,360.9
10,176.5
30,000.0
35,310.5
30,506.7
26,645.2
20,000.0
10,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.2 UK
According to the UN International Narcotics Control Board (INCB), the UK is the largest exporter and
producer of medical marijuana (including cannabis products) in the world, owing to factors such as
legalization of medical cannabis and favorable climatic conditions. The country produced nearly 95
tons of medical marijuana and exported nearly 2.1 tons in 2016. In addition, in November 2018, the
UK government changed the law on medicinal cannabis consumption and moved it from schedule 1
to schedule 2 drugs, which allowed doctors to prescribe it to patients suffering from certain medical
conditions.
Despite this major step, many patients are not provided with cannabis products, and they have to
purchase it from the black market. In the UK, according to Institute of Economic Affairs, illegal
cannabis trade is worth USD 3.2 billion and more than 255 tons was sold to 3 million users between
2016 and 2017. In addition, medicinal products licensed in other countries are illegal in the UK. The
country mostly uses cultivated cannabis for production of Sativex (a drug used in the treatment of
multiple sclerosis) and EPIDIOLEX (a drug used to treat conditions such as epilepsy); thus, a small
portion is available for patients, which makes the available medical cannabis expensive. In addition,
the illicit trading also hampers the cannabis cultivation market of the country.
The situation in the UK is very ambiguous, as the government, on one hand, denies that cannabis has
medical use and on the other hand, is licensing production of medical cannabis for export. Hence,
with favorable government norms, rising awareness regarding cannabis, and increasing number of
cannabis consumers, the market is likely to grow during the forecast period.
66
6.1.2.2.1 UK CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027 (USD
MILLION)
Fig.31 UK cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
16,000.0
14,000.0
14,070.7
12,000.0
12,897.1
11,629.4
10,000.0
10,282.4
4,812.4
8,000.0
8,918.0
4,159.4
3,607.4
7,654.9
3,139.6
6,000.0
6,548.3
5,601.6
4,000.0
2,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.3 GERMANY
In January 2017, Germany legalized medical cannabis owing to the increasing demand by patients,
which enabled people to obtain cannabis for medical purposes via prescription. To meet the needs of
increasing population and control cannabis cultivation in the country, Germany imported medical
marijuana from other countries. However, in 2019, three companies, namely Aurora Produktions
GmbH, Aphria Deutschland GmbH, and Demecan GmbH, received licenses from BfArM to produce
cannabis in the country. This legalization of medical cannabis in the country has proved to be
lucrative for medical cannabis producers. Presence of a large population and high demand for
medical cannabis products in the country have made Germany the most lucrative market in the
world.
Furthermore, since the legalization of medical cannabis, nearly 1,000 patients have been prescribed
medical marijuana in Germany and this number increased to around 30,000 to 50,000, according to
the 2019 report by Bank of Montreal. However, Professor Oliver Kayser from the biochemical and
chemical engineering department at the Dortmund Technical University is of the opinion that this
number is significantly less, and the total number of potential users of medical marijuana is around
800,000. According to our estimates, there are 830,800 potential medical marijuana users in
Germany. As Germany began growing cannabis in 2019, the price of medical cannabis in the country
is expected to reduce, thereby increasing consumption among patients, aiding market growth.
67
In 2019, BfArM—a federal agency in charge of oversight & regulation of all medicines & medical
devices in Germany—conducted a trial to legalize cannabis cultivation in the country to reduce the
cost of cannabis import. The trial involved three companies—Aphria Deutschland GmbH, Aurora
Produktions GmbH, and Demecan GmbH—that were provided with licenses for domestic cultivation of
cannabis. These companies must deliver their first harvest by 2020 and the produce must meet the
GACP and GMP quality standards. All the cannabis produced by these companies will be bought by
BfArM and then resold to medical marijuana manufacturers, wholesalers, & pharmacies. The trial is
likely to help in legalization of cannabis cultivation by 2020.
Moreover, regulations for CBD in the country are not that stringent. According to German regulations,
industrial hemp may be cultivated under controlled conditions. CBD can be extracted from
domestically grown hemp or can be imported from other countries, provided that the THC content
does not exceed 0.2%. CBD-derived edible products and oils are controlled by the BfArM. These
supportive laws for cultivation of industrial hemp and production of CBD products are expected to
boost the hemp & cannabis cultivation market in the near future.
Therefore, due to increasing number of companies entering the German market, rising demand for
cannabis & its products, and rising awareness regarding the medicinal benefits of cannabis, the
market is estimated to grow at a substantial rate during the forecast period.
6.1.2.3.1 GERMANY CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –

