Legal Cannabis Market : Current Analysis and Forecast (2022-2028)
Solutions (Hardware, Software, and Services); Industry (Construction, Oil & Gas, Agriculture, Mining, Disaster Management, and Others); and Region/Country
The legal cannabis market is expected to register a CAGR of approx. 24% over the period of 2022-2028. Cannabis (Cannabis sativa) is a medicinal plant. It contains cannabinoids such as delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). Cannabis cannabinoids work by binding to specific sites in the brain and on nerves. There are over 100 cannabinoids in cannabis, but THC and CBD have received the most attention. Cannabinoids are found in the highest concentrations in the plant’s leaves and flowers. Cannabis is a popular recreational drug. Cannabis is also commonly used to treat multiple sclerosis (MS) and nerve pain. The growing demand for legal cannabis can be attributed to the increasing rate of legalization of cannabis and acceptance of its use in the medical field are the key factors that boost the adoption of inorganic growth strategies among key industry players around the globe. For instance, In Canada, The Cannabis Act (Bill C-45) legalized the use of cannabis, the government started the Canadian Cannabis Survey (CCS) in 2017, and it has been conducted annually since then. In 2020, 14% of the participants aged 16 and older indicated they used cannabis for medical use. Owing to the glaring statistics the rising use of cannabis for medical use leads to higher demand for legal cannabis across the globe and would contribute to the growth of the market in the forthcoming period as well. Furthermore, the legal cannabis market is anticipated to grow on account of the growing research and development activities. In addition, Patients affected by chronic ailments including Alzheimer’s, cancer, Parkinson’s, and various neurological diseases, are being treated using cannabis medically which drives the market growth. However, some of the restraints in the market including the rigid approval procedures and few side effects are impeding the growth of this market all over the world.
Canopy Growth Corporation; Jazz Pharmaceuticals, Inc; Aurora Cannabis Inc; Tilray Inc; The Cronos Group; Sundial Growers Inc.; CARA THERAPEUTICS, INC; Medical Marijuana, Inc; Pfizer Inc.; VIVO Cannabis Inc are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst source, the marijuana category is expected to witness significant market share during the forecast period”
Based on the source, the legal cannabis market is segmented into marijuana and hemp. The marijuana segment accounted for a significant market share in 2021 and it is estimated that it will grow rapidly during the projected timeframe due to the increasing rate of legalization. The use of medical marijuana is acceptable in a number of countries including the U.S., Canada, Italy, etc.
Legal Cannabis Market Report Coverage
“Amongst derivatives, the CBD category is expected to witness considerable CAGR during the forecast period”
Based on the derivatives, the market is fragmented into CBD, THC, and others. The CBD segment grabbed a considerable market share in 2021, and it is expected to grow at a significant CAGR during the forecast period since both the scientific community and consumers recognize CBD’s effectiveness. Compared to the commonly prescribed traditional medications, CBD has been shown to be effective in treating nausea associated with chemotherapy and epileptic seizures. CBD has been studied for the treatment of anxiety and sleep disorders, and it was discovered to have positive effects on patients during the study; however, the long-term effects have yet to be studied.
“Amongst end-user, the medical use category is expected to witness significant CAGR during the forecast period”
Based on the end-user, the market is fragmented into medical use, recreational use, and industrial use. The medical use segment grabbed a considerable market share in 2021, and it is expected to grow at a significant CAGR during the forecast period. Studies are being conducted to determine the strength and effectiveness of cannabis and its derivatives for treating a variety of conditions, which has led to a rise in the use of medical cannabis around the globe.
“North America to witness significant growth during the forecast period”
For a better understanding of the market adoption of legal cannabis, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, U.K., and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America constitutes a major market for the legal cannabis industry owing to the growing various medical cannabis and therapeutic uses of cannabis products as well as the potential impact of cannabis legalization on the U.S. economy. For instance, in February 2020, Verda Innovations, a medical cannabis-based company in the U.S. announced the launch of its legal cannabis e-commerce and delivery platform in Canada, and U.S. Launch of such online platforms is one of the major factors expanding growth. Thus, increase in the number of countries legalizing it and an increase in the number of prescriptions filled for medicinal marijuana biopharmaceutical companies and the diagnostics industry owing to the presence of well-established market players and frequent product launches in the region.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
Global legal cannabis market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Global Legal Cannabis Market Analysis (2022-2028)
Analyzing the historical market, estimation of the current market, and forecasting the future market of the global legal cannabis market were the three major steps undertaken to create and analyze the adoption of legal cannabis in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global legal cannabis market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the legal cannabis market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the legal cannabis market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as the source, derivatives, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the legal cannabis market. Further, we conducted factor analysis using dependent and independent variables such as increasing rate of legalization of cannabis, etc. globally. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the legal cannabis market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global legal cannabis market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the legal cannabis market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global legal cannabis market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global legal cannabis market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of source, derivatives, and end-user in the global legal cannabis market.
The main objective of the Global Legal cannabis Market Study
The current & future market trends of the global legal cannabis market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the legal cannabis market in terms of Value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of source, derivative, and end-user.
- Define and analysis of the regulatory framework for the legal cannabis market industry.
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the legal cannabis market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and Rest of the world.
- Company profiles of the legal cannabis market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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