US Cannabis Market Size, Trends, Growth and Forecast 2026-2034

IMARC Group has recently released a new research study titled “US Cannabis Market Size, Share, Trends and Forecast by Source, Derivatives, Cultivation, End Use, and Region, 2026-2034”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

Market Overview

The US cannabis market size reached USD 25,078.34 Million in 2025 and is projected to soar to USD 320,772.68 Million by 2034, exhibiting a robust CAGR of 32.74% for the forecast period 2026-2034. Growth is spurred by federal cannabis rescheduling efforts, state-level legalization expansions, and innovations such as AI-powered cultivation systems. 

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

US Cannabis Market Key Takeaways

• Current Market Size: USD 25,078.34 Million in 2025
• CAGR: 32.74%
• Forecast Period: 2026-2034
• Federal cannabis rescheduling momentum began with DEA's May 2024 proposed rulemaking to move cannabis to Schedule III.
• Medical cannabis adoption expanded to 40 states, including Nebraska's November 2024 ballot approval.
• SAFER Banking Act progress in 2025 aims to enhance financial access for cannabis businesses.
• AI innovations are advancing cultivation and retail operational efficiency.
• Legal cannabis supports approximately 425,000 full-time equivalent jobs nationwide.

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US Cannabis Market Growth Factors

Federal cannabis rescheduling efforts represent the primary growth driver for the US cannabis market. Initiated by the DEA’s Notice of Proposed Rulemaking in May 2024 to shift cannabis from Schedule I to Schedule III, this regulatory movement is poised to ease the tax burden imposed by Internal Revenue Code Section 280E and improve banking accessibility. Approximately 69 percent of 43,000 public comments supported this change. Though administrative hearings were postponed in early 2025, this federal policy path signals a significant shift that could facilitate regulated industry expansion, medical research, and financial institutional participation.

State-level market expansion significantly bolsters growth, with medical cannabis legal in 40 states and adult-use cannabis in 24 states covering roughly 55% of the US population. Nebraska’s November 2024 ballot initiatives legalized medical cannabis, marking it the 40th state to permit such use. Several populous states like Pennsylvania and Hawaii are actively considering legalization expansions. The medical use segment shows robust growth driven by broader acceptance of cannabis therapeutics for conditions such as PTSD, chronic pain, epilepsy, and cancer, with new dispensary openings and rising sales exemplified by New York surpassing USD 1 billion combined sales in 2024.

The evolution of banking and financial services through the Secure and Fair Enforcement Regulation (SAFER) Banking Act is a critical market facilitator. As of September 2024, only 6.9% of financial institutions serve cannabis businesses, leaving a predominance of cash-only operations, which pose risks and regulatory challenges. The July 2025 endorsement of the SAFER Act by 32 state attorneys general and bipartisan Senate progress aims to offer safe harbor protections for banks serving cannabis operators. This improved financial infrastructure will enable electronic payments, payroll, lending, and enhanced regulatory compliance, supporting sustainable market growth and operational efficiency.

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US Cannabis Market Segmentation

Breakup by Source:

• Hemp
• Hemp Oil
• Industrial Hemp
• Marijuana
• Flower
• Oil and Tinctures

The report provides a detailed breakup and analysis of the US cannabis market based on these sources.

Breakup by Derivatives:

• CBD
• THC
• Others

Each derivative is analyzed to understand its market share and trends.

Breakup by Cultivation:

• Indoor Cultivation
• Greenhouse Cultivation
• Outdoor Cultivation

Detailed breakup and analysis cover cultivation methods contributing to market development.

Breakup by End Use:

• Industrial Use
• Medical Use
• Recreational Use

Comprehensive analysis of end uses highlights the varied medical conditions treated and recreational consumption.

Breakup by Region:

• Northeast
• Midwest
• South
• West

The report provides detailed regional market assessments for all major US regions.

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Recent Developments & News

• September 2025: Standard Wellness Holdings acquired GreenBud LLC, operating as Greenstock, a licensed dispensary in Seville, Ohio, for USD 1.35 million, expanding its Ohio dispensary footprint to four with plans for four more within 12-18 months.
• September 2025: The Cannabist Company Holdings partnered with Queen Mary, a California wellness-focused cannabis brand, to launch premium rosin gummies across 19 retail locations in Colorado and expanded wholesale distribution statewide through The Cannabist Company's network.

Key Players

• Curaleaf
• Trulieve
• Green Thumb Industries
• Verano
• Cresco Labs

Competitive Landscape

The market research report covers a comprehensive competitive landscape analysis including market structure, key player positioning, winning strategies, competitive dashboards, and company evaluation quadrants. Detailed profiles of all major companies have been provided.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

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