2027 (USD MILLION)
Fig.32 Germany cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
18,000.0
16,000.0
15,793.2
14,000.0
12,000.0
12,817.7
10,000.0
10,396.1
8,000.0
8,429.3
2,957.0
2,402.1
6,000.0
1,952.9
6,834.6
1,589.0
5,542.0
4,000.0
3,648.1
4,495.3
2,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
68
6.1.2.4 ITALY
In Italy, the medical use of marijuana was first approved in 2007. Presently, cannabis imported from
the Netherlands is only allowed to be sold in the country. In January 2013, the health minister signed
a bill that allows medical use of cannabis for patients with a valid prescription from a licensed
physician. Patients are now allowed to obtain medical cannabis legally from licensed and state-run
pharmacies. However, till date, the only cannabis available is imported from the Netherlands. The
cost of such medicines is high as compared to its price in the Netherlands. In July 2015, 218 Italian
lawmakers from various political parties signed a bill for legalizing the possession of medical
marijuana up to 15 grams through the retail sales, and its cultivation for personal use. Thus,
increasing use and expected legalization of marijuana are likely to drive the Italy market during the
forecast period.
However, medical cannabis is cultivated only by the Italian Army under strict surveillance, and it is
then supplied to registered pharmacies for resale to registered patients. Pharmacies often buy
cannabis from Italian Army or import it from cultivators outside the country, such the Netherlands.
Thus, addition of import cost increases the price of cannabis in the country.
The Italian government is unable to meet the demand for medical cannabis, thus there is shortage of
supply in pharmacies. In 2019, the government decided to increase production of medical cannabis
by issuing cultivation licenses to private companies in the country. This reform is expected to help the
country establish a commercial medical cannabis market and meet the demand for medical
cannabis. In addition, it will also help in boosting the cannabis cultivation of the market in the near
future.
Therefore, due to favorable government reforms, increasing demand for cannabis, and rising number
of companies, Italy cannabis cultivation market is likely to grow at a significant rate during the
forecast period.
69
6.1.2.4.1 ITALY CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.33 Italy cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
4,000.0
3,500.0
3,470.9
3,000.0
2,945.7
2,500.0
2,500.0
2,000.0
2,136.2
1,847.5
1,500.0
1,644.7
1,526.7
1,462.0
1,428.7
1,410.0
1,000.0
500.0
-
-
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.5 FRANCE
While marijuana strictly remains illegal in France, hemp and hemp products are legalized in the
country if the THC content is below or up to 0.2%. The country continues to be the dominant player in
production of hemp and reportedly had 17,000 Hectare of area for its cultivation in 2017. Increasing
demand for hemp seeds and oil in processed foods & beverages due to their dietary advantages has
contributed to the growth of cannabis cultivation market in France.
Moreover, the consumption & demand for cannabis and its products in France is slightly lower than
other European countries. However, increase in awareness can lead to growth of cannabis market in
the country. Furthermore, due to major players trying to enter the market and supportive reforms by
the French government, the usage & awareness are likely to increase, which is expected to fuel the
market growth over the forecast period.
70
6.1.2.5.1 FRANCE CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.34 France cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
30,000.0
28,203.4
25,000.0
22,708.0
20,000.0
18,416.9
15,000.0
15,120.6
6,617.2
5,993.8
12,590.0
10,000.0
10,660.5
9,245.8
8,174.9
7,325.2
5,000.0
-
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.6 SPAIN
Spanish laws with respect to cannabis are quite liberal. The possession of cannabis and its
consumption remains legal, i.e., decriminalized, in the country, only at private places. The
consumption of cannabis at public place is strictly forbidden. In addition, the cultivation of cannabis
for private or personal use is decriminalized in the country. Moreover, hemp cultivation for industrial
purposes is completely legal in the country. With favorable climatic conditions, the farmers are
capitalizing on the economic aspect of the plant. Hence, increasing hemp cultivation is expected to
fuel growth of the market.
Furthermore, lack of regulations with respect to number of plants to be cultivated has led to the
growth of the market in the country. This has also led to the boom of various social clubs in the
country. Moreover, limited availability of cannabis medicinal products in the market has led to a shift
toward local cultivation and use of social clubs for consumption. For instance, according to an article
of a Spanish patient suffering from chronic pain, published in Politico in 2019, due to the lesser
variety of cannabis products available for medical purposes, the patient started growing cannabis at
home and has cultivated around 16 varieties. Such initiatives of cultivation are expected to boost the
overall market growth in the country.
71
In addition, one of the major factors propelling growth the market is the shift from hashish to
domestic marijuana consumption in European countries. Furthermore, the Spanish government is
initiating import substitution, which has supported cannabis cultivation in the country. For instance,
increasing cannabis cultivation along the Spanish Mediterranean coast has led to replacement of
hashish imports from Morocco. This is expected to help in economic development of the country and
is likely to fuel growth of the cannabis cultivation market in the near future.
Furthermore, there are around three companies approved for cannabis operations in Spain. Major
players are seeking strategic expansions through these companies for entering the cannabis
cultivation market in Spain. For instance, in 2019, Canopy Growth, a Canada-based cannabis
company, acquired Cafina, a producer, distributor, & exporter of cannabis in Spain. Such initiatives
are expected to boost the market growth in the coming years.
Therefore, due to increasing legal reforms, rising consumer preference for cannabis medication &
home cultivation, and major players entering the country, the market is anticipated to grow at a
substantial rate during the forecast period.
6.1.2.6.1 SPAIN CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.35 Spain cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
3,000.0
2,838.6
2,500.0
2,618.7
2,420.2
1,438.7
2,240.9
2,000.0
1,357.3
1,339.5
2,074.9
1,919.5
1,777.3
1,500.0
1,648.7
1,533.7
1,000.0
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
72
6.1.2.7 NETHERLANDS
Marijuana is illegal in the Netherlands but has been decriminalized for personal use. Netherlands has
had a liberal and pragmatic drug policy for several decades and, hence, the Dutch people were
among the first to approach the discussion of initiating Netherlands medicinal cannabis program.
Medical use of marijuana in certain quantities was made legal in the Netherlands; however, its sale
was still illegal and, hence, cannabis was sourced from the illicit market. It was impossible to
guarantee quality, consistency, and origin of cannabis used for medical purposes, when obtained
from illicit sources. Therefore, the Office of Medicinal Cannabis was established in March 2000, to
make quality products available to patients. This organization served as the National Agency from
January 1, 2001. In 2003, the Netherlands initiated one of the first national medicinal cannabis
programs in the globe, which makes high-quality cannabis available to certain patient groups. The
government is making provisions to supply high-quality strains of cannabis, which is expected to
reduce illicit sourcing of cannabis and increase demand through authorized marijuana dispensaries.
This is expected to drive the medical marijuana and overall cannabis cultivation market over the
forecast period.
In recent years, medicinal cannabis is recommended for treating chronic pain, spasms, multiple
sclerosis, cancer, HIV or therapy-resistant glaucoma, and Tourette’s syndrome. Moreover, the number
of people prescribed with cannabis in the Netherlands has been increasing considerably. For
instance, according to an NCBI report published in 2018, the number of Dutch patients using herbal
cannabis on prescription increased from 5,601 in 2003 to 2010 to 10,826 from 2011 to 2016.
Increase in the use and adoption of marijuana is expected to drive the medical marijuana market
over the forecast period.
Laws on cannabis cultivation and consumption in the Netherlands are undefined as the Dutch
government is very strict on the consumption of hard drugs such as alcohol and cocaine, but has
decriminalized the possession of soft drugs, such as cannabis. Citizens are not permitted to grow the
cannabis plant; however, if the number of plants grown are less than five, then policy of tolerance is
followed, and it is considered solely for personal use. The plants are seized by the authorities, but the
person is not prosecuted.
The country allows sale of small amounts of cannabis since 1976 in some licensed coffee shops.
These coffee shops sell cannabis only for personal use in small quantities. The shops cannot
advertise about it and cannot sell it to anyone under 18 years of age. In addition, according to the
law, sale, or cultivation of large amount (more than 5 g) of cannabis is illegal. This compels coffee
shops to purchase cannabis illegally from the black market.
The Dutch government in 2019 conducted a trial for cannabis cultivation, which would later be used
for recreational purposes. As per this trial, some Dutch companies would be allowed to legally grow
cannabis to supply to coffee shops. The aim of this trial is to determine exactly how controlled
cannabis can be legally supplied to coffee shops, how the supply chain works, and the impact it will
have on the market. This would ultimately stop illegal selling and buying of cannabis in the country,
which is anticipated to fuel growth of legal cannabis cultivation in the country.
73
6.1.2.7.1 NETHERLANDS CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.36 Netherland’s cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
3,000.0
2,796.1
2,500.0
2,425.1
2,000.0
2,099.6
1,819.4
1,500.0
1,583.5
870.1
781.4
1,385.4
704.0
1,220.6
1,000.0
1,085.0
972.2
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.8 CROATIA
Medical marijuana was approved in Croatia in October 2015 with the consent of a committee of
doctors and medical experts for the treatment of tumors, AIDS, multiple sclerosis, and child epilepsy.
It became the first Balkan country to approve marijuana products to treat severe diseases. After the
approval of medical marijuana, the health ministry is taking efforts to ensure that all THC-based
medicines prescribed by doctors are made available to patients. According to regulations laid down
by Croatian government in 2015, doctors can prescribe cannabis ointments, teas, and other extracts
for the treatment of AIDS, multiple sclerosis, epilepsy, and cancer. In addition, increasing investments
by various players, growing adoption, and expansion of applications are expected to boost the
market.
However, restriction and regulations on the usage of medical marijuana can impede growth of the
market. For instance, the maximum period for which marijuana can be prescribed is 30 days, during
which the consumption is limited to 7.5 grams. The use of cannabis above 7.5 grams is considered
as recreational and remains illegal.
74
Furthermore, due to growing black market trade and limited availability of low-level THC cannabis
products in pharmacies, in April 2019, the Amendments to the Act on Combating Drugs Abuse were
made, which liberalized the cultivation of low-level THC cannabis for medicinal purposes. As per the
law, companies with manufacturing license for drugs or active substances from the Croatian Agency
for Medicinal Products and Medical Devices (HALMED) can cultivate low-level THC cannabis for
medicinal purposes. The same companies would be allowed to produce low-level THC cannabis
products for medical use. The law is expected to increase availability and reduce the cost of
cannabis-derived medicinal products in the country. In addition, as of February 2020, a bill for
legalization of cannabis for recreational purposes has been proposed in front of the Croatian
Democratic Union. The bill will allow cultivation of nine cannabis plants with high THC content for
private or personal use. However, the final decision is pending, and the bill has been put forth for
debate in the Union. Therefore, with favorable government norms and increasing awareness
regarding cannabis, the market is expected to witness growth during the forecast period.
6.1.2.8.1 CROATIA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.37 Croatia cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
8,000.0
7,000.0
7,338.8
6,000.0
6,276.8
5,000.0
4,000.0 5,234.2
4,308.0
1,986.7
1,657.0
3,000.0
1,395.9
3,531.1
1,192.1
1,035.9
2,901.5
2,000.0
2,396.0
1,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.2.9 SWITZERLAND
The country has sanctioned the use of cannabis for medical purposes, and it can be procured
through authorized prescription. However, recreational use of cannabis is prohibited. Furthermore,
Swiss laws for the sale of small amount of medical marijuana are more tolerant than other European
countries where medical marijuana consumption and possession is illegal. In addition, cultivation of
restricted varieties of cannabis has been sanctioned by the Swiss government, for personal purposes.
However, cultivation of hemp for industrial purposes is completely legal in the country under a valid
license. Hemp cultivation is one of the factors supporting the economy of the country.
75
Moreover, the country is undertaking initiatives to legalize cannabis for recreational purposes. For
instance, as of 2020, the Swiss government has sanctioned a bill for utilization of cannabis for
recreational purposes with temporary sales & distribution of cannabis for these purposes to adults in
the country. However, it is still in the pilot stage and final approval from the government is pending.
Moreover, the number of medical cannabis users has also significantly increased in the country.
Hence, favorable legalization reforms are expected to fuel growth of the market in the near future.
As cultivation license is not essential, it has led to investments by major players in the market. In
2019, MPX International Corporation, a cannabis company from Canada, acquired HolyWeed, a Swiss
CBD brand. It is a leading cultivator of cannabis flowers in the country. This acquisition would help it
create a foothold in the Swiss market. Such factors will help in growth and development of the
cannabis cultivation market in the country.
Therefore, due to increasing consumer preference for cannabis & related products and improving
government reforms, the market is anticipated to grow during the forecast period.
6.1.2.9.1 SWITZERLAND CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –

2027 (USD MILLION)
Fig.38 Switzerland cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
4,500.0
4,000.0
4,150.4
3,500.0
3,646.6
3,000.0 3,261.9
2,956.4
2,500.0
2,704.1
2,491.7
2,318.2
2,000.0
2,170.1
2,049.8
1,950.3
1,869.9
1,805.2
1,500.0
1,000.0
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
76
6.1.2.10 CZECH REPUBLIC
Cannabis is legal in Czech Republic and is being widely used for various medical conditions, such as
chronic pain, spasticity, and nausea. Regulatory guidelines for use of medical cannabis mention the
monthly consumption limit of cannabis up to 180 g. Prescribed medical marijuana must not exceed
specific amount of THC and CBD content. The THC content must be in the range of 0.3% to 21% and
CBD content should range from 0.1% to 19 %. In addition, cannabis used for medical purposes must
not be hybrid, it can either be indica or sativa. Although medical cannabis has been legalized in Czech
Republic, various restrictions have been imposed to limit consumption, which may restrain the
market growth. Medical use of cannabis is legal in the country; however, possession, use, cultivation,
trafficking, and sale of marijuana for recreational purposes is still illegal. Thus, cultivation of cannabis
for medical purposes is one of the major factors responsible for growth of this stringently regulated
market.
On the other hand, hemp products are legal in Czech Republic only if the THC content is less than
0.3%. As hemp is considered an industrial commodity in the country, the rules for cultivation and
processing of hemp are more relaxed as compared to those in neighboring countries. This makes
Czech Republic one of the leaders in the cannabis market. This also adds to the hemp cultivation in
the country and positively impacts growth of the market. Furthermore, as use of hemp and hemp
products is legalized in the country, a wide variety of hemp-based products, such as chewable,
candies, cookies, and energy drinks, are available in the market. This further boosts the cultivation of
hemp for catering to the increasing demand. In addition, this has resulted in entry of many local
players in the market. Hence, there is intense competition among sellers and cultivators in the
country.
Therefore, with supporting government reforms, increasing awareness regarding cannabis, and rising
number of medical cannabis cultivators in the country, the market is likely to grow at a substantial
rate during the forecast period.
77
6.1.2.10.1 CZECH REPUBLIC CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS,
Fig.39 Czech Republic cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
3,000.0
2,500.0
2,433.4
2,000.0
2,049.9
1,735.8
1,500.0
868.0
1,479.4
777.8
696.1
625.1
1,277.2
563.2
1,000.0
1,110.3
978.4
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.3 ASIA PACIFIC

Cannabis regulations in Asia Pacific vary significantly between countries. These laws are strongly
dependent on traditional, cultural, and religious beliefs of people. Cannabis plays a major role in
Afghanistan’s predominant culture. Despite using cannabis in the form of hashish, its cultivation &
use as cannabis or derivatives, such as CBD, is strictly prohibited. In many other countries of the
region, cannabis along with CBD remains illegal, primarily because the countries do not differentiate
between hemp and marijuana. However, this creates a problem for people intending to use cannabis
as a medicine. Focusing on health benefits provided by cannabis could help in legalizing it in the
region.
Moreover, the countries in this region are considered as emerging markets for cannabis and
derivatives. There is potential for growth in the region due to favorable climatic conditions and
increasing awareness about cannabis & its medical benefits. This is one of the major reasons for
companies trying to enter the Asia Pacific cannabis market. Strategic initiatives undertaken by
companies prove that many are interested in entering the Asia Pacific market to cater to its large
population.
Therefore, possible legalization of production and cultivation of cannabis, increasing awareness

about cannabis, and growing patient pool eligible for medical marijuana treatments are expected to
propel the market in Asia Pacific.
78
6.1.3.1 ASIA PACIFIC CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.40 Asia Pacific cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
180,000.0
160,000.0
154,242.4
140,000.0
135,509.9
120,000.0
117,466.9
57,761.2
100,000.0
50,883.1
101,181.0
45,097.5
39,713.9
80,000.0
36,194.7
87,126.1
75,315.4
60,000.0
65,530.2
40,000.0
20,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.3.2 AUSTRALIA
Since legalization of medical marijuana in 2016, the number of patients seeking prescription has
tremendously increased in Australia. The number of companies operating in the medical marijuana
market is also rising, with new companies being listed on the Australian Stock Exchange (ASX).
Several local companies have begun applying for cultivation license and are being funded or acquired
by major players. The Australian medical marijuana market is expected to witness a comparatively
slower growth than its counterparts in North America; this is mainly due the stringent regulatory
guidelines for prescribing medical marijuana as a therapeutic product. In Australia, medical
marijuana is prescribed based on the type of disease, depending on data obtained from clinical trials.
As the government and Therapeutic Goods Administration are formulating guidelines for prescription
of medical marijuana, the market is expected to witness growth in the coming years.
In addition, presence of major producers such as Cann Group, AusCann Group, and BOD Australia in
the country is expected to drive the market over the forecast period. Since its legalization, the country
has attracted many foreign companies and entrepreneurs who want to produce medical cannabis
here. This, in turn, has increased demand for licenses for cannabis cultivation.
The requirements related to license approval are complicated & restrictive and require strong
financing due to which small entrepreneurs are hesitant to apply for cultivation license. Therefore,
mostly large companies are involved in cannabis cultivation.
79
6.1.3.2.1 AUSTRALIA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.41 Australia cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
9,000.0
8,000.0
8,223.2
7,000.0
7,238.7
6,000.0
6,400.3
3,648.1
5,679.0
5,000.0
2,957.0
5,061.5
2,402.1
4,000.0
4,527.3
1,952.9
4,060.4
1,350.8
3,000.0
2,000.0
1,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.3.3 CHINA
Marijuana is illegal in China, but cultivation and production of hemp have been established
businesses since centuries. China is the largest cultivator of hemp in Asia and cultivates nearly half
of the hemp production of the world. Presently, China has allowed cultivation of hemp in three
provinces: Yunnan, Heilongjiang, and Jilin. The country also exports approximately 90% of the
produce to the U.S., Germany, the UK, the Netherlands, and Japan. China is also considered to be a
superpower in hemp production, as it currently owns 300 hemp patents out of total 660 in the world
and provides half of the world’s hemp products. Moreover, the country is looking to produce CBD
from hemp.
Furthermore, China is currently allowing sale of hemp oil and use of hemp derivatives in cosmetics.
They are provided by only four Chinese companies that hold special licenses to grow and process
hemp. With the booming market, the number of cultivators and producers is expected to increase,
which is likely to create demand for hemp and CBD extracts such as oil, edibles, & tinctures, thereby
propelling cannabis and hemp cultivation market in the country. Moreover, growing awareness about
cannabis and hemp products and their applications is expected to fuel market growth.
80
In addition, due to lucrativeness of the market and various growth opportunities, many players are
entering China’s cannabis and hemp market. For instance, Canada’s Canrim Growth Group has
announced plans to enter the Chinese market with its two companies—CBD Group Asia (CGA) and
Natural Source Group (NSG)—in the near future. In addition, investments by other companies are
likely to boost the market in the coming years. Hence, the surge in demand for cannabis and hemp
products in China, which is expected to boost cannabis cultivation in China. China exhibits high
growth potential. The demand for cannabis is expected to increase due to rising awareness about its
products and the entry of more companies. Thus, China’s cannabis cultivation market is likely to grow
during the forecast period, owing to its large population, history of cultivating hemp, increasing
investments by leading companies, and sales of CBD products through online portals.
6.1.3.3.1 CHINA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.42 China cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
120,000.0
112,412.1
100,000.0
98,520.7
80,000.0
84,712.5
39,177.3
34,547.8
72,157.2
60,000.0
30,782.1
27,703.9
24,988.9
61,358.2
52,398.1
40,000.0
45,093.0
20,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
81
6.1.3.4 JAPAN
Consumption and cultivation of cannabis are illegal in Japan as the government has categorized
cannabis as a narcotic drug. However, this status has not affected the consumption of cannabis in
the country. According to an article published in June 2019 in an international magazine—The
Diplomat—the number of people arrested for cannabis consumption in the country increased from
3,000 in 2017 to 3,578 in 2018. Moreover, the Japanese police is struggling to curb this increase in
the number of cannabis users. However, the government has adopted a lenient approach toward
medical cannabis due to increasing patient population and growing legalization of medical cannabis
in western countries. For instance, in March 2019, Japan approved clinical trials on cannabis-based
drug—Epidiolex—for treating epileptic patients in the country. These trials are the first step toward
reforms pertaining to medical cannabis in Japan. If these trials prove to be successful, the
government may legalize the use of medical cannabis. This is anticipated to drive the market growth
Moreover, the government has allowed import and use of CBD, as it is considered to be a non-
psychopathic compound in the country. Thus, patients use hemp products to meet their medical
needs. This has increased the demand for hemp or CBD products in Japan, which, in turn, is helping
foreign companies enter the market, thereby fueling growth of Japan cannabis cultivation market. For
instance, in 2018, Phivida Holdings—a U.S.-based company—shipped CBD oil and capsules for
distribution in Japan. In addition, growing consumer preference for cannabis and its derivates is
further anticipated to boost market growth over the forecast period.
6.1.3.4.1 JAPAN CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.43 Japan cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
30.0
28.4
25.0
20.0
20.9
15.0
15.5
10.0
11.7
9.3
7.8
5.0
6.6
5.8
5.2
4.8
4.4
4.1
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
82
6.1.3.5 SOUTH KOREA
In November 2018, South Korea legalized medical cannabis to grant access to cannabis products for
the increasing patient population in the country. However, the law came into effect on March 2019,
when the government allowed the import of few cannabis drugs—Epidiolex, Marinol, Sativex, &
Cesamet—for patients suffering from conditions such as multiple sclerosis, cancer, epilepsy, and
HIV/AIDS. However, the market growth has been slow in the country after legalization owing to limited
access to products and pending decisions pertaining to cannabis production & cultivation in the
country.
Furthermore, South Korea imports medical cannabis products from other countries to control
cultivation in the country. This has proved to be an excellent and encouraging opportunity for
international players, such as GW Pharmaceuticals, to expand their distribution networks in the
country. This initiative is anticipated to drive the market in the country over the forecast period.
6.1.3.5.1 SOUTH KOREA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.44 South Korea cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
35,000.0
30,000.0
30,670.1
25,000.0
27,213.9
24,125.8
20,000.0
21,369.2
18,927.5
15,000.0
16,764.9
14,862.5
13,199.3
10,000.0
11,743.2
10,485.0
9,310.7
9,310.7
5,000.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.3.6 INDIA
Uttarakhand, a state from North India, has been allowed to cultivate hemp for commercial purposes
since 2018. Uttar Pradesh became the second state to legalize cultivation of hemp for commercial
purposes. Products such as oils extracted from hemp—containing THC less than 0.3%—are available
for sale, mostly through online portals. Vape cartridges and capsules with THC content less than 0.3%
are permitted for sale in the country. These supportive reforms with respect to sale of hemp products
are fueling growth of cannabis cultivation market in the country.
83
Moreover, the Ministry of AYUSH has a positive stance toward research on hemp varieties. In 2017,
the Council of Scientific and Industrial Research (CSIR) and Bombay Hemp Company (BOHECO) were
sanctioned licenses by the government for cultivation of cannabis for medicinal & research purposes,
mainly for epilepsy, cancer, and sickle cell anemia.
In addition, the country’s cannabis market is in early stages of development and there are not many
companies in the market. However, many Indian startups are keen on entering the budding market.
For instance, Hemp Republic, a startup from Telangana, provides hemp fabrics, oils, and many
products through online services. Other startups include Bombay Hemp Company (BOHECO),
Namrata Hemp Company, Hempsters, Satliva, and GreenJams. As awareness about cannabis and its
products is increasing, more companies are investing in cannabis cultivation, which is expected to
boost market growth in the coming years.
Therefore, with increase in awareness, positive attitude of government & citizens, investments from
various companies in the Indian cannabis market, and successful startups, the market is expected to
grow during the forecast period.
6.1.3.6.1 INDIA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.45 India cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
1,600.0
1,400.0
1,467.4
1,200.0
1,272.7
1,115.4
1,000.0
985.3
800.0
875.1
780.6
600.0
700.1
631.3
571.3
518.0
400.0
200.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
-
84
6.1.3.7 NEW ZEALAND
The use of medical cannabis has been legalized in New Zealand since December 2018, when the
government passed a law to make medical cannabis available to the large patient population
suffering from chronic pain. The law also allows manufacturers to produce medicinal cannabis
products for local and international markets. Moreover, the government is planning to launch a
scheme to improve access to medical cannabis in the country. Hence, legal cannabis and cultivation
market in the country is expected to witness significant growth over the forecast period. However, the
sale and use of cannabis for recreational purposes is illegal in the country. New entrants and
consumers are looking forward to the referendum in the 2020 general election, where citizens would
be able to vote for legalization of recreational cannabis. Thus, use of cannabis for recreational
purposes was expected to be legalized in the country in 2020.
Moreover, hemp cultivation has been legal in the country since 2005 and annual licenses have been
issued to cultivators by the government. Most of the cultivated hemp is used for obtaining seeds,
which is later processed for producing oil, which has major applications in cosmetic industry. Thus,
the market for hemp oil is witnessing significant growth in the country and is further boosting growth
of hemp cultivation market in the country. In addition, rules, and regulations regarding sale of hemp
products are relaxed in the country, as government approval is not mandatory to prescribe, supply, or
administer hemp or CBD products, which is further driving market growth. Hence, relaxed regulations
on sale of products in New Zealand and rising cultivation activities are major factors expected to
boost market growth in the country.
6.1.3.7.1 NEW ZEALAND CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.46 New Zealand cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
3,500.0
3,289.3
3,000.0
2,895.5
2,500.0
2,560.1
2,271.6
2,000.0
2,024.6
1,810.9
1,500.0
1,624.1
1,459.3
540.3
1,000.0
1,182.8
960.8
781.2
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
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6.1.3.8 THAILAND
Thailand is the first country in Southeast Asia to legalize cannabis for medical use; however,
possession of cannabis remains illegal, and a hefty penalty is levied on the person when caught. The
first facility for cultivating cannabis was opened in Bangkok in 2018. The Thai government agencies
strictly monitor & control production and cultivation activities and only licensed cultivators can grow
medical cannabis. However, foreign companies are hoping that the Thai government may soon allow
commercial cultivation of medical cannabis and, hence, are taking interest in the Thai cannabis
market. Moreover, many local players are applying for research permits and patents to gain a strong
foothold in this new, potentially lucrative market. This is anticipated to drive growth in the country
Despite stringent regulations, the medical cannabis industry is expected to grow in the country owing
to the lenient approach adopted by the government toward use of medical cannabis and increasing
patient population. Moreover, the Thai government is promoting research and technological
developments related to cannabis in the country, as it believes that the cannabis market would
create economic opportunities and employment in the country. For instance, according to the Thai
government’s plan, in January 2020, a medical clinic offering free cannabis oil to patients was
opened in Thailand. The government further plans to open around 77 cannabis clinics across the
country and has issued 442 medical cannabis licenses, as it considers medical cannabis market a
potential source of economic growth.
In addition, cannabis oil will be prescribed by special healthcare professionals who are trained by the
Department of Medical Services. Up till now, around 1,200 professionals have been trained to
prescribe cannabis in the entire country and are awaiting supply of cannabis oil to prescribe to the
patients. Moreover, Bhumjaithai party in the country has also drafted a bill that would allow
households to grow medical cannabis for personal consumption.
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6.1.3.8.1 THAILAND CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.47 Thailand cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
700.0
600.0
584.8
500.0
474.6
400.0
384.9
300.0
312.1
135.1
253.1
200.0
205.2
166.4
100.0
-
-
-
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.4 LATIN AMERICA

