The global legal marijuana market is anticipated to grow at a CAGR of around 14.7% during the forecast period 2020 to 2027 and to reach around US$ 64.2 Bn by 2027.
Substantial increase in the number of patients suffering from chronic pain and cancer and wide applicability of marijuana in the medical sector for treatment of various disorders such as mental disorders and cancer are major factors expected to drive the growth of the global market. According to U.S. Department of Health & Human Services, in 2019, 20.4% of adults had chronic pain and 7.4% of adults had chronic pain that frequently limited life or work activities. Government of developed countries is focused on legalizing cannabis in drug development. Various rules & regulations are been formed in order to streamline the use in marijuana. So far, there are 15 total recreational weed states, but 2021 may lead to a few more joining them. New York, New Mexico, and Minnesota are predicted to go fully legal. Every U.S. state except Nebraska and Idaho has passed at least some legislation allowing legal medical cannabis use.
Government is focused on implementing various regulations related to sale and marketing of cannabis. Agriculture Improvement Act of 2018, Pub. L. 115-334, (the 2018 Farm Bill) was signed into law on Dec. 20, 2018. Among other things, this new law changes certain federal authorities relating to the production and marketing of hemp, defined as "the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.
In 2017, Member of Parliament Dr. Dharamvira Gandhi proposed a bill that would legalize and regulate cannabis. After that, the Indian government issued the first-ever medical cannabis cultivation license. Considering the medical benefits government of developing countries is legalizing the cannabis products Access to legal medicinal cannabis in Australia is granted under the Special Access Scheme. It's managed by the Therapeutic Goods Administration, and need a restricted prescription for it. Between the start of 2020 and May 31, more than 18,000 applications for medical cannabis were approved by the TGA.
Supportive government regulation is resulting in major player’s investment for development of new drugs this is expected to impact the growth of target market. In 2020, the FDA approved one cannabis-derived drug product: Epidiolex (cannabidiol), and three synthetic cannabis-related drug products: Marinol (dronabinol), Syndros (dronabinol), and Cesamet (nabilone). These approved drug products are only available with a prescription from a licensed healthcare provider. In addition, government earnings through taxation are further viewed as an opportunity by the developed countries to earn high revenues this is expected to augment the target market growth. In 2018, tax collections from US$ 345.2 Mn were raised in the state of California. Tax revenue allows municipal councils to fund numerous education and capital growth projects. Factors such as stringent government regulations related to drug approval and high cost of medicines are expected to hamper the growth of global legal marijuana market.
In addition, legalizations related to cannabis products in various countries is a challenge for the growth of target market. However, increasing government focus on legalization of marijuana production and increasing focus on awareness activities among consumers are factors expected to create new opportunities for players operating in the legal marijuana market over the forecast period. In addition, players focus on tracking the untapped market in developing countries is expected to support the revenue transaction of the target market.
Segment Analysis by Region
The market in North America is expected to account for major revenue share in the global market due to high patient pool suffering from chronic diseases. In addition, high investment by major players for R&D activities and government focus on increasing awareness among consumers are factors expected to impact the growth of target market. Business development activities through strategic acquisitions are anticipated to augment the regional market growth. In 2021, Curaleaf, a leading medical and wellness cannabis operator, acquired Emmac Life Sciences. The acquisition is expected to help the company to enhance the customer base and increase the revenue share.
The global legal marijuana market is highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.
Legal Marijuana Market Segment Analysis, 2019
The global legal marijuana market is segmented into type, product, and application. The type segment is bifurcated into medical and adult use. Among type, medical use is expected to account major revenue share in the global market due to increasing major players spending on R&D activities and high focus on introduction of novel products. The application segment is divided into chronic pain, mental disorders, cancer, and others. Among application, the chronic pain segment is expected to account for major revenue share due to a substantial increase in the number of patients suffering from chronic pain disorder. Players operating in the global legal marijuana market are Canopy Growth Corporation, Aurora Cannabis, Aphria, Inc., Tilray, ABcann Medicinals, Inc., The Cronos Group, Maricann Group, Inc., Organigram Holding, Inc., Lexaria Corp.
Market By Type
Market By Product
Market By Application
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The global legal marijuana market in 2027 is expected to be above US$ 64.2 Bn.
The CAGR of the global legal marijuana market from 2020-2027 is above 14.7%.
Rapid technological advancements in drug discovery and wide applicability of marijuana in medical sector such as treatment drugs for patients suffering from chronic illnesses, such as Parkinson's, cancer, Alzheimer's, and neurological disorders are major factors expected to drive the growth of global legal marijuana market.
In product the oil segment is growing at faster pace.
The North America is expected to account for major revenue share in the global market.
In the global market the Asia Pacific region is expected to grow faster.
Some of the players considered in the report scope are Canopy Growth Corporation, Aurora Cannabis, Aphria, Inc., Tilray, and ABcann Medicinals, Inc.