USD 15.50 Billion
North America Legal Cannabis Market Size, Share, Growth Analysis, By Source(Marijuana, Flowers, Oil and Tinctures, Hemp), By Derivative(CBD, THC, Others), By End - Use(Medical Use, Chronic Pain, Anxiety and Depression, Cancer), By Region - Industry Forecast 2024-2031
Report ID:
SQMIR35I2333 |
Region:
Regional |
Published Date: February, 2024
Pages:
157
|Tables:
110
|Figures:
76
North America Legal Cannabis Market Insights
North American Legal Cannabis Market size was valued at USD 15.50 Billion in 2022 and is poised to grow from USD 17.83 Billion in 2023 to USD 54.53 Billion by 2031, at a CAGR of 15% during the forecast period (2024-2031).
The legal cannabis industry has been significantly shaped by North America, especially the United States and Canada. Significant numbers of states in both countries have legalized cannabis for recreational use in addition to sanctioning its use for medical purposes. This increase in acceptance can be ascribed to cannabis' superior effectiveness in treating chronic illnesses compared to conventional therapies, which has led to a noticeable increase in the local market.
Cannabis is used in a variety of ways – in oils, tinctures, dried flowers, or buds. A lot of the time, it is used to stop or lessen epileptic convulsions. It is a sought-after treatment for persistent pain management in illnesses like multiple sclerosis and HIV/AIDS because the active ingredients, CBD and THC, act on the pain receptors and inhibit signal transmission.
Cannabidiols, or the active substances in cannabis, have received a scant amount of thorough research on their effects and processes, but its acceptance as an alternative treatment option is growing.
Growth in the cannabis industry is anticipated as a result of governmental efforts to control the illegal drug trade. The MORE (Marijuana Opportunity, Reinvestment, and Expungement) Act's reappearance in the U.S. House of Representatives serves as an excellent example.
If this proposal is approved, it might end the federal ban of cannabis and promote decriminalization. From an economic standpoint, adult use legalization promises to increase employment and significantly boost the economy across a number of industries, including travel, real estate, banking, food, and transportation. This upcoming change in law is expected to increase the number of people who use cannabis legally and decrease the existence of the black market, supporting the expansion of the legal business in North America.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
CBD
Fastest Growth
CBD
Growth Rate
15% CAGR
North America Legal Cannabis Market ($ Bn)
Country Share for North America Region (%)
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North America Legal Cannabis Market Segmental Analysis
Based on Source, the market is divided into Marijuana, Flowers, Oil and Tinctures, Hemp, Hemp CBD, Supplements, Industrial Hemp. Derivative-based market segmentation gives us CBD, THC, Others. Market segmentation based on end-user includes medical use, chronic pain, anxiety and depression, cancer, arthritis, diabetes, glaucoma, migraines, epilepsy, multiple sclerosis, aids, amyotrophic lateral sclerosis, alzheimer’s, post traumatic stress disorder (PTSD), parkinson’s, tourette’s, others, recreational use, industrial use. And based on region, the market is divided into North America, Europe, Latin America, Asia- Pacific, Middle East and Africa.
Analysis By Source
The marijuana industry consolidated its position as the market leader in 2022, taking home a sizable chunk of more than 86.5% of the overall revenue. This market is also anticipated to grow most quickly, with a projected pace of a remarkable 15%. The growing legalization of marijuana, particularly for medicinal use because of its numerous health benefits, is a key factor fueling this tremendous rise.
Notably, customers favor flowers above other categories since they are more affordable than oils and tinctures while also having a higher level of efficacy. This consumer preference for flowers greatly accelerates the growth of this sector.
In conclusion, the marijuana industry dominates the market among all source kinds due to its unique benefits and potential for a wide range of uses. The legal environment is expected to change in tandem with changing attitudes regarding cannabis-based goods, which will greatly speed up this market's growth.
Analysis By Derivative
The Cannabidiol (CBD) segment dominated the market in 2022, accounting for over 65.5% of total revenue, mostly as a result of the widespread acceptance of CBD's therapeutic uses. This significant percentage is attributable to increased public awareness of the health benefits of cannabidiol, the adoption of supportive legislative measures, and the expansion of the use of CBD oil across a variety of businesses, including in therapeutic contexts. This significant increase can be ascribed to a change in public perception toward these products as well as an increase in the demand for ingredients derived from natural sources. Its widespread integration within the cosmetics sector, emerging in lotions, serums, and more, effectively addressing problems like dry skin and inflammatory skin diseases, is one striking example.
The market's escalating demand and the abundance of CBD-infused goods are what are fueling the segment's expansion. Other cannabis plant derivatives, such as minor cannabinoids, terpenes, and flavonoids, are also included in this group. The "Other" subcategory is expected to grow very quickly, with a projected growth rate of 16.8%. The growing corpus of research indicating the advantages of minor cannabinoids like CBG, CBC, and CBDa, among others, is a key driver behind this upsurge. In addition, it is predicted that throughout the course of the projected time frame, a rise in industry participants supplying items centered around minor cannabinoids and terpenes, as well as more awareness regarding their health-improving properties, will significantly propel this segment's rising trajectory.
