Market Overview
The Global Legal Marijuana Market is expected to reach a value of
USD 22.3 billion in 2023, and it is further anticipated to reach a market value of
USD 182.2 billion by 2032 at a
CAGR of 26.3%. The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
Marijuana, also called cannabis, refers to the dried parts of the cannabis indica or cannabis sativa plant, including stems, flowers, leaves, & seeds. It is used for various purposes, mainly as a recreational drug & for medical treatment. The legal status of marijuana, including its growth, possession, & distribution, is a subject of ongoing change in many regions.
The cannabis industry is buzzing with activity, highlighted by events like the annual MJBizCon, set to take place in Las Vegas from December 3-6, 2024. This major B2B conference will gather thousands of professionals to discuss the latest trends, challenges, and innovations in the $34 billion industry. The event will showcase a range of strategic talks, including updates on the potential federal marijuana rescheduling, tax reform, and banking changes. In mergers and acquisitions, industry players like MJ Freeway and MTech Acquisition have been actively reshaping their portfolios.
According to Flowhub, the legal marijuana market in the U.S. continues to experience significant growth. Currently, 79% of Americans reside in a county with at least one dispensary, with nearly 15,000 dispensaries nationwide. Legal cannabis supports 440,445 full-time equivalent jobs, demonstrating its expanding economic impact.
In terms of consumer demographics, 1 in 3 women over 21 use cannabis, and 54% of Americans live in states where recreational use is legal. With 74% of Americans having access to either recreational or medical cannabis, support for legalization has reached a record 70%. In nine states, cannabis generates more tax revenue than alcohol, further highlighting its financial significance. Dispensaries that accept debit cards see an average revenue increase of $4,627 over cash-only retailers, reflecting the sector’s evolving business dynamics.
Market Dynamic
The growing demand for marijuana oil is a driving force behind market expansion, mainly as many countries have given the green light to marijuana for its medicinal attributes. Marijuana oil & tinctures are the subjects of high research for a variety of
medical applications across many nations, which is expected to emerge as the fastest-growing, fueled by recent legalizations of medical marijuana & its derivatives. Marijuana oils are used to reduce nausea & vomiting, often associated with cancer, thus contributing to the market's growth.
Moreover, marijuana derivatives have gone through a large examination for their effectiveness in managing chronic conditions, showing superior results with fewer side effects in comparison to conventional medications. In addition, they have proven effective in largely reducing arthritic pain with low adverse effects, & as awareness of medical marijuana and its derivatives continues to grow, the market is expected to have a progressive growth.
However, stringent rules & regulations create a significant restraint on the market, as various countries have enforced strict guidelines regarding marijuana use due to potential risks, which could affect the medical marijuana market. A minor misstep in processing marijuana could have adverse effects on patients' health. In addition, frequent marijuana use is associated with adverse psychological effects like depression, disorientation, paranoia, anxiety, & even suicide, and it may lead to temporary psychosis & schizophrenia, significantly restraining the market growth.
Research Scope and Analysis
By Product
The global legal marijuana market has been categorized into flowers, oil & tinctures, and others, where the oil & tinctures category has the largest share of revenue in 2023, in the legal marijuana market. Many countries have legalized marijuana primarily for its medical benefits, leading to vast research on marijuana oils & tinctures for many
health applications, which is also expected to be rapidly growing in the coming future, especially following recent legalizations of medical marijuana & its derivatives.
Marijuana oils are used in managing cancer-related nausea & vomiting, & their use is gaining traction.
Further, the oil & tinctures sector is projected to experience rapid growth, as the cannabinoids found in these products help in addressing sleep disorders & reducing anxiety & stress. Also, growing numbers of patients prefer oils over raw flowers, contributing to the growth in demand. In addition, children requiring marijuana derivatives for treatment are often prescribed oils & tinctures due to the respiratory issues associated with smoking flowers.
By Application
The medical sector has the largest share of revenue in 2023 & is anticipated to steady growth in the coming years, which is mainly attributed to the current legalizations & fewer restrictions on marijuana for medicinal purposes. Many individuals across regions use medical marijuana due to its easy availability & affordability.