Latin America has imposed stringent regulations on cannabis and its derivatives, primarily due to the
drug trafficking history in the region. However, various initiatives are being undertaken by many
countries for legalization of cannabis and its derivatives. Furthermore, there are countries in the
region providing access to cultivation of cannabis at home and for personal consumption, with
certain restrictions. Uruguay, Mexico, Brazil, Colombia, and Chile have allowed home growing for
either medical or recreational purposes, within certain limits.
Furthermore, due to legalization in some countries, many companies are keen on entering the Latin
America cannabis market. For instance, Khiron Life Sciences, headquartered in Canada, is one of the
early entrants in Latin America cannabis market. Other major players willing to enter the market are
Canopy Growth, Tilray, and Aurora Cannabis. Thus, as many players are expanding cultivation and
production of cannabis into the region, the market is likely to grow at a significant rate in the coming
years.
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6.1.4.1 LATIN AMERICA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS,
Fig.48 Latin America cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
4,500.0
4,000.0
4,113.8
3,500.0
3,000.0
3,085.5
2,500.0
2,329.8
2,000.0
1,075.1
856.3
1,500.0
1,776.4
694.4
571.8
483.5
422.3
1,372.4
368.0
1,000.0
500.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.4.2 URUGUAY
Uruguay had legalized sale of medical and recreational marijuana in 2012. The government of
Uruguay launched medical marijuana program in 2017, which made registration with the government
mandatory for purchasing or growing cannabis. The government regulates cultivation, distribution,
and prices of medical marijuana. It has also capped cultivation of cannabis for personal use to 480
grams, and the price of medical marijuana sold through pharmacies is capped at USD 1.30 per gram
to curb the marijuana black market.
Furthermore, cannabis has never been criminalized in Uruguay, as the government had legalized
medical and recreational marijuana with the hope of reducing drug-related crimes and restraining the
marijuana black market. Hence, the price of marijuana in pharmacies is less than the price of
marijuana available on the street, which, in turn, promotes legal marijuana purchases. International
Cannabis Corporation (ICC)—a company headquartered in Montevideo—produced its first batch of
medical cannabis oil for export in October 2017. ICC is also planning to set up a laboratory for
extraction of cannabis oil on a larger scale. It is also planning to cultivate 576 acres of land with
cannabis to reduce the demand-supply gap in Uruguay, which involves an investment of USD 10
million. The Uruguay market is expected to witness growth during the forecast period, due to
increasing investments by companies.
Therefore, supportive legalization strategies being adopted by the government, rising demand for
cannabis products, and favorable pricing of cannabis, the market is anticipated to grow at a
substantial rate during the forecast period.
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6.1.4.2.1 URUGUAY CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –
2027 (USD MILLION)
Fig.49 Uruguay cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
1,400.0
1,200.0
1,267.0
1,000.0
1,024.1
800.0
827.8
600.0
671.4
310.8
260.9
547.1
224.5
199.2
400.0
181.8
449.0
371.6
200.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.4.3 CHILE
Chile legalized marijuana for medical purposes in 2015 and is among the countries to relax its laws
regarding cultivation, distribution, and consumption of cannabis. Patients with prescription can buy
medical marijuana or cultivate in small quantities for personal use. However, rules and regulations
regarding personal use and cultivation are little uncertain. The sale of medical marijuana in Chile was
allowed from May 2017. Moreover, a bill for decriminalization of recreational marijuana was passed
in 2015 but was not approved by higher authoritative bodies of the government. In addition, there
has been a rise in prevalence of diseases such as Alzheimer’s and Parkinson’s as well as cancer. For
instance, according to IHME, in 2016, deaths due to Alzheimer’s disease increased by 53.7%
between 2016 and 2005.
Furthermore, due to high costs of import and limited availability in the country, people in Chile have
carried out innumerable protests as pharmacies were not able to meet the demand. In May 2019,
there was a peaceful protest by the citizens for legalization and regulation of cannabis. Such protests
have made the Chilean government consider medical cannabis cultivation. Thus, in July 2019, the
Chilean government authorized Agrofuturo to cultivate medical cannabis. This is a major step of the
government toward cannabis cultivation, which is expected to drive the market in the country.
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6.1.4.3.1 CHILE CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.50 Chile cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
2,000.0
1,800.0
1,758.8
1,600.0
1,400.0
1,200.0
1,270.2
1,000.0
800.0
920.9
373.0
285.2
600.0
672.1
221.9
176.1
142.6
118.7
101.6
400.0
497.5
200.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.4.4 COLOMBIA
Colombia decriminalized the possession of marijuana in 2012 and later legalized marijuana for
medicinal use in 2015. With legalization of medical marijuana in Colombia, the government is
anticipated to support research efforts for provision of reliable and safe cannabis to patients.
Moreover, the government is involved in educating physicians about medical use and potential
adverse effects of marijuana. These efforts taken by the government in promoting the medicinal use
of marijuana in the country are expected to boost the demand for medical marijuana in Colombia.
Patients in Colombia have an option of personal cultivation of medical marijuana or purchase from a
licensed producer without any restrictions to the quantity of the purchase or possession of medical
marijuana. In addition, incidence of diseases, such as cancer, autism, and Alzheimer’s & Parkinson’s
disease, has increased in the past few years. For instance, according to Institute of Health Metrics
and Evaluation (IHME), the death rate due to Alzheimer’s disease in Colombia increased by 51.6%
between 2005 and 2016. Increasing incidence of chronic diseases for which marijuana can be
prescribed and efforts for promoting awareness regarding medicinal use of marijuana are expected
to drive the market in Colombia.
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Furthermore, Colombia has a favorable climate for cannabis cultivation. In addition, affordable labor
wages in the country and recent decriminalization make it one of the best countries for cannabis
cultivation. Hence, in 2018, Colombia obtained a quota to produce 40.5 tons of cannabis for medical
use from International Narcotics Control Board (INCB). According to many cannabis companies,
cannabis production in Colombia is cheaper than Canada, which is another major factor boosting the
market. For instance, producing 1 g of cannabis costs around 5 cents in Colombia and USD 1.50 in
Canada. Thus, many Canadian companies have shown interest in producing cannabis in Colombia. In
addition, many Canadian companies such as Grupo Flor, PharmaCielo (PHCEF) and Khiron Life
Sciences (KHRNF) would soon be starting their production in the country. Moreover, major marijuana
companies such as Canopy Growth, Aurora, Cronos Group (CRON), and Aphria (APHA) are investing in
the Colombian market. Currently, there are 70 companies in the country licensed by the Colombian
Ministry of Health and Justice to legally cultivate cannabis for medicinal purposes. This is expected to
drive the cannabis cultivation market in the country during the forecast period.
6.1.4.4.1 COLOMBIA CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 –

