July 23, 2024

Marijuana Cigarette Market: Growing Demand for Cannabis Products Drives Market Growth

The Global Marijuana Cigarette Market is estimated to be valued at US$58.63 billion in 2023 and is expected to exhibit a CAGR of 34.1% over the forecast period from 2023 to 2030, according to a new report published by Coherent Market Insights.

Market Overview:
The marijuana cigarette market comprises cigarettes made from the cannabis plant, which contain psychoactive compounds such as THC (tetrahydrocannabinol) and CBD (cannabidiol). These cigarettes offer various advantages, such as pain and stress relief, relaxation, and potential medicinal benefits for conditions like epilepsy and multiple sclerosis. The rising awareness about the medicinal properties of cannabis, along with the increasing legalization of marijuana for medical and recreational purposes, is driving the demand for marijuana cigarettes.

Market Key Trends:
One key trend in the marijuana cigarette market is the increasing legalization of cannabis globally. Several countries and states have been legalizing the use of marijuana for either medical or recreational purposes. This trend is driven by the growing recognition of the potential health benefits of cannabis and the need to regulate and tax its use. The legalization of marijuana creates a lucrative opportunity for market players to expand their operations and cater to the growing demand.

Porter’s Analysis

Threat of New Entrants:
The threat of new entrants in the marijuana cigarette market is relatively low. The market is highly regulated, requiring significant capital investments and licenses to operate legally. Additionally, established companies have already captured a significant market share, making it difficult for new entrants to gain traction and compete effectively.

Bargaining Power of Buyers:
The bargaining power of buyers in the marijuana cigarette market is moderate. While the market is experiencing rapid growth, there is still a limited number of suppliers, giving them some leverage over buyers. However, as more players enter the market, buyer power may increase, leading to more competitive pricing and options for consumers.

Bargaining Power of Suppliers:
The bargaining power of suppliers in the marijuana cigarette market is relatively high. Due to the regulatory environment and limited number of suppliers, suppliers have the ability to dictate pricing and terms to some extent. However, as the market grows and more suppliers enter, supplier power may decrease.

Threat of New Substitutes:
The threat of new substitutes in the marijuana cigarette market is low. While alternative forms of consuming marijuana, such as edibles and vaporizers, exist, the traditional cigarette format remains popular and widely used. Additionally, the cultural and social acceptance of smoking marijuana cigarettes is deeply ingrained, making it unlikely for substitutes to significantly impact the market.

Competitive Rivalry:
The competitive rivalry in the marijuana cigarette market is intense. Key players in the industry, such as Canopy Growth Corporation, Aurora Cannabis, and Tilray Inc., are continuously innovating and expanding their product offerings to maintain their market share. This leads to intense price competition and the need for constant differentiation.

Key Takeaways

The Global Marijuana Cigarette Market is expected to witness high growth, exhibiting a CAGR of 34.1% over the forecast period of 2023-2030. This growth can be attributed to the increasing legalization of marijuana for both medicinal and recreational purposes across various countries. For example, the legalization of recreational marijuana in several U.S. states has created a significant market opportunity.

In terms of regional analysis, North America is the fastest-growing and dominating region in the marijuana cigarette market. The legalization of recreational marijuana in Canada and several U.S. states has created a robust market demand. Additionally, the region has a well-established infrastructure for marijuana cultivation and distribution, giving it a competitive advantage.

Key players operating in the marijuana cigarette market include Canopy Growth Corporation, Aurora Cannabis, Tilray Inc., Aphria Inc., Cronos Group, Hexo Corp., Organigram Holdings Inc., Curaleaf Holdings, Inc., Cresco Labs, and Green Thumb Industries. These companies have strong brand recognition, extensive distribution networks, and a focus on product innovation. They are expected to maintain their market dominance and drive the growth of the overall market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it