Global Legal Cannabis Market by Source (Marijuana and Hemp), Derivative (CBD, THC, and Others), End Use (Medical Use, Recreational Use, and Industrial Use), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Legal Cannabis Overview

Legal cannabis, well known as marijuana, is an experimental drug from the cannabis plant. From Central to South Asia, the cannabis plant is used for recreational and entheogenic purposes and in various old and new medicines for centuries. Legal cannabis is defined as cannabis used and possessed and sold in accordance with certain rules and restrictions set out by the government. Numerous nations have outlawed or legalized cannabis for medical or recreational purposes, when cannabis is legal adults of legal age may buy goods from licensed dispensaries or stores, they could also be allowed to grow a certain number of cannabis plants for their own use. It's crucial to understand at the same time that cannabis laws vary from country to country and even within different regions or states, some states may only permit the medical use of cannabis which requires a prescription from a qualified healthcare professional. Where cannabis is legal restrictions to guarantee appropriate usage are frequently in place, these rules may include restrictions on where cannabis may be used limits on how much an individual can possess and guidelines for driving while high on cannabis.

Global Legal Cannabis Market Analysis

The global legal cannabis market size was $22.4 billion in 2022 and is predicted to grow with a CAGR of 25.9%, by generating a revenue of $210.4 billion by 2032.

COVID-19 Impact on Global Legal Cannabis Market

The COVID-19 pandemic had a significant impact on the legal cannabis industry and its market. In many regions, cannabis dispensaries and businesses were deemed essential and allowed to operate during lockdowns. However, the industry still faced challenges and changes due to the pandemic. Firstly, the COVID-19 disrupted global supply chains, including those for the cannabis industry. Restrictions on travel, temporary closures of cultivation facilities, and reduced workforce availability led to disruptions in the production and distribution of cannabis products. This resulted in shortages and delays in supply for some businesses. Then some jurisdictions implemented temporary regulatory measures to facilitate access to cannabis during the pandemic. For example, some areas allowed curb side pickup or relaxed regulations for telemedicine consultations for medical cannabis patients. These changes aimed to ensure continuity of access while adhering to social distancing guidelines. However, market growth and opportunities despite the challenges, the legal cannabis market also experienced growth in some areas. With people spending more time at home, cannabis consumption increased, leading to higher demand. Additionally, some regions accelerated plans for cannabis legalization as a potential source of tax revenue and job creation in the post-pandemic recovery.

Overall, the impact of COVID-19 on the legal cannabis market involved a mix of challenges and opportunities. While the industry faced disruptions and financial difficulties, it also saw increased demand and regulatory changes that aimed to support access to cannabis products during the pandemic.

Awareness about the Benefits of Consuming Legal Cannabis to Drive Market Growth

Legal cannabis has several positive points. Cannabis legalization has the potential to significantly benefit the economy, it creates tax income and job opportunities and encourages many areas of the economy like agriculture and processing and distribution and retail. Cannabinoids, which include THC and CBD, are present in cannabis and have been proven to have potential medicinal uses, it can be used to treat and manage illnesses such as multiple sclerosis, epilepsy, chronic pain, and prolonged nausea after chemotherapy. With legalization, cannabis products can be subject to quality control and regulatory standards. This ensures that consumers have access to safe, tested products and accurate information about their potency and composition. Legal cannabis can attract tourists and boost local businesses, including dispensaries, cafes, and tourism-related services, leading to economic growth and job creation. The cannabis industry provides new opportunities for farmers and cultivators. It can diversify agricultural practices and contribute to sustainable farming methods.

These positive points highlight the potential benefits that come with the legalization of cannabis. It's important to note that regulations and responsible use are crucial to maximize these advantages and mitigate any potential negative consequences.

 Unmonitored Consumption and Sale of Legal Cannabis to Restrain Market Growth

Regular cannabis usage like smoking tobacco can have harmful impacts on lung health; it can cause respiratory issues and chronic bronchitis and raise the risk of lung infections. Cannabis usage, particularly throughout teenage years, can be harmful for the development of brain and cognitive function; it may result in memory and concentration issues like a lower IQ and a poor decision-making ability. Cannabis users can become dependent on the substance, even though not everyone who uses it becomes addicted to it. Cannabis use disorder is marked by withdrawal symptoms and cravings and difficulty in stopping the usage. Frequent cannabis use has been associated with an increased risk of mental health issues, such as anxiety, depression, and psychosis. People with pre-existing mental health conditions may experience worsening symptoms with cannabis use. Legalizing cannabis increases the access to it and may pose a risk to those who might not completely comprehend the hazards. Increased accessibility and availability might have an effect on vulnerable groups including young people and those who have a history of substance misuse.