North America Legal Cannabis Market By Derivative
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North America Legal Cannabis Market Regional Insights
The development of the regional industry has been greatly assisted by the favorable regulatory frameworks and the partial legalization of cannabis in the United States and Canada for adult (recreational) as well as medical purposes. The United States was the major contributor in 2022, generating an enormous 86.7% of the total revenue. The regional market's expansion is attributed to a number of factors, including the geographic concentration of major marijuana producers. The U.S. government's accommodating approach and the continuous movement in favor of medical marijuana legalization suggest that the country's leading revenue share will continue to grow, solidifying its market position for the foreseeable future. Additionally, the 2018 Farm Bill's crucial passage, which effectively legalizes hemp and products produced from it across the U.S., is a key factor driving the popularity of these goods.
An increase in demand and more favorable consumer opinions of cannabis and its various derivatives across the nation are driving the industry's growth trajectory higher still. Canada is expected to grow at the fastest rate going forward, with a forecasted 16.8% growth rate. This elevated growth can be ascribed to an increase in local market entrants, a rising user population, and the government's proactive measures to promote cannabis-related commodity production, distribution, and cultivation. Furthermore, it is projected that key players who have staked a lot in the nation's funding prospects would be crucial in fostering the growth of both the local and regional markets in the next forecast period. Regulatory backing, shifting views, and changing market landscapes are all contributing elements that together highlight the cannabis industry's explosive growth potential.
North America Legal Cannabis Market By Geography
- Largest
- Fastest
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North America Legal Cannabis Market Dynamics
Drivers
Regulatory Liberalization
- The expansion of the legal cannabis market in North America has been largely attributed to favorable government laws and partial legalization of cannabis for adult-use recreational and medical purposes in both the United States and Canada.
Market Participants
- The market's expansion is facilitated by the entry of local businesses and the presence of major marijuana producers. Both seasoned competitors and recent arrivals are reshaping the competitive environment.
Medical Benefits
- The demand for medical cannabis products has increased dramatically as a result of the increased public awareness of the therapeutic advantages of cannabis and its derivatives, boosting market growth.
Restraints
Health and Safety Concerns
- Regulating organizations are concerned about the health dangers of cannabis usage, particularly among some groups of the population, which has an impact on market expansion.
Illicit Market Competition
- Legal cannabis markets may face competition from established illegal markets, particularly if regulatory measures fail to completely shut down the unlawful trade.
Supply Chain Challenges
- Due to variables such as weather, transportation, and legal changes, the cannabis supply chain is susceptible to disruptions.
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North America Legal Cannabis Market Competitive Landscape
The North American legal cannabis market is a dynamic marketplace with a wide range of competitors, from well-known industry titans to innovative entrepreneurs. Since this market's growth curve has received a lot of attention, more people are competing to find their niches.
To keep a firm footing, established players make use of their resources, expertise, and consumer trust. These sector veterans frequently concentrate on boosting client involvement through a variety of distribution methods, investing in research and development, and diversifying their product ranges.
Top Player’s Company Profiles
- Canopy Growth Corporation (Canada)
- Aurora Cannabis Inc. (Canada)
- Curaleaf Holdings, Inc. (United States)
- Cronos Group Inc. (Canada)
- Tilray, Inc. (Canada)
- Green Thumb Industries Inc. (United States)
- Aphria Inc. (Canada)
- Trulieve Cannabis Corp. (United States)
- Cresco Labs Inc. (United States)
- Harvest Health & Recreation Inc. (United States)
- TerrAscend Corp. (Canada)
- The Green Organic Dutchman Holdings Ltd. (Canada)
- HEXO Corp. (Canada)
- Vireo Health International, Inc. (United States)
- OrganiGram Holdings Inc. (Canada)
- Charlotte's Web Holdings, Inc. (United States)
- Harborside Inc. (Canada)
- MedMen Enterprises Inc. (United States)
- Valens Company Inc. (Canada)
- Village Farms International, Inc. (Canada)
Recent Developments
- In March 2023, The U.S. House of Representatives passed the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would make cannabis legal at a federal level.
- In February 2023, Canopy Growth, which is Canada's biggest cannabis company, reported that it would be letting go 20% of its work staff.
- In January 2023, New Mexico became the 17th state to make recreational cannabis legal.
North America Legal Cannabis Key Market Trends
- Product Diversification: Numerous product developments are being made for the legal cannabis industry, including a variety of consumption styles, strength levels, and derivative goods that appeal to different user tastes.
- Cannabis in Wellness and Lifestyle: With uses in cosmetics, skincare, and even beverages, cannabis-infused goods are being adopted by the wellness and lifestyle industries in response to changing consumer needs.
- Sustainable and Eco-friendly Practices: Sustainable farming and production practices are becoming more popular in the market, reflecting customer demand for goods that are less harmful to the environment.
North America Legal Cannabis Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types 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 North America legal cannabis market analysis, the North American legal cannabis market stands as a testament to the evolving dynamics of consumer preferences, regulatory landscapes, and industry innovation. The market has experienced rapid expansion driven by supportive regulations, changing societal perceptions, and growing acceptance of cannabis for both medicinal and recreational purposes. However, the journey has not been without its challenges, as varying regulatory frameworks, health concerns, and competition from illicit markets have created complexities for businesses.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.50 Billion |
| Market size value in 2031 | USD 54.53 Billion |
| Growth Rate | 15% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 North America 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 North America 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 North America 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 North America 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 North America Legal Cannabis Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the North America 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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