Legal Marijuana Market, by Product Type (Flower Buds, Oils, Tinctures and Others) and Application (Recreational and Medical): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Legal Marijuana Market Analysis

The Global Legal Marijuana Market Size was $17.5billion in 2021 and is predicted to expand at a CAGR of 16.9%, generating a revenue of $80.1 billion by 2031.

Global Legal Marijuana Market Synopsis

The dried green, brown, or grey mixture of marijuana plant pieces is referred to as marijuana. This herb is frequently used as a recreational drug for different types of illnesses. It is being determined in many countries whether marijuana is legal for recreational and medical use, as well as for cultivation, possession, and distribution. Furthermore, growing public understanding of medical marijuana's advantages is going to help the legal marijuana market grow in the coming year. The growing legalization of marijuana for medical purposes in a few countries is anticipated to provide lucrative opportunities to drug cartels, which can propel the marijuana industry’s growth during the forecast period. The fact that marijuana can provide relief from ongoing pain and sleep issues is likely to increase interest in medical marijuana. In addition, a potential surge in demand for organic leaves is likely to result in the increase in demand for marijuana. This will support marijuana trade in the near future.     

 A number of nations have put stringent restrictions on the use of marijuana due to its unfavorable side effects, which can hurt the medicinal marijuana industry. The recreational use of marijuana is also anticipated to have a detrimental effect on human health, which can hinder the cannabis market growth during the forecast period.

The increase in number of countries that have approved the use of medicinal marijuana in various parts of the world is one of the main causes that are enhancing the rate of cannabis use in therapeutic applications. Protection of public health and safety is one of the other main goals of marijuana legalization in most nations, including Canada. According to the Centre for Addiction and Mental Health (Canada), legalization offers a chance to lessen the negative effects of marijuana usage when accompanied with strict health-focused regulations.

According to regional analysis, the North America market is predicted to expand at the highest CAGR during the forecast period. The market will expand significantly as a result of expanding product legalization and consumer awareness of the product's health advantages.

Legal Marijuana Overview

Marijuana is also known as cannabis. Cannabis sativa plant parts that are dried and shred include leaves, stems, seeds, and flowers. This mixture is known as marijuana (also known as cannabis). Cannabis is utilized as a psychotropic, mind-altering recreational medication as well as a treatment for some conditions. THC is the active ingredient that causes the "high" (delta-9-tetrahydrocannabinol). Marijuana is the substance that is most frequently abused in the U.S., claims the National Institute on Drug Abuse (NIDA).

Many U.S. states have legalized the use of marijuana for medical and/or recreational use or have decriminalized its use. However, according to federal law, the possession of marijuana (cannabis) is still illegal in the U.S., except within approved research settings.

COVID-19 Impact on Global Legal Marijuana Market

The global healthcare industry's workflow was hampered by the COVID-19 pandemic. Numerous industries, including parts of the healthcare industry, were forced to temporarily suspend operations as a result of the infections. In response to the COVID-19 pandemic, many governments throughout the world imposed various types of "lockdowns" to slow the spread of the new coronavirus by preventing or restricting individuals and businesses from doing their normal operations. The lockdown's implementation prevented customers from shopping in physical stores. The legal marijuana market had a prolonged slowdown due to issues such as diminishing product demand from key end users, limited operations in most industries, a disrupted supply chain, and difficulty in providing essential/post-sales services. During this time, many marijuana enterprises began relying heavily on social media and e-commerce channels to reach consumers. Prices for medical marijuana have risen as a result of supply limitations caused by COVID-19-related restrictions and problems with its distribution. Several research institutes and medical marijuana manufacturers partnered to develop a unique vaccination for the treatment and prevention of COVID-19.

For instance, on March 30, 2020, the Alberta government demanded vital services from cannabis retailers, manufacturers, distributors, and warehouses; as a result, cannabis businesses and services continued to provide for Albertans during the COVID-19 pandemic.

Increase in Demand for Cannabis for Medical Applications to Boost Growth

In recent years, medical hemp has drawn a lot more attention from all around the world. As more nations and governments approve its usage for certain medical purposes, it is clear that medical c. sativa use and acceptance are expanding. Due to the therapeutic advantages of marijuana, many nations, including Germany, Finland, Israel, and Canada, have boldly legalized its use for medical purposes. More than 25 U.S. states have amended their legislation to permit the medical use of cannabis. The medicine is effectively utilized by conventional doctors in California and Florida to treat AIDS, anorexia, arthritis, and even cancer. The expansion of the market is anticipated to be fueled by the continuing research and clinical trials for many marijuana-based treatments.

To know more about the global legal marijuana market drivers, get in touch with our analysts here.

Regulations Regarding Usage of Hemp in Different Nations Have Stifled Expansion of the Sector

In some certain area of North America, Africa, Australia, Europe, and South America, marijuana is typically recognized and approved for medical use, while it is still illegal in the majority of Middle Eastern and Asian nations. Consumption, possession, acquisition, or sale of goods that are illegal under the law are considered criminal offences in developing nations like Japan, India, and Korea. As a result, it is anticipated that the legal environment for the product in these areas will prevent the market from growing to its full potential. It is also expected that the negative effects of marijuana use as a drug, which include cognitive impairment, may impede market growth.

