USD 17.8 Billion
Legal Cannabis Market Size, Share, Growth Analysis, By Source(Marijuana (Flowers, Oil and Tinctures), Hemp (Hemp CBD, Supplements), By Derivative(CBD, THC, Others), By End-use(Medical Use (Cancer, Chronic Pain, Depression and Anxiety, Arthritis), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35J2105 |
Region:
Global |
Published Date: October, 2024
Pages:
219
|Tables:
36
|Figures:
74
Legal Cannabis Market Insights
Global Legal Cannabis Market size was valued at USD 22.2 billion in 2022 and is poised to grow from USD 27.91 billion in 2023 to USD 173.93 billion by 2031, growing at a CAGR of 25.70% during the forecast period (2024-2031).
The global legal cannabis market has witnessed significant growth in recent years, driven by the increasing acceptance and legalization of cannabis across various jurisdictions. The legal cannabis market serves multiple purposes. It caters to the growing demand for medicinal cannabis products, which are used to treat various health conditions such as chronic pain, epilepsy, multiple sclerosis, and nausea caused by chemotherapy. Several factors are driving the growth of the global legal cannabis market. The increasing recognition of the therapeutic potential of cannabis and its derivatives has led to the legalization of medical cannabis in many countries.
The legal cannabis market faces several challenges. there is a lack of standardized regulations and guidelines, leading to inconsistencies in quality control and product safety. This creates uncertainty for both businesses and consumers. The legal cannabis market presents significant opportunities. The expanding legalization of cannabis in more jurisdictions provides a larger addressable market and increases business prospects. Moreover, advancements in cultivation techniques, genetics, and extraction methods offer opportunities for improved product quality, efficiency, and cost-effectiveness. The global legal cannabis market is experiencing rapid growth driven by increasing acceptance, changing regulations, and evolving consumer preferences. While there are challenges and restraining factors, such as regulatory complexities and safety concerns, the market presents numerous opportunities for businesses to cater to the demand for medicinal and recreational cannabis products, contribute to public health, and drive economic growth.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Marijuana
Fastest Growth
Marijuana
Growth Rate
25.4% CAGR
Global Legal Cannabis Market ($ Bn)
Country Share for North America Region (%)
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Legal Cannabis Market Segmental Analysis
Global Legal Cannabis Market is segmented by Source, Derivative, End-use, and region. Based on Source, the market is segmented into Marijuana, and Hemp. Based on Derivative, the market is segmented into CBD, THC, Others. Based on End-use, the market is segmented into Medical Use, Recreational Use, and Industrial Use. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Global Legal Cannabis Market Analysis by Source
In 2022, marijuana accounted for the largest share of revenue in the legal cannabis market, representing over 75.6% of the total. Hemp is expected to experience the fastest growth rate at 26.0%. This growth can be attributed to the increasing trend of legalization observed worldwide. Both recreational and medical marijuana have gained significant acceptance and have been legalized in various countries, including the U.S., Canada, Italy, Czech Republic, Croatia, and Australia. Many nations are also legalizing marijuana production and domestic use. For example, Ecuador has recently legalized cannabis production. The expanding consumer base and the legal purchase of cannabis products have contributed to the decriminalization of possession and regulated selling.
Global Legal Cannabis Market Analysis by End-use
In 2022, the medical-use segment emerged as the largest revenue generator, accounting for over 71.6% of the total legal cannabis market share. This can be attributed to the increasing number of studies conducted to determine the effectiveness of cannabis and its derivatives in treating various medical conditions. The growing adoption of medical cannabis worldwide has been facilitated by its legalization, which has served as a crucial factor driving market growth. The medical use application has gained wide acceptance and is currently the largest sub-segment within the legal cannabis market. With governments implementing policies and regulations surrounding its use, medical practitioners find it easier to prescribe cannabis to patients who require it. The awareness regarding the benefits of medical cannabis has significantly reduced the social stigma associated with its use.
The recreational marijuana segment is expected to experience the fastest growth rate, projected at 38.0% over the forecast period. It is gaining popularity among the youth globally. Countries like the United States and Canada in North America, Uruguay, and Colombia have legalized recreational marijuana, aiming to curb the illicit trade and generate significant tax revenues for the government. The legalization of recreational use has not only created job opportunities within the cannabis industry but also stimulated market growth.
Global Legal Cannabis Market Size By Source (%)
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Legal Cannabis Market Regional Insights
In 2022, North America emerged as the dominant region in the global legal cannabis market, capturing a revenue share of over 68.8%. This can be attributed to the region's laws and policies on cannabis trade, which heavily influence revenue generation. The presence of well-established companies primarily based in North America further solidifies its position as the largest market shareholder. Key players in the industry include Canopy Growth, Curaleaf Holdings, Green Thumb Industries, Innovative Industrial Properties, Trulieve Cannabis, GW Pharmaceuticals, Cronos Group, Grow Generation, Cresco Labs, and Columbia Care. The growing consumer demand for cannabis products has contributed to the overall growth of the regional market, along with the increasing rate of legalization across North American jurisdictions.
Asia is experiencing the fastest growth rate among regional markets, projected at 48.4%. This growth can be attributed to the increasing acceptance of cannabis across different countries in the region. Furthermore, the rise in the number of clinical studies exploring the potential uses of cannabis in various medical conditions serves as a key driver for the regional market. While recreational use of marijuana is still largely frowned upon in most parts of Asia, the medicinal and industrial use of cannabis is gaining popularity in the region.
