Legal Cannabis Market: Current Analysis and Forecast (2022-2028)

Legal Cannabis Market: Current Analysis and Forecast (2022-2028)

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 which 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.

• 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.
• Based on the derivatives, the market is fragmented into CBD, THC, and others. The CBD segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period due to the fact that both the scientific community and consumers recognise 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.
• 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.
• 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.
• Some of the major players operating in 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.; and VIVO Cannabis Inc among others. Several M&A’s along with partnerships have been undertaken.