Legal Marijuana Offerings Provide Excellent Benefits to Economies on Local and National Scale

Legal marijuana presents the possibility of marvelous benefits to economies on a local and national scale. It also aids in safeguarding the investment holdings of individuals across the nation and abroad. Investors find it challenging to profit from the industry's expansion because marijuana is still banned on the federal level. Though investors do have the choice of working with over-the-counter exchanges, the majority of the most prosperous companies in the early legal cannabis market are based in Canada or other nations. There are very few marijuana-related companies that trade on public stock exchanges.

If marijuana were to be made legal on a federal level, marijuana businesses would be free to list their shares on any market in the U.S., increasing liquidity and expanding investor access. Investors are likely to show a significant interest in the cannabis market if growth rates stay as high as they have in recent years. These factors boost the legal marijuana market opportunities in the coming years.

To know more about the global legal marijuana market opportunities, get in touch with our analysts here.

Global Legal Marijuana Market, by Product Type

On the basis of product type, the market is divided into flower buds, oils, tinctures, and others. Among these, the flower buds segment accounted for the highest legal marijuana market share in 2021, whereas the oils segment is estimated to show the fastest growth during the forecast period.

Global Legal Marijuana Market Statistics, by Product type, 2021

Source: Research Dive Analysis

The flower buds segment accounted for the highest market share in 2021.The smokable, trichome-covered portion of a female cannabis plant is known as the flower, or bud. Due to its adaptability, flower, which may be smoked in a pipe or joint, inhaled in a vaporizer, or used as an ingredient in foods, is the most widely used type of cannabis. Furthermore, the most common consumable commodity on the international market is marijuana flower, or bud. A typical bud contains minor amounts of other cannabinoids as well as 15% to 30% THC, 0.1% CBD, and other cannabinoids. The rationale behind vaporizers, which are quickly gaining popularity, is that the temperatures at which cannabinoids boil are lower than the temperatures at which the flower burns. Sophisticated vaporizers are being designed to maintain temperatures that target the activation of specific cannabinoids.

The oils segment is anticipated to show the fastest growth by 2031.Cancer-related nausea and vomiting are managed using cannabis-derived oils. The oil contains cannabinoids that help cure sleep disorders and lessen stress and anxiety. The legalization of marijuana for recreational use and the rise in the consumption of cannabis and marijuana oil in countries like the U.S., Canada, Colombia, Uruguay, and Chile are driving the growth of the segment.

Global Legal Marijuana Market, by Application

On the basis of application, the market is divided into recreational and medical. Among these, the medical segment accounted for highest revenue share in 2021.

Global Legal Marijuana Market Growth, by Application, 2021

Source: Research Dive Analysis

The medical segment is anticipated to have a dominant market share in 2021 as well as the fastest growth by 2031.The significant market share of the medical sector is mostly attributable to the rise in demand for marijuana as a pain reliever for a range of medical ailments, including cancer, AIDS, seizures, and other disorders, as well as the expansion of marijuana research globally. The recreational application segment is anticipated to rise quickly during the forecast period. This increase is mostly attributable to the rise in consumers following legalization and the trend of using marijuana instead of alcohol. These factors are anticipated to boost the growth of the medical segment during the analysis timeframe.

Global Legal Marijuana Market, Regional Insights

The legal marijuana market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Legal Marijuana Market Size & Forecast, by Region, 2021-2030 ($Million)

Source: Research Dive Analysis

North America to be the Most Dominant Market for Legal Marijuana

Cannabis legalization has significantly altered the market all over North America. Due to its accessibility, there is a great demand for it, which is reflected in the region's earnings. Its numerous applications in various medical settings for reducing the symptoms of illnesses, including epileptic seizures, chronic pain, Alzheimer's, Parkinson's, and other neurological ailments, have led to its legitimization. Currently, the use of cannabis for therapeutic purposes is legal in 38 U.S. states.

New Jersey became one of the 18 states in the US to legalize recreational marijuana in April 2022. Both recreational and medical marijuana are now available for purchase at 13 locations. Cannabis is widely accepted and in great demand, which is one of the main drivers fueling the market's expansion. Since it became legal, it has becoming more frequently used in medical procedures. This has led to a decline in the illegal cannabis trade, which has also contributed to the growth. According to a study by New York University, the percentage of people aged between 50 to 64 years who use marijuana has increased by 10% over the past ten years.

Competitive Scenario in the Global Legal Marijuana Market

Investments and agreements are common strategies followed by major market players. For instance, in March 2022, the multistate operator of the cannabis industry, Verano Holdings, obtained an additional $100 million under its credit agreement to support expansion and strategic objectives. The vertical medical marijuana company situated in New York, one of the only legal enterprises in that state, will be the acquisition's main asset.

Source: Research Dive Analysis

Some of the leading legal marijuana market players are Aurora Cannabis, Maricann Group, Inc., GW Pharmaceuticals, plc., Aphria, Inc., Tilray, The Cronos Group, ABcann Medicinals, Inc. Canopy Growth Corporation, Lexaria Corp., and Organigram Holding, Inc.