The Commercial Cannabis Boom

Cannabis has undergone a dramatic transformation over the past two decades. Once relegated to the margins of legality and public acceptance, it now stands as a central player in a rapidly expanding industry. Legalization across various jurisdictions has opened the door to a wide array of cannabis-derived products, each contributing uniquely to economic growth, social change and medical innovation.

The modern cannabis market offers a wide variety of products. Consumers can choose from traditional dried flower, pre-rolled joints, edibles, vapes, tinctures, topicals, concentrates, capsules and even beverages. These products suit different tastes and lifestyles. For example, older adults often prefer edibles and tinctures for their ease of use and non-inhalation method, while younger users tend to favour vapes and concentrates for their strength and convenience. In 2024 alone, over 394 million pre-rolls were sold, making them the fastest-growing category. Cannabis beverages also experienced significant growth, reaching $54 million in sales between Q2 2023 and Q2 2024.

Economically, cannabis is a powerhouse. In 2021, the U.S. market was valued at approximately $24 billion, with projections suggesting it could surpass $41 billion by 2025. This growth has created jobs, with over 321,000 Americans working in cultivation, processing, retail and related services. States like Colorado and California have generated hundreds of millions in tax revenue, funding public services such as education and healthcare. Cities like Grover Beach, California and Durango, Colorado, have revitalized underused industrial zones by welcoming cannabis businesses. Venture capital investment in the sector reached $6 billion in 2021, driving innovation in technology, logistics and product development.

Socially, cannabis legalization has prompted significant shifts. It has led to the expungement of past convictions in several states, addressing long-standing disparities in enforcement. Public perception has also evolved. Nearly 47 percent of Americans have tried cannabis, and 15 percent identify as current users. Among women over 21, more than one in three report regular use, surpassing male usage in some age groups. Access is widespread, with 79 percent of Americans living in a county that has at least one dispensary. Adult-use cannabis is now legal in 24 states, and public support for legalization stands at 88 percent.

The medical potential of cannabis continues to expand. It is increasingly used as an alternative to opioids, with studies suggesting it may reduce dependency and overdose rates. Patients use cannabis to manage symptoms of insomnia, arthritis, PTSD and other conditions. Products like tinctures and capsules offer consistent dosing and cater to health-conscious users. Despite its promise, medical cannabis remains under-researched due to federal restrictions, limiting its integration into mainstream healthcare.

Globally, cannabis use is on the rise. In 2022, 228 million people—about 4 percent of the global population—reported using cannabis, marking a 28 percent increase over the past decade. In North America, 19.8 percent of individuals aged 15 to 64 used cannabis in 2022. Among U.S. youth, 25.8 percent of 12th graders reported cannabis use in the past year. CBD products are also gaining traction, with 14 percent of Americans using them, and usage is highest among adults aged 18 to 29.

The commercialization of cannabis has reshaped industries, communities and public discourse. It reflects evolving consumer needs and regulatory landscapes. As legalization spreads and the market matures, stakeholders must balance innovation with responsibility, ensuring equitable access, public safety and scientific rigour. Cannabis, once marginalized, now serves as a model for how thoughtful regulation and entrepreneurship can redefine a sector.