North America Legal Marijuana Market

North America Legal Marijuana Market Outlook 2031

The North America legal marijuana market size was valued at USD 50.87 billion in 2022 and is anticipated to reach USD 184.63 billion by 2031 expand at a CAGR of 15.4% during the forecast period, 2023-2031. The growth of the market is attributed to the increasing adoption and acceptance towards legal marijuana in the treatment of various chronic diseases such as arthritis, Alzheimer’s and cancer along with neurological disorders including anxiety, epilepsy, and depression.

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.

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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, including the North American countries, have adopted a decriminalization policy by making simple possession to a non-criminal offense, similar to traffic violations and parking tickets.

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 North America 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. However, this was only applicable to the first phase of the COVID-19 pandemic.

During the later stages of the pandemic, primarily in 2021, local dispensaries including the Bud and Bloom, started observing a huge increase in the sales of marijuana up to 29%. The common public utilized the benefits for marijuana for relief purposes such as headaches, stress and work-from-home pressures. This boosted the marijuana market growth in North America.

North America Legal Marijuana Market Trends, Drivers, Restraints, and Opportunities

• Increasing the range of applications of legal medical marijuana along with the demand and requirement of cannabis oil are projected to boost the North America legal marijuana market growth during the forecast period, 2021-2028. In February 2021, the governor of New Jersey Governor Phil Murphy has signed three bills which stated that recreational marijuana is currently legal for all adults from the age of 21.
• Rapid growth in the research and development activities regarding the potential of marijuana, measuring their benefits verses that side-effects and the amount of funding and investments from both the Government administrative bodies and private investors are major factors driving the market expansion in the coming years.
• The administration of marijuana needs to be strict, especially regarding age, underaged children consuming marijuana can cause dire consequences. The process of obtaining medical marijuana is not streamline, even with a doctor’s prescription, which ultimately restricts the North America marijuana market growth.
• Increase in cost of marijuana due to increase in demand to meet the supply, along with the cost of maintenance of canopy leaves can hinder the growth of the North America legal marijuana market. Due to the high costs in manufacturing and thereby the product itself, consumers are shifting towards illicit sources. According to a statistics report in Canada ,2020, regarding marijuana production, the cost of one gram legal marijuana is USD 15, whereas in the black market, the same could be obtained for USD 10.
• R&D investment and technological advancement are expected to offer significant opportunities for the market players. Researchers and scientists have now discovered new kinds of marijuana which cures highly complicated diseases such as Alzheimer’s, cancer, Parkinson’s and other neurological, immunological & cardiovascular disorders. Europe and North America have started novel food ruling from January 2021 to boost the development of marijuana isolates in the future.

Scope of The North America Legal Marijuana Market Report

The report on the North America 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.

North America Legal Marijuana Market Segment Insights

The flower 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 flower segment is expected to constitute the major market share of 69.3% at 2020 and is anticipated to register at a CAGR of 15.4% during the forecast period, 2023-2031, owing to the legalization of marijuana for recreational use along with the increasing usage of marijuana flowers in countries such as Canada, Uruguay, USA and Chile.

The perception of marijuana and their derivatives, especially the flower variants, have incredible benefits. The drug stores, pharmacies, hospital and even educational institutes in these countries educate to the users about both the advantages and side-effects of using marijuana flowers and reasonable limits of oil is actually good for the patient.

The oil segment, on the other hand, is anticipated 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.

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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 55.3% 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.

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The chronic pain segment is projected to represent a large market share

Based on the medical uses, 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 53.7% 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, 2023-2031. 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.

Canada is expected to dominate the market

On the basis of regions, the North America Legal marijuana market is categorized as the United States of America, Canada, and Mexico. The market in Canada is expected to constitute a major share of 50.8% in 2019. This regional market growth can be attributed to multiple factors such as rising awareness on the benefits of marijuana, supportive government reforms, favorable climate conditions, presence of major marijuana companies, and increasing consumer preference towards cannabis based products.

The Canada government also encouraged the direct engagement program between the patients and the legal marijuana cultivators to understand the diagnosis and studies behind the cannabis plant. There has also been a significant increase in black market trade plus the elevated popularity of marijuana for recreational purposes in Canada.

However, the market in the United States of America is anticipated to expand at a significant CAGR during the forecast period, 2021-2028, due to the increasing utilization and adoption of marijuana supported by government approvals. The legality of marijuana as of 2020 is now across 36 states, meaning , their state laws have approved of the usage of marijuana.

As of now, over 56% of adults present in America approve the usage of marijuana for both recreational and medical purposes, which was a complete contrast a decade ago when only 31% approved legal marijuana and 59% completely rejecting it. The population in the United States of America is also extremely high compared to Canada, so in course of time, the usage of marijuana will be higher as well.

Segments

The North America legal marijuana market size has been segmented in terms of

Products

• Flower
• Oil

Types

• Adult-Use
• Medical Use

Medical Uses

• Chronic Pain
• Mental Disorders
• Cancer
• Others

Regions

• United States of America
• Canada
• Mexico

Key Players

• Canopy Growth Corporation
• Aphria Inc
• Aurora Cannabis
• Tilray
• Organigram Holdings Inc
• Lexaria Bioscience Corp
• ABcann Medicinals Inc
• The Cronos Group
• Wayland Group Corp (Maricann Group Inc)
• CannTrust Holdings

Competitive Landscape

Major players competing in the North America legal marijuana market are Canopy Growth Corporation; Aphria Inc; Aurora Cannabis; Tilray; Organigram Holdings Inc; Lexaria Bioscience Corp; ABcann Medicinals Inc; The Cronos Group; Wayland Group Corp (Maricann Group Inc); and CannTrust Holdings. 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.