2027 (USD MILLION)
Fig.51 Colombia cannabis cultivation market estimates and forecasts, 2016 – 2027 (USD MILLION)
700.0
600.0
600.0
500.0
460.2
400.0
355.6
300.0
278.0
121.5
104.5
200.0
92.8
220.1
84.7
84.7
177.0
144.7
100.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
91
6.1.4.5 MEXICO
Medical use of marijuana has been permitted on select basis since 2015. However, it was legalized
in Mexico on June 19, 2017. The medical marijuana program is in its nascent stage and the Ministry
of Health has been assigned by the Mexican government to create regulations and criteria for the
program. In addition, the incidence of diseases such as cancer, autism, and Alzheimer’s has
increased in the past few years. Therefore, legalization of medical marijuana in Mexico is expected to
drive the market over the forecast period.
Furthermore, one of the criteria laid out is that all medications to be consumed should contain only
1% or lower THC content. Moreover, people in Mexico are conservative compared to that in the U.S.
and use of marijuana for recreational purpose is highly stigmatized. These factors are expected to
impede growth of medical marijuana in Mexico, which may limit cultivation in the country.
Moreover, in 2018, the government announced its willingness to legalize cannabis for recreational
purposes in the country. This legalization would increase cannabis cultivation and consumption in the
country, making Mexico a competitor for Uruguay, Colombia, and Canada.
Therefore, due to favorable government reforms, better awareness regarding cannabis as a

therapeutic, and rising number of companies operating in the country, the market is likely to grow
during the forecast period.
6.1.4.5.1 MEXICO CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.52 Mexico cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
600.0
500.0
488.1
400.0
300.0
331.0
200.0
107.8
225.4
76.0
54.7
40.2
154.9
23.6
30.3
100.0
19.7
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
-
92
6.1.5 MIDDLE EAST & AFRICA
Cannabis regulations are quite stringent in the Middle East and Africa. The production, distribution,
and consumption of any form of cannabis, including CBD, is considered illegal in the region. The
penalty for possession or consumption can be as severe as a death penalty in some of the Middle
Eastern countries. Therefore, due to highly stringent regulations in the Middle East, its cannabis
market is yet to witness significant growth.
In Africa, cannabis and CBD are illegal. However, despite having very harsh rules for cannabis, the
climatic conditions in the region are nearly perfect for its growth. Moreover, South Africa is the only
country with legal status for consumption of cannabis or hemp-based medical products. Furthermore,
in Morocco, production, distribution, and consumption of cannabis is illegal and in contradiction to
this, Morocco is known to be the largest and one of the major producers of Hashish, i.e., cannabis
resin, in the world. According to International Narcotics Control Board, approximately three-quarters
of hashish originated in the world is from Morocco. In addition, as per UNODC, in 2015, the total
outdoor cannabis production was approximately 38,000 tons and indoor production was about 760
tons. Furthermore, there are ongoing government discussions for the legalization of cannabis with
respect to medical and industrial applications. Moreover, the attitude of citizens toward utilization of
cannabis is fairly permissive, and this country is also known for its cannabis tourism. Therefore,
factors such as hashish production, tourism, and positive attitude of people are expected to boost
growth of the market in this country.
Egypt is yet another lucrative market in the region for cannabis cultivation. Although cultivating,
buying, and selling cannabis is strictly banned in the country, industrial hemp production is carried
out in the country for various purposes. The government permits cultivation of hemp with low THC
levels for industrial purposes. In addition, there are informal hashish cafes across the country, while
authorities have a negative stance toward consumption of cannabis and its products. However, there
are ongoing discussions about decriminalization of cannabis for medical use. If decriminalized, it will
help in catering to patients in need of medical cannabis for treatment.
Thus, possible legalization of cannabis, increase in awareness about its health benefits, and
authorization for medical & industrial processes are expected to propel growth of MEA cannabis
cultivation market over the forecast period.
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6.1.5.1 MIDDLE EAST & AFRICA CANNABIS CULTIVATION MARKET ESTIMATES AND
FORECASTS, 2016 – 2027 (USD MILLION)
Fig.53 Middle East & Africa cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
1,000.0
900.0
910.3
800.0
829.8
770.5
700.0
702.4
600.0
599.3
500.0
400.0
408.5
300.0
200.0 99.5
222.6
37.1
11.3
10.0
12.8
100.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
6.1.5.2 ISRAEL
Israel has been a supporter of medical cannabis since 1973, when it legalized medical cannabis for
patients. Since then, it has been an active player in R&D of cannabis. Growth in cannabis market is
likely to create research-, technology-, and management-related jobs in the country.
Israel dominated the market in MEA in 2018 due to liberal government policies, technical innovations
& high research activity, and well-developed ecosystem of cannabis. Furthermore, in 2016, the
government announced its plans to expand the number of authorized and trained doctors to
prescribe medical marijuana. In mid-2016, the government provided licenses for marijuana growers,
fueling market growth. In February 2017, a government committee approved the export of cannabis.
Thus, increasing cultivation and exports of medical marijuana is expected to propel market growth in
the near future.
The country is one of the leading cannabinoids centers of research around the world with about two
dozen groups working on it. In January 2017, the government invested USD 2.13 million in 13
different research projects to study the effect of marijuana on conditions such as metabolic
syndrome and prevention of transplanted organ rejection. Increasing investments in R&D are likely to
expand the application of cannabis in the medical field. Hence, these factors are expected to boost
the market during the forecast period.
94
In April 2019, Israel passed a law that decriminalized possession of cannabis plant and its buds. In
addition, as per the new law, possession of homegrown cannabis is no longer punishable. Thus, if
anyone (except military personnel & minors) is found with small amounts of cannabis in public, the
person would be fined rather than being subjected to criminal proceedings. The country has nearly
40,000 patients suffering with Parkinson’s disease, epilepsy, cancer, and other terminal illnesses,
who are dependent on medical cannabis. The cultivation of cannabis will be helpful in catering to the
increasing patient base and further propel growth of the market.
After decriminalization, 550 farms have submitted requests for licenses to cultivate medical
cannabis. As of April 2019, nearly 400 cultivators had cleared the first round of licensing, six farms
were near the third stage of licensing procedure, and eight firms had completed the licensing
process. The Israeli government also passed new cannabis export law in January 2019, which allows
companies approved by the Israeli government to export medical cannabis to countries such as
Germany, Czech Republic, Denmark, and Australia. The new law and exports are likely to boost the
Israel cannabis cultivation market.
6.1.5.2.1 ISRAEL CANNABIS CULTIVATION MARKET ESTIMATES AND FORECASTS, 2016 – 2027
(USD MILLION)
Fig.54 Israel cannabis cultivation market estimates and forecasts, 2016 - 2027 (USD Million)
1,000.0
900.0
910.3
800.0
829.8
700.0 770.5
702.4
600.0
599.3
500.0
400.0
408.5
300.0
99.5
200.0
222.6
37.1
10.0
12.8
11.3
100.0
-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
95
6.1.5.3 SOUTH AFRICA
In South Africa, cannabis for personal and private use was decriminalized in 2018. The country
defines regulations for the cultivation of cannabis for scientific, medical, and research purposes.
Owing to legalization in the country, cannabis-derived CBD products have gained popularity, and this
has attracted companies to invest in the market.
Furthermore, in South Africa, the regulatory authority—South African Health Products Regulatory
Authority (SAHPRA)—authorized access to cannabis-containing products for patients, in exceptional
circumstances, during which, the products must be subscribed by a physician first in order to obtain
permission to import the required product. In addition, South African Department of Health and
SAHPRA issued guidelines for cultivation of cannabis and to ensure accessibility to superior quality
cannabis for medical, scientific, and clinical research purposes. Moreover, House of Hemp, a South
African company, acquired the license for cannabis cultivation from SAHPRA. The company has
become an active player in developing and distributing cannabis and its derivatives-based products
due to this strategic initiative.
In May 2019, SAHPRA permitted the cultivation of hemp for research purposes in the country for 12
months. This decision was to be reviewed in May 2020, but due to the coronavirus pandemic, the
review was delayed. The temporary permission has created opportunities for the players in the
market.
Furthermore, local licenses for cultivation are new, therefore, regulatory focus of the government
would remain primarily on imports. Hence, increase in imports and revenue collection from them can
lead to economic stability, which can further drive growth of the market. With proper regulatory
framework, better awareness regarding cannabis & its derivatives, and penetration of local as well as
international cultivators, the market is expected to grow at a significant rate during the forecast
period.
96
CHAPTER 07 Competitive Landscape
7.1 Company Profiles
7.1.1 PACIFIC CANNABIS GROWERS, INC.
7.1.1.1 COMPANY OVERVIEW
Pacific Cannabis Growers, Inc. is a privately held company
located in Humboldt County, California. It cultivates legal
medical marijuana and complies with CA prop 215 & SB420.
The company operates in its 10,000 sq. ft. outdoor cultivation
facility with Mixed Light use permit. In March 2017, CaliPharms, Key Statistics
Inc. acquired a 51% stake in the company. However, in August
2017, the acquisition was terminated, and Pacific Cannabis Establishment year: 2015
Growers works as an independent entity in cannabis cultivation Headquarters: U.S.
business. Some of the strains cultivated by the company are Market relevance: High
Blue Cheese, Kosher Kush, Girl Scout Cookies, Dairy Queen,
and SkyWalker OG.
7.1.1.2 STRATEGIC INITIATIVES

• In August 2017, the company announced the termination of its relationship with
CaliPharms, Inc. In March 2017, CaliPharms acquired the company by purchasing majority
stake. However, the acquisition was later terminated. This strategic move was expected to
help Pacific Cannabis Growers work independently and increase visibility & penetration as
an independent cannabis cultivator.
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7.1.2 ATLAS GROWERS
Atlas Growers is a wholly owned subsidiary of Atlas
Biotechnologies, Inc. It is a federally licensed cultivator and
producer of medical cannabis in the country. It holds a total
of 160 acres of land in Alberta, which can be useful for future Key Statistics
expansion plans. Furthermore, it has a 38,000 sq. ft.
Establishment year: 2015
purpose-built indoor facility and a production capacity of
more than 5,000 kg of dried cannabis per year. In addition, it Headquarters: Canada
owns 50% share of Coastline Canada, Inc., a British- Market relevance: High
Columbia-based cannabis cultivator.

