Legal Marijuana Market

According to Stratistics MRC, the Global Legal Marijuana Market is accounted for $21.0 billion in 2023 and is expected to reach $116.2 billion by 2030 growing at a CAGR of 27.7% during the forecast period. Marijuana is the dry mixture of dried marijuana plant parts that is green, brown, or grey in color. This plant is widely used as a recreational drug to treat various ailments. In many nations, it is legal to grow, possess, and distribute marijuana for both recreational and medical purposes. Although it has long been used medicinally, cannabis is not the first choice for treatment. Cannabis is now used for a number of indications as a result of research into its potential medical uses.

According to a study published in Jama Network Open in 2023, more than half of adults (948 out of 1661) used cannabis to manage their chronic pain.

Market Dynamics: 

Driver: 

Rising medical acceptance

The market is experiencing a notable rise in medical acceptance due to growing recognition of its therapeutic potential. With ongoing research revealing the medicinal benefits of cannabis compounds, more medical professionals are embracing its use for various conditions like chronic pain, epilepsy, and anxiety. This increasing acceptance is fostering a shift in attitudes, leading to expanded legalization and the development of new medical cannabis products tailored to meet patients' needs.

Restraint:

Strict regulations and legal hurdles

The market faces strict regulations and numerous legal hurdles, posing significant challenges to businesses and consumers alike. These barriers include licensing requirements, taxation complexities, banking limitations due to federal laws, compliance with varying state regulations, and stringent product testing standards. Additionally, the industry contends with issues such as supply chain logistics, marketing restrictions, and ongoing changes in legislation, making it a complex landscape for stakeholders to navigate and thrive within.

Opportunity:

Innovation and product development

Companies are investing in research to create novel strains, infused products like edibles and beverages, and advanced delivery methods such as vaping and topicals. This dynamic landscape encourages collaborations between growers, manufacturers, and tech companies, leading to the creation of safer, more potent, and precisely dosed cannabis products that cater to evolving market demands.

Threat:

Public health concerns

The market raises public health concerns regarding potential misuse, especially among vulnerable populations. Issues include overconsumption leading to impaired driving or cognitive function, addiction risks, and inadequate regulation of product quality and potency. Additionally, there are concerns about second-hand smoke exposure and the long-term health effects of frequent marijuana use. Therefore, these are the factors hampering the growth of the market.

Covid-19 Impact: 

The COVID-19 pandemic has had a mixed impact on the legal marijuana market. On one hand, it spurred increased demand as people sought stress relief and alternative medical treatments. This led to record sales in some regions. Conversely, supply chain disruptions, temporary dispensary closures, and economic uncertainty posed challenges. Regulatory changes, such as allowing curbside pickup and delivery, were also implemented. Overall, the market demonstrated resilience but faced operational hurdles due to the pandemic's unpredictability.

The flower buds segment is expected to be the largest during the forecast period

The flower buds segment is expected to be the largest during the forecast period. These buds, also known as nugs, are the most potent part of the plant, containing high concentrations of cannabinoids. Their quality is a key factor in consumer preferences, with characteristics like aroma, flavor, and appearance influencing purchasing decisions. Cultivators focus on optimizing growth conditions to produce dense, resinous buds with diverse profiles to cater to the varied tastes of cannabis enthusiasts.

The pharmaceutical segment is expected to have the highest CAGR during the forecast period

The pharmaceutical segment is expected to have the highest CAGR during the forecast period. Companies are exploring the therapeutic potential of cannabinoids for various medical conditions. From pain management to neurological disorders, pharmaceuticals are exploring various applications, aiming to create innovative treatments that meet regulatory standards and address patients' needs. This intersection of pharmaceuticals and legal marijuana represents a promising frontier in healthcare innovation.

Region with largest share:

North America is projected to hold the largest market share during the forecast period propelled by shifting attitudes and regulatory changes. This growth has led to a diverse range of products, from traditional flower to edibles, concentrates, and topical. Legalization has led to a wide range of cannabis products being available to consumers. The market has attracted substantial investment, creating jobs and generating tax revenue.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. The recreational use of marijuana is generally still illegal in most countries in the region. However, there are movements and discussions in some places about potential decriminalization or legalization for recreational purposes. There is a growing interest from investors and businesses in the region to capitalize on the emerging legal marijuana market. This includes not only cultivation and distribution but also research and development of cannabis-based pharmaceuticals.

Key players in the market

Some of the key players in Legal Marijuana market include Green Roads, VIVO Cannabis Inc., Organigram Holding, Inc., Dr. Hemp Me., Gaia Herbs Farm, Royal CBD, Canopy Growth Corporation, Hemp Production Services, CV Sciences, Inc. , Aphria, Inc., Isodiol International Inc, The Cronos Group, Medical Marijuana, Inc. , Aurora Cannabis and GW Pharmaceuticals, plc.

Key Developments:

In January 2024, Village Farms International, Inc., announced the launch of two cannabis brands in the UK, such as Pure Sunfarms and The Original Fraser Valley Weed Co. (Fraser Valley). 4C LABS, a UK-based medical cannabis company, will distribute these brands.

In March 2023, Canopy Growth introduced six new beverage flavors. Under the Deep Space brand, the company announced Canada's first cannabis-infused beverage with naturally occurring caffeine.

Product Types Covered:
• Tinctures
• Flower Buds
• Oils
• Topicals
• Other Product Types

Compounds Covered:
• Cannabidiol (CBD)-Dominant
• Balanced THC & CBD
• Tetrahydrocannabinol (THC)-Dominant 

Mode of Deliveries Covered:
• Edibles
• Capsules
• Concentrates 

Species Covered:
• Hybrid
• Sativa
• Indica 

Distribution Channels Covered:
• Dispensaries
• Online Retail
• Pharmacies
• Other Distribution Channels 

Applications Covered:
• Medical
• Adult Use
• Other Applications

End Users Covered:
• Food and Beverages
• Tobacco
• Pharmaceutical
• Personal Care
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances