Legal Marijuana Market Expected to Reach $80.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Legal Marijuana Market," The legal marijuana market was valued at $17.50 billion in 2021, and is estimated to reach $80.1 billion by 2031, growing at a CAGR of 16.9% from 2022 to 2031.

The growth of the legal marijuana market size is likely to be boosted by the rise in public knowledge about the advantages of medical marijuana. It is anticipated that the growing legalization of marijuana for medical purposes in a few countries will grant lucrative liberties to drug cartels, thereby driving the marijuana industry growth during the forecast period. Marijuana can provide relief from persistent pain and sleep issues, which is likely to increase interest in medical marijuana and assist in the growth of the medical marijuana industry in the near future. The legal marijuana market share to fight sickness is likely to increase demand for natural leaves, which will support trade in the near future.

However, the main problem impeding the growth of the legal marijuana market growth is the burden of strict rules and regulations. The growth of the medicinal marijuana industry can get hampered during the forecast period due to the strict rules and regulations that many nations have imposed on the usage of cannabis. It is necessary to accept a negative impact on human wellness that could effectively halt the growth of the marijuana industry when using marijuana in sporting designs.

the widespread legalization of marijuana is anticipated to present a sizable opportunity for market expansion. In the near future, lucrative business opportunities are anticipated as medical and legal marijuana become more sanctioned and approved in many countries. Moreover, the growing awareness of the benefits of marijuana are anticipated to increase demand and help expand the legal marijuana business. Furthermore, the increase in the number of countries that have approved the use of medicinal marijuana in various parts of the world is one of the main causes that is enhancing the rate of cannabis use in therapeutic applications. Protection of public health and safety is one of the other main goals of marijuana legalization in most nations, including Canada. According to the Centre for Addiction and Mental Health (Canada), legalization offers a chance to lessen the negative effects of marijuana usage when accompanied with strict health-focused regulations. These factors are anticipated to boost the market growth in the coming years.

 The legal marijuana market is segmented on the basis of product type, application, and region. On the basis of product type, it is classified into flower buds, oils, tinctures, and others. On the basis of application, it is classified into recreational and medical. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the legal marijuana market report include Aurora Cannabis, Maricann Group, Inc., GW Pharmaceuticals, plc., Aphria, Inc., Tilray, The Cronos Group, ABcann Medicinals, Inc. Canopy Growth Corporation, Lexaria Corp., and Organigram Holding, Inc.

The report offers a comprehensive analysis of the global legal marijuana market trends by thoroughly studying different aspects of the market, including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also sheds light on the present scenario and the upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threat of new players, and emergence of substitutes in the market. 

Impact of Covid-19 on the Global Legal Marijuana Industry

• The COVID-19 pandemic had a negative impact on the legal marijuana market owing to the disrupted the supply chain management of cannabis products. Due to lockdowns being implemented worldwide, the supply of cannabis in dispensaries decreased.
• The COVID-19 pandemic had a major impact on export commerce. The supply chain breakdown had an impact on both the import and export industries. In the post-COVID scenario, more patients are anticipated to use cannabis as a form of treatment.
• E-commerce cannabis businesses are experiencing a boom in sales. For instance, the Alberta government required vital services from cannabis retailers, manufacturers, distributors, and warehouses by March 30, 2020, which allowed these businesses to continue providing services to Albertans throughout the COVID-19 pandemic.

Key Findings of the Study

• On the basis of product type, the flower buds segment emerged as the global leader in 2021 and the oils segment is anticipated to be the fastest growing segment during the forecast period.
• On the basis of application, the medical segment emerged as the global leader in 2021 and the recreational segment is predicted to show the fastest growth in the coming years.
• On the basis of region, the North America market registered the highest market share in2021 and is projected to maintain its position during the forecast period.