Ancillary Cannabis Industry Sectors Projected To Experience Major Growth
When many people think of the emerging global cannabis industry, they tend to think about cultivating cannabis and selling cannabis. While those are obviously important components of the legal cannabis industry, they are only two sectors. The legal cannabis industry is much more complex and dynamic than just growing and selling cannabis and is made up of several other sectors, all of which have their own opportunities and market potential. Below are some notable examples that entrepreneurs, investors, and innovators should consider.
Cannabis Technology
Nearly every sector of the cannabis industry, including the cultivation and retail sectors, incorporates technology in one way or another. The ancillary cannabis technology sector comprises several subsectors, some of which are listed later in this article. It is arguably the most needed and promising ancillary sector of the emerging legal cannabis industry, and entrepreneurs, investors, and innovators are wise to explore the various opportunities. According to a recent market analysis by Coherent Market Insights, the “cannabis technology market is estimated to be valued at USD 4.10 Bn in 2024 and is expected to reach USD 20.01 Bn by 2031, exhibiting a CAGR of 25.4% by 2031.”
Consumption Devices
One constant in every legal cannabis market is that people will be consuming cannabis, and how they consume cannabis is evolving at a seemingly ever-increasing rate. While some consumers and patients continue to smoke cannabis via more rudimentary methods like joints and pipes, many are using more advanced consumption methods, such as portable vaporizers. The global portable vaporizer sector is already huge and getting bigger with every passing year. According to analysts at The Business Research Company, the portable vaporizer market is “projected to grow from $2.56 billion in 2023 to $2.90 billion in 2024 at a compound annual growth rate (CAGR) of 13.4%,” and is “expected to reach $4.82 billion by 2028.”
Product Testing
A standard component of every market where legal cannabis commerce is permitted is that legal products have to be tested for compliance. Cannabis testing helps consumers and patients know that the products they are consuming are safe and informs them about important information regarding the product’s contents, such as cannabinoid levels. Technavio recently estimated that the size of the global cannabis testing sector will “grow by USD 2.05 billion from 2024-2028.” The Business Research Company has also recently published a projection, estimating that the sector will reach “$6.05 billion in 2028,” and analysts with Research and Markets project a global market value of $12.37 billion by 2035.
Packaging
Cannabis product packaging is another ancillary sector that shows a lot of promise, with most legal cannabis products being stored and dispersed in some kind of required packaging. That presents significant opportunities for companies that specialize in creating effective product packaging options. As more markets become legal across the globe, the demand for cannabis packaging will increase. According to a recent cannabis packaging sector projection by Coherent Market Insights, the “global cannabis packaging market is expected to reach US$ 13.17 billion by 2030, from US$ 2.64 billion in 2023, at a CAGR of 25.8% during the forecast period.”
Food And Beverages
Just as patients and consumers are increasing their use of advanced portable vaporizer technologies, they are also using other smokeless forms of cannabis consumption, most notably foods and beverages. Edibles and liquid consumables are increasing in popularity in markets where they are permitted, and that is reflected in recent market projections. For example, analysts at Allied Analytics estimate that the global cannabis food and beverage market size “was valued at $427.0 million in 2018, and is expected to reach $2,632.0 million by 2026, registering a CAGR of 26.6% from 2019 to 2026.” The food and beverage sector is not limited to intoxicating products. Future Market Insights projects that the global hemp protein powder market alone will be worth over $1 billion by 2035.
Insurance
Business insurance is something that many companies need, and entities in the cannabis industry are no exception. Business insurance helps mitigate the unexpected costs that may arise as a company conducts its day-to-day operations. Insurance in the cannabis industry is not as established as it is in other legal industries. However, more insurance professionals are either working with cannabis companies now or are considering doing so compared to past years. One recent market projection for the emerging cannabis insurance sector estimates that the cannabis insurance market is expected to grow to “USD 6.7 billion by 2032” with a CAGR of “around 14.14% during the forecast period (2025 – 2032).”