• In November 2018, Atlas Growers entered into a sales agreement with Avaleaf GmbH, a
wholesaler and pharmaceutical importer from Germany. This initiative was expected to help
the company expand its footprint in the European market.
• In September 2018, the company announced its partnership with the University of Alberta for
exploring and developing processes for cannabis waste management, leading to sustainable
waste disposal & production of bioenergy. This initiative would help the company develop
goodwill as well as build a sustainable waste management system, curbing water, and
electricity expenses.
• In August 2018, the company received approval from the Planning and Development
Department for the construction of a 1,000,000 sq. ft. light industrial processing plant. This
initiative would help the company expand its production capacity.
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7.1.3 CANNTRUST HOLDINGS, INC.
CannTrust Holdings, Inc. is a public company, operating as
a licensed and regulated provider of cannabis at the
federal level. It provides medical and recreational cannabis
with high-quality standards & purity. It produces Key Statistics
standardized products that are helpful for physicians in
providing precise dosage to patients. Furthermore, the Establishment year: 2013
company operates through two state-of-the-art cultivation Headquarters: Canada
and processing facilities. The first facility is of 60,000 sq.
Market relevance: High
ft., located in Vaughan, and second facility is of 450,000
sq. ft., located in Niagara.
7.1.3.2 FINANCIAL PERFORMANCE

Financial (CannTrust
2016(USD Million) 2017(USD Million) 2018(USD Million) Key contributing factors
Holdings, Inc.)
Revenue
3.30 15.60 36.48
Gross Profit The company’s revenue in 2018 increased by

2.66 18.08 27.51
133.8% to that in 2017, owing to increase in
strategic initiatives by the company, rise in
Operating Expenses production of cannabis and increase in patient base.
3.83 11.13 34.16
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
2016 2017 2018
Revenue Gross Profit Operating Expenses
Source: Investor Presentations, Primary Interviews, and Annual Reports. 1 Canadian Dollar=0.75 USD as of 5th August 2020
99
• In June 2019, CannTrust Holdings, Inc. announced its plan to enter the U.S. CBD market
through a joint venture with Elk Grove Farming Company. This initiative was expected to help
the company expand and strengthen its presence in the U.S. market.
• In September 2018, the company entered a partnership with Breakthru Beverage Group. This
initiative would help the company enter the recreational beverage market.
100
7.1.4 THE HYDROPOTHECARY CORPORATION
The Hydropothecary Corporation was incorporated in 2013 in
Quebec, Canada. In August 2018, the company changed its name
to HEXO Corp. It is a licensed producer of medical and
recreational cannabis. It operates its medical cannabis business Key Statistics
under the Hydropothecary brand and utilizes HEXO brand for
recreational or adult-use cannabis products. It operates through 2
million sq. ft. facilities located in Ontario and Quebec. Some of the Headquarters: Canada
company’s brands are HEXO, HEXO Plus, and Original Stash. Market relevance: High
Financial (HEXO Corp.) 2018(USD Million) 2019(USD Million) Key contributing factors
Revenue
3.72 35.88
Gross Profit The company’s revenue in 2019 increased by 863.5% to that in

4.83 18.50
2018, owing to increase in strategic initiatives by the company,
increasing awareness regarding cannabis, rise in production of
Operating Expenses cannabis and increase in patient base.
18.39 84.15
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
2018 2019
Revenue Gross Margin Operating Expenses
Source: Investor Presentations, Primary Interviews, and Annual Reports. 1 Canadian Dollar=0.75 USD as of 5th August 2020
101
• In July 2020, The Hydropothecary Corporation entered into a 24-month agreement with an
Israel-based company called Breath of Life International Ltd. for the launch of its medical
cannabis products in Israel. This initiative was expected to help the company expand its
footprint in Israel.
• In June 2020, the company announced the sale of its Niagara facility. The company
undertook this initiative to curtail excess cultivation and other expenses. The company was
focusing on utilizing these funds for working capital and other general purposes, as well as for
expansion of its Ontario facility.
• In May 2019, the company announced the acquisition of Newstrike Brands Ltd. This initiative
would help the company expand its offerings and strengthen its product portfolio. In addition,
it would also help increase product diversity and visibility of HEXO brand in the market.
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7.1.5 BETTER HOLDINGS
Better Holdings is engaged in cannabis cultivation, production,
and manufacturing business. The company has two operational
subsidiaries: Better Israel and Better Australia. Better Israel is the
company’s R&D hub and sales pipeline for medical cannabis in
the country, serving over 5,000 patients monthly. Furthermore, Key Statistics
Better Australia is fully licensed for production, export, and sales
Headquarters: Israel
of medical-grade cannabis. In addition, the majority stake of
Better Holdings is owned by Better Australia. Moreover, the Market relevance: High
company contains a gene bank of all its proprietary strains with
thousands of seeds and hundreds of mother plants.

• In October 2018, Better Holdings took part in open clinical trials in three locations: Israel,
Australia, and the Czech Republic. The trials were related to children suffering from autism in
major medical centers, hospitals such as Ichilov Hospital, and universities such as Technion.
The trials showed positive results on children. This initiative would help the company increase
its visibility and goodwill in these markets.
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7.1.6 CANOPY GROWTH CORPORATION
Canopy Growth Corporation is a producer and distributor of
medical cannabis. The company operates through subsidiaries
involved in production, packaging, and distribution of marijuana.
It is a publicly traded company listed on TXSV under the symbol Key Statistics
WEED and, as of December 2019 on the NYSE, under the trading
symbol CGC. Tweed, Inc.; Bedrocan Canada; and Mettrum (now
Spectrum Cannabis) are the three core brands of the company. Headquarters: Ontario Canada
The company sells and promotes its products through Tweed Market relevance: High
Main Street. Its product offerings are dried flowers, oils,
concentrates, soft gel capsules, and hemp.

Financial (Canopy
Growth Corporation)
Revenue
9.706 30.493 59.57
The company’s revenue in 2018, increased by 95%
Operating Expenses to that in 2017, owing to an increase in company’s
production, acquisition of companies operating in
16.613 40.355 119.5
cannabis space such as MedCann GmbH, Green
Medical Inc. and others and rapid expansion in the
Gross Margin U.S. cannabis market after passing of the Farm Bill.
14.5 29.5 56.7
140
120
100
80
60
40
20
0
2016(USD Million) 2017(USD Million) 2018(USD Million)
Revenue Operating Expenses Gross Margin
Source: Investor Presentations, Primary Interviews, and Annual Reports, Exchange rate: 1 CAD = 0.76 USD as on 11/6/2018
104
• In May 2019, Canopy Growth Corporation launched Spectrum Therapeutics: a new

medical brand. All the company’s medical research operations are operated under
Spectrum Therapeutics. The company produces medical cannabis products, conducts
clinical research, and develops medicines under the new brand.
• In February 2018, Canopy Growth Corporation was selected by the Government of

Manitoba in partnership with a Canada-based cannabis company, Delta 9 Cannabis, Inc.
• In September 2017, the company established a partnership with Danish Cannabis ApS,
creating a new joint venture: Spectrum Denmark ApS. This venture strengthened the
company’s foothold in the European cannabis market. As a part of this venture, the
company would invest USD 7.6 million and issue 1.9 million common shares in the
corporation.
• In September 2017, the company signed an MOU with the government of New Brunswick,
Canada, for supplying marijuana products to retail stores. The MOU was a first-of-its-kind
agreement between a marijuana producer and the government. As per the MOU, Canopy
would supply marijuana to New Brunswick for 2 years: during the first year, the company
will supply 4,000 kilograms of marijuana & its derivatives, with a retail value of around
USD 30.4 million.
• In September 2017, Canopy Growth and its subsidiary Spektrum Cannabis GmbH entered
into a supply agreement with Alcaliber, S.A., a Spanish pharmaceutical company that deals
in producing, processing, & extracting narcotic raw materials & active pharmaceutical
ingredients. Through this agreement, Canopy Growth provided Alcaliber license to use
some of its strains for production and sales worldwide. This agreement was expected to
further strengthen Canopy’s hold in the European marijuana market.
• In February 2017, Tweed, Inc., a subsidiary of Canopy Growth, launched HomeGrow

Collection, an initiative through which the company would provide seeds to marijuana
home growers. This initiative was expected to expand the company’s customer pool by
adding home growers as its customers.
• In December 2016, the company acquired Mettrum Health Corp for approximately USD
326.8 million. The acquisition was expected to provide Canopy Growth with Mettrum’s
diversified portfolio of marijuana and improve its supply chain in the growing market.
105
7.1.7 APHRIA, INC
Aphria, Inc. produces & sells medical marijuana and its
derivatives, such as cannabis oil. The company also provides
consultation to patients and physicians. The company sells
products through its website or e-commerce channels. It markets
Key Statistics
sativa, indica, and hybrid varieties of marijuana. Aphria, Inc. is Establishment year: 2013
listed on the Toronto Stock Exchange and the U.S. OTCQB
Headquarters: Leamington,
Venture Market Stock Exchange. Broken Coast Cannabis Ltd.;
Canada
Broken Coast Cannabis Ltd.; FL-Group; ASG Pharma Ltd.; Cannan
Growers, Inc.; and Pure Natures Wellness, Inc. are some of the Market relevance: High
important subsidiaries of the company.