Global Legal Cannabis Market Size By Geography
- Largest
- Fastest
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Legal Cannabis Market Dynamics
Global Legal Cannabis Market Drivers
Increasing Acceptance and Legalization
- The growing acceptance of cannabis for both medical and recreational purposes has been a major driver of market growth. Governments worldwide are recognizing the potential benefits and economic opportunities associated with legal cannabis, leading to increased legalization efforts.
Medical Benefits and Research
- The increasing number of studies exploring the medical benefits of cannabis and its derivatives has been a significant driver. As more research demonstrates the therapeutic potential of cannabis in treating various conditions, there has been a rise in medical cannabis adoption and legalization in multiple jurisdictions.
Global Legal Cannabis Market Restraints
Regulatory Challenges
- The legal cannabis market faces regulatory challenges due to varying regulations and legal frameworks across different countries and regions. Inconsistent regulations create complexities for businesses operating in the industry and hinder their ability to expand and operate efficiently.
Stigma and Social Barriers
- The progress made in cannabis legalization, social stigma and negative perceptions surrounding cannabis use still exist. These attitudes can impede market growth, affecting public acceptance, and creating barriers for consumers and businesses.
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Legal Cannabis Market Competitive Landscape
The global legal cannabis market is dynamic and highly competitive. The market is characterized by the presence of established companies, emerging startups, and a growing number of strategic partnerships. Established cannabis companies such as Canopy Growth, Aurora Cannabis, and Aphria Inc. have already established themselves as key players in the market, leveraging their brand recognition, distribution networks, and product quality. These companies often follow a strategy of vertical integration, controlling various stages of the supply chain from cultivation to retail, which allows them to maintain quality control and streamline operations. strategic partnerships and acquisitions are prevalent in the industry, as companies seek to expand their market share and access new markets. Research and development also play a crucial role, with companies investing in innovation to develop new cannabis-based products and improve cultivation techniques.
Top Player’s Company Profiles in Global Legal Cannabis Market
- Canopy Growth Corporation (Canada)
- Aurora Cannabis, Inc. (Canada)
- Cronos Group (Canada)
- Sundial Growers Inc. (Canada)
- The Scotts Company LLC (US)
- VIVO Cannabis Inc. (Canada)
- Cara Therapeutics Inc. (US)
- Curaleaf Holdings, Inc. (US)
- Trulieve Cannabis Corp. (US)
- Green Thumb Industries Inc. (US)
- Cresco Labs Inc. (US)
- MedMen Enterprises Inc. (US)
- Acreage Holdings, Inc. (US)
- TerrAscend Corp. (Canada)
- Organigram Holdings Inc. (Canada)
- Liberty Health Sciences Inc. (US)
- iAnthus Capital Holdings, Inc. (US)
- Planet 13 Holdings Inc. (US)
- High Tide Inc. (Canada)
- Jushi Holdings Inc. (US)
- 4Front Ventures Corp. (US)
Global Legal Cannabis Market Recent Developments
- In August 2022, Switzerland considered legalizing recreational cannabis - The Swiss government announced that it would be conducting a nationwide referendum on recreational cannabis legalization in 2022. The proposal aims to regulate and tax the production, sale, and consumption of cannabis for non-medical purposes.
- In May 2022, Brazil approved regulations for medical cannabis cultivation - Brazil's health regulator, Anvisa, established regulations for the cultivation of medical cannabis within the country. This development opened up opportunities for domestic production and increased accessibility to medical cannabis for patients in Brazil.
- In March 2022, Mexico passed legislation for recreational cannabis - Mexico approved a bill to legalize recreational cannabis, becoming one of the largest countries in the world to do so. The legislation permits the possession, cultivation, and consumption of cannabis for personal use.
- In January 2022, New York legalized recreational cannabis - In January, New York State officially legalized recreational cannabis, allowing adults to possess and purchase cannabis products. This move marked a significant milestone in the U.S. cannabis industry.
Legal Cannabis Key Market Trends
- Product Diversification: The legal cannabis market witnessed a trend towards product diversification in 2022. Companies expanded their product offerings beyond traditional forms such as flower and concentrates, introducing edibles, beverages, topicals, and other innovative formats to cater to a broader consumer base.
- Sustainability and Eco-friendly Practices: With increasing awareness of environmental issues, the legal cannabis industry embraced sustainability practices in 2022. Companies implemented eco-friendly cultivation methods, energy-efficient technologies, and packaging solutions to reduce the industry's carbon footprint and enhance sustainability credentials.
Legal Cannabis Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global legal cannabis market is expected to experience significant growth during the forecast period from 2023 to 2030. The market is experiencing significant growth and transformation. With the legalization of cannabis for medical and/or recreational purposes in various countries, the market has expanded rapidly. This growth can be attributed to several factors, including the increasing acceptance and recognition of the medical benefits of cannabis, changing societal attitudes, and the potential economic opportunities associated with the industry. The market analysis indicates a rising demand for cannabis products, leading to a surge in investments, research, and development activities. Moreover, companies are adopting strategies like vertical integration and forming strategic partnerships to strengthen their market presence. However, the market still faces challenges such as regulatory complexities, social stigma, and varying legal frameworks across different jurisdictions. Despite these challenges, the legal cannabis market is poised for further growth, with innovations in product offerings, increasing international expansion, and the emergence of new players.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 22.2 billion |
| Market size value in 2031 | USD 173.93 billion |
| Growth Rate | 25.70% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Legal Cannabis Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Legal Cannabis Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Legal Cannabis Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Legal Cannabis Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Legal Cannabis Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Legal Cannabis Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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