Legal Marijuana Market Predicted to Surpass $60 Billion in Next 6 Years

Legal Marijuana Market Predicted to Surpass $60 Billion in Next 6 Years

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Acumen Research and Consulting, a global provider of market research studies, recently published report cites pre and post  COVID-19 market analysis. 

By 2027, the legal marijuana market is expected to be worth $64.2 billion, according to Acumen Research and Consulting, which analyzed the market before and after COVID-19.

In a recently published study titled “Legal Marijuana Market– Global Industry Analysis, Market Size, Opportunities, and Forecast, 2020-2027,” Acumen Research and Consulting, a global provider of market research reports.

During the forecast period of 2020 to 2027, the global legal marijuana market is expected to expand at a CAGR of about 14.7 percent, reaching around US$ 64.2 billion.

The increasing applicability of marijuana in the medical field, as well as legalization activities in different countries, are expected to propel the global legal marijuana industry forward.

Due to the legalization of marijuana in the countries, the industry in North America is expected to account for a significant revenue share in the global legal marijuana market.

There are currently 15 legal marijuana states, but by 2021, there might be a few more. New York, New Mexico, and Minnesota are expected to become completely legal in the near future. Except for Nebraska and Idaho, every state in the United States has enacted legislation providing for the use of medicinal cannabis.

The government is concentrating on putting in place various laws concerning the selling and marketing of cannabis. On December 20, 2018, the Agriculture Improvement Act of 2018, Pub. L. 115-334 (the 2018 Farm Bill) was signed into law.

This new law, among other things, modifies federal authorities related to the cultivation and selling of hemp, which is known as “the plant Cannabis sativa L. and any compounds, extracts, cannabinoids, isomers, acids, salts, and salts of isomers from that plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

The legal marijuana industry is expected to expand in tandem with the evolving regulatory landscape and major players’ emphasis on incorporating marijuana into various medical and food products.

In 2020, the FDA approved Epidiolex (cannabidiol), a cannabis-derived medication, and three synthetic cannabis-related drug products: Marinol (dronabinol), Syndros (dronabinol), and Cesamet (dronabinol) (nabilone). Only a prescription from a licensed healthcare provider is required to obtain these approved drug items.

Because of the government’s willingness to embrace marijuana, the legal marijuana industry in Asia Pacific is projected to expand at a faster rate. Dr. Dharamvira Gandhi, an Indian Member of Parliament, introduced a bill to legalize and control cannabis in 2017. The Indian government then granted the world’s first medicinal cannabis cultivation license.

Governments in developing countries are legalizing cannabis products because of the medicinal benefits. The Special Access Scheme allows Australians to obtain legal medicinal cannabis. The Therapeutic Goods Administration is in charge of it, and it needs a limited prescription. More than 18,000 applications for medical cannabis were accepted by the FDA between the beginning of 2020 and May 31.

Rapid technical advances in drug research, as well as marijuana’s broad use in the medical field, such as treatment medications for patients suffering from chronic illnesses including Parkinson’s, cancer, Alzheimer’s, and neurological disorders, are expected to propel the global legal marijuana industry forward. Furthermore, the target market is expected to expand due to favorable regulatory legislation and the launch of new drugs by drug manufacturers.

Major players’ increased investment in R&D activities, as well as their acquisition activities for business development, are expected to boost the legal marijuana market’s growth. Emmac Life Sciences was purchased by Curaleaf, a leading medical and wellness cannabis company, in 2021.

The acquisition should help the company grow its customer base and raise its market share. The global legal marijuana industry is expected to be hampered by factors such as strict government rules governing medication approval and the high cost of medicines. Besides this, the legalization of cannabis products in various countries poses a challenge to the target market’s development.

Over the forecast period, a growing government emphasis on legalizing marijuana cultivation and a growing focus on consumer awareness programs are expected to generate new opportunities for players in the legal marijuana industry. Even so, players’ emphasis on monitoring the untapped market in developed countries is expected to help the target market’s revenue transaction.

The global market for legal marijuana is divided into three categories: form, product, and application. The type category is divided into two categories: medical and adult use.

Due to rising major players’ spending on R&D activities and a high emphasis on the launch of novel products, the medical usage segment is expected to account for the largest revenue share in the global market.

Chronic pain, psychiatric disorders, cancer, and other applications make up the application section. Due to a significant increase in the number of patients suffering from chronic pain disorder, the chronic pain category is projected to account for a significant revenue share among applications.

According to the United States Department of Health and Human Services, 20.4 percent of adults had chronic pain in 2019 and 7.4 percent of adults had chronic headaches.

Canopy Growth Corporation, Aurora Cannabis, Aphria, Inc., Tilray, ABcann Medicinals, Inc., The Cronos Group, Maricann Group, Inc., Organigram Holding, Inc., and Lexaria Corp. are all players in the global legal marijuana sector. Owing to the large number of players operating on a global scale, the market is extremely competitive.

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