by Cannabis or marijuana refers to drugs obtained from plants from the genus Cannabis, which contain the psychoactive component tetrahydrocannabinol (THC). Legal marijuana, also known as cannabis, is increasingly being adopted for both medicinal and recreational purposes by several states and countries. It is used to produce a variety of products including dried flowers, plant resin, oil concentrates, edibles, and topical forms that are consumed via various methods such as smoking, vaporization, and ingestion. The global legal marijuana market possesses significant growth opportunities, especially in the cannabis medicines segment. Cannabis-derived products are used for treating chronic pain, cancer pain, chemotherapy-induced nausea and vomiting, sleep disorders, muscle spasms, and certain seizure disorders.
The global Legal Marijuana Market is estimated to be valued at US$ 17.4 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Expanding Opportunities in Cannabis Medicines: As highlighted in the heading, one of the key driver for the growth of legal marijuana market is the expanding opportunities in cannabis medicines segment. Legalization of marijuana for medical purposes in several countries has boosted research on therapeutic applications of cannabis. Conditions like Alzheimer’s disease, Parkinson’s disease, arthritis and other chronic pain disorders are being actively explored for cannabis-based treatment opportunities. This has increased production of cannabis-based medicines and their availability via legal dispensaries.
Changing Consumer Preferences: Another driver for the market is changing consumer preferences. Young population is exhibiting higher acceptance for recreational use of marijuana. Growing awareness about different cannabis products like edibles, concentrates etc. and their perceived wellness benefits has increased the demand. Rising popularity of cannabis-based beverages and edibles is opening new opportunities in the recreational marijuana market.
Segment Analysis
The legal marijuana market is segmented into medical and recreational. The medical segment dominated the market in 2021 with over 60% share. Medical marijuana is effectively used to treat chronic pain, cancer, arthritis, and other medical conditions. It has lesser side effects as compared to traditional prescription drugs for these conditions. This makes the medical segment highly attractive for patients and driving its market dominance.
PEST Analysis
Political: The legalization of marijuana at state levels in the US and decriminalization in many countries have provided boost to the market. However, laws and regulations around cross-border transportation of marijuana products are hampering growth.
Economic: Rising disposable income, growing acceptance of marijuana for medical use, job creations in the industry are fueling the market. High set-up and production cost is a challenge for small players.
Social: Changing social attitudes towards use of marijuana for medical and recreational purpose is a key growth driver. However, social stigma and legal access issues in some regions are restraining factors.
Technological: Technologies around precision agriculture, processing, packaging are improving yields and addressing quality related issues. Tracking technologies help in supply chain and inventory management.
Key Takeaways
The Global Legal Marijuana Market Size is expected to witness high growth at a CAGR of 7.1% during the forecast period of 2023 to 2030.
Regional analysis – North America dominated the market with over 70% share in 2021 owing to legalization in major markets like US and Canada. The Asia Pacific region is expected to emerge as the fastest growing market during the forecast period due to initiatives around R&D and medical use in countries like China, Israel, and Australia.
Key players operating in the legal marijuana market are Murata Machinery, Ltd., Honeywell Intelligrated, Bastian Solutions, Inc., Dematic, TGW Logistics Group, Daifuku Co., Ltd., KNAPP AG, Beumer Group, SSI Schaefer Group, and Kardex Group. Key players are focusing on automation and mechanization solutions for indoor farming, processing, and distribution to drive efficiencies and bring more transparency in the supply chain.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
