Cannabis cultivation is not new in Pakistan, however, a push in recent years has started the process of providing a path toward legal cannabis cultivation for the nation’s farmers. The process to legalize limited low-THC cannabis production began in Pakistan in late 2020, but it wasn’t until earlier this year until the nation established a regulatory agency to oversee the emerging industry.
Legal industry cultivation licenses in Pakistan are expected to be valid for five-year periods, with a maximum harvest threshold of .3% THC. An industry projection from August 2022 estimated that a thriving hemp industry in Pakistan could be worth multiple billions of dollars annually.
“Today’s the economy of Pakistan is 22nd largest economy in terms of Purchasing Power Parity. Over the years Pakistan’s Industries flourished. From producing only 7% of GDP, are now contributing to 64% of GDP. Major industries include Cotton textile industry, agriculture, automotive, cement, steel, tobacco, chemicals, machinery and food processing.” states the Pakistan Readymade Garments Manufacturers and Exporters Association about Pakistan’s economy.
Statista reports the following information regarding Pakistan’s cannabis industry:
- Revenue in the Cannabis market is projected to reach US$149.10m in 2024.
- Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -1.78%, resulting in a market volume of US$136.30m by 2029.
The global cannabidiol (CBD) market was worth an estimated $7.6 billion in 2023 according to a market analysis by Market.us, and will climb to a projected $36.6 in value by 2033.
“Between 2023 and 2032, this market is estimated to register the highest CAGR of 27%.” the researchers stated.
Market.us determined the following as part of their global CBD market analysis:
- CBD oil is the most dominant product type, with a market share of over 30%, largely due to its effectiveness in managing chronic pain
- Pharmaceuticals represent the most lucrative segment, accounting for over 25% of the market, driven by CBD’s neuroprotective and pain-relieving properties
- Online pharmacies hold the largest market share (25%) due to the convenience of online sales and global reach
- North America leads the market, holding a 60% market share, with Europe and Asia-Pacific showing emerging demand
- The B2B sector played a dominant role in the global CBD market in 2023, accounting for a substantial revenue share of 55.1%
A separate global CBD market analysis conducted by Grand View Research found that the global CBD market was worth $7.7 billion in 2023, and estimates that the market will grow by 15.8% from 2024 to 2030.
A previous market analysis conducted by Market Research Future estimated that the global CBD industry was worth $18.43 billion in 2023 and that the market would reach a projected 59.43 billion by 2030.