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The global legal cannabis market size is estimated to grow by USD 100.61 billion, at a CAGR of 28.85% between 2023 and 2028. The market's growth rate hinges on several key factors. Firstly, the rising number of countries decriminalizing and legalizing cannabis is significantly boosting market expansion. Secondly, the growing purchasing power of millennials in the cannabis industry is driving demand, particularly in the recreational and medicinal sectors. Additionally, the increasing awareness and acceptance of the health benefits of medical cannabis are propelling market growth. These factors, combined with evolving regulatory landscapes and shifting societal attitudes, are creating a robust environment for the cannabis market to flourish. Consequently, the interplay of legalization, consumer power, and health consciousness is expected to sustain the market's upward trajectory.
North America dominated the market during the forecast period. Key countries contributing to the market growth include the US, Canada, the UK, Germany, and Australia. Several factors play a crucial role in the market's growth, such as the number of countries decriminalizing and legalizing cannabis is rising, fueled by the growing purchasing power of millennials in the industry, and the recognized health benefits of medical cannabis.
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The market is experiencing significant growth driven by several factors. The medical field is increasingly recognizing the therapeutic potential of CBD products for conditions like epilepsy seizures, chronic pain, and nausea associated with chemotherapy. As a result, medicinal cannabis products are becoming more prevalent in government-approved dispensaries, where pharmacists provide prescription medicines for chronic disease treatment. Advances in cultivation techniques, genetics, and extraction methods are enhancing the quality and efficacy of different species and strains. Despite cannabis being classified as a Schedule I drug in many regions, its medicinal properties are gaining wider acceptance. However, challenges remain, including regulatory hurdles and ensuring safe access for adults through legitimate channels. The market's evolution is closely tied to ongoing research, shifting public perceptions, and policy changes.
This shift in regulations not only increases the potential consumer base but also drives market growth. Moreover, it contributes to a change in societal attitudes towards cannabis, reducing stigma and boosting consumer acceptance. The demand for both recreational and medicinal products is on the rise as a result. Clear frameworks provide structure for cultivation, production, distribution, and sale, attracting investment, promoting entrepreneurship, and stimulating market growth. By operating within established regulations, companies can thrive and contribute to the growth of the market.
Traditionally limited to basic options like baked goods and candies, cannabis-infused edible products are now becoming more sophisticated and diverse. This shift is driven by consumers' increasing health consciousness, seeking edibles that offer both nutritional benefits and therapeutic effects. Additionally, consumer education about different cannabis types and their specific properties has prompted companies to introduce edibles tailored to deliver targeted effects such as relaxation, pain relief, or energy boost. These factors are expected to fuel growth in the market.
Many investment organizations, such as banks and other financial institutions, have expressed their reluctance to invest in the industry at regular intervals. Most investment organizations in the US and Canada have declined to provide loans to companies in the market. They have also declined to take a share in the revenue generated from the market, including hemp, marijuana, and other drug-related businesses. This has resulted in the lack of adequate banking options for companies, which causes significant problems in the diversion of funds and accounting. Owing to the lack of support from government organizations, companies in the market always look up to investors in the private sector to obtain the required capital.
Consequently, their revenues are being reduced by paying higher interest rates. Additionally, in many Islamic countries, the use of cannabis is completely banned on religious grounds. Thus, there is no opportunity for foreign investment in these countries and this does not allow the sector to grow. During the forecast period, these factors are expected to hamper the market growth and trends.
The market share growth by the medical cannabis segment will be significant during the forecast period. The medical cannabis segment of the market refers to the use of cannabis and its derivatives for therapeutic purposes. Medical cannabis has been found to have potential therapeutic benefits for a range of medical conditions and symptoms.
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The medical cannabis segment was valued at USD 10.17 billion in 2018. Medical products are typically prescribed or recommended by healthcare professionals based on individual patient needs. The industry is supported by ongoing research and clinical trials to further understand its potential therapeutic benefits, optimize formulations, and identify new medical applications. A clinical trial is necessary for the purpose of obtaining scientific information and gathering data regarding safety, efficacy, dosage, or interaction with other medicinal products.
The recreational cannabis segment of the market thrives in regions where cannabis has been legalized for adult use. Countries such as Canada, Uruguay, and several states in the US have implemented regulatory frameworks that allow the production, sale, and consumption of cannabis for recreational purposes. These regulations often outline age restrictions, possession limits, and licensing requirements for businesses operating in the recreational cannabis industry. The recreational segment offers a wide range of products to cater to different consumer preferences. This includes dried cannabis flowers, pre-rolled joints, cannabis-infused edibles, beverages, concentrates, extracts, and topical products. Such factors are expected to drive the growth of the recreational cannabis segment of the market during the forecast period.
North America is estimated to contribute 92% to the growth of the global market during the forecast years.
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Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast duration. In North America, medical cannabis is legal in the US and Canada. Several government initiatives to legalize medical marijuana are primarily driving the growth of the market in the region. In 2022, North America was the largest region in the market. The market in North America is moderately concentrated due to the presence of several regional and global companies.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Key Offering- Aurora Cannabis Inc.: The company has legal cannabis products under the brands MedReleaf and Aurora.
The legal cannabis market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including Aurora Cannabis Inc., Bhang Nation, Cannabinoid Creations, Cannoid LLC, Canopy Growth Corp., CBD American Shaman., Cronos Group Inc., CV Sciences Inc., Elixinol Wellness Ltd., Folium Biosciences, Jazz Pharmaceuticals Plc, Medical Marijuana Inc., MediPharm Labs Inc., Mentor Capital Inc., PharmaHemp d.o.o., Tikun Olam, Tilray Brands Inc., and Unrivaled Brands Inc.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The legal cannabis market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is expanding rapidly, driven by the legitimization of cannabis for medical use, recreational use, and industrial use. Patients with conditions like PTSD, cancers, and multiple sclerosis benefit from cannabinoids due to their analgesics and anti-stress properties. Medical practitioners are increasingly recommending cannabis, leading to stigma reduction and a decline in the illicit trade and black market. The recreational marijuana segment also sees growth, particularly among the youth. In countries like Ecuador, the medical-use segment is gaining traction. Environmental sustainability is a key focus, with eco-friendly practices, energy-efficient technologies, and sustainable cultivation methods reducing the carbon footprint. Products like flower, oil, tinctures, and topicals are available through both online and offline channels, impacting the pharmaceutical, food, tobacco, and personal care industries.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.85% |
Market Growth 2024-2028 |
USD 100.61 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.98 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 92% |
Key countries |
US, Canada, Germany, UK, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., Bhang Nation, Cannabinoid Creations, Cannoid LLC, Canopy Growth Corp., CBD American Shaman., Cronos Group Inc., CV Sciences Inc., Elixinol Wellness Ltd., Folium Biosciences, Jazz Pharmaceuticals Plc, Medical Marijuana Inc., MediPharm Labs Inc., Mentor Capital Inc., PharmaHemp d.o.o., Tikun Olam, Tilray Brands Inc., and Unrivaled Brands Inc. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Legal cannabis market worth and condition analysis for the market forecast period. |
Customization purview |
If our legal cannabis market industry report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this legal cannabis market analysis report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Derivative Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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