LEGAL MARIJUANA MARKET ANALYSIS

The global legal marijuana market was valued at US$ 15.5 Bn in 2022 and is forecast to reach a value of US$ 40.9 Bn by 2030 at a CAGR of 13.0% between 2023 and 2030. The global legal marijuana market is experiencing strong growth owing to the surging pace of cannabis legalization and increase in prevalence of chronic and neurological disease. Moreover, favorable government initiatives/programs and growing medical applications of marijuana is expected to propel growth of the market. However, factors such as supply shortage of medical marijuana in various countries and legalization of medical marijuana only for selected indications are expected to hamper growth of the global legal marijuana market.

Global Legal Marijuana Market: Regional Insights

Based on geography, the global legal marijuana market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period owing to the increasing demand for medical marijuana, rise in usage of marijuana, favorable government initiatives, and surging pace of cannabis legalization in the United States. For instance, as of 2022, 22 states, 3 U.S. territories, and District of Columbia have legalized recreational use of cannabis. In April 2023, Delaware became the 22nd state to allow legal recreational marijuana Furthermore, thirty-eight states, four U.S. territories, and Washington D.C. have legalized medical use of the drug, driving the growth of the market.

Europe and Asia Pacific are also expected to witness robust growth in the global legal marijuana market due to the rise in trend of cannabis legalization, increasing demand for medical marijuana, growing adoption of medical marijuana for treatment of chronic disease, and favorable government initiatives in these regions. For instance, several EU countries have legalized medical marijuana in recent years. Medical marijuana has also been legalized in other EU member states, most recently in France, Romania and the Czech Republic. The use of Sativex has been approved in 17 European countries, 9 of which have already made it available.

Figure 1. Global Legal Marijuana Market Share (%), by Region, 2023

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Global Legal Marijuana Market Drivers:

Increasing legalization to augment market growth

One of the key factors expected to augment the growth of the global legal marijuana market during the forecast period is the increasing number of countries legalizing the use of medical marijuana. For instance, each year, the legal use of cannabis for medical and recreational purposes is steadily growing. According to the United Nations Office on Drugs and Crime (UNODC), over 70 nations have legalised cannabis in some capacity for medical purposes, with 26 of those nations allowing access to high-THC cannabis for medical patients. Several countries worldwide have legalized the use of cannabis for medicinal and recreational purposes.

Rise in disease burden to underpin market growth

Another factor which is driving the growth of the global legal marijuana market is the increase in prevalence of chronic and neurological disease across the globe. For instance, a number of studies have shown that medical marijuana and its derivatives can be used to treat symptoms of various diseases, for e.g., it has been successfully used to treat patients with chronic pain, chemotherapy-induced nausea, Alzheimer’s, Parkinson’s, and other neurological disease. In March 2021, STADA launched its own product portfolio for therapy with medical cannabis, which is primarily directed at chronic pain patients who suffer from pain or its side effects.

Global Legal Marijuana Market Opportunities:

Favorable government initiatives/programs are expected to offer significant growth opportunities for players in the legal marijuana market. For instance, government initiatives to legalize marijuana in medical application is driving the market growth. Many states or nations have begun to adopt medical marijuana from the point of view of good public health. In April 2020, the New Zealand’s Medicinal Cannabis Agency, Ministry of Health, launched its new Medical Cannabis Scheme to improve access to quality medical cannabis for patients. The Food & Drug Administration (FDA) has also approved some of its derivative compounds for medicinal use.

Growing medical applications of marijuana is expected to provide significant growth opportunities for players in the global legal marijuana market. For instance, According to the U.S. Government Accountability Office (under State Medical Marijuana Laws), symptoms and conditions that can be treated by cannabis include anorexia, cancer, glaucoma, arthritis, epilepsy, nausea, migraines, cachexia, pain, spasticity, multiple sclerosis, wasting syndrome, HIV/AIDS, Crohn's disease, and Alzheimer’s disease. Continuous research and standardization of products for medicinal purposes are also expected to increase demand for cannabis in the future.

Global Legal Marijuana Market Trends:

High use of medical marijuana is a recent trend

Medical marijuana is a term for derivatives of Cannabis sativa plant that are used to ease symptoms caused by certain medical conditions. The U.S. Food & Drug Administration (FDA) has approved THC-based medications, dronabinol (Marinol) and nabilone (Cesamet), prescribed in pill form for the treatment of nausea in patients undergoing cancer chemotherapy and to stimulate appetite in patients with wasting syndrome due to AIDS. It is an affordable, natural alternative that lacks side effects and is used to treat certain medical conditions.

