Market Analysis and Insights

With a market worth of USD 19.97 billion in 2022, the legal marijuana industry is projected to rise at a compound annual growth rate (CAGR) of 25.49% from 2023 to USD 103.13 billion in 2030.

The increasing demand for marijuana that is legal has become one of the main factors driving corporate expansion. The use of medical marijuana to treat a variety of conditions has recently become authorized in many nations. According to several studies, it has been used successfully to treat individuals with chronic illnesses such as Alzheimer diagnostic test and other neurological conditions. The FDA and other groups have recently begun to embrace marijuana derivatives for the treatment of illnesses where it has shown promise.

Legal Marijuana Market  Scope:

Market Definition

The concept of "legal marijuana" alludes to the use, ownership, manufacturing, distribution, and trading of marijuana (cannabis) in conformity with the legislation and ordinances of a certain jurisdiction, where such activities are permitted. The legality of marijuana can vary widely from one place to another, so the specific definition of "legal marijuana" depends on the local or national laws in effect. Marijuana may be entirely legal in some areas for both recreational and therapeutic uses. In others, it may be legal for medical use only, and in some places, it may remain entirely prohibited. It's crucial to remember that the particular restrictions and definitions of legal marijuana vary greatly between nations, states, provinces, and localities. Therefore, individuals and businesses need to be aware of and adhere to the local laws and regulations governing the use and distribution of marijuana in their respective areas.

The legal marijuana market has grown significantly in recent years, driven by changing attitudes toward cannabis and evolving regulations in various parts of the world. It offers economic opportunities for businesses and governments while providing consumers with access to a range of cannabis products in a regulated and safe manner. It's important to note that the specifics of the legal marijuana market can vary greatly from one jurisdiction to another, with different regulations and restrictions in place in different regions.

Key Market Segmentation

Insights on Type

The medical segment dominates the market share

The global legal marijuana market is segmented by type into medical imaging and recreational marijuana. During the projected period, the medical marijuana sector is estimated to account for the majority of the market share. This is due to the increasing use of medical marijuana to treat a wide range of conditions, including chronic pain, cancer, and epilepsy. As more nations allow recreational marijuana usage, the recreational marijuana market is likely to develop substantially in the coming years. In 2022, Canada became the first G7 country to legalize recreational marijuana, and several US states have also legalized recreational marijuana.

Medical marijuana is being driven by increasing awareness of the medical benefits of marijuana, growing acceptance of medical marijuana by healthcare professionals, and expanding legalization of medical marijuana in many countries. Recreational marijuana is also witnessing sharp growth because of the increasing legalization of recreational marijuana in many countries, growing acceptance of recreational marijuana use by the general public, and expanding product offerings, such as edibles, concentrates, and topical products.

Insights on Key Products

The Tinctures & Oil Segment is estimated to grow at a higher rate
With a sales share of almost 55.2% in 2022, the oil and tinctures segment was the largest. Most nations that have legalized marijuana have done so because of its therapeutic benefits. Many nations are doing in-depth studies on cannabis oil and tinctures for a variety of purposes. Given the recent legalization of medical cannabis and its derivatives, this market segment is also anticipated to develop at the quickest rate over the projection period. Medical professionals use medical cannabis oil extractions to treat cancer-related nausea and vomiting.
Furthermore, it is projected that tinctures and oils will expand at the fastest rate, at 23.2%. Anxiety and tension are reduced, and sleep difficulties are improved by the oil's cannabinoids. Due to a significant rise in patients choosing oils over flowers, it is projected that demand for oils and tinctures will rise throughout the forecast period. Furthermore, because smoking flowers can create respiratory issues, doctors cannot recommend that children who require cannabis derivatives for their therapy be given flowers to smoke; instead, they must be administered oils and tinctures.

