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Legal Cannabis Market - By Product Type (Oils, Flowers, & Tinctures), By Application (Medical, Recreational & Others), By Compound (Tetrahydrocannabinol (THC)-dominant, Cannabidiol (CBD)-dominant & Balanced THC & CBD), By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030
Legal Cannabis Market Overview
Legal Cannabis Market size is
estimated at $10.2 billion in 2020 and is predicted to grow as CAGR of 25.2%
during the forecast period 2021-2026. Legal Cannabis is also known as medical
marijuana. One of the key elements increasing demand for legal cannabis is the
licensing of cannabis for adult usage. Cannabis is primarily utilized as a
recreational or medicinal narcotic. It is used to treat patients suffering
chronic mental illness, mental disorders, cancer, and chronic pain in parts of
body, gout and cholera. Euphoria, altered states of mind at times,
difficulties concentrating, reduced short-term memory and body movement,
relaxation, and an increase in appetite are some of the mental and physical
effects of cannabis which is predicted to drive the market. Anxiety, delusions,
hallucinations, panic, paranoia, and psychosis can occur as side effects of
consuming cannabis. In nations where cannabis for adult use has been allowed,
such as North America, the industry has observed a shift in patients choosing
to consume cannabis for recreational rather than therapeutic purposes. This
could be because of the low prices and quick availability. Thus, recreational,
and medical applications is driving the Legal Cannabis Market and is expected
to grow at a significant rate.
Report Coverage
The report: “Legal Cannabis
Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis
of the following segments of the Legal Cannabis Market.
By Product Type: Oils, Flowers, and Tinctures.
By Application: Medical, Recreational and Others.
By
Compound: Tetrahydrocannabinol
(THC)-dominant, Cannabidiol (CBD)-dominant and Balanced THC and CBD.
By Geography: North America
(U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy,
Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South
Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America
(Brazil, Argentina, and Rest of South America), and Rest of the World (Middle
East, and Africa).
Key Takeaways
- This report provides an analytical depiction of the global Legal Cannabis Market, as well as current trends and future projections, in order to identify the most potential growth opportunities.
- The study includes data on major drivers, challenges, and trends, as well as a complete analysis of the market share for Legal Cannabis Market.
- To highlight the worldwide Legal Cannabis Market growth scenario, the existing market is statistically examined from 2021 to 2026.
- A detailed Value Chain Analysis based on past data and current market trends included in the research.
Legal Cannabis Market - By Geography, 2021.
Legal Cannabis Market Segment Analysis - By Product Type
The oil
segment has the largest market share of the Legal Cannabis Market in 2020. Cannabidiol
oils are used to reduce nausea and vomiting induced about by malignancy. The
cannabinoids in the oil aid in the treatment of acute sleep disorders as well
as the reduction of stress and anxiety. The market for cannabis oils is
projected to increase over the forecast period, leading to a significant
increase in the number of patients who prefer treatment by oil.
However
the cannabis flower segment is expected to grow at faster CAGR of 28.2% over
the forecast period of 2021-2026. The cannabis flower is majorly used for
recreational purposes. It creates a long lasting sensation of relaxation in
body and mind and is increasingly popular amongst teenagers of legal age and
millennials. The flower can be dried and used as a substitute for tobacco.
According to medical research it produces less harmful effects than smoking
tobacco or drinking alcohol, thus it has gained popularity in recreational
activities. With increase in legalization of cannabis across different
countries, this sector is expected to drive the Legal Cannabis Market grow
significantly.
Legal Cannabis Market Segment Analysis – By Application
In 2020, the medical application sector
held the greatest proportion of the Legal Cannabis Market. Cannabis have
an impact on sections of the brain that control pleasure, memory, thinking,
concentration, movement, coordination, sensory and temporal perception. THC is
able to clasp to molecules (cannabinoid receptors) on neurons in certain
brain locations and activate them. The growing demand for cannabis for pain
relief in various health situations such as cancer, AIDS, seizures, and other
disorders, as well as increased research on medicinal cannabis around the
world, have increased the demand exponentially in this sector.
The recreational segment is expected to
increase at CAGR of 30.1% during the forecast period of 2021-2026. This
increase is mostly due to an increase in the number of consumers following
legalisation, as well as a growing tendency of using cannabis as a substitute
for alcohol. In large parts of North America, cannabis is considered as
substitute for tobacco related products due to its long lasting effect and
price compared tobacco. This is also a major region driving growth of cannabis
for recreational purposes.
Legal Cannabis Market Segment Analysis - By Geography
In
2020, North America dominated the market with a revenue share of 76.8%.
Improved government rules and the partially legalizing of cannabis for
recreational and medical use in the US and Canada have aided the expansion
of the local marketplace. Other factors driving the local market include the
presence of large cannabis manufacturers in the region, legalization of
cannabis for adult use, rising consumer spending, and geographic development of
convenience stores.
However Europe is also a promising markets for cannabis. Which is set to grow at high CAGR over the forecast period of 2021-2026. Particularly countries like U.K and Germany in Europe have begun to produce locally, and as a result, these markets that are predicted to become profitable in the coming years thereby contributing to the Regional growth. Furthermore, due to changes in government laws, market demand is likely to increase.
Legal Cannabis Market Drivers
Increase in Legalization of Cannabis
People can now use cannabis in a safe manner while also
benefiting from its medical properties. As a result, numerous countries around
the world are gradually legalising the use of cannabis. While most countries
throughout the world have yet to legalise recreational cannabis consumption,
attitudes toward its use have relaxed over time. As a result, cannabis is
becoming increasingly popular in various places, driving the overall cannabis
market forwards.
Increase in Medical Awareness
There has been an increase in medical awareness regarding
the use of cannabis. In many parts of the world where consumption was
considered taboo and for recreational purpose only, are now finding its medical
use and application. Increase in medical use for patients suffering stress,
depression, chronic mental disorder and cancer will drive the growth of Legal
Cannabis Market across the world.
Legal Cannabis Market Challenges
Lack of Regulatory Structure in the Global Cannabis Market
The
market is restrained by complex regulatory framework issued by governments of
different countries. Buying and selling of cannabis and by-products of cannabis
have become increasingly difficult which hampers the globalization of Cannabis
Market. Drug and pharmaceuticals companies selling by-products of cannabis have
to comply with all the regulation and guidelines of the respective countries in
which they are selling, thereby undergoing a tedious procedure.
Lack of Medical knowledge about Cannabis
There
is a widespread myth about cannabis that it is used only for recreational
purpose as a result many individuals categorize them with drugs such as cocaine
and opium. There is also a widespread misbelief that cannabis used for medical
purposes have an intoxicating effect. Education and medical awareness campaigns
are essential in solving the myths about effects of cannabis. Such factors are
primary reasons hampering the Cannabis Market globally.
Legal Cannabis Market Landscape
Product
launches, mergers and acquisitions, joint ventures, and R&D activities are
key strategies adopted by players in the Legal Cannabis Market. The key player in
the Legal Cannabis Market are Canopy Growth
Corporation, Aurora Cannabis, Aphria Inc., Tilray, ABcann
Medicinals Inc., The Cronos Group, Maricann Group, Inc., Organigram
Holding Inc., Lexaria Corp. and GW pharmaceuticals PLC.
Developments
- In July 2021 According to the National Organization for the Reform of Cannabis Laws (NORML), states in US to impose Cannabis Potency Laws.