Global Legal Cannabis Market by End-use (Medical, Recreational), by Sources (Hemp, Marijuana), by Derivatives (CBD, THC) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global legal cannabis market was worth USD 12.8 billion in 2020. It is projected to grow at a compound annual rate (CAGR 26.3%) between 2021 and 2028. The market is driven by rising legalization and increased awareness about the health benefits of cannabis use. The market is expected to grow due to a positive consumer attitude, growing demand for recreational and medical cannabis, as well as a growing number companies that cater to this rising demand. A report by Congressional Research Service published in June 2018 shows that hemp cultivation has been legalized in approximately 30 countries across Asia, Europe and North America. A cultural shift was observed in the way the product is perceived by consumers after full legalization.

The demand for medical marijuana is expected to rise due to the growing population's need for pain relief. A National Library of Medicine observational study in 2019 included around 1,321 participants. This survey was designed to analyze the transition of chronic pain patients from traditional treatments to cannabis. The survey found that around 80% of respondents used cannabis as a substitute for traditional medicine. Around 53% of the respondents switched from opioids to marijuana for chronic pain. 22% changed from benzodiazepines and 22% from the other. These products are increasingly being used to treat chronic pain. This will lead to an increase in raw material cultivation to meet rising demand.

Positive reforms in CBD have led to an increase in cannabinoid product consumption. Gallup Survey 2019 shows that CBD products and CBD are most popular among Americans aged 18 to 29 years old. Around 20% of those aged 18 to 29 use CBD. 16% of those aged 30 to 49 use CBD. 11% of people between 50 and 64 use CBD. Approximately 8% of the population over 65 uses CBD. There has been a rise in CBD-based edibles and beverages. Another factor driving the increase in these products is their availability.

COVID19 Legal Cannabinol Market Impact: 29.6% decline in revenue between 2019 and 2020

Due to the imposition lockdown, which disrupted product manufacturing, the COVID-19 epidemic has negatively impacted market growth. Anchorage Press published an article in August 2020 stating that China was affected by the pandemic in its initial days. This was due to an increase in corona cases, which led to the closure of nearly all their manufacturing plants. This has had a negative impact on market growth. The medical use of the product in treating various diseases has seen a tremendous increase over the years. Israel, for example, has done extensive research into the medical benefits of these drugs.

People in countries that ban marijuana have turned to CBD oil derived from hemp to satisfy their medical needs. The legalization of marijuana for adult use has also driven product demand. The legalization of cannabis is also likely to be supported by the curbing of the illegal drug market. RAND Corp. and Mexico Institute of Competitiveness have previously reported that marijuana accounted for between 20-30% of drug cartels’ revenue. Vox published an article in Vox in 2019. Legalization can result in the loss of revenue for illicit channels as more people shift to legal purchasing options.

Sources Insights

The marijuana segment was responsible for 70.8% of the total revenue in 2020 and is expected to grow at a faster rate of 26% between 2021-2028. The segment is expected to grow as more people legalize marijuana and allow adult-use as well as medical marijuana. It is accepted worldwide that marijuana can be used for medical purposes in the United States, Canada, Croatia and Italy. The U.S., Canada, Colombia, Uruguay and other countries have a strong presence in medical marijuana production. Israel, however, is focused on R&D and technology supply to other countries.

The legalization of marijuana-based products is gaining popularity. This has resulted in decriminalization and legalization in some countries. Individual countries can use this opportunity to increase their tax revenue. In 2018, Chicago's total tax collection was USD 52.7million, from medicinal marijuana. Patients have seen a shift in their preferences for marijuana-based products, from recreational to medical use, since legalization.

Derivatives Insights

The CBD segment was the most lucrative in 2020 with a revenue share greater than 67%. It will continue to grow at a steady CAGR of 3% between 2021 and 2028. The growing number of countries that allow CBD use for medical and other purposes can explain this growth. Many ongoing studies have shown the potential health benefits of CBD for certain conditions. In 2018, GW Research Ltd. sponsored a study that examined the effectiveness of CBD on Dravet syndrome-related disorders in children and young adults. The results were encouraging. Mclean Hospital is also conducting a clinical study to examine the effects of CBD-based sublingual medicines on chronic pain.