Buds

Often referred to as cannabis flowers or nuggets, marijuana buds are the reproductive organs of the cannabis plant that have the highest concentration of psychotropic substances, such as THC and CBD. These buds are often smoked or vaporized for medicinal or recreational uses after being dried and cured. It is well-liked for treating ailments like chronic pain, anxiety, and insomnia because of its euphoric, relaxing, and pain-relieving qualities. Moreover, essential oils from marijuana buds can be extracted and used for topical lotions, tinctures, and sweets. It's crucial to remember that marijuana laws differ from country to country and that using it should adhere to local laws.

Insights on Application

The chronic pain segment accounts for the highest share

In 2022, the medical segment's revenue share was over 82.6%, which was the highest. The recent legalization and decriminalization of marijuana for medical purposes can be used as justification for the expansion of this market. Due to its widespread availability and low cost, patients in certain geographical areas have been shown to prefer using marijuana for medical purposes.

In 2021, the segment with the highest revenue share—more than 25.0%—was chronic pain. The potency of cannabis derivatives as an analgesic has been well investigated. It has demonstrated significantly better benefits with fewer adverse effects than the conventional medications being prescribed. It has been shown to dramatically lessen arthritic pain with barely perceptible adverse effects. Throughout the projection period, the market is anticipated to expand slowly due to rising public awareness of the usage of medicinal cannabis and its derivatives.

Insights on Region

During the projected period, North America is estimated to have the greatest share of the market, followed by Europe. During the projection period, Asia Pacific is predicted to grow at the quickest rate. The following are some of the key factors driving the growth of the global legal marijuana market by region:

North America:
Increasing legalization of recreational marijuana in the United States
Growing demand for medical marijuana in Canada

Europe:
Expanding legalization of medical marijuana in many countries
Growing acceptance of medical marijuana by healthcare professionals

Asia Pacific:
Increasing awareness of the medical benefits of marijuana
Growing legalization of medical marijuana in some countries

Latin America:
Expanding legalization of medical marijuana in some countries
Growing acceptance of medical marijuana by healthcare professionals

Middle East and Africa:
Limited legalization of medical marijuana in a few countries

Key Company Profiles

Some key players in the global market are Aurora Cannabis Inc., Cronos Group Inc., Canopy Growth Corporation, GW Pharmaceuticals Plc, Tilray Inc., Aphria Inc., Green Thumb Industries Inc., Organigram Holdings Inc., MedMen Enterprises Inc., Curaleaf Holdings Inc., Trulieve Cannabis Corp. and others.

COVID-19 Impact and Market Status

The COVID-19 pandemic had a mixed impact on the global legal marijuana market. On the one hand, the pandemic led to disruptions in the supply chain, closures of dispensaries, and a decline in tourism, all of which negatively impacted the market. On the other hand, the pandemic also led to increased demand for medical marijuana, as people sought relief from stress, anxiety, and other symptoms associated with the pandemic.

Overall, the global legal marijuana market grew by 44% in 2020, despite the pandemic. This growth was driven by strong demand in North America, where several states legalized recreational marijuana use during the pandemic. The COVID-19 pandemic led to disruptions in the supply chain for marijuana, as businesses were forced to close or operate at reduced capacity. This made it more difficult for dispensaries to obtain marijuana products, and it led to higher prices for consumers. Many dispensaries were forced to close during the pandemic, due to government-mandated lockdowns and social distancing measures. This made it difficult for consumers to purchase marijuana products, and it led to a decline in sales for dispensaries. The COVID-19 pandemic led to a decline in tourism, which negatively impacted the marijuana market in some countries, such as Canada and Uruguay. The COVID-19 pandemic led to increased demand for medical marijuana, as people sought relief from stress, anxiety, and other symptoms associated with the pandemic. This increased demand helped to offset the negative impacts of the pandemic on the overall marijuana market. Despite the hurdles created by the COVID-19 outbreak, the worldwide legal marijuana business is anticipated to rise in the next years. 

Latest Trends

The rise of CBD products: CBD, or cannabidiol, is a compound found in marijuana that has several health benefits. CBD products are becoming increasingly popular, as they are seen as a safer and more accessible way to experience the benefits of marijuana.

