Legal Marijuana Trends and Forecast
The future of the global legal marijuana market looks promising with opportunities in the medical and adult use markets. The global legal marijuana market is expected to reach an estimated $124.0 million by 2030 with a CAGR of 18.4% from 2024 to 2030. The major drivers for this market are increasing awareness of the therapeutic benefits of this product, such as reducing eye pressure and managing pain, and the rising demand for cannabis-containing vapes, pre-rolls, and gummies.
• Lucintel forecasts that, within the product type category, oil & tincture will remain a larger segment over the forecast period due to the rapid introduction of cannabis-based products for medical use.
• Within the application category, medical will remain a larger segment due to recent approval and reduced legal penalties for the medical use of marijuana.
• In terms of regions, North America will remain the largest region over the forecast period due to the quick and notable rise in the rate at which governments are decriminalizing cannabis for both adult and medical use.
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Emerging Trends in the Legal Marijuana Market
Emerging trends in the legal marijuana market are reshaping its future applications and dynamics, highlighting innovations and shifting consumer preferences.
• Increased Focus on Medical Cannabis: There is a growing emphasis on expanding medical cannabis research and development. This trend is driven by increasing evidence of therapeutic benefits for conditions like chronic pain, epilepsy, and cancer-related symptoms. More clinical trials are expected, and new medications based on cannabis may be approved.
• Rise of Cannabis-Infused Products: The market for cannabis-infused products, such as edibles, drinks, and cosmetics, is rapidly growing. Consumers now seek alternative ways to consume marijuana besides smoking. This has led to a wide range of innovative products designed to cater to diverse tastes and preferences.
• Technological Innovations in Cultivation: Advancements in cultivation technology, like vertical farming, hydroponics, and automated facilities, have transformed marijuana cultivation. Resource-efficient technologies improve yield and quality, while making marijuana farming more sustainable and cost-effective.
• Expansion of Legalization Efforts: Legalization efforts are expanding globally, with more countries and states considering or implementing frameworks for medical and recreational use. This trend is opening market opportunities, increasing investment, and promoting industry growth across new regions.
In summary, these trends showcase a fast-evolving market driven by advancements in medical research, product innovation, cultivation technology, and expanded legalization efforts.
Recent Developments in the Legal Marijuana Market
Recent developments have highlighted ongoing innovations and advancements in the legal marijuana market:
• Expansion of Legal Markets: The U.S. legal marijuana market has grown significantly, with states like New York and New Jersey recently legalizing recreational cannabis. This expansion is driving market growth and creating new opportunities for businesses.
• Advancements in Extraction Technologies: Innovations in extraction technologies, such as CO2 extraction and solventless methods, have enhanced the efficiency and purity of cannabis concentrates. These advancements allow for higher-quality extracts and concentrates, which are vital for cannabis-infused products and medicinal applications.
• Development of Cannabis-Infused Products: The market for cannabis-infused products, including edibles, beverages, and topicals, is expanding rapidly. Companies are producing a variety of goods to cater to customer preferences, such as low-dose edibles and wellness products, creating opportunities to attract diverse consumer segments.
• Increased Medical Research and Approvals: Medical cannabis research and approvals for cannabis-based medications have increased. Recent approvals for cannabinoid-based treatments targeting epilepsy and chronic pain are broadening the therapeutic applications of marijuana within the medical community.
To conclude, these developments demonstrate the dynamic nature of this market, driven by entry into new markets, technological advancements, product diversification, and increased medical research.
Strategic Growth Opportunities for Legal Marijuana Market
The major strategic opportunities in this market include:
• Expansion into New Markets: There are substantial growth prospects in both domestic and international markets. Companies can enter new markets through operations, partnerships, and investments in local infrastructure, capitalizing on the increasing legalization movements worldwide.
• Diversification of Product Offerings: Offering a wide range of cannabis-based products, from edibles to wellness items, can help attract a broader customer base. By differentiating through innovation across product lines, companies can meet the growing demand for alternative consumption methods.
• Investment in Technology and Automation: Investing in advanced cultivation and extraction technologies can enhance production efficiency and improve product quality. Techniques like vertical farming and automation help reduce costs and boost output, keeping companies competitive in a rapidly changing market.
• Focus on Medical Cannabis: The medical cannabis sector offers significant opportunities due to increased research activity and the approval of new treatments. Developing new medical products and investing in clinical trials and healthcare partnerships can help meet the needs of a market focused on therapeutic applications.
These strategic opportunities can drive growth and success in the legal marijuana market, enabling companies to capitalize on emerging trends and new developments.
Legal Marijuana Market Driver and Challenges
The legal marijuana market is experiencing rapid growth due to widespread legalization and increasing medical applications. However, it also faces challenges, including regulatory hurdles and complex market dynamics.
The factors driving the legal marijuana market include:
• Increasing Legalization: Legalization of cannabis for recreational and medicinal use in various regions is driving market growth. With more countries and states enacting legal frameworks, business opportunities and consumer access are expanding.
• Growing Consumer Demand: More consumers are interested in using marijuana for recreational and therapeutic purposes. This demand has spurred innovation, expanded investment, and product diversification, contributing to market growth.
