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The global marijuana market is projected to reach a value of USD 71.88 billion in 2027 at a CAGR of 24.86% between 2022 and 2027. The marijuana market refers to the buying and selling of cannabis products. It is a rapidly growing industry, with legalization efforts spreading across many countries. Different strains of marijuana have varying levels of THC (tetrahydrocannabinol) and CBD (cannabidiol), which contribute to their effects. The market includes various product types, such as dried flowers, edibles, concentrates, and topicals.
|Market Size (2017) Historic Year
|USD 13.56 billion
|Market Size (2027) - Forecasted Year
|USD 71.88 billion
|Historic Opportunity (2017-2021)
|USD 5.97 billion
|Forecasted Opportunity (2023-2027)
|USD 48.20 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 54.17 billion
The market overview emphasizes comprehensive market growth analysis, offering insights through market research reports. Both medical marijuana and recreational marijuana are part of the overall market, serving different purposes and customer segments. Delving into market growth and forecasting, the analysis encompasses trends and emerging patterns, providing a comprehensive market forecast. This detailed market analysis and report not only offer a snapshot of the current industry's landscape but also serve as a guide for anticipating market trends, enabling stakeholders to make informed decisions in this dynamic and evolving sector.
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More than half of consumers prefer to purchase marijuana products from licensed dispensaries. Factors driving the market include the increasing legislation of marijuana, the rising number of product launches, and the advent of advanced cultivation processes for marijuana.
The increasing acceptance of marijuana is notably driving market development. The governments of many countries, such as Australia, Canada, Chile, Greece, Israel, Italy, the Netherlands, Peru, and Uruguay, have legalized the use of these substances for medicinal purposes. In December 2022, the US government announced the Medical Substance and Cannabidiol Research Expansion Act to establish a new registration process to facilitate research on the substance. In Australia, government authorities have increased funding for research on this medicinal substance.
In June 2022, Thailand legalized the cultivation of this substance to expand its agricultural and tourism sectors and enable the use of the plant for medical purposes. Therefore, efforts by various governments regarding the legalization of this substance are anticipated to drive the growth of the market during the forecast period.
The legalization of the market across various states has led to a surge in consumer demand, resulting in a significant uptick in growth rates. Dispensaries play a pivotal role in meeting the escalating consumer needs, offering a diverse lot of cannabis products, including oils. The regulatory framework within each state closely monitors prices and applications to ensure a balanced and controlled market, fostering a dynamic landscape for the evolving cannabis industry.
The growth in the e-commerce industry is a key trend influencing the market expansion. The rising Internet penetration and the increasing use of smartphones have made online shopping convenient. Several e-commerce platforms offer discounts and provide detailed descriptions of products. Moreover, omnichannel retailing has popularized online retail distribution channels.
This trend has encouraged manufacturers to focus on the Internet-savvy customer segment and explore the online retail format. For instance, in July 2021, HempStreet, expanded its product range by launching 30 new cannabis-based products, such as CBD oil and hemp protein powder. The online channel will help vendors save operating costs and overheads. Thus, the growth of the e-commerce industry is expected to support the growth of the global market during the forecast period.
The future outlook for the legal cannabis market anticipates a significant shift in the way consumers perceive and engage with the weed industry. Towns are becoming key players in this evolving landscape, attracting investment and money into the markets. Predictions suggest a dynamic future, as the weed market continues to mature, presenting lucrative opportunities for those strategically navigating the evolving trends in consumer behavior and industry developments.
Adverse effects linked to the improper utilization of medicinal substances may hinder market evolution. Active ingredients called cannabinoids, with THC being a crucial one, are found in these medicinal substances. Additionally, medical substances comprise various other chemicals, making it challenging to determine the appropriate dosage for patients. Furthermore, side effects of medicinal substances encompass alterations in mood, impaired coordination, heightened appetite, red eyes, dry mouth, nausea, cough, throat infection, delayed reaction time, and others.
More severe side effects such as increased heart rate, depression, and difficulties in memorization and learning can be particularly impactful. These adverse effects may have a detrimental effect on the acceptance of medicinal substances, consequently restraining the growth potential of the global market in the projected period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Trulieve, a significant player in the marijuana markets, underscores the international market analysis. Growers, retailers, and individuals contribute to the market's dynamic landscape, adopting diverse formats. Colorado's pivotal role in setting trends and temperatures within the industry cannot be overstated. Analyzing the global market involves navigating through the waves of regulatory changes, market trends, and the colorful array of strategies employed by stakeholders to determine the optimal amount of success and growth.
Vendors 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.
Aurora Cannabis Inc. - The company offers products such as CBD 510 Cartridge, Live CBD Mango, and Rex 510 Vape Cartridge.
The market growth and trends 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.
A myriad of marijuana products caters to diverse consumer needs, with varied usage and potential benefits. From anxiety-relieving products to regulations governing their production, California and New York exemplify different regional approaches to acceptance. This global evolution in attitudes has fueled businesses, leading to a surge in product volume. As regulations adapt worldwide, the marijuana industry continues to redefine itself, offering an expansive range of products to meet the growing demands of a dynamic market.
The market share growth by the medical marijuana segment will be significant during the forecast period. It is considered an alternative to traditional pain-relieving medications. Some of the types of marijuana plants used for chronic pain relief include Cannabis indica, Cannabis sativa, and hybrids.
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The medical marijuana segment was valued at USD 7.93 billion in 2017 and continued to grow until 2021. The number of adults with chronic pain is rising in countries such as the US. In addition, the popularity of medical marijuana is growing. These factors will drive the growth of this segment during the forecast period.
In Oregon, the market weed distribution and retailing channels are getting greener, with a focus on global medical sales. Market research and growth analysis indicate a profitable industry, driven by cannabis-infused products. The market trends and analysis underscore the significance of strategic distribution for overall market growth. Industry-analysis reports contribute to the understanding of profit avenues, paving the way for a robust future in the ever-expanding and evolving cannabis market.
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North America is estimated to contribute 90% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In the United States, sales of recreational marijuana reached USD 17.5 billion in 2020, representing a 46% increase from the previous year. It is estimated that more than half of adults in Canada have tried or currently use cannabis for either medicinal or recreational purposes. In the US and Canada, the use of marijuana is legal for medical purposes. In August 2019, the Supreme Court of Mexico decided to legalize the use of marijuana as a medication for epilepsy. Therefore, government initiatives regarding the legalization of medical marijuana are driving the growth of the market growth in the region.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Growth momentum & CAGR
Accelerate at a CAGR of 24.86%
Market growth 2023-2027
USD 48.20 billion
YoY growth 2022-2023(%)
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 90%
US, Canada, Australia, Germany, and UK
|Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
Aurora Cannabis Inc., Bhang Inc., Botanic Lab, Cannabinoid Creations, CBD American Shaman LLC, CV Sciences Inc., Elixinol Wellness Ltd., HEXO Corp., Jazz Pharmaceuticals Plc, Lexaria Bioscience Corp, MM Enterprises USA LLC, Organigram Holdings Inc., Unrivaled Brands Inc., Cannoid LLC, Canopy Growth Corp., Folium Biosciences, Medical Marijuana Inc., Tikun Olam, Tilray Brands Inc., and VIVO Cannabis Inc.
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, and Market condition analysis for the forecast period.
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