California Legal Cannabis Market Size, Share & Trends Analysis Report By Source (Marijuana, Hemp), By Product (Flowers, Oils And Tinctures), By End-use (Medical, Industrial, Recreational), And Segment Forecasts, 2023 - 2030

The California legal cannabis market size is projected to reach USD 5.4 billion by 2030, expanding at a CAGR of 12.2% during the forecast period. The growth is driven by rising awareness regarding the benefits associated with the use of cannabis products for post-traumatic stress disorder (PTSD) and Alzheimer’s. According to a study conducted by National Alliance on Mental Illness California found that around 9 million adults in the U. S. are affected by PTSD.

Moreover, according to Alzheimer’s Association, around 690,000 adults aged more than 65 years are suffering from Alzheimer’s and more than 7% of adults aged 45 years and above are suffering from subjective cognitive decline in the state. Additionally, according to a study published by NCBI in 2022, the adoption of cannabis for the treatment of mental health disorders such as PTSD is increasing among citizens in the U. S.

The rising government efforts in the form of funding and initiatives are driving the demand for the market in the state. For instance, in April 2023, the California Department of Cannabis Control (DCC) announced funding of USD 20 million for the scientific study on the effect of cannabis derivatives, such as Delta-10 THC and Delta-8, on the mental health of the young population. Moreover, the governor of California signed 10 marijuana-related bills in September 2022. These bills are expected to facilitate interstate commerce of cannabis and offer employment protections for marijuana customers. The aforementioned factors are anticipated to fuel the market growth over the forecast period.

California legalized cannabis for medical use in 1996 by passing the Compassionate Use Act with 55.6% votes. The law offered legal protection to caregivers, physicians, and patients against marijuana possession and use. Proposition 64 was passed in 2016, which legalized the recreational use of cannabis. Under this law, an adult aged 21 years and older can possess 28 grams of concentrated cannabis and can cultivate six plants per residence.

The presence of key players, such as Punch Edibles Media, LLC, Leef, Jetty Extracts, Agrowth, 4C Labs, Catalyst Cannabis Co., Harborside, and THC Design, is positively impacting the market. Major operators are adopting strategies such as partnerships, expansions, acquisitions, new product launches, and collaboration to strengthen their market position. For instance, in January 2023, Jetty Extracts, a high-grade cannabis extracts producer in California, announced its expansion in New York by entering into partnerships with retailers and local producers. Moreover, in April 2022, Harborside Inc. announced the acquisition of LPF JV Corporation, a manufacturer, cultivator, and distributor of cannabis brands in the state. This strategic acquisition is anticipated to expand the company’s market share significantly.