Increasing awareness among people is another trend

Medical marijuana is rapidly gaining popularity with the growing awareness among people about the benefits of marijuana in the chronic pain management. It is found to be an effective method for the treatment of chronic pain and that it is far safer than several other options. Chronic pain is the most common reason people cite for seeking medical marijuana. Moreover, over the years, the role of medicinal cannabis in the treatment of chronic pain has become an increasingly talked about topic. This trend is expected to continue over the forecast period.

Global Legal Marijuana Market Restraints:

Shortage of medical marijuana to hinder market growth

One of the key factors expected to hamper the growth of the global legal marijuana market is the supply shortage of medical marijuana in various countries. With legalization of medical marijuana in various countries, its demand has increased across the globe. However, high demand for medical cannabis has led to supply chain bottlenecks in certain countries. For instance, some Pennsylvania medical marijuana dispensaries are experiencing shortages. The state is in the grip of a medical marijuana drought. However, Pennsylvania's (US) medical marijuana program provides access to medical marijuana for patients with specific medical conditions.

Legalization for selected indications to hamper market growth

Another factor which is hampering growth of the global legal marijuana market is the legalization of medical marijuana only for selected indications. Although medical marijuana has been legalized in various countries, some countries have legalized medical marijuana only for certain indications. For instance, medical marijuana in Queensland, Australia can be only used for indications such as severe muscle spasms, chemotherapy-induced nausea and/or vomiting, and epilepsy. This limited scope of application in several countries is expected to hinder market growth.

Figure 2. Global Legal Marijuana Market Share (%), by Application, 2023

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Global Legal Marijuana Market Segmentation:

The global legal marijuana market report is segmented into Application, Product Type, and Geography.

Based on Application, the market is segmented into Medical (Chronic Pain, Mental Disorders, Cancer, and Others) and Recreational. Out of which, Medical Segment is expected to dominate the legal marijuana market during the forecast period and this is attributed to the increase in usage of medical marijuana. The usage of marijuana is legal among patients suffering from AIDS, cancer, multiple sclerosis, and epilepsy.  

Recreational Segment is also expected to witness significant growth in the near future and this is owing to the rise in use of marijuana for recreational purposes.

Based on Product Type, the market is segmented into Buds and Oils. Of which, Buds Segment is expected to dominate the market over the forecast period and this is attributed to the increasing number of countries legalizing the use of medical marijuana. Several countries worldwide have legalized marijuana for its medicinal properties.

Oils Segment is also expected to witness significant growth in the near future and this is owing to increase in consumption of marijuana oil. Cannabis oil, also known as marijuana, is currently being studied for its effectiveness on various diseases and other health uses.

Global Legal Marijuana Market: Key Developments

In March 2021, Tilray received the required approvals from New Zealand’s health ministry and Medicinal Cannabis Agency to cater medicinal cannabis products to New Zealand markets.

In March 2021, Canopy Growth Corporation announced the launch of Quatreau, their premium ready-to-drink CBD-based beverage to mark its entry into U.S CBD beverage category.

In February 2021, Maricann Inc. partnered with The Clinic Network Canada (TCN), a chain of medical cannabis and pain clinics.

In January 2021, Aurora Cannabis Inc. and MedReleaf Australia teamed up to supply products to the Australian medical cannabis system. This agreement will offer and extend availability of high-quality, medical cannabis to patients. MedReleaf is one of the six founding members of the trade association Medicinal Cannabis Industry Australia (MCIA).

Global Legal Marijuana Market: Key Companies Insights

The global legal marijuana market is highly competitive. This is attributed to the rise in demand or use of marijuana for medicinal and recreational purposes, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global legal marijuana market are Tilray, Aphria, Inc., Wayland Group Corp., Aurora Cannabis, Canopy Growth Corporation, and GW Pharmaceuticals, Plc.

*Definition: Marijuana refers to the dried leaves, flowers, stems, and seeds from the Cannabis sativa or Cannabis indica plant. This herb is frequently used as a recreational drug for different types of illnesses. Marijuana is legal for recreational and medical use, as well as for cultivation, possession, and distribution in many countries.