Financial (Aphria, Inc.) 2016(USD Million) 2017(USD Million) 2018(USD Million) Key contributing factors
Revenue
6.456 15.64 28.259
Gross Profit The company’s revenue in 2018 increased by

4.57 13.24 31.298
80.64% to that in 2017, owing to the acquisition of
Broken Coast Cannabis Inc., rise in production of
Net Income cannabis and increase in patient base.
0.304 3.213 22.54
35
30
25
20
15
10
0
Revenue Gross Profit Net Income
Source: Investor Presentations, Primary Interviews, and Annual Reports
106
• In November 2019, Aphria, Inc. received cultivation license from Health Canada for Aphria
Diamond, a 51% owned subsidiary of the company formed by partnering with a Canada-
based company Double Diamond. This approval helped the company double its cultivation
and production capacity in Canada and, thus, increase its local sales.
• In February 2018, Aphria, Inc. acquired British-Colombia-based cannabis producer Broken

Coast Cannabis, Inc. to strengthen its position in the Canadian market in terms of indoor
cannabis production. The company’s annual capacity of cannabis production increased
from 4,500 kg per year to 10,500 kg per year. As a result, the company would be able to
serve more patients and increase its geographic presence.
• In August 2017, the company invested USD 8.74 million in HydRx Farms, Ltd. (Scientus
Pharma), a biopharmaceutical company manufacturing cannabis-based pharmaceutical
products. Such strategic investment was anticipated to increase the company’s revenue
and strengthen its footprint in the marijuana business.
• In August 2017, the company entered a partnership with Nuuvera Corp., a global cannabis
producer and distributor. This strategic partnership was expected to boost marijuana
production for Aphria and strengthen the market presence of both companies.
• In July 2017, the company, through its subsidiary Pure Nature Wellness Inc., signed a
sales agreement with Scientus Pharma. As per this agreement, Aphria would provide
25,000 fully grown marijuana plants to Scientus Pharma. Via this agreement, Aphria was
expected to generate USD 0.92 million in each quarter. This, in turn, was anticipated to
boost the company’s revenue and promote product sales.
• In June 2017, Aphria, Inc. signed a partnership agreement with Laborers’ International
Union of North America (LiUNA) to become the primary provider of medical marijuana for
Essex and Kent counties, which was expected to expand its customer base and strengthen
its brand recognition.
107
7.1.8 AURORA CANNABIS
Aurora Cannabis is a producer and distributor of dried
cannabis & cannabis oil. The company provides variety of
cannabis strains with different THC and CBD levels. It deals in
indica, sativa, and hybrid varieties of cannabis. It also provides Key Statistics
patients with consultation and information on cannabis. The
company is vertically integrated, as it is involved in cultivation,
development, research, and supply of cannabis to retailers. As Headquarters: Alberta, Canada
of July 2019, the company was operating in 24 countries. It Market relevance: High
has entered into strategic agreements with various companies,
catering to different industry verticals, such as
pharmaceuticals, food & beverages, and others.

Financial (Aurora
Cannabis Inc.)
Revenue
1.1 13.8 42.2 The company’s revenue in fiscal year 2018 has
increased by more than 200 percent to that in 2017,
owing to the rise in production activities, acquisition
Gross Profit of new customers and strong performance in
1.7 12.30 33.3 Canadian market.
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
Revenue Gross Profit
108
• In December 2019, Aurora Cannabis’ CBD drops received approval in Ireland as per the
country’s Medical Cannabis Access Programme (MCAP). This made the company one of
the first suppliers of medical cannabis in Ireland and helped expand its geographical
reach.
• In June 2019, Aurora Cannabis announced its expansion plans in the marijuana market by
broadening its product portfolio. In addition to existing products, the company planned to
offer vapes, concentrates, and edibles in the market. The company was also planning to
launch a national public awareness campaign to educate consumers, provinces, &
retailers about the safe usage and consumption of these derivative products. These
initiatives are likely to strengthen the company’s positioning in the market and help
acquire a large consumer base.
• In April 2019, the company acquired an Ontario-based organization, Chemi

Pharmaceutical, a GMP-certified analytical contract laboratory specializing in the analysis
of pharmaceutical and natural health products. After the acquisition, analytical testing
services of Chemi Pharmaceutical would be integrated into Aurora’s wholly owned
subsidiary—Anandia Laboratories Inc.—which would help Anandia expand its analytics
capabilities and specialized testing services for medical cannabis & its derivatives. This
would further contribute to domestic and international clients and ensure timely delivery of
testing services to existing clients.
• In February 2019, the company acquired 51% ownership in Gaia Pharm Lda, one of the
licensed applicants in Portugal for marijuana cultivation, which received approval for
constructing an EU GMP-compliant cannabis cultivation facility in the country. The
company planned to rename the acquired company Aurora Portugal and initiate operation
in the country.
• In February 2019, the company completed its first commercial export of cannabis oil to
the UK. The company is one of the first suppliers licensed to sell cannabis products in UK
pharmacies. This is one of the major milestones for the company, as it entered a highly
regulated UK market.
• In April 2018, the company successfully delivered its first batch of medical cannabis from
Canada to the Italian government through its German subsidiary, Pedanios GmbH. The
delivered medical cannabis would now be available across all the Italian pharmacies.
• In May 2018, the company launched a new product line of cannabis: Aurora Frost. This
product had the highest potency (THC > 35%) as compared to other company products.
109
• In May 2018, the company completed acquisition of CanniMed Therapeutics Inc., a
cannabis company. Through this acquisition, the company strengthened its position in the
legal marijuana market.
• In October 2017, Aurora Cannabis launched a proprietary product, Aurora Envoy, a live
plant transportation system. The product was designed to protect cannabis plants during
transport by providing optimum environmental conditions and tamper-proof facilities. The
product targets home-growers. The company filed for a patent in August 2017. This gave it
access to over 150 countries, which was anticipated to aid revenue growth. Commercial
launch of this product was expected by first quarter of 2018. The company planned to
market this product at a global level through wholesale channels.
• In October 2017, Aurora Cannabis acquired BC Northern Lights Enterprise Ltd. and Urban
Cultivator, Inc. Both companies operate in indoor gardening appliances sector. Through
this acquisition, Aurora Cannabis aimed at using their existing product portfolios to
manufacture & market indoor gardening appliances for cannabis cultivation. This initiative
was focused on increasing market foothold among the home-growers. As recreational
marijuana was expected to be legalized by July 2018 in Canada, the number of marijuana
growers was expected to increase. Aurora Cannabis was banking on this probability for a
first-mover advantage.
• In September 2017, the company announced that it had initiated supply of marijuana
flowers in the German medical marijuana market. The company initiated this operation
through its subsidiary Pedanios GmbH. It shipped the first shipment of 50 kilograms of
dried marijuana from its Alberta, Canada, facility to Pedanios in Berlin, Germany, from
which the stock was to be distributed in the local market. With this supply agreement,
Aurora’s presence in the European medical marijuana market was expected to increase.
• In June 2017, the company entered into a strategic agreement with WeedMD, Inc., a
licensed producer of medical marijuana and provider of medicine for long-term care. It
also provides information related to medical uses of cannabis to healthcare professionals
& the public. Through this partnership, Aurora Cannabis was to provide patient education
services to WeedMD for its CanvasRx unit and, in turn, receive dried medical marijuana at
a wholesale rate. This agreement was expected to ensure a continuous supply of dried
marijuana for Aurora.
• In May 2017, Aurora Cannabis acquired Pedanios GmbH, a German distributor of medical
marijuana in the EU. Pedanios GmbH holds license to import, export, and distribute
medical marijuana in the EU. This acquisition was expected to bolster its market in Europe
and expand its geographic reach.
110
7.1.9 TILRAY
Tilray is a privately held company involved in cultivation,
processing, and sale of medical marijuana. The company has a
GMP-certified unit that processes cannabis flowers and other
extracts. Its customer base includes pharmacies, physicians, Key Statistics
patients, hospitals, government, and researchers. It was the
first producer licensed to legally export cannabis products from
North America to South America, Australia, European Union, Headquarters: British Columbia,
and New Zealand. Its product portfolio includes whole Canada
marijuana flowers, ground marijuana, and marijuana drops & Market relevance: High
capsules. It also sells accessories such as vaporizers and
storage containers.

Financial (Tilray Inc.) 2016(USD Million) 2017(USD Million) 2018(USD Million) Key contributing factors
Revenue The company’s revenue in 2018 has increased by
12.6 20.5 43.1
110%, as compared to that in 2017. This increase in
revenue was mainly due to growth in sales, rise in
EBITDA
exports, introduction of cannabis-based products
5.0 5.5 33.1 and new medical distribution agreements. The
company’s sale of cannabis extracts in 2018,
Gross Profit increased by 50%, which was major factor
2.67 11.4 14.275 responsible for increase in revenue.
On comparing the quarterly sale of 2017 and 2018,
Operating Loss there was an increase of 55%, 95%, 86% and 204%
7.049 7.5 57.65 in Q1, Q2, Q3 and Q4 respectively.
70.0
60.0
50.0
40.0
30.0
20.0
10.0
-
Revenue EBITDA Gros Profit Operating Loss
111
• In December 2019, Tilray completed the acquisition of Privateer holdings, an equity firm
that invests exclusively in the legal marijuana industry. This acquisition was anticipated to
provide the company with greater control and operational flexibility.
• In December 2019, the company successfully exported its cannabis extracts to

Switzerland for medical purposes. This made Switzerland the 14th country in which the
company would be establishing a distribution network for its products. The company also
hoped to export dried medical cannabis to Switzerland in the future. Through this initiative,
the company entered the Switzerland cannabis market and was expected to establish
itself in the European market.
• In August 2019, the company entered into an agreement with Germany-based

