Legalized Cannabis Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Legalized Cannabis Market is segmented By Product Type (Cannabis Flower, Cannabis Oil, Edibles, Topicals, Concentrates, Others) By Application (Medical, Industrial Use, Recreational) By Distribution Channel (Dispensaries, Online Retail, Pharmacies, Licensed Producers/Distributors, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Legalized Cannabis Market Size

Global Legalized Cannabis Market reached US$ 21.2 billion in 2023 and is expected to reach US$ 104.7 billion by 2031, growing with a CAGR of 22.1 % during the forecast period 2024-2031.

Legalizing cannabis can create a substantial economic boost. It generates tax revenue for governments through sales taxes, licensing fees, and other related charges. Additionally, it creates job opportunities in the cultivation, processing, distribution, and retail sectors, thereby stimulating economic growth. Legalization can help alleviate the burden on the criminal justice system by reducing arrests and convictions related to cannabis possession and distribution.

Cannabis has demonstrated medicinal properties, including pain relief, nausea suppression, and appetite stimulation, among others. Legalization allows for easier access to medical cannabis for patients who can benefit from its therapeutic effects. Legalization facilitates research into the potential medical benefits and risks of cannabis use. With fewer legal restrictions, scientists can conduct more comprehensive studies to explore its potential applications in treating various health conditions.

Legalized Cannabis Market Summary

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Legalized Cannabis Market Dynamics

Growing evidence of the medical and therapeutic benefits

Growing evidence of the medical and therapeutic benefits of cannabis has fueled support for legalization. For patients suffering from various medical conditions, legal access to cannabis products can provide relief and improve quality of life. Pharmaceutical companies, biotech firms, and research institutions are increasingly investing in cannabis research to explore its potential medical applications.

For instance, companies like GW Pharmaceuticals have developed cannabis-based pharmaceuticals such as Epidiolex, which is used to treat certain types of epilepsy. The growing body of scientific evidence supporting the medical benefits of cannabis drives further investment in research and development, leading to the creation of new therapeutic products. Growing evidence of the efficacy and safety of medical cannabis has led to greater acceptance among healthcare professionals.

In some jurisdictions where medical cannabis is legal, physicians are increasingly willing to recommend or prescribe cannabis-based treatments to their patients. This acceptance by healthcare professionals legitimizes the medical cannabis industry and facilitates patient access to cannabis-based therapies. Evidence of the medical benefits of cannabis has led to the development of a wider range of cannabis-based products tailored to different medical needs. This includes products with specific cannabinoid profiles (such as CBD-dominant strains), as well as alternative delivery methods like oils, tinctures, capsules, and topical creams. These diversified offerings cater to a broader patient base and drive market growth.

Restraint

Regulations at the state and local levels can pose significant challenges

State regulations often require cannabis products to undergo testing for potency, contaminants, and other quality control measures before they can be sold to consumers. Compliance with these testing requirements can be costly and time-consuming for businesses. For example, in Oregon, stringent testing requirements have contributed to supply chain bottlenecks and product shortages in the cannabis market.

Cannabis businesses are subject to various taxes and fees imposed by state and local governments, including excise taxes, sales taxes, and licensing fees. High tax rates on cannabis products can increase retail prices for consumers and reduce the competitiveness of legal cannabis businesses compared to the illicit market. For instance, in Washington State, cannabis retailers face a combined tax rate of up to 37% on cannabis sales, which contributes to price disparities between legal and illegal cannabis products.

Legalized Cannabis Market Segment Analysis

The global legalized cannabis market is segmented based on product type, application, distribution channel and region.

High Demand for Cannabidiol Oil Due to Its Promising Therapeutic Potential

The cannabis oil from the product type segment accounted for more than over 30% of the share. Cannabis oil, particularly those rich in cannabinoids such as CBD (cannabidiol) and THC (tetrahydrocannabinol), has gained popularity for its potential therapeutic applications. CBD oil, in particular, has been touted for its purported health benefits, including pain relief, anxiety reduction, and anti-inflammatory properties. As awareness of these potential benefits grows, there has been increasing demand for cannabis oil products, driving segment growth.

