North America, Europe & Asia Pacific Legal Cannabis Market Outlook 2031
The North America, Europe & Asia Pacific legal cannabis market size was valued at USD 18.10 billion in 2022 and is projected to reach USD 110.79 Billion by 2031 expand at a substantial CAGR 22.3% during the forecast period, 2023–2031. The growth of the market is attributed to the augmented use of marijuana and hemp products along with the growing demand for medical marijuana.
Cannabis are three types of plants psychoactive plants, called as cannabis ruderalis, cannabis indica, and cannabis sativa. The flowers of the plants on collecting becomes one of the most known drugs in the world, which are known as pot, weed, or marijuana. The cultivation of cannabis is in practice from ancient time, cannabis is used with social leanings and spiritual.
Cannabis is not only used to smoke and rolling joints anymore but are utilized in various products, which include topical and concentrates. Cannabis products are increasing in popularity with companies bringing in top-class advertising and packaging activities. The cannabis market is propelled by its therapeutic uses and medicinal properties.
Many countries have initiated to legalizing of laws for marijuana and hemp, which are gradually used for the treatment of many chronic diseases. In other aspect, legalization of marijuana for use is expected to create new jobs and generate billions of dollars to the economy. Additionally, the development of several sectors such as tourism, food, real estate, banking, and transportation can be related with the expansion of the legalization of marijuana.
For example, various banks are approving loans based on marijuana business, which is widely practiced after the authorization of marijuana for adult use. The cannabis market is impacted by COVID-19 pandemic.
The COVID-19 pandemic has disturbed the supply chain of cannabis products due to the nationwide lockdown across the world, the supply of cannabis in dispensaries has limited. The first half of pandemic showed negative impact on the market but, with easing restrictions and reducing cases, the second half of 2020 showed positive impact on the market.
Legal Cannabis Market Trends, Drivers, Restraints, and Opportunities
- Rising utilization of medical marijuana for the cure of chronic conditions is major factor propelling the market.
- Increasing awareness among a large number of the global population about the medical impacts and the ease of availability of the products is further boosting the approval of marijuana and hemp as well as its derivatives. This is driving the market growth.
- Growing numbers of quality farming products is anticipated to contribute greatly during the forecast period to the market growth.
- A complicated regulatory structure for the use of cannabis is estimated to act as a restraint for the market growth in the coming future.
- Vague cannabis cultivation laws that make countries to import cannabis from countries such as Australia, Canada, and the Netherlands. These laws results in increased import costs and making the product expansive on the on the final pricing. This is anticipated to surge illicit activities of cannabis distribution, which otherwise would be presented at much low rates. This is expected to restrict the cultivation market in those countries.
Scope of the North America, Europe & Asia Pacific Legal Cannabis Market Report
The report on the North America, Europe & Asia Pacific legal cannabis market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Legal Cannabis Market - North America, Europe & Asia Pacific Industry Analysis, Growth, Share, Size, Trends, and Forecast
Product Types (Marijuana [Flower, Oil, and Tinctures] and Hemp Oil), Applications (Adult Use [Medical, Chronic Pain, Anxiety, Inflammation, Sleep Disorder, and Others] and B2B Channels)
Asia Pacific, North America, and Europe.
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Maricann Group, Inc.; Aphria, Inc.; ABcann Medicinals, Inc.; Canopy Growth Corp.; The Cronos Group; GW Pharmaceuticals, plc.; Tilray; Aurora Cannabis; Organigram Holding, Inc.; and Lexaria Bioscience Corp.
North America, Europe & Asia Pacific Legal Cannabis Market Segment Insights
Marijuana segment is expected to grow at a rapid pace
Based on product types, the North America, Europe & Asia Pacific legal cannabis market is bifurcated into marijuana and hemp oil. The marijuana segment is further segmented into flower, oil, and tinctures. The marijuana segment is expected to grow at a rapid pace due to its vital medical benefits along with the increasing legalization of marijuana, for adult-use as well as medical.
The flower segment has the major share of the marijuana segment as smoking flower is cheaper than the use of tinctures and hemp oils, which boosted its demand in the market. However, the hemp oil segment is estimated to magnify at a rapid pace during the forecast period owing to the growing use of hemp-derived products and the rising preference of hemp by the users due to its low content of Tetrahydrocannabinol (THC).
Furthermore, the emergent use of hemp-derived Cannabidiol (CBD) in skincare and beauty products, gummies, beverages, capsules, and dog treats, is further bolstering the hemp oil segment in the coming future.
Adult use segment is projected to expand at a considerable CAGR
On the basis of applications, the market is divided into adult use and B2B channels. The adult use segment is further separated into medical, chronic pain, anxiety, inflammation, sleep disorder, and others. The adult use segment is projected to expand at a considerable CAGR owing to application of the in treatment of mental disorders, chronic pain, anxiety, and sleep disorders.
Additionally, the spreading awareness about the segment among the medical practitioners is propelling the segment growth. The practitioners started prescribing marijuana derived products to patients because of its emergent number of clinical evidences to cure different medical problems. On the other hand, the B2B channel segment is expected to register considerable growth during the forecast period owing to the growing use of cannabis in several industries such as nutraceuticals, pharmaceuticals, food and beverages, and personal care and cosmetics.
North America is anticipated to contribute a major market share
In terms of regions, the market is classified as North America, Europe, and Asia Pacific. The market of North America is anticipated to contribute a major market share owing to key factors such as the authorization of cannabis in Canada along with the acceptance of marijuana for medical and adult-use in many states of the US.
Furthermore, the approval of the Farm Bill 2018, accepted hemp-derived products in the US and upsurge in the use of CBD-based products such as cosmetics, food and beverages, and wellness products are the key contributing factors to the regional market upsurge.
The market of Asia Pacific, on the other hand, is a fast growing market due to factors such as growing number of legalization and guidelines about the usage of cannabis and its derivatives in the regional countries. For example, Thailand approved medical use of marijuana in 2018 and exempted the hemp from the list of controlled substances.
This was estimated to magnify the demand for cannabis in the country. The Australian government, in 2019, passed the new cannabis law which approved the Australian Capital Territory (ACT) to grow marijuana for use in the capital city Canberra. As per this law, the citizens of Canberra are allowed to possess up to 50 gms of cannabis and are also permitted to plant two plants per person or four plants per house. These factors are anticipated to intensify the demand for cannabis in the region.
The North America, Europe & Asia Pacific legal cannabis market has been segmented on the basis of
- Adult Use
- Chronic Pain
- Sleep Disorder
- B2B Channels
- Asia Pacific
- North America
Key players competing in the North America, Europe & Asia Pacific legal cannabis market are Maricann Group, Inc.; Aphria, Inc.; ABcann Medicinals, Inc.; Canopy Growth Corporation; The Cronos Group; GW Pharmaceuticals, plc.; Tilray; Aurora Cannabis; Organigram Holding, Inc.; and Lexaria Bioscience Corp.