Global Legal Cannabis Market Size Likely to Reach at a CAGR of 23.5% By 2033

According to current market research conducted by the CMI Team, the global Legal Cannabis Market is expected to record a CAGR of 23.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 32.4 Billion. By 2033, the valuation is anticipated to reach USD 216.5 Billion.

Legal Cannabis Market: Growth Factors and Dynamics

• Regulations: Changes in regulations have a significant impact on the legal marijuana industry. Increased access to the market, through the legalization of marijuana for medical and recreational use by more countries and states, encourages investment and innovation in the industry. Better guidance also promotes consumer trust and, thereby, a safer product. It further helps ancillary businesses grow, such as testing labs and distribution services. It can further be extended that market growth, attraction to new participants, and greater competition await ahead as the law keeps changing.

• Changing Attitudes of Consumers: Changing attitudes of consumers toward marijuana use alters the entire market. The social perception regarding marijuana keeps changing as more people stop becoming skeptical about using marijuana for medicinal reasons. This is more in the case of younger generations, who consider marijuana to be one of the best-recognized systems of health. Increased awareness of possible health benefits, combined with an educational campaign, increases better acceptance. This builds a higher willingness in the consumer to buy cannabis products both recreationally and medicinally, which creates increased demand in almost all segments.

• Product Innovation: The legal cannabis market is witnessing tremendous innovation related to products. Consumers’ desire for diversification of their preferred products drives such factors. Companies are investing in research and development to create new and improved cannabis products, such as edibles, beverages, and topical applications. New extraction and formulation techniques improve products’ quality and safety, which appeals to health-conscious consumers.

• Increasing Medical Applications: The work on cannabis that helps treat chronic pain, anxiety, and epilepsy drove the demand for such pharmaceuticals. As more medical professionals become aware, so are patients. Besides that, clinical trials and ongoing studies rapidly add approved medical applications to the portfolio. This aspect is forcing pharmaceutical companies to invest more in cannabis product development. This has promoted the growth of cannabis in the health sector further.

• Increasing Demand for CBD Products: The more people learn that CBD has several medicinal benefits, including reducing inflammation and easing anxiety, the more they call for CBD-infused products. Product lines include various applications, such as personal care, food and beverages, and supplements. What’s more, growing interest in healthy and organic well-being will continue to be the driving force for such demand and reinforce CBD as a fundamental building block in the growth of legal cannabis.

• Expansion in Distributivity: Expansion in the distribution channel has eased accessibility to markets and brought forth growth in the legal cannabis industry. As online retailing and specialty stores rise, such diversity in cannabis products finds its way into the public. Even brick-and-mortar stores responded by stocking curated collections and educational supplies to bring new customers inside. Moreover, strategic alignments with major retailers have smoothed the penetration into the target market. Thus, diversifying in distribution serves the aim of the consumer but may also serve the opportunity to reach a greater audience.

Legal Cannabis Market: Partnership and Acquisitions

• In 2024, Cronos Group Inc. reported a strategic investment in a leading vaporizer technology company, indicating a focus on innovative cannabis consumption methods beyond traditional products.

• In 2023, Aurora Cannabis Inc. announced a partnership with a major retailer to expand its product offerings in the Canadian market, focusing on both medical and recreational segments.

• In 2023, Canopy Growth Corporation launched five new SKUs for international medical markets and achieved EU-GMP certification for its Ontario facility, enhancing its ability to supply international markets3.

Report Scope

Legal Cannabis Market: COVID-19 Analysis

• Positive Impact of COVID-19 on the Legal Cannabis Market: The COVID-19 pandemic left a very significant positive impact on the legal cannabis market. This is due to increased stress and anxiety brought on by lockdowns and health concerns, which prompted people to consume more cannabis as a means of relief. This positively influenced the sales of medical and recreational cannabis. Relaxation and sleep support products recorded high sales. The pandemic also spurred online shopping, where the consumer can sit at home and easily make purchases of cannabis products. This opened up a wider customer base and made companies improve their online presence, which changed how cannabis is marketed and sold in the long run. Furthermore, the growing acceptance of cannabis as a legitimate health and wellness product helped drive its popularity further during this period, allowing for broader societal acceptance and encouraging new consumers to try cannabis offerings. Altogether, these factors helped build a strong growth environment for the legal cannabis market amid the challenges the pandemic created.

• Negative Effect of COVID-19 on the Legal Cannabis Market: Lockdowns and lockdown-like scenarios caused supply chain disruptions, resulting in raw material and finished product shortages and delayed manufacturing and distribution of products. Many businesses were financially losing from increasing operational costs, including maintaining safety measures and reducing customer foot traffic in physical locations. Some regulation barriers were also established from the government’s aim toward public health, such that, at times, it even raised more stringent regulations toward selling cannabis. This raised uncertainty among the participants in the market, thereby raising challenges in planning and implementing expansion tactics.

• Current Market Scenario: The current legal cannabis market is recovering well and continues to grow. Acceptance among consumers is rising with the de-stigmatization of the substance and increased knowledge about the therapeutic benefits. Further expansion of legal frameworks across different regions also supports the opportunity in the market. Companies are innovating and diversifying their products to fit the shifting consumer preferences. Though major challenges relate to regulatory and saturation issues, the broad consensus appears to be sound as considerable investment flows pour into the industry in efforts to grasp emerging opportunities and trends.

List of the prominent players in the Legal Cannabis Market:

• Canopy Growth Corporation
• Aphria Inc.
• Aurora Cannabis Inc.
• Tilray Inc.
• Cronos Group Inc.
• Organigram Holdings Inc.
• Maricann Group Inc.
• VIVO Cannabis Inc.
• Tikun Olam Ltd.
• The Green Organic Dutchman Holdings Ltd.
• Terra Tech Corp.
• Medical Cannabis Inc.
• Stenocare A/S
• Cannabis Science Inc.
• HEXO Corp.
• Others

The Legal Cannabis Market is segmented as follows:

By Strain

• THC
• CBD

By Species

• Cannabis Indica
• Cannabis Sativa
• Cannabis Hybrid

By Source

• Marijuana
• Hemp

By End-User

• Pharmaceutical Companies
• Food and Beverage Companies
• Personal Care Products
• Research and Development Centers

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America