- US: +1-408-610-2300
- Toll Free: +1-866-831-4085
- Become a Client
The global legal cannabis market was prized by USD 12.8 billion in 2020. It is estimated to witness 26.3% CAGR from 2021 to 2028.
Rising alertness about the fitness benefits of cannabis utilization along with the increasing corroboration are the important factors, steering enlargement of the market for legal cannabis. Growing demand for the recreational as well as medical cannabis, a rising figure of companies catering to the increasing demand and optimistic approach of the customers are the factors; anticipated to, furthermore, increase the expansion of the market.
The necessity for the pain administration medicine, because of the increasing target populace, is likely to impel the demand for medical cannabis, during the forecast period.
Owing to optimistic development regarding CBD, the using up of cannabinoids products, like CBD, is growing. In addition, a growth in the acceptance of CBD sourced beverages, nutrition, foodstuff, plus others are one more factor, increasing the utilization of these products. Besides, the corroboration of cannabis, used for the adult consumption, has forced demand for the legal cannabis.
Due to the obligation of lockdown sourced by the eruption of Covid-19 pandemic, has unfavorably impacted the expansion of the market. It has disturbed the manufacturing of the product.
|
Pandemic Impact |
Post COVID Outlook |
|
The legal cannabis market decreased by 29.6% from 2019 to 2020 |
The market is estimated to witness a y-o-y growth of approximately 25% to 30% in the next 5 years |
|
The key factors responsible for the decline in revenue include supply chain disruptions due to lockdowns in major countries and a surge in the panic buying scenarios by consumers with respect to various types of cannabis products. |
The COVID-19 pandemic has led to a decrease in the strategic initiatives by many players along with some players even filing for bankruptcy. However, since situations are heading toward normalcy, there is a surge in the merger and acquisition initiatives by players, and this trend is anticipated to grow in the near future. |
|
Although there has been an increase in the number of users during the pandemic, there has also been a substantial price decline, which has led to a decrease in the market size in terms of revenue. For instance, the prices declined by around 60% in 2020 as compared to 2019. |
The R&D activities, such as clinical trials, with respect to Cannabis, also witnessed a disruption due to the pandemic. However, with recent FDA guidelines for continuing research through virtual methods, the clinical trials for cannabis are expected to continue, thereby providing affirmative growth prospects in the coming years. |
Anchorage Press published an article in August 2020. In line with that article, because of an increase in the amount of corona cases, causing to the shutdown of roughly each and every one of their production units, China got disturbed in the early times of the pandemic. Sequentially, this has harmfully impacted the expansion of the market.
The CBD section held the major, above 67.0% revenue share of the legal cannabis market, in 2020. It is expected to further develop by a stable CAGR, during the forecast period. This expansion can be credited to the rising figure of the nations authorizing the making use of CBD, intended for medicinal plus additional functions.
As a result of the increasing figure of research, stating the benefits linked with other cannabinoids, which comprise CBG, CBD, CBN, and CBDa, the others section is likely to record the highest CAGR for the duration of the forecast.
A growth in the figure of company’s incoming the market, together with the rising alertness about the fitness benefits of these end products, like reducing pain, dipping inflammation and bringing down serotonin levels, is additionally projected to stimulate the expansion of the section, throughout the forecast period.
The marijuana section held the major, 70.8% revenue share of the legal cannabis market, in 2020. It is expected to record the highest, above 26.0% CAGR, during the forecast period. Growing use of marijuana intended for adult plus medicinal purpose together with the rising legalization is projected to encourage the enlargement of the section.
The customers are going for purchasing the officially permitted marijuana sourced products. This had made possible the legalization and decriminalization of marijuana, meant for the medicinal utilize in a few nations, in this manner limiting the black market. This can be considered like an opening for different nations, to enhance government income, by way of taxes.
The medical-use section held the major, above 41.0% revenue share of the legal cannabis market, in 2020. It is likely to develop by the subsequent highest CAGR, during the forecast period. The corroboration of medical cannabis in some nations, the range of function in the medicinal division plus the increasing demand, will impel the expansion of the section. An additional important factor powering the enlargement of the section comprises the alertness produced concerning the product, as well as its related fitness benefits.
