The Legal Marijuana Market is expected to reach $75.6 billion by 2025, at a CAGR of 28.3% during the forecast period of 2019 to 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.
Growing Legalization of Marijuana Fuels the Growth of the Global 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 healthâ€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.
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Key Findings in the Global Legal Marijuana Market Study:
Buds / Marijuana Flower Dominate the Global Legal Marijuana Market
Based on product type, buds/cannabis flower accounted for the largest share of the global legal marijuana market in 2018. The large share of this segment is mainly attributed to the presence of large number of tobacco smokers. However, marijuana extract is expected to witness a rapid growth during the forecast period from 2019 to 2025.
Recreational Application to offer New Growth Avenues - Opportunity Through 2025
Based on application, legal marijuana market is segmented into three major segments, namely medical, recreational, and cosmetics and others. Medical application segment accounted for the largest share of the global legal marijuana market in 2018. The large share of this segment is mainly attributed to increasing demand of marijuana for relieving pain in various health conditions such as cancer, AIDS, seizures, and other diseases; and growing research on medicinal marijuana across the globe. However, recreational application segment is expected to witness a rapid growth during the forecast period. This growth is primarily attributed to the growth in number of consumers after legalization and growing trend of consuming marijuana as a substitution to alcohol.
THC-Dominant Expected to Dominate the Market Through 2025
Based on strains, legal marijuana market is segmented into three major segments, namely THC-dominant, CBD-dominant, and Balanced THC and CBD. THC-dominant segment accounted for the largest share of the global legal marijuana market in 2018, which is mainly attributed to its wide-range medicinal properties such as analgesic, antianxiety, antibacterial, anticancer, antidepressant, antiemetic, anti-inflammatory, antinausea, and antispasmodic.
North America: The Largest and Fastest Growing Market
This research report analyzes major geographies and provides comprehensive analysis of regions. The North America commanded the largest market share of the global legal marijuana market in 2018, followed by Latin America, the Middle East and Africa, Europe, and Asia-Pacific. The largest share of this region is attributed to the technological advancements in marijuana production and processing, large base of marijuana consumers, changing perceptions towards marijuana consumption for both medical and recreational purposes, and increasing investments from leading players.
Key Players
The report includes competitive landscape based on extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 4 years (2016–2019). The key players profiled in the global legal marijuana market report are Canopy Growth Corporation (Canada), Aphria, Inc. (Canada), Aurora marijuana Inc. (Canada), Maricann Group, Inc. (Canada), Tilray, Inc. (Canada), Cronos Group Inc. (Canada), OrganiGram Holding Inc. (Canada), VIVO marijuana Inc. (Canada), Tikun Olam Ltd. (Israel), The Green Organic Dutchman Holdings Ltd. (Canada), Terra Tech Corp. (U.S.), Medical Cannabis, Inc. (U.S.), Stenocare A/S (Denmark), Cannabis Science, Inc. (U.S.), and HEXO Corp. (Canada).
Scope of the report
Legal Marijuana Market, by Product Type
- Buds / marijuana Flower
- Cannabis Extracts
Legal Marijuana Market, by Species
- Cannabis Indica
- Cannabis Sativa
- Cannabis Hybrid
Legal Marijuana Market, by Strain
- THC-dominant
- CBD-dominant
- Balanced THC and CBD
Legal Marijuana Market, by Purchase Channel
Legal Marijuana Market, by Application
- Medical
- Chronic Pain
- Mental Disorders
- Cancer
- Others
- Recreational
- Cosmetics & Others
Legal Marijuana Market, by End-User
- Pharmaceutical
- Food, Beverages, and Tobacco
- Personal Care
- Research and Development Centres
Legal Marijuana Market, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- The Netherlands
- Rest of Europe
- Asia-Pacific
- Australia
- South Korea
- Rest of Asia-Pacific
- Latin America
- Argentina
- Colombia
- Uruguay
- Rest of Latin America
- Middle East and Africa
Key questions answered in the report:
Growing medical application to drive the adoption of legal marijuana market
- How does the adoption of legal marijuana in medical application differ from the adoption in recreational application?
- What impact does this have on the adoption of legal marijuana in comparison to other application segments?
- Which are the high growth market segments in terms of product types, species, strains, purchase channel, end user, and regions/ countries?
The North American legal marijuana market favors both larger and local manufacturers that compete in multiple segments
- Who are the top competitors in this market and what strategies do they employ to gain shares?
- What is driving growth and which market segments have the most potential for revenue expansion over the forecast period?
- What strategies should new companies looking to enter this market use to compete effectively?
- What are the major drivers, restrains, challenges, opportunities, and trends in the global legal marijuana market?
- Who are the major players in various countries and what share of the market do they hold?
- What are the geographical trends and high growth regions/ countries?
Recent new product launches, divestiture, partnerships, mergers & acquisitions, and expansions taken place in the legal marijuana market
- What companies have recently merged/acquired in various countries across the globe and how will these unions affect the competitive landscape of the legal marijuana market?
- Which companies have created partnerships and how will these partnerships promote a competitive advantage?
- Who are the major players in the global legal marijuana market and what share of the market do they hold?
- Who are the local emerging players in the legal marijuana market and how do they compete with the global players?
