North America Legal Marijuana Market Size, Share & Trends Report

North America Legal Marijuana Market Size, Share & Trends Analysis Report By Product Type (Flower, Oil), By Marijuana Type (Adult, Medical), By Medical Use (Chronic Pain, Mental Disorders, Cancer), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-970-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The North America legal marijuana market size was valued at USD 30.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 15.5% from 2020 to 2027. Growing acceptance and adoption of legal marijuana for the treatment of chronic diseases like cancer, arthritis, and Alzheimer’s as well as neurological problems such as depression, anxiety, and epilepsy is a key factor driving the market. The increasing legalization of medical cannabis in the region to curb the black market and provide easy access to patients is also expected to spur market growth. Moreover, government earnings through taxation are viewed as an opportunity for the region to earn higher revenues. For instance, in 2018, the total tax collection for legal marijuana from Chicago was USD 52.7 million.

North America legal marijuana market size

The demand for legal marijuana oils is increasing, owing to the social stigma related to smoking. Moreover, the ongoing COVID-19 pandemic has further impacted the cannabis industry in the region. As per Orange County Register, on March 17, 2020, some dispensaries such as Bud and Bloom witnessed an overall increase in weekly sales by over 30.0%. However, high costs associated with it have led to the consumer shift towards illicit sources which is anticipated to hinder the growth of the market in the region. According to Statistics Canada, in 2020, the cost of a gram of legal marijuana was USD 15.0, while the cost for a gram in the black market was USD 10.0.

An increasing number of medical practitioners prescribing legal marijuana for various health issues is driving product demand, which in turn, is contributing to market growth. For instance, according to a survey of dermatologists conducted in the U.S. in 2018, around 91.0% of the total 531 respondents were affirmative for prescribing CBD based products to their patients. Also, around 55.0% of patients asked about CBD based products to the dermatologists. Besides, a rise in the prevalence of chronic pain and increasing demand for pain management therapies among cancer patients across the region is expected to drive the demand for legal marijuana over the forecast period.

The increasing prevalence of cancer is anticipated to be one of the crucial factors driving the market in North America. According to the World Health Organization, in 2018, cancer is the second leading cause of death in the world and accounted for 81,378 deaths and 249,077 new cases in Canada. The growing geriatric population and rise in acceptance of legal marijuana for pain management is further boosting its adoption.

The rise in the number of patients suffering from mental conditions is expected to drive the demand for legal marijuana over the forecast period. For instance, according to the estimates provided by the National Institute of Mental Health, one out of five adults in the U.S. is currently living with mental disorders. In 2017, it was estimated that around 46.6 million citizens of the country were affected by mental disorders. Rise in awareness regarding the health benefits of these products, increasing the legalization of medical cannabis, growing consumption, and expansion of the product portfolio is estimated to boost the market growth in the region during the forecast period.

Product Type Insights

Based on product type, the flower segment dominated the North America legal marijuana market in 2019, with a market share of 69.4%, and is expected to witness a CAGR of 13.0% over the forecast period. This growing awareness about the benefits of legal marijuana is anticipated to drive the market. The recent legalization of recreational marijuana in Canada and their increasing retail and online sales in its provinces is also an important factor driving the market. However, the adverse effects of smoking flowers such as the production of phlegm, chronic cough, and respiratory diseases, such as COPDs is anticipated to hinder market growth over the forecast period.

The oil segment is anticipated to be the fastest-growing segment during the forecast period. The growth is attributed to rising awareness regarding medicinal properties as well as health benefits offered by legal marijuana oil for the treatment of cancer, nausea, pain management, insomnia, stress, depression, and anxiety. Moreover, the increase in the preference for legal marijuana oil over flower among consumers is further anticipated to propel market growth. Also, several manufacturers in the region have started expanding their portfolio in legal marijuana oil. For instance, key participants such as Aphria, Inc., Tilray, and Canopy Growth Corporation that were earlier in the marijuana flower business have also started manufacturing marijuana oil.

Marijuana Type Insights

In 2019, the adult-type segment dominated the market with a market share of 55.4%. The popularity of these products has led to the creation and entry of new brands in the market every week. The legalization of marijuana for adult use has propelled the demand from both recreational and medical users. In May 2020, Organigram Holdings, Inc. announced the extension of its product offerings to include products from its Cannabis 2.0 adult-use recreational portfolio. The company has been a leader in offering legal marijuana to the Canadian population and plans to enter the recreational marijuana market.

The medical type segment is anticipated to be the fastest-growing segment during the forecast period. Increasing awareness about the medical benefits needs for plant-based medications for pain management and recent FDA approval on the cannabis-based drug (Epidiolex) for treating mental disorders are the key factors fueling the market growth. Medical application of legal marijuana has witnessed tremendous acceptance and consumption owing to the increase in the number of scientific literature supporting its benefits in the treatment of various diseases. As the number of U.S. states legalization is increasing, the market is expected to witness lucrative growth over the forecast period.

Medical Use Insights

In 2019, the chronic pain segment accounted for the largest revenue share of 53.8% in the market and was valued at USD 7.2 billion. The demand for medical cannabis is increasing among the geriatric population owing to their susceptibility towards chronic pain than acute pain. Moreover, consumer shift from opioid treatment towards plant-based treatments such as pain management is further boosting its adoption in the region. According to the estimate provided by the Centers for Disease Control and Prevention, National Center for Injury Prevention and Control in 2017, opioid overdose killed more than 47,000 people in the U.S. Hence, people suffering from chronic pain are now opting for legal marijuana to manage associated conditions. Increasing patient pool for chronic pain, availability of specialized products, and growing acceptance and adoption for pain management are likely to exhibit lucrative growth opportunities in the market.

