Legal Marijuana Market (2019-2025)

Growing legalization of marijuana across the globe, growing medicinal applications of marijuana, rising geriatric population who need treatment for chronic diseases, and technological advancements in cultivation are the key factors driving the growth of the legal marijuana market.

The use of marijuana as a recreational drug has been outlawed in many countries across the globe. As a result of long-fought legalization efforts, several countries such as Uruguay and Canada, as well as several states in the U.S., have legalized the production, sale, and possession of marijuana for recreational and medical usage. The broad legalization of marijuana in this fashion can have numerous effects on the economy and society in which it is legalized. Legalization gives governments the opportunity to regulate marijuana cultivation and sales by application, thereby ensuring its contribution towards country’s GDP. Legalization also helps in moving cartels and black-market dealers out of business; and reducing associated crime rates.

Marijuana legalization has had a positive effect on public health and safety. The major objective of marijuana legalization in Canada include the protection of public health and safety. According to the Centre for Addiction and Mental Health (Canada), legalization combined with strict health‐focused regulation, provides an opportunity to reduce the harms associated with marijuana use. After legalization, existing frequent marijuana consumers expect to buy more often than they do today. At the same time, the less frequent consumers also expect to purchase products more often and spend significantly more when they do. Thus, increasing legalization will lead to growth in demand for marijuana, thereby driving the growth of global legal marijuana market.