Legal Cannabis Market Trends and Future Prospects Details 2030

Legal Cannabis Market Growth & Trends

The global legal cannabis market size is expected to reach USD 134.4 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 25.3% from 2022 to 2030.

The increased legalization across different nations of the usage of cannabis-derived products has gained a lot of popularity. Medical cannabis-based has been used in the treatment of various indications like epileptic seizures, nausea related to chemotherapy, anxiety, and other brain-related diseases. Several studies are being conducted for CBD products in various indications. The medical fraternity has slowly increased acceptance of medical cannabis as well as marijuana and its derivatives owing to its legalization by the governments. Some countries like Canada, the U.S., and Uruguay have legalized its recreational use along with medicinal use. Adult use and recreational use of marijuana is readily available in some of the countries’ markets, thereby increasing adoption and market growth. The COVID-19 pandemic has impeded the growth of the market. Supply chain disruptions and a surge in panic buying scenarios led to the increase in the demand-supply gap, thereby affecting the market growth. However, it is expected to grow post-pandemic with the increased support from governments and ever-increasing demand.

Legal Cannabis Market Segmentation

Grand View Research, Inc. has segmented the global legal cannabis market on the basis of source, derivative, end use, and region:

Based on the Source Insights, the market is segmented into Marijuana and Hemp.

• In 2021, marijuana accounted for the largest revenue share of over 70.0% and is anticipated to register the fastest growth rate during the forecast period. The growth in the segment can be attributed to the increasing rate of legalization across the globe. Both recreational and medical marijuana have seen a huge jump in acceptance and legalization since the pandemic. The use of medical marijuanais acceptable in a number of countries including the U.S., Canada, Italy, Czech Republic, Croatia, and Australia. A lot of countries are legalizing the production as well as domestic use of marijuana. For instance, Ecuador has now legalized cannabis production. The growing consumer base of cannabis and legal purchasing of marijuana and other cannabis products have made possession and selling in regulated quantities much more decriminalized.
• The black market is slowly dwindling with the governments making policies on the legal consumption and selling of cannabis. The legalization still sparks fear of an overall increase in consumption but in Canada, despite legalization, the usage grew by only 1% in 2020. Increasing legalization has created a plethora of jobs in the cannabis industry and the taxes of the state governments have grown a lot since legalization, e.g., Colorado makes more than USD 20 million from tax on legal cannabis and California rakes in about USD 50 million, monthly. Since the legalization, there has been a shift in the type of usage and consumers are preferring recreational use rather than medical use cannabis due to its ease of availability.

Based on the Derivative Insights, the market is segmented into CBD, THC, and Others.

• In 2021, CBD accounted for the largest revenue share of over 65.0%. This growth is due to the acceptance of the efficacy of cannabidiol (CBD) by the scientific community and by consumers. However, studies are still underway to determine the potential uses of CBD other than the ones currently indicated. CBD has proven to be beneficial for the treatment of epileptic seizures and for nausea in chemotherapy, it has lower side effects than the traditional medicines being prescribed. CBD has been studied for the treatment of anxiety and sleep disorders and has been found to have positive effects on patients during the study but the, long-term effects remain to be studied.
• Cannabinoids have in general shown their potential in the treatment of various diseases like PTSD and several types of cancers. They are considered potent analgesics and may have possible anti-stress properties. The others segment is expected to register the fastest growth rate over the forecast period. This can be due to the rise in the acceptance of cannabis as a potent pain-reliever and in several other indications. There has been a surge in the companies making cannabis derivatives products and an overall increase in the demand for the same. This can be a key factor for the segment growth.

Based on the End-use Insights, the market is segmented into Medical Use, Recreational Use and Industrial Use.

• In 2021, the medical-use segment accounted for the largest revenue share of over 70.0%. Several studies are being conducted for determining the potency and efficacy of cannabis and its derivatives for the treatment of various conditions, this has resulted in the increased adoption of medical cannabis throughout the world. Legalization of its use has also served as a key factor for market growth. The medical use application has been widely accepted and is thus the largest sub-segment. With the governments making policies on its use and regulations the medical practitioners are now finding it easier to prescribe to patients who demand it. The awareness regarding the benefits has significantly reduced the stigma surrounding the use of cannabis.
• Recreational marijuana is expected to witness the fastest growth over the forecast period and is gaining more and more popularity with the youth around the world. Cannabis has been legalized for both recreational and medical use in the U.S. and Canada in the North American region. Other countries where recreational marijuana has been legalized are Uruguay and Colombia. Through this, the government is trying to put a stop to the illicit trade of marijuana, and it has also resulted in significant tax revenues for governments. The legalization has resulted in an increase in jobs in the sector and has boosted market growth.

Legal Cannabis Regional Outlook

• North America
• Europe
• Asia
• Oceania
• Latin America and Caribbean
• Africa

Key Companies Profile & Market Share Insights

The companies are turning to expansion in their product portfolios as well as expansion through mergers and acquisitions of small players in the industry.   

Some of the prominent players operating in the global legal cannabis market include,

• Canopy Growth Corporation
• GW Pharmaceuticals, plc
• Aurora Cannabis, Inc.
• Aphria, Inc.
• Cronos Group
• Tilray
• Sundial Growers Inc.
• Insys Therapeutics, Inc.
• The Scotts Company LLC
• VIVO Cannabis Inc.
• Cara Therapeutics Inc.

Order a free sample PDF of the Legal Cannabis Market Intelligence Study, published by Grand View Research.