Legal Marijuana Market Size, Share & Trends Analysis Report By Product Type (Flower, Oil And Tinctures), By Application (Medical, Adult Use), By Region (North America, Europe, APAC, LATAM, Africa), And Segment Forecasts, 2023 - 2030

Report Overview

The global legal marijuana market size was valued at USD 16.7 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 25.4% from 2023 to 2030. The growing demand for legal marijuana has been a primary factor in the growth of the market. Recently, a large number of countries have legalized the use of medical marijuana for treating various ailments. A number of studies carried out show that medical marijuana and its derivatives can be used to treat symptoms of various diseases, for e.g., it has been successfully used to treat patients with chronic pain, chemotherapy-induced nausea, Parkinson’s, Alzheimer’s, and other neurological diseases. The FDA and other such associations have now started accepting the marijuana derivatives for the prescription of diseases in which it has proven to be useful. This is another factor for the quick turnaround of its legal status in a lot of countries. North America (the U.S. and Canada) has gone a step further and has sanctioned the use of recreational marijuana as well and more than two-thirds of the U.S. states have legalized marijuana.

The pandemic severely affected the logistics network for cannabis and its derivatives and due to the ongoing restrictions, the government authorized dispensaries are also facing shortages owing to disruption in the supply chain network. Import and export of nearly all commodities essential or not have been affected as well. However, with the governments endorsing legalization, the demand has risen and is likely to be high in the next few years. Patients are opting for marijuana derivatives instead of the prescription medicines previously being used.

With the government policies changing, the demand for medical marijuana is also rising. A lot of countries that have legalized the use of medical marijuana are also paving way for its cultivation to cut on the imports and gain revenue in the form of taxes. This, in turn, has generated jobs in the industry and a lot more companies are dabbling in this territory. Several startups in the U.S. and Europe are now focusing on alternate uses of cannabis, other than recreational and medicinal. With so much happening in and around the cannabis industries, the countries are paving way for more liberal policies regarding its cultivation and usage in the medical field as well as industrial use.

COVID-19 legal marijuana market impact: 32.4% decrease in revenue from 2019 to 2020

The U.S. is seeing a growing number of cultivators for cannabis, including marijuana since this rakes in more revenues for the government and also cuts down on the cost of import. It has a myriad of applications from medical to industrial and since its legalization, the rise in its sale has been exponential and this has generated new opportunities to increase revenues. With the FDA-level authorizations underway, the market for legal marijuana is only going to expand. A large number of clinical trials will support the prowess of marijuana derivatives for it to be legally prescribed for indications.

Product Type Insights

In 2022, the oil and tinctures segment held the largest revenue share of over 53.2%. The majority of the countries that have legalized marijuana have done so for its medicinal properties. Marijuana oil and tinctures are being studied extensively for multiple indications in a lot of countries. This is also expected to emerge as the fastest-growing segment over the forecast period in light of recent legalizations for medical cannabis and its derivatives. Oils extracted from cannabis are utilized for the treatment of vomiting and nausea caused due to cancer.

In addition, Oil and tinctures are anticipated to register the fastest growth rate of 26.1%. The cannabinoids that are present in the oil help in improving sleep disorders and alleviate anxiety and stress. The demand for oils and tinctures is anticipated to increase over the forecast period owing to a substantial increase in the number of patients preferring oil as compared to flowers. Moreover, children who need cannabis derivatives for their treatment cannot be suggested to use flowers to smoke and are instead being prescribed oils and tinctures due to the respiratory problems caused by smoking flowers.

Application Insights

The medical segment had the largest revenue share of over 82.6% in 2022. It is expected to grow at a steady rate from 2023 to 2030. The growth in this segment can be attributed to the recent legalization and decriminalization of marijuana for medical use. Patients in these geographic regions have been seen preferring the medical use of marijuana due to the ease of availability and economical pricing.

