Our in-depth analysis of the legal marijuana market includes the following segments:
By Usage Type
By Distribution Channel
On the basis of regional analysis, the legal marijuana market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is anticipated to hold the largest market share over the forecast period on the back of increasing legalization of marijuana in countries including the United States and Canada for usage in pharmaceutical sector. Moreover, the increasing research and development activities in the region are anticipated to increase the demand for legal marijuana over the forecast period.
The global legal marijuana market is further classified on the basis of regions as follows:
According to the World Health Organization (WHO), about 147 million people, which is almost 2.5% of the world population, consume cannabis.
Legalization of marijuana in many countries for medical and recreational use is anticipated to rapidly increase the demand for legal marijuana over the coming years. Marijuana provides several health benefits, such as it relieves severe pain, regulate and prevent diabetes, fights cancer, and helps to ease depression. According to the WHO, depression is a common mental disorder affecting around 264 million people globally. Owing to these factors, the global legal marijuana market is anticipated to attain a notable CAGR during the forecast period, i.e., 2021-2028.
The legal marijuana market is segmented by application into chronic pain, cancer, mental disorders, glaucoma and others. Among these segments, the chronic pain segment is anticipated to record the largest market share over the forecast period owing to the presence of chemical compounds, such as cannabinoids, which helps in relieving severe pain. Furthermore, the cannabinoids have the properties of altering pain perception pathways in our brain, which helps in reducing severe pain. CLICK TO DOWNLOAD SAMPLE REPORT
Benefits of Marijuana in Curing Certain Diseases to Drive the Market Growth
Benefits of marijuana in treating chronic conditions such as arthritis, depression, epilepsy, anxiety, cancer, AIDS, and others are anticipated to create growth opportunities for legal marijuana market over the forecast period. According to the WHO, around 20% of the children and adolescents have a mental health condition worldwide, with suicide being the second leading cause of death among people from 15- to 29-year-old. Moreover, legal marijuana, which are sold as medical marijuana, possesses medical benefits in treating glaucoma, where the additional pressure on the eyeball is painful for individuals with the disorder. Marijuana helps in reducing the pressure applied on the eyeball, thereby, providing some relief to individuals with glaucoma.
Increasing Research and Development Activities on Legal Marijuana to Propel the Market Growth
In 2018, the Food and Drug Administration (FDA) of the United States approved Epidiolex (cannabidiol) oral solution in patients for age of 2 years and above for the treatment of seizures associated with two rare and severe forms of epilepsy known as Lennox-Gastaut syndrome and Dravet syndrome. This is the first drug approved by FDA which contains a purified drug substance derived from legal marijuana.
Organizations dealing in research and development activities of legal marijuana are estimated to allocate a major portion of the budget for the research of marijuana based products. Additionally, the increasing legalization of marijuana for medical purpose in various countries including Canada, Italy, Switzerland, Portugal and others are anticipated to increase the demand for legal marijuana over the coming years.
High Cost of Legal Marijuana to Hamper the Market Growth
Legal marijuana is expensive since the demand for the product is more than its supply. Additionally, heavy tax rates are levied on legal marijuana by the government including taxes on cultivation as well as at retail, which adds on to the overall cost of the drug. On the other hand, several regions worldwide have not yet legalized marijuana owing to the numerous concerns associated with the use of these drugs. Moreover, the fear of illicit business of marijuana is further anticipated to hamper the growth of legal marijuana market over the forecast period.
Long Term Side-Effects of Marijuana on Health
Marijuana, when consumed for a long period of time, can cause health problems such as coughing, difficulty in breathing, trouble with thinking, and others. Additionally, if marijuana is consumed in excessive amount, can cause paranoia, hallucinations, increased heartbeat, and anxiety, which is anticipated to hamper the growth of legal marijuana market over the forecast period.
Impact of COVID-19 on the Global Legal Marijuana Market
Owing to the COVID-19 pandemic, individuals worldwide had to encounter acute symptoms of stress and anxiety, added up by loss of jobs and uncertainty of life in the future. As a result, to overcome the situation, many people started consuming drugs, which had further led to the growth in the trade of illegal drugs. Although, in nations where marijuana is legalized, due to the restrictions adopted by the government of nations, the supply chain of these drugs had been hampered majorly as these drugs were not categorized under essential goods. On the other hand, the demand for medical marijuana increased significantly, backed by the need for pain relief drugs in hospitals and other medical clinics.
November, 2020: Auxly Cannabis Group Inc., announced the launch of Dosecann capsules under its proprietary in-house brand, Dosecann. The capsule is a high-quality precision-dosed cannabis product and consists of high-potency, broad-spectrum cannabinoids with omega-rich ‘Ahiflower’ oil.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.