The market for legal marijuana was estimated to be worth USD 13.2 billion in 2021, and it is anticipated to expand at a CAGR of 25.5% from 2022 to 2030. The surge in demand for marijuana that is legal has been one of the key forces behind business growth.
Recently, the use of medical marijuana to treat a range of diseases has been legal in several countries. According to a number of studies, it has been used successfully to treat individuals with ailments including Parkinson’s, Alzheimer’s, and other neurological disorders as well as chronic pain, chemotherapy-induced nausea, and other conditions. Recently, the FDA and other organisations have started to support the use of marijuana derivatives for the treatment of diseases where they have shown potential. Its legal position changed so swiftly in many countries for this reason, among others.
More than two-thirds of U.S. states have legalised marijuana, taking North America (the U.S. and Canada) a step further and allowing its use for recreational purposes.
Due to ongoing limitations, shortages are already impacting government-approved stores. The pandemic severely impacted the supply chain network for cannabis and its derivatives. Whether necessary or not, changes in import and export have affected almost all items. Government backing for legalisation has, however, raised demand, which is expected to be high for the foreseeable future. Patients are selecting marijuana derivatives over the previously recommended drugs.
With the change in legislative laws comes an increase in demand for medical marijuana. Many countries that permit the use of marijuana for medical purposes also permit its cultivation to cut down on imports and raise revenue. In turn, this has generated jobs in the industry, and more companies are investigating this market.
Numerous businesses in the United States and Europe are now focusing on cannabis use outside of recreational and medicinal uses. The countries are building the framework for more relaxed laws on cannabis production and usage for both industrial and therapeutic reasons since there is so much activity in and around the cannabis business.
Marijuana growers are becoming more prevalent in the United States as a result of the increased tax revenue for the government and decreased import costs. It has a broad variety of applications, from industrial to medical, and since it was legalised, its sales have drastically expanded, opening us new opportunities to enhance revenue.
Now that FDA-level approvals are being used, the market for legal marijuana will only expand. Numerous clinical studies must confirm the efficacy of marijuana derivatives before they may be lawfully prescribed for certain conditions.
Product Type Information
The category with a revenue share of over 50% was oil and tinctures. Most nations that have legalised marijuana have done so because of its therapeutic benefits. In several nations, marijuana oil and tinctures are being thoroughly researched for a variety of reasons.
In light of recent legalizations for medicinal cannabis and its derivatives, this is also anticipated to become the category with the quickest growth during the projected period. Cannabis-derived oils are used as a therapy for cancer-related nausea and vomiting.
Additionally, the cannabinoids in the oil aid in treating anxiety and stress as well as aiding sleep issues. It is anticipated that demand for oils and tinctures would increase over the course of the projection period as a result of a considerable increase in the number of patients who prefer oils over flowers.
Additionally, because to the respiratory issues brought on by flower smoking, children who need cannabis derivatives for their therapy cannot be advised to smoke flowers but are instead given oils and tinctures.
Coverage & Deliverables of the Report
- Forecasts and statistics from the past
- shares of company revenue
- regional possibilities
- newest dynamics and trends
In 2021, the medical segment’s revenue share was above 80%. It is anticipated to expand steadily between 2022 and 2030. The recent legalisation and decriminalisation of marijuana for medicinal purposes may be used as justification for the expansion of this market. Patients in certain regions have proved to prefer utilising marijuana for therapeutic reasons due to its broad availability and inexpensive cost.
In 2021, the sector with the highest revenue share—more than 25.0%—was chronic pain. The potency of cannabis derivatives as an analgesic has been well investigated. It has shown much better benefits with fewer adverse effects than the conventional medications being provided.
It has shown to dramatically lessen arthritic pain with little perceptible adverse effects. The market is expected to modestly grow throughout the projection period as a result of growing public knowledge of the use of medical cannabis and its derivatives.
During the projected period, the adult-use sector is anticipated to increase the quickest. People in countries like the U.S. and Canada, where both adult-use and medical cannabis are legal, nonetheless choose for adult-use marijuana since medical marijuana is not reimbursed. Another element that is projected to promote the segment’s development is a shift in consumer attitudes regarding marijuana used recreationally.
In 2021, North America had the highest revenue share (more than 80.0%). The government’s fast pace of decriminalising cannabis for both medical and adult-use or recreational use is one of the major factors affecting the local market.
This position is further supported by the presence of the majority of the important cannabis industry companies. Cannabis production and demand have increased as a result of the fact that it is legal in more than two-thirds of the nation, boosting North America’s position as the market leader.
Other nations, including South America’s Mexico, Colombia, and Ecuador as well as Europe, particularly the U.K., have also approved the use of cannabis, but in very small doses and for very specified uses. Due to the increasing demand in these areas, this market is anticipated to rise steadily during the next years. In the Asia Pacific area, a few nations are more receptive to the legalization of marijuana.
Clinical research demonstrating its efficacy as an analgesic will speed its legalization in nations with big populations of elderly people, which will help the sector expand in the area. In the other areas, a number of start-ups have developed for the research and manufacture of cannabis derivatives. The cannabis market will continue to rise as a result of this.
Key Organizations & Market Share Information
Because marijuana products have so many health advantages for consumers, more people are using them to treat a wide range of chronic illnesses. As a result, they are quickly gathering momentum. The fact that businesses are concentrating on expanding their product offerings, entering new areas, and attracting new customers has also increased competitiveness in the global market.
Due to the widespread legalisation of marijuana for medicinal purposes in European and Asian nations, the industry is growing quickly. It is anticipated that the market’s early adopters would profit by expanding their regional presence and securing their market share. Cross-border commerce is also being impacted by different quality, price, and regulatory standards.
Some significant participants in the worldwide market for legal marijuana include:
- Company named Canopy Growth
- Inc. Aurora Cannabis
- ABcann Medicinals
- Tilray, Inc.
- Maricann Group, Inc.
- The Cronos Group
- Inc. Organigram Holding
- GW Pharmaceuticals Lexaria Corp.
- Tikun Olam, Ltd.,
- a division of United Cannabis Corporation
Report’s Covered Segments
This study also forecasts revenue growth at the global, regional, and national levels in addition to analysing the most current market trends and opportunities in each of the sub-segments from 2016 to 2030. Grand View Research has divided the worldwide legal marijuana market research into three categories for this study: product type, application, and region.
Type of Product Outlook (Revenue, USD Million, 2016 – 2030)
- Oil and Tinctures
Outlook for Flower Tinctures and Oils (Revenue, USD Million, 2016 – 2030)
- Chronic Medical Pain
- both anxiety and depression
- Several Sclerosis
- Acute Muscular Dystrophy
- Post-traumatic Stress Disorder in Alzheimer’s (PTSD)
- adults only
Regional Prospects (Revenue, USD Million, 2016 – 2030)
- The Americas
- Prague Republic
- Pacific Asia