The legal cannabis market in North America, Europe, and the Asia Pacific is anticipated to be worth USD 89.9 billion by 2030 and to grow at a CAGR of 25.3% between 2022 and 2030.
Acceptance is rising as more people learn about the therapeutic uses for hemp, marijuana, and its derivatives and as these products become more widely accessible. The rising acceptability of medical marijuana for treating chronic conditions is a significant element driving market development.
Legalizing marijuana for adult use would boost the economy and help create new employment opportunities in many nations. The businesses that will gain from legalization include tourism, real estate, banking, food, and transportation. Due to the existence of stringent prohibitions, manufacturers have difficulty creating a practical and legitimate route for creating and distributing cannabis-derived goods like cannabidiol.
With a sales share of more than 70.0% in 2021, the marijuana product sector held the market’s top spot. Recent legalizations of marijuana for medicinal use in several countries have increased its appeal. Marijuana is used to treat patients with chronic conditions including Parkinson’s disease, cancer, arthritis, Alzheimer’s, and neurologic problems like depression, anxiety, and epilepsy.
Consequently, the growing usage of marijuana for treating several chronic conditions is one of the key factors driving the growth of this industry.
Also read: Could This Mysterious Statement Lead to the Legalization of Marijuana in the EU?
Due to the many uses for these derivatives, the CBD derivatives category had the highest revenue share in 2021. Both the pharmaceutical and cosmetic industries make substantial use of it. The cosmetic market is quite large in the APAC area, and the usage of CBD derivatives in different skincare products has increased significantly.
Due to the rising number of studies demonstrating their effectiveness in the medical area, the others section, which is the fastest-growing category, is on the rise.
In 2021, the category for medical usage became the biggest end-use sector. The medical sector is expected to dominate over the projection period since it is legal for medicinal use in more nations than recreational use. As cannabis and its derivatives are utilised increasingly often in a variety of products, including pharmaceuticals, nutraceuticals, personal care and cosmetics, and edibles, the demand for these goods is expected to increase.
North America dominated the market in 2021 with a revenue share of over 80.0%. Major market drivers include a sizable consumer base in the area and the early legalization of marijuana for medicinal and recreational purposes.
Due to the rising awareness of the medicinal and health advantages of cannabis, which has led Asian nations to legalize cannabis and its derivatives, the Asia Pacific region is expected to have the fastest market growth between 2022 and 2030.
Lockdowns and transportation problems during the epidemic disrupted the flow of goods, widening the gap between supply and demand. Both the regional market and the global market have suffered as a consequence.
Increased marijuana usage, mostly for therapeutic reasons, promotes the overall market growth as consumers turn away from conventional treatment techniques and toward cannabis-based therapy.
The COVID-19 epidemic has also severely affected the legal cannabis sector since a statewide lockdown has halted manufacturing and enforced import/export restrictions, which has led to a decrease in overall income.
Report on the Legal Cannabis Market in North America, Europe, and Asia Pacific
Highlights
- The increased usage of hemp and marijuana products and the rising popularity of medicinal marijuana might be blamed for the market expansion. Additionally, it is anticipated that the imminent legalization of marijuana for adult use would accelerate development within the anticipated time frame.
- In 2021, marijuana became the most popular source type due to the rising recognition of marijuana as a treatment for various medical conditions.
- The medical use sector had the highest revenue share by end-use in 2021. This is because practitioners know more about the product’s usage for chronic pain, mental diseases including anxiety, and sleep problems.
- North America had the greatest revenue share in 2021 due to the rising consumption rate brought on by legalization.
Market Dynamics
Competitive Analysis
- Growing medicinal marijuana legalization in several nations
- increasing the use of medicinal marijuana to treat chronic conditions
- Around the world, cannabis is being grown because of rising demand.
- eliminating the illegal market by making medicinal marijuana legal
- upcoming adult-use legalization of marijuana, growing demand for strong cannabis, and new technical developments
- demand is growing for cannabis preparations such as oils and tinctures
- Growing acceptance of CBD products derived from cannabis
- increasing the use of CBD-based medicines to treat a variety of illnesses
- An increase in the number of merchants offering CBD-based goods
Analysis of Market Restraints
- Several Asian and African nations lack legalization initiatives.
- Government restrictions are strict.
- legalizing medicinal marijuana exclusively for certain conditions
- High cost of medicinal marijuana
- Cannabis is expensive relative to illicit markets in the United States.
Occupational Challenges
- Insufficient data are available to support the efficacy of medicinal marijuana.
- physicians’ hesitation to prescribe cannabis
- Absence of legalization initiatives limits market access to cannabis, which encourages smuggling
Summary of Cannabinoids
- Cannabidiol (CBD)
- Tetrahydrocannabinol (THC)
- Cannabinol (CBN)
- CBG
- Terpenes
- Flavonoids
- acid cannabinoid
- Attraction Effect
Listed Companies
- CANOPY GROWTH CORPORATION
- Aurora Cannabis
- Tilray
- GW Pharmaceuticals, plc.
- Organigram Holdings Inc.
- Lexaria Bioscience Corp.
- VIVO Cannabis Inc.
- The Cronos Group
- ASX Listed Cannabis Companies
- Cann Group Limited
- Bod Australia
- Zelina Therapeutics
- Althea Group
- THC Global Group Limited
- MGC Pharma
- ECOFIBRE