The recreational end-use section is likely to record the highest CAGR, throughout the forecast period. The nations like the U.S., Uruguay, Canada, and Colombia, have legally recognized the manufactured goods intended for adult utilize. Rising corroboration for leisure use is more expected to generate fresh job openings as well as present benefits to the general financial system. Sequentially, this is completely encouraging the expansion of the section.
In 2020, North America held the major, above 68.0% revenue share of the global legal cannabis market. It is projected to enlarge by a stable CAGR, during the forecast period. The attendance of some international companies in North America, for example Aphria, and Aurora Cannabis is the most important reason directing the local market. Besides, optimistic approach in the direction of these products, in addition to rising demand within this state is accountable for the utilization of CBD end and raw products.
The Greenhouse Grower has published a latest list of 20 leading producers of North America region, in 2020. Consistent with that list Copper State Farms is single of the major greenhouse producers in the U.S. The company owns a greenhouse of approximately 2 million square feet.
Asia is estimated to record the highest CAGR, throughout the forecast period. The rising figure of consumers in a few major nations of the region is increasing the enlargement of the local market. For example, Prohibition Partners published Asian Cannabis Report 2019, in line with that report there are approximately 0.4 million cannabis consumers in Malaysia, 5.6 million consumers in China, and 0.2 million in Japan. Additionally, rising prospects for the manufacture of hemp or marijuana are expected to enhance the export situation for a range of nations, within the region.
The major companies working in the global market concentrate on raising their business share by way of diversification, expansion plus additional policies for the enlargement.
• The Scotts Company LLC
• Sundial Growers, Inc.
• Cronos Group
• GW Pharmaceuticals, plc
• Cara Therapeutics, Inc.
• Insys Therapeutics, Inc.
• Tilray
• Aphria, Inc.
• Canopy Growth Corp.
|
Report Attribute |
Details |
|
Market size value in 2021 |
USD 17.8 billion |
|
Revenue forecast in 2028 |
USD 91.5 billion |
|
Growth rate |
CAGR of 26.3% from 2021 to 2028 |
|
Base year for estimation |
2020 |
|
Historical data |
2014 - 2019 |
|
Forecast period |
2021 - 2028 |
|
Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
|
Report coverage |
Revenue, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Sources, derivatives, end-use, region |
|
Regional scope |
North America; Europe; Asia; Oceania; Latin America & Caribbean; Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; Japan; India; Thailand; Australia; New Zealand; Brazil; Mexico; Uruguay; Colombia |
|
Key companies profiled |
Canopy Growth Corp.; GW Pharmaceuticals, plc; Aphria, Inc.; Cronos Group; Tilray; Sundial Growers Inc.; Insys Therapeutics, Inc.; The Scotts Company LLC; Cara Therapeutics, Inc. |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2028. For the purpose of this study, Million Insights has segmented the global legal cannabis market report on the basis of sources, derivatives, end-use, and region:
• Sources Outlook (Revenue, USD Million, 2014 - 2028)
• Marijuana
• Flowers
• Oil and Tinctures
• Hemp
• Hemp CBD
• Supplements
• Industrial Hemp
• Derivatives Outlook (Revenue, USD Million, 2014 - 2028)
• CBD
• THC
• Others
• End-use Outlook (Revenue, USD Million, 2014 - 2028)
• Medical Use
• Cancer
• Chronic Pain
• Depression and Anxiety
• Arthritis
• Diabetes
• Glaucoma
• Migraines
• Epilepsy
• Multiple Sclerosis
• AIDS
• Amyotrophic Lateral Sclerosis
• Alzheimer’s
• Post-Traumatic Stress Disorder (PTSD)
• Parkinson’s
• Tourette’s
• Others
• Recreational Use
• Industrial Use
• Regional Outlook (Revenue, USD Million, 2014 - 2028)
• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• Asia
• Japan
• China
• India
• Thailand
• Oceania
• Australia
• New Zealand
• Latin America and Caribbean
• Brazil
• Mexico
• Uruguay
• Colombia
• Africa
Research Support Specialist, USA