Future Opportunities of the Legal Cannabis Market

As more countries legalize cannabis, the legal cannabis market will expand globally. This provides an opportunity for firms to penetrate into new markets and develop global cannabis brands. The legal cannabis business has a lot of room for product innovation. As the industry evolves, one may see the launch of new cannabis-infused products like as drinks, edibles, topicals, and prescription formulations. This diversity will attract new clients and further boost the market.

The growing emphasis on health and alternative medicines presents prospects for the legal cannabis business. Cannabis products that promote relaxation, stress alleviation, and overall well-being have the potential to increase significantly in popularity as people seek natural and holistic cures.

Global Legal Cannabis Market, by Source, 2022

The marijuana sub-segment accounted for the highest market share in 2022. Marijuana is commonly consumed by individuals seeking relaxation, for recreational and medical purposes. Furthermore, cannabis can aid with alleviating chemotherapy adverse effects such as nausea and appetite loss. It's also used to treat neurological conditions including epilepsy, where it's been found to lessen seizures. Furthermore, when compared to numerous prescription drugs, medicinal cannabis is commonly favoured due to its perceived safety profile. It is a natural plant-based therapy that can deliver relief with fewer side effects, making it appealing to patients who want more holistic treatment alternatives. All these factors are projected to drive the segment growth during the forecast period.

Global Legal Cannabis Market, by Derivative, 2022

The CBD sub-segment accounted for the highest market share in 2022. CBD has been investigated for its potential beneficial effects; it is believed to have antibacterial, painkilling as well as anxiolytic (anxiety-reducing) properties; some studies also suggest that CBD may be useful in the management of conditions such as persistent pain and seizures, and spasm and anxiety-related conditions, and even certain types of cancer.

Versatile consumption options of CBD products such as oils and tinctures and capsules as well as edibles and topicals allows individuals to choose a delivery method that suits their preferences and needs. CBD has garnered attention as a potential alternative to traditional medicine for certain conditions. It offers individuals an additional option to explore when managing symptoms or seeking relief from various ailments.

Global Legal Cannabis Market, by End User, 2022

The medical use sub-segment accounted for the highest market share in 2022. Legal cannabis is increasingly being used medically owing to its cannabinoids (THC and CBD) interacting with the body's endocannabinoid system, potentially providing symptom alleviation in a variety of medical illnesses, cannabis helps people to recover fast.

Legal marijuana is been used to treat chronic pain in conditions like multiple sclerosis and cancer, for example, it can also help with chemotherapy induced sickness and vomiting as well as encourage hunger in people with HIV/AIDS or anorexia.

The medical profession has started recognizing cannabis's medicinal potential, which has resulted in its approval for medical reasons in a number of nations, this legislation allows patients to get cannabis products while being monitored by healthcare experts, guaranteeing safe and controlled use. Legal cannabis is more helpful for treating various medical issues such as anxiety and cancer and chronic pain it also helps to reduce blood pressure.

Additionally, the expanding scientific evidence supporting cannabis's medicinal advantages has contributed to its greater use in medical contexts. As more information becomes available, healthcare experts and people are becoming more willing to consider cannabis as a valid medicinal choice for treatments.

Global Legal Cannabis Market Share, by Region, 2022

The North America legal cannabis market generated the highest revenue in 2022. The rapid increase in the rate at which the government is recognising cannabis for both medicinal and adult-use or recreational marijuana usage is a crucial element driving the regional industry. With more than two-thirds of the United States legalising cannabis, both demand and supply have risen dramatically, confirming North America's position as the market leader. In the North America region, certain nations are more receptive to the legalisation of marijuana. Clinical research demonstrating its efficacy as an analgesic will speed up legalisation in countries with big populations of elderly people, which will help the sector expand in the region.

Competitive Scenario in the Global Legal Cannabis Market

Investment and agreement are common strategies followed by major market players. In 2022, HYTN Innovations Inc. Promethean BioPharma has signed into a production and sales agreement. Through this partnership, the business has successfully developed and exported cannabis nano-emulsions including its unique Elevation Technology to the Australian medicinal cannabis market.

Some of the leading legal cannabis market players are Canopy Growth Corporation, GW Pharmaceuticals, plc, Aurora Cannabis, Inc., Aphria, Inc., Cronos Group, Tilray, Sundial Growers Inc., Insys Therapeutics, Inc., The Scotts Company LLC, and VIVO Cannabis Inc.