Substantial research has highlighted marijuana derivatives as potent analgesics, often yielding superior results with fewer side effects than conventional medications. In addition, it has proven effective in highly reducing arthritic pain with low adverse effects. With growing awareness of medical marijuana & its derivatives, this market is expected to maintain steady growth.
In addition, the adult-use segment is expected to be the fastest-growing sector in the forecasted period, in countries like Canada & the US, where both medical & recreational marijuana use is legal, many individuals opt for adult use due to the absence of medical marijuana compensations. Changing consumer preferences toward recreational marijuana also contributes to the anticipated growth of this segment.
The Legal Marijuana Market Report is segmented on the basis of the following:
By Product
- Flower
- Oil & Tinctures
- Others
By Application
Regional Analysis
North America dominates the global legal marijuana market,
holding about 81.2% of the revenue share in 2023, which is primarily due to the rapid decriminalization of cannabis for both medical & recreational use by governments in the region. North America's strong position is also supported by the presence of major players in the marijuana industry. With more than two-thirds of the United States allowing legal marijuana use. Also, the demand & supply growth solidifies North America's leading role.
Further, Asia Pacific is expected to notice the fastest growth in the market. While regions like Europe (mainly the UK) & Latin America (including Mexico, Colombia, & Ecuador) have legalized cannabis use, it is typically limited & regulated.
However, the market in these regions is projected to grow steadily due to its growing demand. In the Asia Pacific region, countries with aging populations are likely to accelerate marijuana legalization, backed by clinical studies demonstrating its pain-relief properties. In addition, many startups in various regions are emerging to conduct research & produce marijuana derivatives, further fueling market growth.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
Marijuana products are gaining popularity for treating chronic conditions, with growing adoption due to their medical benefits, due to which the global competition is intense, as companies look to expand their product lines, enter new markets, & attract more customers. The market is growing rapidly, especially with the legalization of medical marijuana in many European & Asian countries. Early industry players are in a prime position to expand regionally & solidify their market dominance.
In March 2022, HYTN Innovations Inc. announced its manufacturing & sales partnership with Promethean BioPharma, which allows the development & export of specialized cannabis nano-emulsions, incorporating HYTN's exclusive Elevation Technology, into the medical cannabis sector in Australia.
Some of the prominent players in the global Legal Marijuana Market are:
- Aurora Cannabis
- Aphria Inc
- Canopy Growth Corp
- Tilray Inc
- Indiva
- Vivo Cannabis Inc
- Green Roads
- Lexaria Corp
- Maricann Group
- ABcann Medicinals Inc
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Legal Marijuana Market
The COVID-19 pandemic had a mixed impact on the global legal marijuana market. On one side, it disturbed supply chains & retail operations, causing temporary setbacks. On the other hand, it grew the adoption of marijuana for medical & recreational use, as people looked for stress relief & alternative healthcare options during lockdowns, which led to growth in sales & an increase in demand.
The economic recession also played a role, with some governments looking to marijuana legalization as a potential source of revenue. Overall, while the initial pandemic disruptions posed challenges, the legal marijuana market proved resilient and, in some cases, even thrived due to changing consumer behaviors and a growing recognition of its economic potential.
| Report Characteristics |
| Market Size (2023) |
USD 22.3 Bn |
| Forecast Value (2032) |
USD 182.2 Bn |
| CAGR (2023-2032) |
26.3% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Product (Flower, Oil & Tinctures, and Others), By
Application (Medical and Adult Use) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Aurora Cannabis, Aphria Inc, Canopy Growth Corp,
Tilray Inc, Indiva, Vivo Cannabis Inc, Green Roads,
Lexaria Corp, Maricann Group, ABcann Medicinals
Inc, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Legal Marijuana Market is estimated to reach USD 22.3 billion in 2023, which is further
expected to reach USD 182.2 billion by 2032.
North America dominates the Global Legal Marijuana Market with a share of 81.2% in 2023.
Some of the major key players in the Global Legal Marijuana Market are Aurora Cannabis, Aphria Inc,
Tilray Inc, and many others.
The market is growing at a CAGR of 26.3 % over the forecasted period.