Legal Marijuana Market Research, 2031
The global legal marijuana market was valued at $17.5 billion in 2021, and is projected to reach $80.1 billion by 2031, growing at a CAGR of 16.9% from 2022 to 2031. The dried green, brown, or grey mixture of marijuana plant pieces is referred to as marijuana. 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.
The main drivers of the legal marijuana market growth are the emergence of medicinal marijuana as an alternative to conventional medicine and the rise in social acceptance of marijuana. Due to the various medical benefits of marijuana-based formulations, the US Food and Drug Administration has granted approval for medicines that are formulated with the help of marijuana. As a result of an increase in cancer cases, cancer patients are being investigated as potential targets for treatment using THC-based drugs. Numerous THC- and CBD-based medications for the treatment of muscular spasms and neuropathic pain have received approval or are now the subject of clinical trials. The legal marijuana market share is growing as disease incidence is rising and as medical marijuana is rapidly being acknowledged as a viable alternative for conventional treatments.
Some nations have established strict restrictions and regulations governing marijuana’s use due to its harmful side effects, which can hamper the medicinal marijuana business. It is said that marijuana use for recreational purposes can have a detrimental effect on people's health. This can hinder the legal marijuana market share growth during the forecast period.
Impact of COVID-19 on the Global Legal Marijuana Industry
- The global healthcare industry's workflow was hampered by the COVID-19 pandemic. Numerous industries, including parts of the healthcare industry, were forced to temporarily suspend operations as a result of infections.
- The medical marijuana market also experienced a short-term decline in growth, which can be attributed to a number of factors, including a drop in product demand from significant end users, limited operations in the majority of industries, insufficient funding for academic research institutions, a disrupted supply chain, and difficulties in terms of providing necessary/post-sale services.
- Workflow of 178,000 square feet pharmacies and cannabis grow houses in north Macedonia halted due to the need for social distancing. In addition, once the government declared a state of alert across the nation, cannabis social clubs in Barcelona—private, non-profit organisations where cannabis is cooperatively farmed and given to registered members—closed their doors.
Legal marijuana market forecast players are investing in R&D of smart and unique strategies to sustain their growth in the market. These strategies include product launches, mergers & acquisitions, collaborations, partnerships, and refurbishing of existing technology. On 15 August 2022, Aurora Cannabis INC, a Canadian company defining the future of cannabinoids worldwide, declared that a wholly-owned subsidiary of the company has developed a controlling interest in Bevo Agtech, Inc. (“Bevo”), the sole parent of Bevo Farms Ltd., one of the largest suppliers of propagated vegetables and ornamental plants in North America (the “Bevo Transaction”). Along with the closing of the Bevo Transaction, Bevo entered into an agreement to acquire the company’s Aurora Sky facility in Edmonton, Alberta, through the acquisition of one of Aurora’s wholly-owned subsidiaries (the “Aurora Sky Transaction” and together with the Bevo Transaction, the “Transaction”).
Global Legal Marijuana Market Segmentation
The legal marijuana market share is segmented on the basis of product type, application, and region. On the basis of product type, the market is segmented into flower buds, oils, tinctures and others. On the basis of application, the market is classified into recreational and medical. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Product
On the basis of product type, the flower buds segment dominated the market in 2021. The most popular consumable marijuana product in the international market is marijuana flower or bud. A typical bud contains minor amounts of other cannabinoids as well as 15% to 30% THC, 0.1% CBD, and other cannabinoids. The rationale behind vaporizers, which are quickly gaining popularity, is that the temperatures at which cannabinoids boil are lower than the temperatures at which flower buds burns. Sophisticated vaporizers are being designed to maintain temperatures that target the activation of specific cannabinoids.These are predicted to be the major factors that will affect the legal marijuana market size during the forecast period.
By Application
On the basis of application, the medical segment dominated the global legal marijuana market in 2021. The significant market share of this sector is mostly attributable to the rising demand for marijuana as a pain reliever for a range of medical ailments, including cancer, AIDS, seizures, and other disorders, as well as the expansion of marijuana research globally. However, the recreational application segment is anticipated to grow quickly during the forecast period.
By Region
On the basis of region, North America dominated the global market in 2021 and is projected to remain the fastest-growing segment during the forecast period. In North America, one of the main factors influencing the local market is the government's quickening pace of decriminalizing marijuana for both medical and adult use or recreational usage. The fact that cannabis is legal in more than two-thirds of the country has led to an increase in production as well as demand, strengthening North America's position as the industry leader.
Competition Analysis
The key players profiled in this report include Aurora Cannabis, Maricann Group, Inc., GW Pharmaceuticals, plc., Aphria, Inc., Tilray, The Cronos Group, ABcann Medicinals, Inc. Canopy Growth Corporation, Lexaria Corp., Organigram Holding, Inc
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the legal marijuana market analysis from 2021 to 2031 to identify the prevailing legal marijuana market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the legal marijuana market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global legal marijuana market trends, key players, market segments, application areas, and market growth strategies.
Legal Marijuana Market, by Product Type Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 80.1 billion |
 Growth Rate | CAGR of 16.9% |
 Forecast period | 2021 - 2031 |
 Report Pages | 230 |
 By Product Type |
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 By Application |
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 By Region |
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 Key Market Players | Canopy Growth Corporation, Organigram Holdings, Inc., Aurora Cannabis Inc., Tilray, Maricann Group, Inc., Gw Pharmaceuticals, Plc., Aphria, Inc., United Cannabis Corporation, Lexaria Corp., Abcann Medicinals, Inc. |
Analyst Review
The primary factors that drive the growth of the legal marijuana market include the rise in use of marijuana as a medicine. The growing geriatric population that requires treatment for chronic illnesses and technological breakthroughs in cultivation are expected to fuel the growth of the market during the forecast period. However, complex regulatory structure for the usage of marijuana and social stigma related to marijuana are expected to hinder growth of the market during the forecast period. Market participants will have lucrative opportunities during the forecast period of 2022 to 2031 due to growth and development initiatives to improve medical properties. This will propel the market growth. A spike in investments will help the sector to grow.
Among the analyzed regions, North America is expected to account for the highest revenue in the market by the end of 2031, followed by Asia-Pacific, Europe, and LAMEA. One of the main factors that is influencing the local market in North America is the government's quickening pace of decriminalizing cannabis for both medical and adult use or recreational usage. These are the key factors responsible for the leading position of Europe and North America in the global legal marijuana market.
The main drivers of the growth of the legal marijuana market are the emergence of medicinal marijuana as an alternative to conventional medicine and the rise in social acceptance of marijuana. In addition, the growing number of countries that are approving the use of medicinal marijuana in various parts of the world is one of the primary factors that are increasing the rate of cannabis use in therapeutic applications. This is estimated to generate excellent opportunities in the legal marijuana market.
Legal marijuana has many health benefits if taken in limited quantity. Hence, it is widely used for medical purposes.
North America will provide more business opportunities for the global legal marijuana market in the future.
The global legal marijuana market size was valued at $17.5 billion in 2021 and is projected to reach $80.1 billion by 2031, expanding at an expected CAGR of 16.9% from 2022 to 2031.
Aurora Cannabis, Maricann Group, Inc., GW Pharmaceuticals, plc., Aphria, Inc., Tilray, The Cronos Group, ABcannMedicinals, Inc. Canopy Growth Corporation, Lexaria Corp., and Organigram Holding, Inc. are the major players in the legal marijuana market.
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