The chronic pain segment held the largest revenue share of over 25.0% in 2021. Cannabis derivatives have been extensively studied for their potency as an analgesic. It has shown far better results with lesser side effects than the regular medicines being prescribed till now. It has proven to reduce arthritic pain significantly with negligible side effects. With an increase in awareness surrounding the use of medical cannabis and its derivatives, the market is expected to grow steadily over the forecast period.

The adult-use segment is expected to emerge as the fastest-growing segment in the forecast period with the fastest growth rate of 35.3%. In countries like the U.S. and Canada, where adult-use and medical-use cannabis have both been legalized, people are still preferring adult-use marijuana due to the lack of reimbursements available for medical marijuana. In addition, changing consumer behavior toward recreational marijuana is yet another factor anticipated to boost the growth of the segment.

Regional Insights

North America held the leading revenue share of over 78.8% in 2022. The rapid increase in the rate at which the government is decriminalizing cannabis for both medical and adult-use or recreational use of marijuana is a key factor driving the regional market. This position is further strengthened by the presence of the majority of the big players in the cannabis market. With more than two-thirds of the U.S. falling under the legal territory for cannabis, the demand and supply both have increased, which is further boosting North America’s position as the forerunner.

Asia is anticipated to register the fastest growth rate of 80.0%. Other regions like Europe, especially the U.K. and South American regions like Mexico, Colombia, and Ecuador have also legalized the use of cannabis, but only in very restricted quantities and for very specific purposes. This market is expected to grow steadily during the coming years in wake of the rising demand in these regions. Several countries are more welcoming to the legalization of cannabis in the Asia Pacific region. With clinical studies as proof of its capability as an analgesic, the countries with a large geriatric population will be fast-tracking the legalization process and can spur the growth of the industry in the region. Several start-ups have emerged for research and production of derivatives of cannabis in the rest of the regions. This is going to further enhance the growth of the cannabis market.

Key Companies & Market Share Insights

Marijuana products provide various medical benefits to the users, which has increased their adoption for the treatment of various chronic conditions. Hence, they are gaining traction within a short time. Moreover, competition in the global market is high because companies are focused on increasing their product offerings, entering new markets, and gaining new consumers.

The market is expanding at a rapid pace as a large number of European and Asian countries have legalized the medical use of marijuana. The first movers in the market are expected to capitalize by increasing their regional presence and consolidating their market share. Various regulatory, quality and pricing norms are also impacting cross-border trade.

Some prominent players in the global legal marijuana market include:

• Canopy Growth Corporation

• Aurora Cannabis

•  Aphria, Inc.

•  Tilray

• ABcann Medicinals, Inc.

• The Cronos Group

• Maricann Group, Inc.

• Organigram Holding, Inc.

• Lexaria Corp.

• GW Pharmaceuticals

• United Cannabis Corporation

• Tikun Olam, Ltd.

Legal Marijuana Market Report Scope

Global Legal Marijuana Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2030. For the purpose of this study, Grand View Research has segmented the global legal marijuana market report based on product type, application, and region:

• Product Type Outlook (Revenue, USD Million, 2016 - 2030)

  • Flower

  • Oil and Tinctures

• Application Outlook (Revenue, USD Million, 2016 - 2030)

  • Medical

    • Chronic Pain

    • Cancer

    • Depression and Anxiety

    • Arthritis

    • Diabetes

    • Glaucoma

    • Migraines

    • Epilepsy

    • Multiple Sclerosis

    • AIDS

    • Amyotrophic Lateral Sclerosis

    • Alzheimer’s

    • Post-traumatic Stress Disorder (PTSD)

    • Parkinson's

    • Tourette’s

    • Others

  • Adult Use

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Italy

    • Netherlands

    • Croatia

    • Poland

    • Czech Republic

    • Switzerland

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • New Zealand

    • Thailand

  • Latin America

    • Uruguay

    • Colombia

    • Mexico

    • Brazil

  • Africa