The increasing use of technology: Technology is being used in several ways to improve the global legal marijuana market. For example, companies are using technology to track inventory, improve customer service, and develop new products.

The growing focus on social equity: The global legal marijuana market is becoming increasingly focused on social equity. This is because marijuana prohibition has disproportionately impacted minority communities. Several companies and organizations are working to ensure that minority communities have equitable access to the marijuana industry.

Recent Developments in the Global Legal Marijuana Market: A Snapshot

The legalization of recreational marijuana in Thailand: In June 2022, Thailand became the first country in Southeast Asia to legalize recreational marijuana use. 

The expansion of medical marijuana in Germany: In March 2022, Germany expanded its medical marijuana program to allow doctors to prescribe marijuana to patients for any medical condition. This is a significant development, as it could make Germany one of the largest medical marijuana markets in the world.

Significant Growth Factors

Increasing legalization: Marijuana is becoming legalized in an increasing number of nations for both medicinal and recreational purposes. This opens up new potential for marijuana firms while also growing the total market size.

Rising demand for medical marijuana: Medical marijuana is used to treat a variety of ailments, including persistent pain, cancer, and seizures. As awareness of the medical benefits of marijuana grows, so too does demand.

Growing acceptance of recreational marijuana: Public opinion on marijuana is changing rapidly, with more and more people supporting legalization and decriminalization. 

Growing investment in the marijuana industry: Investment in the marijuana industry is increasing rapidly, as more and more investors see the potential of the market. This investment is helping to fuel innovation and growth in the industry.

The rise of CBD products: CBD, or cannabidiol, is a compound found in marijuana that has several health benefits. CBD products are becoming increasingly popular, as they are seen as a safer and more accessible way to experience the benefits of marijuana.

The increasing use of technology: Technology is being used in several ways to improve the global legal marijuana market. For example, companies are using technology to track inventory, improve customer service, and develop new products.

The growing focus on social equity: The global legal marijuana market is becoming increasingly focused on social equity. This is because marijuana prohibition has disproportionately impacted minority communities. Several companies and organizations are working to ensure that minority communities have equitable access to the marijuana industry.

Restraining Factors

Strict regulations: The marijuana industry is still heavily regulated in many countries, even in those where marijuana is legal. These regulations can make it difficult for businesses to operate and can limit the availability of marijuana products to consumers.

Social stigma: There is still some social stigma associated with marijuana use, both medical and recreational. This stigma can make it difficult for businesses to market their products and services and can discourage people from using marijuana.

Competition from the black market: The black market for marijuana is still large in many countries, even in those where marijuana is legal, which makes it harder for legal parties. 

Limited research: There is very little study on marijuana's long-term effects. Due to a paucity of studies, it may be difficult to persuade individuals to use marijuana, particularly for medicinal purposes.

High taxes: In some countries, marijuana is taxed heavily. This can make marijuana products expensive for consumers and can discourage people from using marijuana.

Lack of banking access: In some countries, marijuana businesses have difficulty accessing banking services. 

Concerns about youth use: There is some concern about the potential for increased marijuana use among youth, especially in countries where marijuana is legal. This concern could lead to stricter regulations on the marijuana industry.

Key Segmentatin:

Key Segments f the Legal Marijuana Market 

Market Name: Legal Marijuana

Segments:

By Type 
•    Medical
•    Recreatinal

By Prduct
•    Buds
•    Tinctures & il

By Applicatin
•    Chrnic Pain
•    Mental Disrders
•    Cancer
•    thers

Reginal verview

Nrth America
•    US
•    Canada
•    Mexic
Eurpe
•    Germany
•    France
•    U.K
•    Rest f Eurpe
Asia Pacific
•    China
•    Japan
•    India
•    Rest f Asia Pacific
Middle East and Africa
•    Saudi Arabia
•    UAE
•    Rest f Middle East and Africa
Latin America
•    Brazil
•    Argentina
•    Rest f Latin America