The global Legal Cannabis market size was estimated at USD 17.11 billion in 2021 and is expected to surpass around USD 134.9 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 25.8% during the forecast period 2022 to 2030.
Key Takeaways:
The increasing rate of legalization of cannabis and acceptance of its use in the medical field are the key factors due to which the market is expected to boom. Cannabis has long been used for medicinal purposes but not as the first line of treatment. Research surrounding the use of cannabis for its medicinal properties has led to it being used for various indications. Cannabis has been found to be greatly effective in its ability as a therapeutic for chronic pain and in treating nausea caused due to chemotherapy. It is still classified as a Schedule I drug by the U.S. Drug Enforcement Administration (DEA), in spite of which it has been legalized in more than two-thirds of the states.
Even though surveys and studies done in the past have indicated diverse uses of cannabis for medical purposes, the fact that there are no federal laws legalizing the use of cannabis, pharmacists are still concerned about its use and do not suggest it to patients for fear of violating any federal laws. A survey conducted by California Pharmacists Association in 2019 stated that more than 75% of them would consider discussing the use of medical cannabis with patients if the same was approved by the FDA.
A steady rise in the legalization and legitimization of medicinal cannabis has resulted in the growth of the industry. Government-approved and designated purchasing options are rising as the demand for medical cannabis is also increasing. The FDA has approved medical cannabis in the form of CBD products for epilepsy seizures and for treating nausea caused due to chemotherapy. The FDA has agreed to consider changing the status of cannabis from Schedule I drug to Schedule II drug on the basis of studies being conducted on the efficacy of medical cannabis and its derivatives for several indications.
Report Scope of the Legal Cannabis Market
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Report Coverage |
Details |
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Market Size |
US$ 134.9 Billion by 2030 |
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Growth Rate |
CAGR of 25.8% from 2022 to 2030 |
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Largest Market |
North America |
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Fastest Growing Market |
Asia Pacific |
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Base Year |
2021 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Source, derivative, end use and Region, |
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Companies Mentioned |
Canopy Growth Corporation; GW Pharmaceuticals, plc; Aurora Cannabis, Inc.; Aphria, Inc.; Cronos Group; Tilray; Sundial Growers Inc.; Insys Therapeutics, Inc.; The Scotts Company LLC; VIVO Cannabis Inc.; Cara Therapeutics Inc. |
Source Insights
In 2021, marijuana accounted for the largest revenue share of over 70.0% and is anticipated to register the fastest growth rate during the forecast period. The growth in the segment can be attributed to the increasing rate of legalization across the globe. Both recreational and medical marijuana have seen a huge jump in acceptance and legalization since the pandemic. The use of medical marijuana is acceptable in a number of countries including the U.S., Canada, Italy, Czech Republic, Croatia, and Australia. A lot of countries are legalizing the production as well as domestic use of marijuana. For instance, Ecuador has now legalized cannabis production. The growing consumer base of cannabis and legal purchasing of marijuana and other cannabis products have made possession and selling in regulated quantities much more decriminalized.
The black market is slowly dwindling with the governments making policies on the legal consumption and selling of cannabis. The legalization still sparks fear of an overall increase in consumption but in Canada, despite legalization, the usage grew by only 1% in 2020. Increasing legalization has created a plethora of jobs in the cannabis industry and the taxes of the state governments have grown a lot since legalization, e.g., Colorado makes more than USD 20 million from tax on legal cannabis and California rakes in about USD 50 million, monthly. Since the legalization, there has been a shift in the type of usage and consumers are preferring recreational use rather than medical use cannabis due to its ease of availability.
Derivatives Insights
In 2021, CBD accounted for the largest revenue share of over 65.0%. This growth is due to the acceptance of the efficacy of CBD by the scientific community and by consumers. However, studies are still underway to determine the potential uses of CBD other than the ones currently indicated. CBD has proven to be beneficial for the treatment of epileptic seizures and for nausea in chemotherapy, it has lower side effects than the traditional medicines being prescribed. CBD has been studied for the treatment of anxiety and sleep disorders and has been found to have positive effects on patients during the study but the, long-term effects remain to be studied.
Cannabinoids have in general shown their potential in the treatment of various diseases like PTSD and several types of cancers. They are considered potent analgesics and may have possible anti-stress properties. The others segment is expected to register the fastest growth rate over the forecast period. This can be due to the rise in the acceptance of cannabis as a potent pain-reliever and in several other indications. There has been a surge in the companies making cannabis derivatives products and an overall increase in the demand for the same. This can be a key factor for the segment growth.
End-use Insights
In 2021, the medical-use segment accounted for the largest revenue share of over 70.0%. Several studies are being conducted for determining the potency and efficacy of cannabis and its derivatives for the treatment of various conditions, this has resulted in the increased adoption of medical cannabis throughout the world. Legalization of its use has also served as a key factor for market growth. The medical use application has been widely accepted and is thus the largest sub-segment. With the governments making policies on its use and regulations the medical practitioners are now finding it easier to prescribe to patients who demand it. The awareness regarding the benefits has significantly reduced the stigma surrounding the use of cannabis.
Recreational marijuana is expected to witness the fastest growth over the forecast period and is gaining more and more popularity with the youth around the world. Cannabis has been legalized for both recreational and medical use in the U.S. and Canada in the North American region. Other countries where recreational marijuana has been legalized are Uruguay and Colombia. Through this, the government is trying to put a stop to the illicit trade of marijuana, and it has also resulted in significant tax revenues for governments. The legalization has resulted in an increase in jobs in the sector and has boosted market growth.
Regional Insights
North America accounted for the largest revenue share of over 65.0% in 2021. Revenue generated is highly territorial owing to laws and policies on the trade of cannabis. The majority of the established companies are from the North American region, resulting in it being the largest market shareholder. Key players include Canopy Growth, Curaleaf Holdings, Green Thumb Industries, Innovative Industrial Properties, Trulieve Cannabis, GW Pharmaceuticals, Cronos Group, GrowGeneration, Creso Labs, and Columbia Care. Growing demand among the consumers has resulted in the overall regional market growth, another reason for the same could be the increased rate of legalization.
Despite strict laws against the use and possession of cannabis, Asia is the fastest-growing regional market. This can be due to the increase in the acceptance of cannabis across different countries in the region. The number of clinical studies on possible uses of cannabis in a myriad of medical conditions can also be a key driver for the regional market. Recreational use of marijuana is still frowned upon in most parts of Asia, but medicinal and industrial use of marijuana is gaining popularity in the region.
In Japan, clinical trials for CBD compounds have been approved but possession of recreational cannabis is still punishable by up to 5 years in prison with the growing geriatric population, Japan is set to become a substantial consumer of medicinal cannabis. China has been growing hemp, a part of the cannabis plant used to make fibers, and is frequently used in beauty products. Since 2019, the cultivation of cannabis has increased for the production of CBD for medicinal purposes. Growth in the production and revenue from exports can also drive the market in the region. Thailand has been one of the forerunners in legalizing the use of cannabis for medical purposes in Asia, other countries in the region are expected to follow suit.
Key Companies & Market Share Insights
The companies are turning to expansion in their product portfolios as well as expansion through mergers and acquisitions of small players in the industry. For e.g., GreenThumbs is selectively focusing on cannabis derivatives-based products due to the fact that they have more profit margins. In 2020, Curaleaf completed two major acquisitions increasing its foothold in the cannabis market in the U.S. Some prominent players in the global legal cannabis market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Legal Cannabis market
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Legal Cannabis Market Study:
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers