Legal Marijuana Market Size, Share, Trends Analysis 2017-2027
As per the research study conducted by Confianza Market Research, the global legal marijuana market which was valued at USD 18.2 billion by the end of 2019, is anticipated to grow at a CAGR of 18.7% and reach USD 74.2 billion by the end of 2027. The increasing legalization of marijuana across the globe for medicinal as well as adult-use is expected to boost the growth of this market of the next few years. Medicinal marijuana is widely used for treatments in chronic conditions like arthritis, cancer, and neurological disorders like depression, anxiety, epilepsy and Alzheimer’s, and Parkinson’s disease. The wide application scope for marijuana in the medical field is expected to boost its demand in the upcoming years.
As of date, there is no medicine for cancer, which is the second most leading cause of death globally, according to the World Health Organisation (WHO). The high importance of marijuana in cancer treatment is an important parameter for its growth. Similarly, the growing concerns of chronic pain globally due to a number of reasons and side effects from opioid usage has open the gates for marijuana usage in treating chronic pain globally and has gained good traction which is responsible for the growth of the legal marijuana market.
Decriminalization and legalization of medical marijuana in many countries have discouraged the black market as people tend to purchase legal marijuana for medicinal as well as any adult usage. This has encouraged government earning via taxation after legalizing marijuana which has also seen as a growth opportunity for the legal marijuana market. For instance, the total tax revenue collected by the state of Florida in the US was around USD 350 million at the end of 2019. This revenue income by the government has opened new doors for the development of infrastructure and improvising education programs for the local people. The legalization of marijuana has created job opportunities for the cultivator, dispensers, laboratories, and delivery agents and has also assisted in eliminating the black market for marijuana in most of the developed countries.
Marijuana is bifurcated on the basis of types into medicinal and adult use. The medicinal type has a dominant market share with more than 70% revenue share by the end of 2019. The medical usage of marijuana has been strictly under a physician’s prescription and are distributed by the government. This helps the suppliers to maintain the quality standards. With the increased scientific literature and knowledge of ancient Ayurveda, the medicinal usage of marijuana has increased over the years which has assisted in treating some chronic diseases including cancer and mental disorders. As many countries are in a race of legalising marijuana for medical purposes, this is likely to add to the growth of this market over the next few years.
By the end of 2027, the adult-use type segment of marijuana is expected to be the dominant segment, it is defined as the use of marijuana apart from medicinal usage. In many countries which have legalized marijuana for medical purposes, the adult-use remains illegal, but countries like Canada, Columbia, and some states of the United States have legalized the adult usage of marijuana with an aim to completely eradicate the black market and focus on tax revenue earnings which will be gained after complete legalizing marijuana for both medicinal and adult use. Canada and the United States where legal marijuana is available to have seen tremendous growth in opting for marijuana for recreational purposes instead of medical. This has encouraged a wide variety at often low prices.
Based on product type dynamics, marijuana can be segmented into oils, buds, and tinctures. The bud segment was valued at USD 9 billion by the end of 2019, and acquired the position of the largest segment in terms of revenue, whereas, the oil segment is expected to grow at a steady growth rate. On a general basis, dried buds are used for smoking to reduce the growth of cancer and reduce chronic pain. Additionally, smoking is much economical than other ways of intake and often the widely used method for marijuana treatment. However, smoking marijuana can lead to severe respiratory disorders like COPD, Bronchitis, and others and is often discouraged in some cultures, these factors are expected to decrease the growth of buds in the upcoming years.
Marijuana oils are used widely in the treatment of cancer and can also reduce anxiety and stress by improving sleep. The treatment through oils is calculated as a much safer option than smoking marijuana and is widely used in most parts of the world. The legalization, however, depends from country to country. Moreover, doctors suggest treating patients with oils instead of buds smoking which has harmful components and encourages the formation of Tar in the lungs.
The legal marijuana market is broadly segmented into a mental disorder, chronic pain, cancer, and other illness. The chronic pain segment was calculated as the largest segment by revenue with a share of 44.2% by the end of 2019. The increasing number of patients for chronic pain across the globe is expected to drive the market share of marijuana in medical applications. As per a research study conducted in the US, 21% of the adults in the US had chronic pain and 7.8% out of which had severe impact chronic pain. Similar is a situation in developing countries like India, China, and Brazil where healthcare infrastructure is gaining good momentum.
Similarly, the mental disorders segmented is expected to be the fastest-growing segment in the upcoming years. As per the figures of WHO, about 55 million people worldwide are suffering from epilepsy and around 250 million across the globe are suffering from depression making it a major healthcare concern. Other mental disorders such as stress, anxiety, Alzheimer’s disease, Parkinson’s disease is expected to boost the market in the upcoming years.
Government regulations for legalizing marijuana and liberal government norms in the US and Canada are the major reasons that the North American market dominated the global marijuana market with a revenue share of 87% as per the figures received in 2019. The European market is not far behind and is anticipated to be the emerging market in the next 5-7 years which is accompanied by stringent rules and regulations favored by the government for cultivation and distribution of marijuana and favor the market growth. Similarly, Israel’s knowledge and expertise in Agri-space is helping various countries to develop research and development in the marijuana field. Latin American markets are expected to be the largest suppliers of marijuana in the global market. Countries in the APAC region such as Thailand and Indonesia have created their legal structure for the marijuana market and are expected to reap the benefits shortly.
Some prominent players of the legal marijuana market are, Maricann Group, Tilray, Canopy Growth Corporation, ABcann Medicinals Inc., The Cronos Group, Lexaria Corp., etc. The research and development initiatives of these players are assisting market growth.
The global report for Legal marijuana focuses on revenue and market share growth at local, regional, and global levels. For the research purpose of this market study, Confianza Market Research and Consultancy has segmented the market in the following ways.
Marijuana Type Outlook
Product Type Outlook
Medical Application Outlook
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