Cannamedical Pharma GmbH through its German subsidiary—Tilray Portugal—to export
USD 3.3 million worth medical cannabis from Portugal to Germany.
• In July 2019, the company finished the successful import of medical cannabis oral
solutions into Ireland for patients. It was the 13th country where Tilray would be supplying
its products.
• In June 2019, Tilray imported bulk quantities of medical cannabis oral solutions into the
UK market from its Canada-based facility. The company wanted to supply authorized
patients with a locally maintained supply of medical cannabis oral solutions. Through this
initiative, the company was planning to expand its operations in the UK and create a
strong foothold in the European market.
• In December 2018, the company completed the acquisition of Chile-based Alef

Biotechnology SpA. The company then relaunched the acquired company in the market as
Tilray Latin America SpA, as a wholly owned subsidiary of Tilray. It helped the company
supply medical marijuana in Latin American countries where medical marijuana usage was
legal. It helped the company strengthen its position in the Latin American market.
• In March 2017, marijuana was legalized for medical use in Germany, and Tilray began
exporting medical marijuana extracts to Germany. The initiative was undertaken through a
partnership with NOWEDA, a German pharmaceutical wholesaler, and Paesel + Lorei, a
service provider. This agreement was expected to provide Tilray with high growth
opportunities in the German medical marijuana market.
112
• In September 2017, Tilray received a license from the Portuguese government to import
marijuana saplings and cultivate the same in Portugal. For this initiative, Tilray invested
USD 22.28 million to create Tilray EU campus. This campus was expected to consist of a
greenhouse and processing facility, expected to be completed by mid-2018. Tilray also
planned to begin export of medical marijuana products to five additional countries by the
end of 2017.
• In May 2017, Tilray introduced medical marijuana capsules that can be conveniently
ingested. This was anticipated to expand the company’s customer base among patients
who want to avoid smoking marijuana and physicians who are keen on regulating the
dosage of CBD and THC.
113
7.1.10 ORGANIGRAM HOLDINGS, INC.
Organigram Holdings, Inc. markets its products through
subsidiary Organigram, Inc. The company produces and Key Statistics
markets medical cannabis within Canada. It offers a broad
portfolio of cannabis oils. Some of the key brands of the Establishment year: 2013
company are Banook, Rossignol, Shubie, and Utopia. Headquarters: New Brunswick,
Organigram is a licensed medical cannabis producer regulated Canada
by the Marihuana Medical Access Regulation (MMAR) of the
Market relevance: High
government of Canada. It is a federally incorporated company.

Financial (Organigram
2017 (USD Million) 2018 (USD Million) 2019 (USD Million) Key contributing factors
Holdings Inc.)
Revenue 5.71 12.43 80.41 The company’s revenue in the year

2019 increased by 547% as compared
to its revenue in 2018. The major
factor that can be attributed to this
Net Income (10.89) 20.51 (9.54)
revenue growth is the legalization of
recreational cannabis in Canada,
which increased the company’s
Operating Income (11.17) 36.42 6.10 product sales.
0
2016 2017 2018
Revenue Gross Profit Operating Expenses
114
• In June 2019, Organigram Holdings Inc. shipped its first cannabis products to Quebec. The
company was planning to establish a strong distribution network in all Canadian provinces.
• In October 2017, Organigram initiated the expansion of its production facility. The company
aimed to increase the size of its indoor cannabis production facility for increasing its
production & capacity by threefold. The company aimed to increase its existing production
facility from 36,000 sq. ft. to 134,000 sq. ft. and production capacity from 5,200 kilograms to
25,000 kilograms by the end of 2018.
• In September 2017, Organigram presented at the Canadian and U.S. Cannabis Investor
Conferences. During this presentation, Organigram planned to hold one-on-one meetings with
institutional investors, for discussion on potential investors and strategic partners, to
formulate new production, sale, & distribution strategies.
115
7.1.11 THE CRONOS GROUP
The Cronos Group is a parent organization comprising various
companies that hold license or are in the process of obtaining
license to cultivate and process medical cannabis & for allied
Key Statistics
businesses. The Cronos group of companies has licenses
issued by Health Canada. It has a network of licensed Establishment year: 2013
producers across Canada, which includes The Peace Naturals
Headquarters: Ontario, Canada
Project, Original BC Ltd, and Whistler Medical Cannabis
Corporation. The company also distributes medical cannabis to Market relevance: Medium
pharmacies.

Financial
2016 (USD Million) 2017 (USD Million) 2018 (USD Million) Key contributing factors
(The Cronos Group)
Revenue 2.11 2.94 3.80 The revenue for 2018 is reported up to

quarter 3. Company’s revenue increased by
29.4% from 2017 to 2018, due to expansion
of product portfolio to include cannabis
Operating Loss 1.60 1.62 NA flower, resin, seeds, plants and oils.
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
-
2016 2017 2018
Revenue Operating Loss
116
• In September 2019, The Cronos Group announced the acquisition of four operating
subsidiaries of U.S.-based hemp products manufacturer and distributor, Redwood Holding
Group, LLC. The company distributes hemp-based CBD-infused skincare and consumer
products in the U.S. market. This was expected to create new growth opportunities in the U.S.
and expand its offerings in the hemp-based market.
• In September 2018, the company launched a new brand, Spinach, in the Canadian market.
The launch was expected to strengthen its position in domestic adult-use market.
• In June 2018, the company entered a strategic distribution partnership with a Poland-based
pharmaceutical wholesaler Delfarma Sp. Zo.o. This was expected to support the company in
expanding its customer base and strengthening its position in Poland's market.
• In February 2018, Cronos Group Inc. launched Cronos Australia Pty Ltd. and a granted license
for medicinal cannabis cultivation & research licenses. This was expected to support and
expand its offerings in the Australian market and strengthen its position as a global player.
• In October 2017, it entered into a partnership agreement with Pohl-Boskamp, a German

pharmaceutical manufacturer that runs 12,000 pharmacies in the country. The companies
entered into a 5-year exclusive distributorship agreement, through which, Pohl-Boskamp
would distribute Peace Naturals’ cannabis products in Germany. In addition, as a part of this
agreement, Cronos would terminate all other existing supply agreements in Germany. This
move was expected to boost the company’s sales in Germany and expand its customer pool.
• In September 2017, Cronos Group entered a joint venture with Kibbutz Gan Shmuel—a
cultivation community in Israel—for production and distribution of medical cannabis. The joint
venture was signed by Cronos Israel, a subsidiary of Cronos Group, Inc. As per the agreement,
Cronos Israel was to increase its production of medical cannabis at very low costs—ranging
from USD 0.40 to USD 0.50 per gram—by utilizing Gan Shmuel’s resources. This was
expected to enhance the company’s production and sales volume in global medical cannabis
market.
• In September 2017, the company entered into a supply agreement with Cannamedical
Pharma, GmbH., a federally licensed importer of narcotics in Germany. The agreement was
signed by Peace Naturals, a subsidiary of Cronos Group. Through this agreement, Peace
Naturals would supply medical cannabis to CannaMedical, which was expected to further
distribute the product in Germany. This agreement was expected to strengthen company’s
foothold in the German medical cannabis market and create brand recognition among
medical cannabis consumers.
• In August 2017, Cronos Group’s subsidiary, Peace Naturals Project, Inc., entered into a
supply agreement with Caribbean Medical Distributors Ltd. As per this agreement, the
company would supply medical cannabis to the Cayman Islands. This was expected to expand
its geographic presence. The company planned to further strengthen its presence in the
Cayman Islands through new supply agreements.
117
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• Validation & publishing

INFORMATION INFORMATION MARKET VALIDATION &

Fig.2 Information procurement

Data Triangulation Technique

PRIMARY RESEARCH INFORMATION PROCUREMENT PURCHASED DATABASE

SECONDARY SOURCES GVR’S INTERNAL DATABASE THIRD PARTY PERSPECTIVE

Fig.3 Primary research pattern

Interviews with raw material

Note: GVR Representation

1.2 Information or Data Analysis

Bottom – up demand approach

• Demand estimation of each product across countries/regions summed to

Supply-chain-based sizing & forecasting

Note: GVR representation

Fig.6 QFD modelling for market share assessment

Price 25% Average Score Relative market share

Efficacy Rate 25% Product A 8.3 24.48%

Current Penetration 25% Product B 6.6 19.47%

Product C 6.6 19.32%

The process entails multiple levels of validation.

render validated results.

1.3.1 REGION MARKET: CAGR CALCULATION

1.4 Region Based Segment Share Calculation

1.5 List of Secondary Sources

Table 1 List of secondary sources

The World Health Organization (WHO) Regional population

Healthcare expenditure per capita of countries

The Organization for Economic Co- Geriatric population

operation and Development (OECD) Economic growth of developing regions

Trends being followed in the hemp industry

Bloomberg Revenue data

National Health Services Information regarding government initiatives and regulation

Technical aspects of devices

Product Brochures Country-wise availability

Product profiling and advantages

Launch and strategic initiatives

Country wise breakdown of population, number of hospitals and

World Bank Population in various countries

Based on biomass, cannabis cultivation market is classified into hemp and

Based on application areas, the market is broadly categorized as adult

140,000.0 Segment Key facts

High demand for cannabis and its derivates in

20,000.0 • Legalization for selected medical

various countries • Supply shortage of medical

Variables, Trends, & Scope

BIOMASS APPLICATION REGION

Hemp Medical Consumption North America

Marijuana Recreational Consumption Europe

Industrial Consumption Asia Pacific

Central & South America

Middle East & Africa

Uncharted territories Segment spearhead

The no go zone Mature

Market Share (Low to High along the axis)

Source: GVR analysis and estimates

Fig.11 Global cannabis cultivation market driver impact

Current impact Short-term impact Long-term impact

3.2.1.1 GROWING LEGALIZATION OF CANNABIS IN VARIOUS COUNTRIES

Cannabis Cultivation Market Size, Share & Trends Analysis Report by Biomass

Cannabis Cultivation Market Size, Share & Trends Analysis Report by Biomass