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The global legal marijuana market size has been projected to reach USD 102.2 billion by the year 2030, advancing at a substantial CAGR of 25.5% during the forecast period. Marijuana has witnessed a constantly rising demand from consumers globally, in terms of both medical and recreational uses. This has led governments and authorities in various nations, particularly in North America and Europe, to change their stance when it comes to the legalization of the product. However, the bigger picture remains that countries differ in terms of what they find acceptable when it comes to marijuana consumption. In the coming years, it is expected that a clearer roadmap to legalization will aid the growth of the market significantly.
Marijuana is considered a psychoactive narcotic drug, which is derived from parts of the cannabis plant, specifically Cannabis sativa. The parts used to derive the product include flowering tops and leaves, and it is generally consumed for medicinal or recreational purposes through vaping or smoking. Marijuana has been considered to be an illegal substance for a long period of time, owing to its supposed abuse potential; however, various organizations have made several breakthroughs in shattering this belief, thus forcing governments globally to change their minds regarding its legality. For instance, over the past few years, the United States has been steadily witnessing some of its states making the use of recreational marijuana legal. These include Washington, Oregon, Virginia, California, Washington, Montana, New York, New Jersey, and Michigan, among others.
Marijuana legalization involves making the marijuana plant and its related products legalized for sale and use, in the treatment of various disorders and conditions such as nausea and chronic pain. Marijuana has been considered to be a capable alternative to traditional medicines and drugs, which has aided in improving its social acceptance. The US FDA has approved a number of medicines for commercial sale on account of the various medical advantages that have been proven to be offered by certain marijuana-based formulations. As per a survey by Gallup, the percentage of adults in the United States who have used marijuana at some point stood at 49% in 2021, which is a steady rise from 40% in 2014. The growing demand has compelled several companies, specifically start-ups, to invest in the R&D of new products that comply with government regulations and offer alternate uses.
The growth of the medical marijuana industry depends largely on how forward-moving the government policies are. A good number of countries that have legalized marijuana usage have gone ahead to allow for cannabis cultivation in order to gain revenue from taxes and cut down on imports, with the added advantage of improving employment generation in these economies.
The advent of the COVID-19 pandemic led to a decline in the global market revenue, brought on by the numerous supply chain disruptions as well as the widespread impact on the import-export business due to lockdowns, as well as regulatory changes in the context of marijuana transportation. The silver lining has been that online sales of marijuana have improved, which has aided in companies' establishment of multi-channel strategies.
Research Support Specialist, USA