Legal Marijuana Market

Legal Marijuana Market Overview:

The global legal marijuana market was valued at USD 9.15 billion in 2022 and is likely to reach USD 49.12 billion by 2030, at a CAGR of 27.1%. Marijuana is a narcotic drug which is primarily extracted from the leaves & flowering tops of a cannabis plant, specifically Cannabis sativa, which is vaped, smoked, or consumed for medicinal or recreational purposes. While marijuana is legal in some developed countries, it still remains illegal in many countries worldwide. The possession of marijuana has been forbidden in many countries since the marijuana prohibition in the late 1930s. Legalization of marijuana refers to making it legal for consumption, ownership, distribution, and sale of marijuana, especially for medicinal purposes. Medical marijuana legalization is known as the legalizing of marijuana plants for the treatment of a wide range of diseases, such as nausea and chronic pain. 

Legal Marijuana Market Segmentation:

By type, the global legal marijuana market is classified into medical and adult use. The adult use segment held the largest market share of almost 55% in 2022. The legalization of cannabis for adult use is a prime factor augmenting the product usage further driving global legal marijuana market. The industry has witnessed a revolutionary change from patients choosing to use marijuana for adult use instead of medicinal uses, especially in Canada and the U.S., where marijuana for adult usage has been legalized. This is typically due to its low prices and easy availability. Also, change in pattern is very apparent in countries where reimbursement for medical marijuana is not yet available. The medical segment is projected to grow at a healthy CAGR during the review period. Increasing awareness regarding the medical benefits of marijuana, growing legalization of cannabis for medical purposes, and rising demand for plant-based treatments in pain management, are some of the major factors augmenting the segment growth. As the number of countries worldwide are increasingly legalizing medical marijuana, the industry is expected to experience ample growth opportunities in the near future.

Based on application, the global legal marijuana market has been classified into chronic pain, mental disorders, cancer, recreation, and others. The chronic pain segment accounted for the largest market share of around 45% in 2022. Different types of chronic pain are arthritis pain, neurogenic pain, low back pain, cancer pain, neck pain, headache, and face pain. Rising number of cancer, arthritis, and neurological cases across the globe and improvement in pain management services in healthcare sector promulgates the segment growth in the coming years. The mental disorders segment is likely to register highest CAGR during the forecast timeline mainly due to rising number of people suffering from different mental disorders. There has been a surging adoption of cannabis and related products among patients suffering from mental disorders, including anxiety, due to their antipsychotic effect on the nervous system.

Legal Marijuana Market Dynamics and Factors:

Increasing demand for global legal marijuana market mainly due to rising number of legal cannabis countries is a key driving factor. Rising usage of medical marijuana for different diseases and recent legalizations in several countries across the globe are boosting the product usage further fueling global legal marijuana market. Increasing number of patients suffering from chronic illnesses, such as cancer, Parkinson's, Alzheimer's, and other neurological disorders, are administered medical marijuana. Also, the demand for cannabis oil is growing rapidly, particularly among countries with legalized medical marijuana further creating potential demand for global legal marijuana market. Moreover, the children consuming cannabis are being administered with oil only as it has exhibited substantial benefits for the treatment of disorders, such as epilepsy. This, in turn, augments the global legal marijuana market industry growth in the coming years.

Legal Marijuana Market Geographical Analysis:

The North America market accounted for an astounding market share of almost 80% in 2022 and is likely to garner the highest CAGR during the review period. This is mainly ascribed to supportive government regulations as well as legalization of marijuana for medical as well as recreational purposes in the countries of U.S. and Canada. Also, legalization of marijuana for adult recreational use, large presence of major marijuana cultivators and manufacturers in the region, rising retail sales, and geographical expansion of retail stores are some of the major factors proliferating the regional and global legal marijuana market growth. The European market held the second-largest market share in 2022. The key contributors in the region are the U.K., Germany, and France. These countries have begun indigenous production, and are therefore secondary markets. Moreover, the industry demand is projected to increase rapidly mainly due to changes in government policies. Various new startups are entering in the R&D and manufacturing of cannabis, thus augmenting the regional and global legal marijuana market growth.

Legal Marijuana Market Report Scope

Key Market Segmentation

Legal Marijuana Market- By Type

o   Medical

o   Adult Use

Legal Marijuana Market- By Application

o   Chronic Pain

o   Mental Disorders

o   Cancer

o   Recreation

o   Others

Legal Marijuana Market- By Region

North America

o   US

o   Canada

o   Mexico

Europe

o   Germany

o   UK

o   France

o   Italy

o   Spain

Rest of Europe

Asia-Pacific

o   China

o   India

o   Japan

o   South Korea

Rest of Asia-Pacific

Middle East and Africa

South America