North America legal marijuana market share

The mental disorders segment is anticipated to witness the fastest growth during the forecast period owing to the rise in demand for cannabis products in the treatment of mental disorders. The growth is further attributed to growing awareness, acceptance, and increasing visibility of these products, as well as positive results of ongoing studies. For instance, according to the estimates provided by the National Institute of Mental Health, one out of five adults in the U.S. is currently living with mental disorders. In 2017, it was estimated that around 46.6 million citizens of the country were affected by mental disorders. In Canada, according to the statistics provided by the Douglas Foundation in 2020, approximately 3.4 million Canadian are being affected by major depression. Moreover, upcoming studies coupled with the increasing prevalence of mental disorders such as anxiety is anticipated to increase the demand for legal marijuana in the forthcoming years.

Regional Insights

Canada accounted for the largest revenue share of 50.9% in 2019 and was valued at USD 15.4 billion owing to a large population base, the recent legalization of recreational marijuana, and the presence of key legal marijuana cultivators and manufacturers in the country. Moreover, the direct engagement of patients with legal marijuana cultivators in Canada has further boosted the demand for legal marijuana in Canada. Increasing black market trade and the high popularity of legal marijuana in the region were the key factors leading to the legalization of adult-use marijuana in the country in 2018 after the enactment of the Cannabis Act. Moreover, increasing consumer preferences for alternative affordable solutions owing to the lack of structural reimbursement programs might hinder the market growth in the future.

The U.S. is anticipated to be the fastest-growing country in terms of the market in 2019. This is majorly attributed to high product adoption and utilization owing to government approvals. As of 2018, the use of legal marijuana is legal in 30 states and territories of Puerto, Guam, and the District of Columbia. California was the first state to legalize the use of marijuana for medical use. Later, other states followed in approving the use of legal marijuana for medical purposes owing to its high demand amongst patients. Presently, nearly 57.0% of adults in America are in favor of the use of legal marijuana for medical purposes. A decade ago, only 32.0% favored legalization, and 60.0% opposed its use. Hence, increasing the support of U.S. citizens regarding the use of medical cannabis will fuel the market growth during the forecast period. Increasing investments in R&D are likely to expand the application in the medical field.

Key Companies & Market Share Insights

Key players are looking forward to increasing their geographical presence as well as to increase their consumer pool. Collaborations, acquisitions and mergers, and geographical expansion are key strategies being adopted by these players to grow in the market. Some of the prominent players in the North America legal marijuana market include:

  • Canopy Growth Corporation

  • Aphria, Inc.

  • Aurora Cannabis

  • Tilray

  • Organigram Holdings, Inc.

  • Lexaria Bioscience Corp.

  • ABcann Medicinals, Inc. (Part of Vivo Cannabis)

  • The Cronos Group

  • Wayland Group Corp. (Maricann Group Inc.)

  • CannTrust Holdings

North America Legal Marijuana Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 38.3 billion

Forecast revenue in 2027

USD 104.9 billion

Growth rate

CAGR of 15.5% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Product type, marijuana type, medical use, country

Regional scope

North America

Country scope

U.S.; Canada

Key companies profiled

Canopy Growth Corporation; Aphria, Inc.; Aurora Cannabis; Tilray; Organigram Holdings, Inc.; Lexaria Bioscience Corp.; ABcann Medicinals, Inc. (Part of Vivo Cannabis); The Cronos Group; Wayland Group Corp. (Maricann Group Inc.); CannTrust Holdings

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research, Inc. has segmented the North America legal marijuana market based on product type, marijuana type, medical use, and region:

  • Product Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Flower

    • Oil

  • Marijuana Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Adult

    • Medical

  • Medical Use Outlook (Revenue, USD Million, 2016 - 2027)

    • Chronic Pain

    • Mental Disorders

    • Cancer

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • The U.S.

      • Washington

      • Oregon

      • California

      • Nevada

      • District of Columbia

      • Georgia

      • Alaska

      • Colorado

      • Michigan

      • Maine

      • Vermont

      • Massachusetts

      • Montana

      • Utah

      • Arizona

      • New Mexico

      • North Dakota

      • Oklahoma

      • Missouri

      • Arkansas

      • Louisiana

      • Illinois

      • Minnesota

      • Ohio

      • West Virginia

      • Pennsylvania

      • Maryland

      • Delaware

      • New Jersey

      • New York

      • Connecticut

      • Rhode Island

      • New Hampshire

      • Florida

    • Canada

      • Alberta

      • British Columbia

      • Prince Edward Island (PEI)

      • Manitoba

      • New Brunswick

      • Nova Scotia

      • Ontario

      • Quebec

      • Saskatchewan

      • Newfoundland and Labrador (N.L)

      • Nunavut

      • Yukon

      • Northwest Territories

Frequently Asked Questions About This Report

Pricing & Purchase Options

Buy Chapters or Sections

Avail customized purchase options to meet your exact research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities

Why Choose Us

  • Research support

    24/5 Research support

    Get your queries resolved from an industry expert.

  • Custom research service

    Custom research service

    Design an exclusive study to serve your research needs.

  • Quality assurance

    Quality assurance

    A testimonial for service in the form of BBB "A" Accreditation.

  • BBB Rating dandb
  • Information security

    Information security

    Your personal and confidential information is safe and secure.

  • grand view research PCI DSS complaint grand view research paypal verified