Legal Marijuana Market Size Projected to Generate $80.1 Bn by 2031

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The Global Legal Marijuana Market Size is predicted to be valued at $80.1 billion by 2031, increasing from $17.5 billion in 2021 at a noteworthy CAGR of 16.9%.

Impact Analysis of COVID-19 on the Legal Marijuana Market

2019 was declared the "Year of Healthcare Emergence" by the World Health Organization. The U.S. government designated the coronavirus a pandemic, and several other nations-imposed travel restrictions in an effort to limit its spread. Cannabis is useful in reducing coronavirus’ mild side effects. The market for marijuana, which is widely used in medical applications, has grown significantly due to the pandemic and R&D efforts.

The expansion of the market in the coming years should be encouraged by the quick rise in substantial R&D activities to better understand the range of applications of legalized marijuana, which is mostly utilized for therapeutic purposes, not just for COVID-19 treatment but also for a number of other ailments. It's probable that more nations may decriminalize marijuana in the next years, which will lead to an extension of medical specialties in which it can be used therapeutically. So far, encouraging findings have come from using these components in the creation of a vaccine to treat COVID-19. The World Health Organization (WHO) estimates that more than 80% of individuals use marijuana or cannabis in some capacity for therapeutic purposes. As a direct result of this, the market for medicinal cannabis is expanding due to increasing levels of tolerance for cannabis as well as its production and cultivation in developing countries.

Global Legal Marijuana Market Analysis

The main drivers of the growth of the legal marijuana market are the emergence of medicinal marijuana as an alternative to conventional medicine and the rise in social acceptance of marijuana. Due to the established medical benefits of particular marijuana-based formulations, the US Food and Drug Administration has granted numerous medications commercial approval. As a result of an increase in cancer cases, more people are receiving chemotherapy, the majority of who are experiencing nausea. These are being investigated as potential targets for treatment using THC-based drugs. Numerous THC- and CBD-based medications for the treatment of muscular spasms and neuropathic pain have received approval or are now the subject of clinical trials. The market is growing as disease incidence is rising and as medical marijuana is increasingly acknowledged as a viable alternative to more conventional treatments.

The main obstacle to the market expansion of marijuana is the issue of strict rules and restrictions. The medicinal marijuana industry may be hampered throughout the anticipated time period due to the strict rules and regulations that many nations have imposed about the usage of cannabis. There can be a harmful impact on human well-being when employing marijuana in sporting activities, which can effectively block the growth of the marijuana sector.

The growing number of nations that are approving the use of medicinal marijuana in various parts of the world is one of the main causes increasing the rate of cannabis use in therapeutic applications. In most nations, including Canada, the preservation of public health and safety is marijuana legalization's secondary primary goal. Cannabis legalization and strict, health-focused regulation offer a chance to lessen the negative effects of marijuana usage, according to the Centre for Addiction and Mental Health (Canada).

Global Legal Marijuana Market, Segmentation

The global legal marijuana market is segmented on the basis of product type, application, and region.

Product Type:

The product type segment is further classified into flower buds, oils, tinctures, and others. Among these, the flower buds segment is anticipated to have a dominant market share in 2021. Marijuana flower, or bud, is the most widely used edible marijuana product on the global market. Along with 15% to 30% THC, 0.1% CBD, and other cannabinoids, a normal bud also contains trace levels of other cannabinoids. The justification for vaporizers, which are increasingly gaining popularity, is that cannabinoids boil at temperatures lower than those at which flower burns. Sophisticated vaporizers are being developed to maintain temperatures that target the activation of particular cannabinoids.

Application:

The application segment is further classified into recreational and medical. Among these, the medical segment had a dominant market share in 2021. The major focus of this segment is on increasing demand for marijuana to relieve pain associated with various illnesses like cancer, AIDS, seizures, and other infections, as well as global research on cannabis' healing properties. It is anticipated that the athletic application segment will also experience rapid growth during the forecast period. This development is mostly attributable to the growth of a sizable customer base following legalization and the emergence of a use pattern for using legal marijuana in place of alcohol.

Region:

The legal marijuana market in the Europe region is projected to show the fastest growth. The laws governing the marketing of cannabis and associated properties are changing in European nations. The region's cannabis-derived goods can now be grown, processed, and traded thanks to the revisions in the law. Additionally, there has been increased interest in CBD online distribution, and businesses are forming more quickly. For instance, in May 2019, European Cannabis Holding (ECH) and Miller & Miller Chemicals Ltd. launched Astral Health, a new end-to-end platform in the UK to import certified medical cannabis products. In the weeks that followed May, it was expected that nations like Germany, Italy, Spain, and France would declare the distribution of cannabis-related medical products.

Key Players in the Global Legal Marijuana Market

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.
• Organigram Holding Inc.

In March 2022, according to HYTN Innovations Inc., the business successfully produced and exported cannabis nano-emulsions with its unique Elevation technology to the Australian medicinal cannabis market through a production and sales arrangement with Promethean BioPharma.