As per the current market research conducted by the CMI Team, the global Legal Marijuana Market size is expected to record a CAGR of 25.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 28 Billion. By 2033, the valuation is anticipated to reach USD 218 Billion.
Legal Marijuana Market: Growth Factors and Dynamics
- Increased Legalization: It is believed that the growing number of jurisdictions that are now legalizing cannabis for both medical and recreational use is a major factor driving the growth in the legal marijuana market. As states and countries start to see the benefits of cannabis, the laws and regulations that previously stood against it start easing off, allowing its sales and usage. This pattern increases the market size dramatically since cannabis accesses a much higher consumer base than previously possible and offers new openings to entrepreneurs as well.
- Increasing Consumer Attitudes: Society is now more accepting of cannabis. The more educated the public becomes on the safety and benefits of cannabis, the more open people become to trying it. The acceptance of this product has fueled demand for all sorts of cannabis products-from edibles to oils to innovative products that drive market growth.
- Medical Use: Medical marijuana acceptance as an active therapy for many ailments is contributing greatly to its growth in the market. Recent research has proven that the medication is effective in the control of chronic pains, anxiety, and all other associated ailments. These studies have called for doctors to prescribe more medication and interventions to patients. Many patients are now looking for alternatives to traditional drugs, hence heightening the medical cannabis demand.
- Regulatory Hurdles: The legal cannabis industry functions in a challenging regulatory environment that hampers growth. State laws vary from international laws, which creates obstructions in the business. Businesses face operational complexity due to regulation changes related to licenses, taxes, and marketing bans. This challenge will only slow market development and force businesses to invest more in legal and compliance advice.
- Competitive Landscape: The competition is intense among established companies and new entrants. The firms are innovative and are differentiating the products to attain market share. This competition increases the quality of the firms, pushes them to produce new categories of products, and uses better marketing strategies. In the course of competition, companies must be adept at quickly responding to changes in consumer preferences.
- Supply Chain Challenges: Legal marijuana faces supply chain challenges that affect the availability of products and pricing. The issues include growth, transport, and distribution problems. Fluctuations in demand create supply fluctuations and excesses in others, which affect profitability negatively. Companies must face logistical complexities in the supply chain while satisfying all regulatory requirements to improve operational efficiency.
Legal Marijuana Market: Partnership and Acquisitions
- In 2023, Charlotte’s Web formed a joint venture with AJNA BioSciences PBC and British American Tobacco PLC to obtain FDA approval for a full-spectrum hemp extract botanical drug. This collaboration aims to leverage the expertise of each partner to navigate regulatory challenges.
- In 2022, Canopy Growth announced its acquisition of Lemurian, Inc., a producer of high-quality cannabis extracts. This acquisition aimed to broaden Canopy’s portfolio of premium brands and expand its operational capabilities across North America.
- In 2022, Verano secured an additional $100 million under its credit agreement to support expansion efforts, particularly focusing on enhancing its operations in New York, one of the few states with legalized cannabis.
Report Scope
| Feature of the Report | Details |
| Market Size in 2024 | USD 28 Billion |
| Projected Market Size in 2033 | USD 218 Billion |
| Market Size in 2023 | USD 21 Billion |
| CAGR Growth Rate | 25.5% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Marijuana Type, Application, Product Type and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your research requirements. |
Legal Marijuana Market: COVID-19 Analysis
- Positive Impact: The COVID-19 pandemic led to a higher need for legal marijuana products. Especially because people got concerned with how to stay healthy and cope with stress while on lockdown, which led them to turn to cannabis due to its health benefits, this was one area that led to increased internet sales as consumers looked to other alternatives to shop. Cannabis companies, therefore, could now reach out to more customers and grow their market share. Besides, cannabis is mostly a staple in almost all regions, which also ensures that sales and trade are not hindered during the strictest lockdowns.
- Negative Impact: Even though demand grew during the COVID-19 pandemic, the legal marijuana industry faced some negative implications from the same. It created supply chain disruptions for the cultivation and distribution of cannabis that led to shortages and late deliveries. Some businesses faced operational problems, including staff issues and greater health and safety expenses. Shutdowns of the physical retail stores in certain regions and delayed regulation created an added complexity in market operations and disrupted revenue for various companies.
- Current Market Scenario: The adaptation process and the post-pandemic environment suggest robust growth potential in the legalized marijuana market. Consumer interest in cannabis products does not fade out of the picture; it remains stable with efficient supply chains and a gradual shift into e-commerce. Regimens are also becoming liberal. Many jurisdictions are attempting to shift toward better law standards and regulations. Companies are pointing towards innovation and product diversification to cope with emerging consumer preferences, making the market competitive and dynamic in the coming years.
List of the prominent players in the Legal Marijuana Market:
- Canopy Growth Corporation
- Aurora Cannabis Inc.
- Tilray Brands Inc.
- The Cronos Group
- Organigram Holdings Inc.
- VIVO Cannabis Inc.
- Maricann Group Inc.
- ABcannMedicinals Inc.
- Curaleaf
- MedMen
- Cresco Labs
- Trulieve
- Tikun Olam
- Lexaria Bioscience
- Village Farms International Inc.
- Others
The Legal Marijuana Market is segmented as follows:
By Marijuana Type
- Recreational Marijuana
- Medical Marijuana
By Application
- Chronic Pain
- Mental Disorders
- Cancer
- Others (e.g., anxiety, epilepsy, PTSD)
By Product Type
- Buds / Marijuana Flower
- Cannabis Extracts
- Oils
- Tinctures
- Edibles
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