• Advances in Research: Ongoing research into the potential medical benefits of cannabis has led to the development of new treatments, which expands medical marijuana applications and market potential.
• Technological Advancements: Innovations in cultivation and extraction techniques are increasing production efficiency and product quality, reducing costs, and enhancing the market’s competitiveness.
Challenges in the legal marijuana market include:
• Regulatory Roadblocks: Navigating complex regulations that vary across regions can be challenging. Companies must comply with multiple legislative requirements, which may restrict entry or operations in certain areas.
• Market Oversaturation: The growing number of market players can lead to intense competition and oversaturation. Companies need to differentiate their products beyond pricing to maintain a competitive edge.
• Supply Chain Issues: Managing supply chains, including raw material sourcing and distribution, can be challenging. Disruptions in the supply chain can affect production schedules and delivery timelines, impacting overall market performance.
• Socio-Political Resistance: In some regions, there is still notable social and political opposition to marijuana legalization. This resistance can hinder policy development and expansion efforts.
In conclusion, addressing these drivers and challenges is crucial for success in the legal marijuana market, requiring strategic planning and adaptability to changing conditions.
List of Legal Marijuana Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies legal marijuana companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the legal marijuana companies profiled in this report include-
• Canopy Growth Corporation
• AURORA CANNABIS
• Tilray Brands
• ABcann Medicinals
• The Cronos
• MARICANN
• Organigram Holdings
Legal Marijuana by Segment
The study includes a forecast for the global legal marijuana by product type, application, and region.
Legal Marijuana Market by Product Type [Analysis by Value from 2018 to 2030]:
• Flower
• Oil & Tinctures
Legal Marijuana Market by Application [Analysis by Value from 2018 to 2030]:
• Medical
• Adult Use
Legal Marijuana Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Legal Marijuana Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major legal marijuana producers in key regions: the USA, China, India, Japan, and Germany
• United States: The US legal marijuana market has experienced marked expansion through some states legalizing recreational use like New York and New Jersey. Federal laws are also heading towards decriminalization which could lead to harmonized regulations across states thereby potentially boosting market growth. Noteworthy is also innovations on health products derived from cannabis as well as improvements on extraction technologies.
• China: China is wary of marijuana because it has strict rules that limit its use. Nonetheless, there is increasing interest in industrial hemp and how it can be used. Recent occurrences include governments investigating how they can turn hemp into textiles or building materials though they still prohibit most recreational or medical marijuana.
• Germany: Germany’s medical cannabis program has been expanding with efforts by the government to improve patient access through their health insurance. Some developments here have included increases in approved medicines as well as attempts at streamlining distribution channels aiming at patient access boosters alongside industry growth enhancers.
• India: India has begun discussing the possibility of legalizing medical marijuana due to the growing awareness about its therapeutic benefits. There is still ongoing research initiatives and pilot programs exploring possible medical applications for this herb. Despite being nascent currently; increased advocacy around science could open doors for regulatory interventions later on.
• Japan: Japan remains severely restrictive on marijuana with limited allowances for its use mainly as an industrial hemp. However, cannabis awareness seems to be growing in wellness and medical circles. Recent occurrences include more dialogue about the advantages of using cannabis related products and its slow acceptance among some doctors.
Features of the Global Legal Marijuana Market
Market Size Estimates: Legal marijuana market size estimation in terms of value ($M).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Legal marijuana market size by product type, application, and region in terms of value ($M).
Regional Analysis: Legal marijuana market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different product types, applications, and regions for the legal marijuana market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the legal marijuana market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the legal marijuana market size?
Answer: The global legal marijuana market is expected to reach an estimated $124.0 million by 2030.
Q2. What is the growth forecast for legal marijuana market?
Answer: The global legal marijuana market is expected to grow with a CAGR of 18.4% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the legal marijuana market?
Answer: The major drivers for this market are increasing awareness of the therapeutic benefits of this product, such as reducing eye pressure and managing pain, and the rising demand for cannabis-containing vapes, pre-rolls, and gummies.
Q4. What are the major segments for legal marijuana market?
Answer: The future of the legal marijuana market looks promising with opportunities in the medical and adult use markets.
Q5. Who are the key legal marijuana market companies?
Answer: Some of the key legal marijuana companies are as follows:
• Canopy Growth Corporation
• AURORA CANNABIS
• Tilray Brands
• ABcann Medicinals
• The Cronos
• MARICANN
• Organigram Holdings
Q6. Which legal marijuana market segment will be the largest in future?
Answer: Lucintel forecasts that oil & tincture will remain the larger segment over the forecast period due to the rapid introduction of cannabis-based products for medical use.
Q7. In legal marijuana market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region over the forecast period due to the quick and notable rise in the rate at which governments are decriminalizing cannabis for both adult and medical use.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the legal marijuana market by product type (flower and oil & tinctures), application (medical and adult use), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Legal Marijuana Market, Legal Marijuana Market Size, Legal Marijuana Market Growth, Legal Marijuana Market Analysis, Legal Marijuana Market Report, Legal Marijuana Market Share, Legal Marijuana Market Trends, Legal Marijuana Market Forecast, Legal Marijuana Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.