With various medical applications and benefits being discovered through scientific research, legal marijuana and its derivatives are increasingly being used in various healthcare therapies and pharmaceutical products. The growing legalization of marijuana for both medical and recreational purposes across countries has led to the expansion of the legal marijuana industry.
The Global Legal Marijuana Market is estimated to be valued at US$ 20.05 Mn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
Legal marijuana products include cannabis in various forms such as buds, oils, concentrates and edibles. These products are used for treating chronic pain, reducing nausea, controlling seizures, and other medical applications. The market provides numerous advantages over conventional treatment options such as reduced side effects and multi-target therapeutic properties. Growing adoption of alternative and herbal medicines is an important driver for the demand of legal marijuana.
Key Takeaways
Key players operating in the Legal Marijuana Market are Murata Machinery, Ltd., Honeywell Intelligrated, Bastian Solutions, Inc., Dematic, TGW Logistics Group, Daifuku Co., Ltd., KNAPP AG, Beumer Group, SSI Schaefer Group, and Kardex Group. Several key players are focusing on geographical expansion, product innovation and partnership to expand their market presence and gain a competitive edge in the market.
The growing legalization of medical marijuana along with rising awareness about various medical applications is driving the demand across countries. Countries like Canada and some parts of the United States have witnessed a robust growth due to legalization of cannabis for medical and recreational use over the past few years. Growing prevalence of chronic diseases and preference for herbal drugs over pharmaceutical drugs are projected to propel the demand.
Globally, North America dominates the legal marijuana market due to early legalization of marijuana in countries like Canada and many U.S. states. However, with growing legalization in various countries in South America, Europe and Asia Pacific, these regional markets are expected to exhibit fastest growth during the forecast period. Several countries have legalized marijuana for research and medical purposes that is supporting the expansion of the global market.
Market key trends
Growing use of cannabis-infused edible products and beverages is a key trend witnessed in the Legal Marijuana Market Growth. Companies are developing various innovative edible and drinkable products infused with hemp extracts or Cannabidiol (CBD) for health and wellness applications. Several beverage companies have introduced cannabis-infused beverages combing marijuana, tea, coffee or other drinks. These new types of products are gaining popularity among consumers.
Porter’s Analysis
Threat of new entrants: Low upfront capital investments in terms of production facilities but a highly regulated market and limited legal distribution channels make entry difficult.
Bargaining power of buyers: High as customers can switch easily between available brands and a small number of very large dispensaries customers have stronger negotiation power.
Bargaining power of suppliers: Moderate as only a handful of cultivators control major supply but the market is growing attracting more cultivators giving buyers alternative source options.
Threat of new substitutes: Low since marijuana has established itself as alternative for pharmaceutical and recreational uses and no close substitutes exist.
Competitive rivalry: Fierce as the market is at growth stage attracting many new brands offering variety of products and services to gain market share through innovation and brand positioning.
Geographically, United States is the largest market for legal marijuana constituting over 65% value share in 2024, benefitting from laws passed in several states legalizing recreational and medical use. Canada follows as the second largest market favored by federal legalization of recreational use across the country.
The European region is expected to be the fastest growing market for legal marijuana during the forecast period. Countries like Germany, Italy, Denmark are forecast to be major contributors to the growth considering decriminalization policies and patient access programs adopted in the region. Widespread public acceptance and awareness regarding medical benefits will support demand upsurge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