Due to increasing research that claims the benefits of other cannabinoids such as CBD, CBN and CBG, the others segment will experience the fastest CAGR over the forecast period. The segment is expected to grow due to an increase in companies entering the market and growing awareness about the health benefits associated with these derivatives (e.g., reduced inflammation, lower serotonin levels and relief of pain). GreenWay Herbal Products LLC, an American-based company, has launched a cannabinoid based product line in 2019. These initiatives will raise awareness about the potential benefits and increase demand for the compound in the future.

End-use Insights

The medical-use segment, which accounted for more than 41% of the total revenue in 2020, will grow at the second-fastest annual growth rate (CAGR) from 2021-2028. Segment growth will be driven by rising demand, expanded application in the medical sector and legalization of medical marijuana in many countries. After legalization in Australia, medical cannabis has been used more for medicinal purposes. It is being prescribed by doctors to treat various medical conditions. The segment's growth is also driven by the increased awareness about the product as well as its health benefits.

CAGR for the recreational segment is expected to be the fastest during the forecast period. Canada, Uruguay, Colombia and some U.S. states have legalized marijuana for adult use. The legalization of marijuana for adults is a step towards eradicating the black market and generating substantial tax revenue. The legalization of recreational marijuana is expected to increase job opportunities and provide benefits for the economy. This is a positive contribution to segment growth.

Regional Insights

North America had the highest revenue share at 68% or more in 2020. It will continue to grow at a steady CAGR of 3% between 2021 and 2028. The key driver of the North American market is the presence of many global companies, including Aphria and Aurora Cannabis. The region's growing demand for these products and the positive attitude towards them are key factors in the growth of CBD end products as well as raw cannabis. According to Greenhouse Grower's latest list of top 20 North American producers (2020), Copper state Farms is the largest greenhouse producer in the U.S. Copper state Farms has a greenhouse covering almost 2 million square feet.

Asia will experience the fastest CAGR growth over the forecast period. The regional market is experiencing a boom in growth due to the increasing number of users in certain countries. According to the Asian Cannabis Report 2019, Prohibition Partners estimates that there are approximately 5.6 million Chinese cannabis users, 0.2 million Japanese users, and 0.4 million Malaysian users. The export prospects for different countries in the region will be boosted by the growing production of cannabis and hemp.

Market Share Insights & Key Companies

The market's key players focus on expanding their industry share by diversification, expansion, and other growth strategies. CV Sciences, Inc., which is a major player in the U.S., announced in 2019 a distribution partnership for Harris Teeter. The partnership was intended to expand the reach of the former company at more than 5,400 retail locations across the U.S. These are some of the major players in the global legal marijuana market:

• Canopy Growth Corp.

• GW Pharmaceuticals, plc

• Aphria, Inc.

• Cronos Group

• Tilray

• Sundial Growers, Inc.

• Insys Therapeutics, Inc.

• The Scotts Company LLC

• Cara Therapeutics, Inc.

Up Market Research published a new report titled “Legal Cannabis Market research report which is segmented by End-use (Medical, Recreational), by Sources (Hemp, Marijuana), by Derivatives (CBD, THC), By Players/Companies Inc; Aphria, Inc; Cronos Group; Tilray; Sundial Growers Inc; Insys Therapeutics, Canopy Growth Corporation; GW Pharmaceuticals, plc; Aurora Cannabis, Inc; The Scotts Company LLC; VIVO Cannabis Inc; and Cara Therapeutics Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Legal Cannabis Market Report Segments:

The market is segmented by End-use (Medical, Recreational), by Sources (Hemp, Marijuana), by Derivatives (CBD, THC).

Legal Cannabis Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Legal Cannabis Market

Overview of the regional outlook of the Legal Cannabis Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Legal Cannabis Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Legal Cannabis Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Medical

                2. Recreational

                1. Hemp

                2. Marijuana

                1. CBD

                2. THC

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Legal Cannabis Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
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• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Legal Cannabis Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.