For instance, in 2023, Cüre brand, has entered into a joint partnership with Hirokazu Yamur to expand its portfolio of CBD products into retail and e-commerce marketplaces in Japan. Additionally, cannabis oil allows for the creation of a wide range of product formulations, including tinctures, capsules, edibles, topicals, and vape oils. This diversification of product offerings appeals to different consumer preferences and consumption methods, contributing to the growth of the cannabis oil segment.

For instance, consumers seeking discreet and convenient consumption options may prefer cannabis oil capsules or vape pens. Moreover, medical cannabis patients, seeking alternative treatments for various health conditions, often turn to cannabis oil products for their therapeutic effects. As more states and countries legalize medical cannabis and expand access to cannabis oil products, the market for these products is expected to continue growing.

Legalized Cannabis Market Geographical Share

Legalized Cannabis in North America for medical use

North America accounted for more than 35% of the market share in 2023. The rise of North America as a significant market for legalized cannabis has been influenced by several factors, including changing attitudes towards cannabis, regulatory developments, economic opportunities, and increasing consumer demand. For instance, several states in the United States and Canada have legalized cannabis for medical and/or recreational use, creating a sizable legal market.

Canada legalized recreational cannabis nationwide in October 2018, becoming the first G7 nation to do so. This move opened up a legal market for cannabis producers, retailers, and consumers across the country. Various states in the U.S., including California, Colorado, Washington, Oregon, and others, have legalized cannabis for recreational and/or medical use, leading to the growth of local cannabis industries.

Growing acceptance of medical cannabis as a legitimate treatment option has contributed to the growth of the legalized cannabis market in North America. Research into the therapeutic effects of cannabis, including cannabis oil, has increased, leading to a better understanding of its potential medical benefits and driving demand for medical cannabis products.

COVID-19 Impact Analysis

During the early stages of the pandemic, there was a surge in cannabis sales as consumers stockpiled essentials, including cannabis products, in anticipation of lockdowns and disruptions to supply chains. This led to increased demand and sales for cannabis dispensaries, particularly for products perceived as essential or having medicinal value. Cannabis retail operations faced significant challenges due to COVID-19 restrictions, including temporary closures, capacity limits, social distancing requirements, and enhanced sanitation measures.

Many dispensaries adapted by implementing online ordering, curbside pickup, and delivery services to meet consumer demand while complying with public health guidelines. Some investors became more cautious, leading to delays or cancellations of funding rounds and mergers/acquisitions. However, certain segments of the industry, such as cannabis tech platforms and online delivery services, attracted increased investment interest due to shifting consumer behaviors.

Legalized Cannabis Market Key Players

The major global players in the market include Green Thumb Industries, Innovative Industrial, Verano Holdings, Trulieve Cannabis, Cresco Labs, Aurora Cannabis, Inc, Aphria, Inc, Cronos Group, VIVO Cannabis Inc, Curaleaf (CURLF) among others.

Key Developments

• On February 15, 2024, dsm-firmenich,had partnered with ZERION Pharma A/S (“ZERION”) to unlock a new era in cannabinoid innovation that champions patient-centric formulations. The partnership grants dsm-firmenich global access to ZERION A/S’s unique, cutting-edge Dispersome technology, developed to significantly increase the bioavailability of oral cannabidiol (CBD) compared to commercially available CBD oils.
• In 2024, British Cannabis acquired Goodbody Botanicals Ltd, marking a milestone in the wellness and industry leadership. This acquisition is not just a merger of two companies; it represents a significant expansion in manufacturing capabilities and an increase in presence on the UK Food Standards Agency (FSA) list of approved products.

Why Purchase the Report?

• To visualize the global legalized cannabis market segmentation based on product type, application, distribution channel, and region as well as understand commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of legalized cannabis market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global Legalized Cannabis market report would provide approximately 69 tables, 58 figures, and 187 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies