July 21, 2024

Legal Marijuana Market: Growing acceptance of cannabis for medical and recreational use driving market growth

The global legal marijuana market is estimated to be valued at US$ 15.5 Bn in 2023 and is expected to exhibit a CAGR of 13.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The legal marijuana market includes products derived from the Cannabis sativa or Cannabis indica plants, which are used for medicinal or recreational purposes. These products include dried flowers, concentrates, edibles, topicals, and others. The increasing acceptance of cannabis for medical and recreational use, along with the growing number of countries legalizing its use, is driving the market growth. Moreover, the therapeutic benefits of cannabis in managing various chronic diseases and the rising demand for cannabis-based products are further fueling the market.

Market Key Trends:

One key trend in the legal marijuana market is the rapid expansion of the medical marijuana segment. Medical marijuana is increasingly being used as an alternative treatment for various conditions such as chronic pain, epilepsy, multiple sclerosis, and cancer. The growing recognition of the therapeutic potential of cannabis and the legalization of medical marijuana across several countries are major factors driving this trend. Additionally, the increasing investment in research and development activities focused on exploring new medical applications of cannabis is expected to further propel the market growth in the coming years.

Porter’s Analysis

Threat of new entrants: The legal marijuana market is expected to face a moderate threat of new entrants. The high capital requirements and strict government regulations act as barriers to entry for new players. Additionally, established brands and strong distribution networks of existing players may pose challenges for new entrants.

Bargaining power of buyers: The bargaining power of buyers in the legal marijuana market is relatively high. With a growing number of legalized markets and an expanding customer base, buyers have more options to choose from. This gives them the ability to negotiate prices and demand better quality products and services.

Bargaining power of suppliers: The bargaining power of suppliers in the legal marijuana market is moderate. While there are a limited number of suppliers for certain critical inputs such as cannabis seeds and cultivation equipment, the market is gradually becoming more competitive. Suppliers may face increased pressure to offer competitive pricing and better quality products.

Threat of new substitutes: The threat of new substitutes in the legal marijuana market is currently low. Cannabis has been widely accepted as a recreational and medicinal drug, and there are limited alternatives that can replicate its effects. However, the emergence of alternative medicinal treatments or the legalization of other drugs may pose a potential threat in the future.

Competitive rivalry: The legal marijuana market is highly competitive, characterized by the presence of both established players and new entrants. The industry is witnessing significant consolidation activities, with mergers and acquisitions being common occurrences. This competitive landscape drives innovation and forces companies to differentiate themselves through product offerings, branding, and distribution strategies.

Key Takeaways

The Global Legal Marijuana Market Demand  is expected to witness high growth, exhibiting a CAGR of 13.0% over the forecast period of 2023-2030. This growth can be attributed to increasing legalization of marijuana for medical and recreational purposes across various countries. Moreover, the growing acceptance of cannabis as an alternative medicine for various health conditions is driving the market demand.

Regional analysis reveals that North America is currently the fastest-growing and dominating region in the legal marijuana market. The United States and Canada have led the way in legalizing cannabis, with a number of states and provinces allowing its use for medical and recreational purposes. The presence of established players and favorable government regulations have contributed to the region’s dominance.

Key players operating in the legal marijuana market include Tilray, Aphria, Inc., Wayland Group Corp., Aurora Cannabis, Canopy Growth Corporation, and GW Pharmaceuticals, Plc., among others. These companies have established themselves as leaders in the market through a combination of strategic partnerships, acquisitions, and product innovations. Their strong distribution networks and extensive product portfolios give them a competitive advantage in the industry.

In conclusion, the legal marijuana market is poised for significant growth in the coming years. With increasing legalization and growing recognition of cannabis for medical purposes, the market presents lucrative opportunities for both established players and new entrants. However, the industry’s competitive nature and evolving regulatory landscape necessitate continuous innovation and adaptation to stay ahead in the market.

 

 

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it