North America, Europe & Asia Pacific Legal Cannabis Market Size, Share & Trends Report

North America, Europe & Asia Pacific Legal Cannabis Market Size, Share & Trends Analysis Report By Product Type (Hemp Oil, Marijuana), By Application, By Region, And Segment Forecasts, 2020 - 2026

  • Published Date: Jun, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-768-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The North America, Europe and Asia Pacific legal cannabis market size was valued at USD 17.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 19.6% from 2020 to 2026. The increased legalization of hemp and marijuana across various countries is one of the leading factors attributing to market growth. The growing awareness about medical benefits and the easy availability of these products is further increasing the acceptance of hemp and marijuana and its derivatives. Moreover, the growing adoption of medical marijuana for the treatment of chronic conditions is another major factor driving the market growth. Various countries have started liberalizing laws pertaining to marijuana and hemp, which is anticipated to boost the market growth.

U.S. legal cannabis market size

In late 2018, some Asian countries such as South Korea and Thailand along with New Zealand legalized the use of cannabis for medical purposes. This factor is expected to bolster the demand over the forecast period. Other countries that have already legalized medical marijuana multiple therapeutic applications are now moving toward complete legalization of marijuana, which is anticipated to promote revenue growth.

On the economic front, legalization of marijuana for adult use will help in creating new job opportunities and will add billions to the economy. Furthermore, sectors such as tourism, real estate, banking, food, and transportation will also witness growth after legalization. For instance, many banks have started accepting loans concerning marijuana business, which will gain impetus after the legalization of marijuana for adult use. Therefore, the impending legalization for adult use is expected to surge the demand legal cannabis and eventually erode the black market.

On the other hand, the presence of stringent regulations makes it more difficult for the manufacturers to set up a functional and completely legal channel for the production and distribution of cannabis-derived products such as cannabidiol. As different activities are permitted in different countries with regards to processing, extraction, and cultivation of hemp, several manufacturers are forced to carry out operations in different countries. That also makes it difficult to determine the origin of the cannabidiol product, and who is responsible for the final quality of the product. Thus, these fluctuating regulations for these products in different countries are anticipated to hamper the legal cannabis market growth.

Moreover, ambiguous hemp and marijuana cultivation laws that require countries to currently import cannabis from countries such as Canada, Australia, and the Netherlands. These laws lead to high import costs, reflecting on the final pricing in the retail market. This is expected to drive consumers to resort to illicit channels of cannabis, which would be available at much cheaper rates. This is anticipated to hinder the cultivation market in such countries even if they have legalized the drug for medical use.

Product Type Insights

Marijuana segment accounted for the largest revenue share of 96.6% in 2019. The increasing adoption of marijuana, owing to its medical benefits coupled with the growing legalization of marijuana, for medical and adult-use are the pivotal factors contributing to the large share of the segment. Marijuana segment is further classified into flower, oil, and tinctures. The flower segment accounted for the largest revenue share in 2019. Smoking a flower is much more economical than other products such as oil and tinctures, hence, most people prefer smoking due to its rapid onset of action, which boosts the segment growth.

On the other hand, hemp oil segment is anticipated to expand at the fastest CAGR over the forecast period. The increasing adoption of hemp-derived products and the growing acceptance of hemp among the users owing to its low Tetrahydrocannabinol (THC) content are some of the key factors anticipated to drive the growth of this segment. Moreover, the growing usage of hemp-derived Cannabidiol (CBD) in beauty and skincare products, beverages, gummies, capsules, and dog treats, is further supporting the demand for hemp oil over the forecast period.

Application Insights

Based on application, medical use held the largest revenue share of 66.0% in 2019. This is attributed to the increasing usage of the product for the treatment of chronic pain; mental disorders, like anxiety; and sleep disorders. Furthermore, increasing awareness among practitioners is supporting the segment growth. For instance, the use of cannabis for medical purposes has increased after its legalization in Australia. The practitioners are now prescribing cannabis to patients owing to the growing number of clinical evidence to treat various medical conditions.

