The Legal Marijuana Market is estimated to be valued at US$ 15.5 Bn in 2022 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.
The Legal Marijuana Market is experiencing significant growth due to the increasing demand for medicinal use and the growing trend of legalization of cannabis in various countries. The market offers various products associated with marijuana, including dried leaves and flowers, oils, tinctures, and capsules, among others. These products have wide-ranging applications in the medical field for treating chronic pain, nausea, epilepsy, and multiple sclerosis, among other ailments. Additionally, the growing acceptance of cannabis for recreational use is contributing to market growth. The market presents immense potential for investors, manufacturers, and distributors to expand their product portfolio and tap into the burgeoning demand.
The legal marijuana market is driven by two main factors. The first driver is the increasing acceptance of cannabis for medical use. Cannabis has been proven to alleviate symptoms related to various medical conditions, leading to its growing acceptance in the healthcare industry. This is further supported by the legalization of medical marijuana in several countries, allowing patients easy access to cannabis-based treatments.
The second driver is the growing trend of legalizing cannabis for recreational use. The legalization of cannabis for adult recreational use in countries like Canada and certain states in the United States has opened new avenues for market growth. The increasing social acceptance of cannabis and the potential economic benefits associated with its legalization have prompted governments to reconsider their stance on cannabis regulations.
Overall, the legal marijuana market presents lucrative opportunities for players in the industry, backed by increasing demand for medicinal use and the trend of cannabis legalization.
The legal marijuana market can be segmented based on product type, application, and distribution channel. In terms of product type, cannabis flower dominated the market in 2022, and it is expected to continue its dominance during the forecast period. Cannabis flower is the most commonly consumed form of marijuana due to its versatility and wide range of applications. It can be smoked, vaporized, or used to make edibles and other cannabis-infused products. Additionally, cannabis flower offers a diverse array of strains, each with its own unique properties and effects, catering to different consumer preferences.
Political: The political landscape surrounding the legal marijuana market is undergoing significant changes. Many countries and states are legalizing or decriminalizing marijuana for medical and/or recreational use. This liberalization of legislation is creating new opportunities for market growth.
Economic: The financial potential of the legal marijuana market is immense. The market is expected to witness high growth and generate substantial revenue due to the increasing acceptance and legalization of marijuana across various regions.
Social: Changing societal attitudes towards marijuana are driving market growth. There is increasing acceptance and normalization of marijuana use, especially for medical purposes, as research continues to demonstrate its therapeutic benefits.
Technological: Technological advancements are playing a key role in the legal marijuana market. Innovations in cultivation, extraction, and packaging techniques are improving product quality, safety, and shelf life. Furthermore, the development of cannabis-infused products and delivery methods is expanding the market reach.
The global Legal Marijuana Market is expected to witness high growth, exhibiting a CAGR of 13.0% over the forecast period (2023-2030), due to increasing legalization and acceptance of marijuana worldwide. The market size for 2022 was estimated at US$ 15.5 billion.
Regionally, North America is expected to be the fastest-growing and dominating region in the legal marijuana market. The region has witnessed significant legalization of marijuana, particularly in the United States and Canada. Furthermore, increasing consumer awareness, a well-developed infrastructure, and favorable regulatory reforms are driving market growth in North America.
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 key players are focused on expanding their product offerings, strengthening their distribution networks, and entering into strategic partnerships to gain a competitive edge in the market.
- Source: Coherent Market Insights, Public sources, Desk research
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