Enjoy complimentary customisation on priority with our Enterprise License!
The Legal Cannabis Market size is projected to increase by USD 54,572.33 million and the market size is estimated to grow at a CAGR of 21.6% between 2022 and 2027.
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 cannabis industry, and the recognized health benefits of medical cannabis.
To learn more about this report, View Report Sample
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 cannabis products is on the rise as a result. Clear legal 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 global legal cannabis market.
Trends - The legal cannabis market is experiencing a notable trend the diversification of cannabis-infused edible products. Traditionally limited to basic options like baked goods and candies, edibles are now becoming more sophisticated and diverse. This shift is driven by consumers' increasing health consciousness, seeking edibles that offer both nutritional benefits and the therapeutic effects of cannabis. 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 global legal cannabis market.
Many investment organizations, such as banks and other financial institutions, have expressed their reluctance to invest in the legal cannabis industry at regular intervals. Most investment organizations in the US and Canada have declined to provide loans to vendors in the legal cannabis market. They have also declined to take a share in the revenue generated from the legal cannabis market, including hemp, marijuana, and other drug-related businesses. This has resulted in the lack of adequate banking options for cannabis vendors, which causes significant problems in the diversion of funds and accounting.Owing to the lack of support from government organizations, vendors in the legal cannabis 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 legal cannabis sector to grow. During the forecast period, these factors are expected to hamper the growth of the global legal cannabis market.
For more insights on the market share of various regions Download PDF Sample now!
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, medical cannabis is legal in the US and Canada. Several government initiatives to legalize medical cannabis are primarily driving the growth of the market in the region. In 2022, North America was the largest region for the legal cannabis market. The legal cannabis market in North America is moderately concentrated due to the presence of several regional and global vendors.
The COVID-19 pandemic resulted in a surge in demand for legal cannabis in the region in 2020. However, in 2021, the mass vaccination drives and other government initiatives resulted in the lifting of the lockdown and resumption of business operations in the regional legal cannabis market. Moreover, the demand for cannabis products increased owing to its uses for medical and recreational purposes in 2022. Furthermore, the rising social acceptance of cannabis and awareness of its health benefits is expected to drive the growth of the cannabis market in the region during the forecast period. In the coming years, these factors are likely to contribute to growth in North America's legal cannabis market.
The market share growth by the medical Cannabis segment will be significant during the forecast period. The medical cannabis segment of the global legal cannabis 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.
Get a glance at the market contribution of various segments View the PDF Sample
The segment medical cannabis segment was valued at USD 8,802.91 million in 2017 and continued to grow until 2021. Medical cannabis products are typically prescribed or recommended by healthcare professionals based on individual patient needs. The medical cannabis 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 global legal cannabis 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 legal 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 cannabis 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 global legal cannabis market during the forecast period.
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.
The legal cannabis market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The legal cannabis market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Legal Cannabis Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
163 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 21.6% |
|
Market growth 2023-2027 |
USD 54,572.33 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
19.82 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 92% |
|
Key countries |
US, Canada, Australia, Germany, and UK |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Aurora Cannabis Inc., Bhang Corp., Cannabinoid Creations, Cannoid LLC, Canopy Growth Corp., CBD American Shaman LLC, 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 analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
Customization purview |
If our 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 market research 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