North America, Europe & Asia Pacific legal cannabis market share

B2B channels segment is expected to witness the fastest CAGR over the forecast period. Growing application of marijuana and hemp in various industries such as pharmaceuticals, personal care and cosmetics, nutraceuticals, and food and beverages have supported the growth. Moreover, the growing usage of cannabis and its derivatives as raw material by companies to produce their products is anticipated to drive the legal cannabis market over the forecast period.

Regional Insights

In 2019, North America accounted for the highest revenue share of 91.0% and is anticipated to grow at a significant pace over the forecast period. The legalization of cannabis in Canada and the decriminalization of marijuana for both medical and adult-use in various states of U.S. is the key factor driving the growth. Moreover, introduction of the 2018 Farm Bill that legalized hemp-derived products in U.S. and increase in the preference for CBD-based products such as food and beverages, cosmetics, and wellness products are the major factors contributing to the largest share of the region.

Asia Pacific is expected to be the fastest-growing region over the forecast period. Key factors anticipated to drive the growth are the increasing legalization and promising guidelines regarding the use of cannabis and its derivative products in the regional countries. For instance, Thailand legalized medical marijuana in 2018 and removed hemp (hemp seeds and hemp oil) from the list of controlled substances. This is expected to expand the demand for hemp and marijuana in the country.

Moreover, in 2019, new cannabis law is passed by the Australian government allowed the Australian Capital Territory (ACT) to cultivate and possess marijuana for adult use in the capital city Canberra. According to this law, the residents of Canberra are permitted to possess up to 50 gms of cannabis and are also allowed to grow two plants per user or four plants per household at a given point of time and is expected to amplify the demand for cannabis in the region.

Key Companies & Market Share Insights

The market is expected to create business opportunities, which are encouraging many companies to develop new technical infrastructure and equipment for overlooked processes. Newly developed equipment is giving cultivators the tools and information to create the best, most potent, and purest quality of marijuana. For instance, Cann Systems LLC has launched its new line of drying and curing equipment, which include portable and commercial cannabis dryers that follow a precise drying curve, while maintaining all the other parameters for maintaining the potency of marijuana and hemp. The growing market demand is expected to favor the entry of several new players in the future. Some of the prominent players in the North America, Europe and Asia Pacific legal cannabis market include:

  • Aphria, Inc.

  • Canopy Growth Corporation

  • Aurora Cannabis

  • Maricann Group, Inc.

  • ABcann Medicinals, Inc.

  • Tilray

  • The Cronos Group

  • GW Pharmaceuticals, plc.

  • Organigram Holding, Inc.

  • Lexaria Bioscience Corp.

North America, Europe And Asia Pacific Legal Cannabis Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 23.1 billion

Revenue forecast in 2026

USD 67.7 billion

Growth Rate

CAGR of 19.6% from 2020 to 2026

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2026

Quantitative units

Revenue in USD million and CAGR from 2020 to 2026

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product type; application; region

Regional scope

North America; Europe; Asia Pacific

Country scope

U.S.; Canada; Germany; Italy; Poland; Czech Republic; Switzerland; Netherlands; Australia; New Zealand; South Korea; Thailand; Japan

Key companies profiled

Aphria, Inc.; Canopy Growth Corporation; Aurora Cannabis; Maricann Group, Inc.; ABcann Medicinals, Inc.; Tilray; The Cronos Group; GW Pharmaceuticals, plc.; Organigram Holding, Inc.; Lexaria Bioscience Corp.

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Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of latest industry trends in each of the sub segments from 2016 to 2026. For the purpose of this study, Grand View Research, Inc. has segmented the North America, Europe and Asia Pacific legal cannabis market report on the basis of product type, application, and region:

  • Product Type Outlook (Revenue, USD Million, 2016 - 2026)

    • Marijuana

      • Flower

      • Oil

      • Tincture

    • Hemp Oil

  • Application Outlook (Revenue, USD Million, 2016 - 2026)

    • Adult Use

    • Medical

      • Chronic Pain

      • Anxiety

      • Inflammation

      • Sleep Disorder

      • Others

    • B2B Channels

  • Regional Outlook (Revenue, USD Million, 2016 - 2026)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • Italy

      • Netherlands

      • Poland

      • Czech Republic

      • Switzerland

    • Asia Pacific

      • Australia

      • New Zealand

      • Thailand

      • Japan

      • South Korea

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