The global legal marijuana market was valued at USD 9.1 billion in 2020 and is expected to expand at a CAGR of 26.3% during the forecast period, 2021-2028. The growth of the market is attributed to the expansion of demand for marijuana (legal) due to the increasing number of cannabis countries being legal.
The legality of marijuana for recreational and medical purposes vary from country to country, be it in terms of distribution, cultivation & possession or on how each individual consumes it verses the medical conditions marijuana is supposed to use for. The policies regarding the legality of cannabis are regulated and monitored by the three treaties of the United Nations, which are “the 1961 Single Convention on Narcotic Drugs”, “the 1971 Convention on Psychotropic Substances” and “the 1988 Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances”. As of now, marijuana is categorized as one variant of a Schedule I drug by the Single Convention Treaty. This means that the participants are allowed to use under medical terms and prescriptions, however it is classified as an addictive drug along with a high risk of abuse.
The usage of marijuana for leisure purposes is illegal in most of the countries in the globe. Nevertheless, many of these countries have adopted a decriminalization policy by making simple possession to a non-criminal offense, similar to traffic violations and parking tickets. Other regions such as some Asian countries (Middle East) have much stricter and severe consequences including several years of imprisonment. Medical marijuana are actually prescribed by physicians to patients from common diseases such as nausea and headaches to chemotherapy and other cancer diagnosis treatments. Marijuana does have short term side effects such as vomiting, dizziness, hallucinations and extreme tiredness. In the United States, as of 2020, 46% of their population currently live in the jurisdiction of the legalization of marijuana, be it recreational or medical.
The COVID-19 pandemic has hindered the growth of the global legal marijuana market mainly because of the disruption caused in the marijuana supply chain management. The strict protocols enforced by the government authorities of various countries made distribution of cannabis more difficult than normal. Social distancing and home lockdown meant that recreational activities took form in a digital aspect, meaning marijuana usage getting reduced heavily. The medical purposes also saw a decline as they can conduct viruses at a faster pace, especially unhealthy individuals. After the COVID pandemic, however, the marijuana market is expecting to boom back to even a two digit CAGR expansion.
Drivers
Restraints
Opportunities/Trends
The report on the global legal marijuana market size includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes | Details |
Report Title | Legal Marijuana Market Size - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year | 2020 |
Historic Data | 2018–2019 |
Forecast Period | 2021–2028 |
Segmentation | By Types (Medical and Adult-Use), Products (Flower and Oil), and Application Areas (Chronic Pain, Mental Disorders, Cancer, and Others) |
Regional Scope | Asia Pacific, North America, Latin America, Europe and Middle East & Africa |
Report Coverage | Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Trends, and Revenue Forecast |
Key Players Covered in the Report | Canopy Growth Corporation; Aurora Cannabis; Aphria Inc; Tilray; ABcann Medicinals Inc; The Cronos Group; Maricann Group; Organigram Holding Inc; and Lexaria Corp |
The adult-use segment is projected to represent a large market share
Based on the types of marijuana, the global legal marijuana market is bifurcated into medical and adult-use. The adult-use segment is expected to constitute a major market share of 54.6% as of 2020. The main reason attributing to this is the legalization of marijuana for adult use which thereby increases their demand. This industry has started to see a dynamic and shift change from the regular users and patients to use marijuana for other recreational activities including adult use over medical purposes. This is especially prominent in the North American countries. This is happening due to the fast availability and low prices in this region exclusively.
Medical marijuana anticipate a lucrative market growth with a significant CAGR during the forecast period. This is attributed to high awareness of the medical benefits coupled by the surging demand of marijuana used in plant-based treatments and diagnostics in pain and relieve management. Most regions of the world have started to legalize medical marijuana under the prescription of the doctor which can vary upon the physician’s choice along with the patient’s demands.
The oil segment is expecting to grow at a significant pace
On the basis of products available, the global legal marijuana market is bifurcated into flower and oil. The oil segment is expected to constitute the major market share of 52% at 2020, owing to the legalization of marijuana for recreational use along with the increasing usage of cannabis oil in countries such as Canada, Uruguay, USA and Chile. The perception of marijuana and their derivatives, especially the oil variants, have incredible benefits . The drug stores and pharmacies in these countries educate to the users about both the advantages and side-effects of using marijuana and reasonable limits of oil is actually good for the patient.
This segment is also expected to grow the highest amongst the segments during the forecast years, owing to the increasing research conducted on oils. The final analysis of treatment and rehab centres in North America concluded that the oil extracts of cannabis is strong enough to cure fatal illness such as cancer, while the flower extracts are for recreational purposes alone.
The chronic pain segment is projected to represent a large market share
Based on the application areas, the global legal marijuana market is divided into chronic pain, mental disorders, cancer, and others. The chronic pain segment is expected to constitute a major market share of 44.9% as of 2020. There are different types of chronic pain one experiences in the human body ranging from arthritis pain, low back pain, neck pain, face pain, neurogenic pain, cancer pain and the simple headache & migraines. The implementation of medical marijuana can alleviate any form of pain, including the ones mentioned above. The rising awareness of this knowledge to a number of people and understanding the benefits of marijuana consumption in regard to its application for simple uses makes the major reason for the growth of this segment in this market.
The mental disorders segment anticipate a lucrative market growth with a significant CAGR during the forecast period, 2021-2028. This is attributed to the increase in adoption of marijuana and their derivatives on a number of people taking part in rehab and treatment centres where most people get admitted on the account of mental disorders. The increase in stress levels be it in personal lives or the corporate life, the competition taking place in the world, have been overwhelming to a huge population of the world and in order to relieve from this stress, people have resorted to medical marijuana.
North America is anticipated to dominate the global urinalysis market
On the basis of regions, the global legal marijuana market is segmented into Asia Pacific, North America, Latin America, Europe and Middle East & Africa. North America is expecting to expand at an impressive and healthy CAGR during the forecast period, 2021-2028 with a revenue share of 79.8% as of 2020. This regional market growth can be attributed to the Government regulations for the legalization of marijuana for both medical and recreational purposes in this region. There is also the presence of major marijuana cultivators and derivative manufacturers in this region, thereby low cost and high demand drives the growth in this segment.
Segments Covered in the Report
The global legal marijuana market size has been segmented in terms of
Types
End-Use
Application Areas
Regions
Key Players
Major players competing in the global legal marijuana market are Canopy Growth Corporation, Aurora Cannabis, Aphria Inc; Tilray; ABcann Medicinals Inc; The Cronos Group; Maricann Group; Organigram Holding Inc; and Lexaria Corp. These market players are involved in several business strategies such as mergers, acquisitions partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.
They are simultaneously looking to innovate the current product they have in order to get a competitive edge in the market. For instance, the Anxiety and Depression of America conducted an open study with the help of Canopy Growth Corporation for the analysis of usage in marijuana and its benefits for people. The study showed that approximately 18% of total population have been dependent on marijuana usage. This encouraged Canopy Growth Corporation to venture on oil marijuana and brought applications to the factor that medical authorities have given approval.
Some other reports from this category!