On August 7, 2025 Yahoo Finance published The US Cannabis Market Report 2025-2033, fueling optimism among investors by highlighting the growth potential, expanding legalization, and evolving business strategies driving the industry forward.
The report projects the US cannabis market to reach $91 billion by 2033 growing at about 10,5% annually. There are several reasons behind this optimism:
- Expanding Legalization: more states are allowing cannabis for recreational and medical purposes, expanding the legal customer base and creating more business opportunities.
- Product Innovation: new products such as edibles, cannabis-infused beverages, and wellness-focused offerings are attracting different consumer groups, broadening market appeal.
- Medical Cannabis Growth: Cannabis-derived products like CBD are increasingly used for conditions including chronic pain and anxiety, with ongoing research raising public awareness and acceptance.
Cannabis Business Activity Trends
Driven by these factors, the cannabis industry has seen notable investment activity recently.
One of the biggest trends is the rise in M&A. Many cannabis companies are focusing on consolidating market share to achieve greater scale, for example, the Green Thumb Industries and Trulieve merger.
There has also been significant capital raised through private financing rounds, the most notable being major tobacco companies investing in cannabis biotech firms developing cannabinoid-based research and medicine.
In addition, cannabis real estate investment trusts (REITs), such as Innovative Industrial Properties and Atlantic Real Estate Finance, are gaining traction as they lease cultivation and retail spaces to cannabis operators. These REITs offer investors a way to participate in the industry without being directly involved in plant-touching operations, which remain federally restricted.
Last year also saw companies expanding their geographic footprints. For example, Canadian cannabis firm High Tide acquired a 51% stake in German medical cannabis wholesaler Purecan GmbH, signaling a strategic move into the fast-growing European market with strong licensing and telemedicine capabilities.
Retail Infrastructure is also expanding: as legal markets mature, more dispensaries and delivery services emerge, making cannabis products more accessible to consumers.
On the other hand, some retail companies have been optimizing their store portfolios. For example, TILT Holdings sold two dispensaries in Massachusetts as part of a broader strategy to streamline operations and focus resources on more profitable segments such as vape hardware research through Jupiter Research.
Overall, these business strategies and investment deals demonstrate a maturing cannabis industry that is transitioning from rapid early-stage growth to more calculated, strategic expansion. Investors are responding positively to companies demonstrating operational discipline, geographic expansion, capital efficiency, and innovation, all of which point to sustained long-term growth despite regulatory uncertainties.
Global Cannabis Market Keeps Pace
The optimistic outlook isn’t limited to the US: North America’s legal cannabis market overall could reach nearly $355 billion by 2033, largely driven by the U.S. and Canada. European cannabis businesses in countries like Germany, the UK, and Poland are also reporting record gains, thanks to evolving regulations and increased consumer demand.
