Global Legal Cannabis Market Size, Trends, Forecast, Report: By Products Derived: Marijuana, Industrial Hemp; By Application: Marijuana, Industrial Hemp; By Distribution Channel: Regulated Dispensary, Recreational Stores, Stand-Alone Retailer, Others; Regional Analysis; Market Dynamics; Competitive Landscape; 2024-2032

Global Legal Cannabis Market Size

The global legal cannabis market is expected to grow in the forecast period of 2024-2032 at a CAGR of 23%.

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Growing Demand for Cannabinoid-Infused Food Products Boosting the Legal Cannabis Market Share

The trend of food incorporated with cannabis is increasing the demand for cannabinoid, which is surging the demand for industrial hemp. Moreover, the rising awareness regarding the health benefits of cannabinoid is increasing the demand for cannabinoid-infused food products, hence augmenting the legal cannabis market value. Increasing research activities depicting the positive impact of cannabinoid on various issues, such as anxiety, pain management, Alzheimer’s disease, and insomnia, among others, are leading to a surge in the consumption of industrial hemp for medicinal benefits. This is increasing the demand for industrial hemp and is consequently propelling the growth of the legal cannabis market. Moreover, the development of innovative cannabis-based products is significantly contributing to the market growth. In addition, the growing demand for clean label products among the health-conscious population is bolstering the industry growth. Although various industries witnessed a staggered growth amidst the COVID-19 pandemic, the legal cannabis industry grew robustly as the demand for cannabis escalated owing to high pandemic-related stress. As the stigma related to the consumption of cannabis is decreasing, the demand for legal cannabis is surging, which is anticipated to aid the industry growth in the upcoming years.

Industry Outlook

Canada established a precedent for other countries in 2018 by being the first country within the G7 to completely legalize cannabis for recreational use. Five years ago, Uruguay, nine US states, and the nation's capital, Washington, allowed the use of marijuana for recreational purposes. However, Canada will be the first G7 nation to follow suit.

As per legal cannabis industry analysis, the World Health Organization (WHO) estimates that over 1.8 million individuals worldwide suffer from multiple sclerosis (MS). While it affects people of all ages, young adults and women are more likely to be impacted. Early treatment with medication can either improve or stabilize the condition; each person's course of treatment will vary based on the severity of the illness and their symptoms. The usefulness of medicinal cannabis is increasingly being shown in clinical testing, adding to its credibility as a potential replacement for traditional pharmaceuticals.

Recent Developments

According to reports, in 2024, the U.S. Drug Enforcement Administration will take steps to reschedule marijuana as a less harmful drug. In addition to acknowledging cannabis's medical applications, the proposal would note that marijuana has a lower potential for abuse than some of the most harmful medications in the country. Still, it wouldn't completely legalize marijuana use for recreational purposes, thus significantly impacting the legal cannabis market dynamics and trends.

Legislative Reforms, Public Acceptance, and Investment are the Key Legal Cannabis Market Trends

• Legislative reforms in numerous countries legalizing cannabis for medicinal and recreational use are significantly driving market expansion.

• Growing public acceptance and changing attitudes towards cannabis use boost the legal cannabis demand growth and consumer base.

• Technological advancements in cannabis cultivation and processing technologies improve product quality and availability, thus supporting the legal cannabis industry revenue.

• Rising investments from major corporations and venture capitalists in the cannabis industry boost market growth and innovation.

Complex Regulatory Frameworks, Supply Chain Issues, and Market Fragmentation Present Challenges

• Navigating the complex and varying regulatory frameworks across different regions poses significant challenges for legal cannabis demand.

• Supply chain issues, including sourcing high-quality raw materials and managing distribution channels, affect market efficiency and product consistency.

• Market fragmentation, with numerous small-scale producers and varying standards, complicates the competitive landscape and quality control.

• Addressing public health concerns and ensuring product safety and quality compliance are crucial for market credibility and sustainable growth.

Product Diversification, Medical Applications, and Sustainable Practices Offering New Growth Opportunities to the Market Players

• The trend towards product diversification, including edibles, beverages, topicals, and wellness products, broadens the consumer market and offers new legal cannabis market opportunities.

• Expanding medical applications of cannabis for conditions such as chronic pain, epilepsy, and anxiety drive demand for pharmaceutical-grade products and research.

• Increasing focus on sustainable cultivation and eco-friendly packaging practices aligns with consumer preferences for environmentally responsible products and corporate practices positively impact the legal cannabis demand forecast.

• Adoption of advanced technologies like blockchain for supply chain transparency and AI for personalized product recommendations enhances market operations and customer engagement.

