Legal Marijuana Market Size, Share & Trends, COVID-19 Impact Analysis Report | 2021-2028
The global legal marijuana market was valued at USD 9.3 Billion in 2020. It is projected to grow at a compound annual rate of 27.1% between 2021 and 2028. The growing demand for legal marijuana is one of the main factors driving the market growth. This is due to the increasing number of legal cannabis nations. Due to recent legalizations in various countries, the growing popularity of medical cannabis for different ailments is increasing worldwide. Medical marijuana is available to patients suffering from many neurological disorders and chronic conditions, including Alzheimer’s disease, Parkinson’s disease, Parkinson’s disease, and cancer. In countries that have legalized medical marijuana, the demand for cannabis oil has been growing rapidly. The recent European food rulings will increase the demand for CBD isolates over the next few years. Children who consume cannabis oil are also being prescribed oil because it has been shown to be extremely beneficial in treating disorders like epilepsy. Governor Phil Murphy signed three bills in February 2021 to legalize recreational cannabis for people 21 and older in New Jersey, USA. The market potential will be further boosted by this legislation in the next few months.
Changes in government policies are expected to drive the demand for legal cannabis to record levels. Many startups are launching in R&D, cannabis testing, and manufacturing. Many provinces in Canada are eager to privatize cannabis retail stores. Many provinces, which had previously chosen a single supplier, are now open to applications from multiple suppliers. These factors will drive the market during the forecast period.
The COVID-19 pandemic disrupted supply chain management for cannabis products. The strict lockdown in place around the world has led to a decrease in the supply of cannabis dispensaries. The export industry has also been affected by the COVID-19 pandemic. Export and import businesses have been affected by disruptions in the supply chain due to lockdowns in key countries. The rise in medical conditions that require cannabis to treat is expected to lead to a greater number of patients using it as a treatment. The European Commission has resumed new food applications for edible CBD products in December 2020.
|Pandemic Impact||Outlook after COVID|
|From 2019 to 2020, the legal marijuana market fell by 32.1%||Market growth is expected to be between 25% and 28% in the next five years.|
|Revenue decline can be attributed to major factors like disruptions in the supply chain, oversupply or undersupply in different geographic locations, and a decrease in prices||After the pandemic, it is expected that patients will shift to marijuana for adult use. The legalization of marijuana for medical or adult use will also increase.|
|Due to changes in regulations and lockdowns regarding the transport of marijuana and its products, this has had a significant impact on the import-export industry.||Due to an increase in medical conditions that require cannabis for treatment, and the availability of a variety of marijuana-based consumer products, the number of patients who use cannabis to treat their ailments is expected to rise.|
As the government accepts more applications for cannabis growers, there has been an increase in cannabis cultivators in the United States. The number of cannabis prescriptions is also increasing. This will increase cannabis sales and open up new revenue streams for market players. This market will also benefit from the expected federal-level legalization in the U.S. of medical marijuana.
With a market share of 54.6%, the adult-use segment was dominant in 2020. It is expected to see significant growth between 2021 and 2028. The legalization of marijuana for adult use is one major factor driving demand for legal cannabis. Patients are now choosing to use cannabis for their adult purposes, rather than for medicinal purposes in countries like Canada or the U.S. where it has been legalized. This has led to a significant shift in the industry. Its low price and availability can explain this. In countries where medical marijuana reimbursement is not possible, this change is quite evident.
Over the forecast period, the medical segment will grow at a steady pace. The key drivers of this segment include a growing awareness of the medical benefits of cannabis and the rising demand for cannabis-based pain management treatments. In addition, the legalization of cannabis for medicinal purposes is increasing. Several countries have legalized medical cannabis in recent years. However, prescriptions are subject to physician discretion and patient needs. The market is set to experience lucrative growth as more countries legalize medical marijuana.
With a 51.1% revenue share, the oil segment was the dominant market player in 2020. This segment is driven by legalization of recreational marijuana, as well as the growing use of marijuana oil in countries like the U.S. and Canada.
The perception of cannabis and its derivatives’ health benefits is also strong. Canadians are taught by drug stores about the side effects and benefits of smoking cannabis and the limits that it can cause to their bodies. The demand would rise if cannabis oil was more widely known than flowers.
This market is expected to grow the fastest over the forecast period. The treatment of cancer-induced nausea or vomiting can be done with oil extracted from cannabis. Cannabinoids in cannabis oil can help with anxiety and sleep disorders. As there has been an increase in patients who prefer cannabis oil to flowers, the demand for cannabis oils will increase. Children are prohibited from smoking marijuana because of its potentially harmful components, which can cause respiratory problems.
With a 44.8% share, the chronic pain segment dominated the 2020’s market. There are many types of chronic pain: low back pain and arthritis, pain from cancer, pain from the neck, pain in the face, and low back pain. According to some reports, medical marijuana can relieve pain. The market for cannabis is set to expand rapidly as more people become aware of its benefits.
Due to a large number of people with mental disorders, the mental disorders segment will be the fastest-growing segment in the future. Patients suffering from mental disorders such as anxiety have seen an increase in cannabis use and products adoption. This is due to the antipsychotic effects of cannabis on the nervous system. The high therapeutic benefits of cannabis-based products are expected to help with anxiety. The Anxiety and Depression Society of America estimate that 18.1% of Americans suffer from anxiety disorders every year. This number is increasing at a rapid pace.
North America was the dominant market, with a share of 79.6% for 2020. Enlightened regulations and legalization of marijuana in both the U.S.A and Canada have supported the growth of the region’s market. Other factors that are driving the market include the presence of important marijuana growers and manufacturers, legalization of adult marijuana use, increased retail sales, and geographic expansion of retail outlets.
Australia, Mexico, Germany, and Colombia are all promising markets for marijuana. These countries have already started their own production and are therefore secondary markets that will become viable over the next few years. Changes in government policies are expected to cause rapid growth in market demand. Many new companies are focusing on the production and research of cannabis. It is expected that the number of marijuana-related applications will increase. This could open up new revenue streams for players from different countries. This will eventually influence the market’s growth.
Marijuana products offer many medical benefits, which has led to their increased adoption in the treatment of chronic conditions. They are quickly gaining popularity. Companies are focusing on expanding their product lines, entering new markets, and gaining new customers to increase the competition in the global marketplace.
As a growing number of European and Asian countries legalize medical marijuana, the market is expanding rapidly. It is expected that the first players in this market will capitalize on their increased regional presence and consolidate their market share. Cross-border trade is also affected by a variety of regulatory, pricing, and quality norms. The following are some of the most prominent players in global legal cannabis markets:
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