Legal Cannabis Market by Product and Geography - Forecast and Analysis 2021-2025

The legal cannabis market share is expected to increase by USD 34.91 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 21.39%.

This legal cannabis market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers legal cannabis market segmentations by product (medical cannabis and recreational cannabis) and geography (North America, Europe, APAC, South America, and MEA). The legal cannabis market report also offers information on several market vendors, including Aurora Cannabis Inc., Bhang Corp., Cannoid LLC, Canopy Growth Corp., Cronos Group Inc., CV Sciences Inc., Jazz Pharmaceuticals Plc, Medical Marijuana Inc., Tilray Inc., and VIVO Cannabis Inc. among others.

What will the Legal Cannabis Market Size be During the Forecast Period?

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Legal Cannabis Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The rising number of countries decriminalizing and legalizing cannabis is notably driving the legal cannabis market growth, although factors such as lack of funding and investment may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the legal cannabis industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Legal Cannabis Market Driver

The rising number of countries decriminalizing and legalizing cannabis is one of the key factors driving the growth of the global legal cannabis market. Various nations have legalized the use of cannabis for medicinal purposes and have decriminalized the possession of cannabis. In 2001, Portugal became the first country in the world to decriminalize the possession (in limited quantities) of all types of drugs, which include cannabis. Some other countries that have legalized cannabis for medicinal purposes include the UK, Thailand, Switzerland, Portugal, Poland, and Peru. Uruguay and Canada have legalized cannabis for medical purposes and decriminalized it for private recreational uses. Therefore, the prospects of the legal cannabis industry look bright, as many countries have started accepting the use of cannabis for both medical and other applications. Hence, the increasing number of countries that are decriminalizing and legalizing cannabis, owing to its medicinal applications, is driving the growth of the global legal cannabis market.

Key Legal Cannabis Market Trend

The launch of medical marijuana education programs will fuel the global legal cannabis markets growth. Several governments have legalized the use of medical marijuana. As a result, the number of dispensaries that sell medical marijuana is increasing. Hence, it is important to educate people about medical marijuana. Therefore, many educational institutions are launching educational programs related to medical marijuana. For instance, in August 2020, the University of the Sciences in Philadelphia announced three new online certification programs on marijuana, which would expand short-term education options for healthcare providers, business leaders, and retail associates that are looking to join the rapidly growing industry. Such educational programs related to medical marijuana can educate more people regarding its benefits and, thereby, drive the growth of the market in focus during the forecast period.

Key Legal Cannabis Market Challenge

The lack of funding and investment is one of the major challenges faced by the legal cannabis market. Investment organizations, such as banks and other financial institutions, have expressed their reluctance to invest in the legal cannabis industry at regular intervals. The banks and financial institutions 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 the investors in the private sector to obtain the required capital, which, in turn, leaves them paying high-interest rates that decrease their revenues. Moreover, the lack of funding and investments in the global legal cannabis market is expected to hinder the growth of the market during the forecast period.

This legal cannabis market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

The global legal cannabis market is a part of the global tobacco market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the legal cannabis market during the forecast period.

Who are the Major Legal Cannabis Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Aurora Cannabis Inc.
• Bhang Corp.
• Cannoid LLC
• Canopy Growth Corp.
• Cronos Group Inc.
• CV Sciences Inc.
• Jazz Pharmaceuticals Plc
• Medical Marijuana Inc.
• Tilray Inc.
• VIVO Cannabis Inc.

This statistical study of the legal cannabis market encompasses successful business strategies deployed by the key vendors. The legal cannabis market is fragmented and the vendors are deploying growth strategies such as forming strategic partnerships to compete in the market.

Product Insights and News

• Canopy Growth Corp. - In June 2021, the company acquired Supreme Cannabis Company Inc.
• Jazz Pharmaceuticals Plc - In May 2021, the company acquired GW Pharmaceuticals plc, a leader in the science 
• Aurora Cannabis Inc. - In November 2018, Aurora Cannabis completed the acquisition of ICC Labs Inc.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The legal cannabis market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Legal Cannabis Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the legal cannabis market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global tobacco market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Legal Cannabis Market?

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89% of the market's growth will originate from North America during the forecast period. The US and Canada are the key markets for the legal cannabis market in North America. Market growth in this region will be slower than the growth of the market in Europe and APAC.

The rising number of countries decriminalizing and legalizing cannabis will facilitate the legal cannabis market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, New York City, US, recorded the highest number of COVID-19 cases, with more than 45% of the total number. The unexpected outbreak of the COVID-19 pandemic has adversely affected the global economy. However, after the vaccination drive government lifted the lockdown and travel restriction, which resulted in everything slowly getting back to normal. Such factors will increase the market focus during the forecast period.

What are the Revenue-generating Product Segments in the Legal Cannabis Market?

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The legal cannabis market share growth by the medical cannabis segment will be significant during the forecast period. The global legal medical cannabis market was moderately concentrated in 2020 due to the presence of a reasonable number of regional and a few global vendors. Moreover, the legal medical cannabis market has been growing at an exponential rate since 2012 due to an increasing number of countries legalizing the medical use of cannabis.

This report provides an accurate prediction of the contribution of all the segments to the growth of the legal cannabis market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Legal Cannabis Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive legal cannabis market growth during the next five years
• Precise estimation of the legal cannabis market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the legal cannabis industry across North America, Europe, APAC, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of legal cannabis market vendors

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