Economic Impact, Technological Innovations, and Competitive Pressures Shape the Industry Landscape

• The economic impact of the cannabis industry, including job creation, tax revenue, and ancillary business growth, supports broader economic development.

• Technological innovations in cultivation techniques, extraction methods, and product formulation drive efficiency, quality, and new product development, thus increasing the demand of legal cannabis market.

• Intense competitive pressures from both established companies and new market entrants necessitate continuous innovation, differentiation, and strategic positioning.

• Market volatility, influenced by regulatory changes, public perception, and market dynamics, requires agile business strategies, risk management, and proactive regulatory engagement.

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Legal Cannabis Industry Segmentation

Cannabis refers to psychoactive drugs that are derived from the flower of the cannabis plant. Cannabis is consumed for calming and relaxing effects, due to which it is deployed for medicinal use. It comprises of marijuana and industrial hemp and is used in various industries, such as food and beverages and textile industries. The legalisation of cannabis permits the use and consumption of cannabis and cannabis-based products.

The major products derived from legal cannabis are:

• Marijuana

• Industrial Hemp

The market can be broadly categorised on the basis of its application into:

• Marijuana
  • Medical 
    • Migraine
    • Arthritis
    • Cancer
    • Others
  • Recreational Use
• Industrial Hemp
  • Personal Care
  • Hemp CBD
  • Food
  • Consumer Textile 
  • Others

Based on distribution channel, the market is divided into:

• Regulated Dispensary

• Recreational Stores

• Stand-Alone Retailer

• Others

The EMR report looks into the regional markets of legal cannabis like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Rising Demand for Cannabis with Standard Dosing and Lab-Tested Ingredients to Bolster the Legal Cannabis Market Growth

The penetration of various start-ups is leading to the availability of cannabis with standard dosing and lab-tested ingredients, the demand for which is rapidly increasing among consumers. Innovative and premium packaging offered by several brands is increasing the appeal of cannabis-based products among millennial and gen-Z consumers, which is invigorating the market growth. The increasing legalisation of cannabis in countries, such as the United States, Spain, and Canada, is fuelling the industry growth. For instance, New York legalised recreational cannabis in April 2021, which is providing a significant boost to the legal cannabis market revenue.

In addition, the increasing use of cannabis for medical use is augmenting the market growth. The trend is expected to escalate in the upcoming years due to the integration of the latest technology such as artificial intelligence (AI) and big data in various treatments. This can lead to the personalisation of medical cannabis to develop specific therapies for cancer and palliative care, which is estimated to fuel the legal cannabis market share. Moreover, increasing investments into medical cannabis is leading to a surge in research and development (R&D) activities and in the exploration of the potential of cannabinoid, which are projected to propel the market growth over the forecast period.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global legal cannabis market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Canopy Growth Corporation

• Aurora Cannabis Enterprises Inc.

• Maricann Inc.

• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model. The leading companies are actively exploring strategies to hold onto their positions and benefit from the legal cannabis industry growth.

Strategic Initiatives of Key Players

Canopy Growth Corporation

• Product Diversification: Expands its product portfolio to include a wide range of cannabis products such as edibles, beverages, and topicals, catering to diverse consumer preferences.

• International Expansion: Pursues international market growth by acquiring licenses and establishing operations in key regions such as Europe and Latin America.

Cronos Group Inc.

• Focus on CBD: Develops and markets a range of CBD-based products, targeting the wellness and health sectors with non-psychoactive cannabis offerings.

• Brand Development: Invests in building strong, recognizable brands that resonate with consumers, driving brand loyalty and market differentiation, thereby propelling the growth of legal cannabis market.

Tilray Brands, Inc

• Strategic Acquisitions: Expands its market presence through strategic acquisitions of other cannabis companies and brands, enhancing its product offerings and market reach.

• Research and Development: Invests heavily in R&D to innovate and improve the quality and effectiveness of its cannabis products, staying ahead of industry trends.

Aurora Cannabis Inc.

• Medical Cannabis Focus: Strengthens its position in the medical cannabis market by developing new therapeutic products and conducting clinical research to validate their efficacy.

• Sustainability Initiatives: Implementing sustainable cultivation practices and investing in eco-friendly technologies to reduce the environmental impact of its operations is a key trend of legal cannabis market.

Key Highlights of the Report

Legal Cannabis Market Report Snapshots

Legal Cannabis Market Size

Legal Cannabis Market Share

Legal Cannabis Market Growth

Legal Cannabis Companies

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.