Legal Marijuana Market is Estimated to Witness High Growth Owing to Increase in its Medical Uses

Author : naufan cmi | Published On : 15 Jan 2024

Legal marijuana refers to using cannabis and its derivatives for both medical and recreational purposes with proper regulation. It involves products used for pain management, mental health issues, cancer treatment, neurological conditions, and other ailments. The primary constituents of marijuana are cannabinoids including delta-9-tetrahydrocannabinol (THC), which causes psychoactive effects. However, other cannabinoids such as cannabidiol (CBD) are non-psychoactive and are gaining popularity for their health benefits.

The global legal marijuana market is estimated to be valued at US$ 17.4 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The legal marijuana market is witnessing high growth owing to increasing acceptance and legalization of marijuana for medical uses across various regions. As per the report of National Academies of Sciences, Engineering, and Medicine, marijuana can help in relieving chronic pain and muscle spasms. This is expected to increase the demand for medical marijuana which acts as a major growth driver for the market. In addition, the demand for recreational marijuana is also increasing which is further fuelling market growth. However, psychoactive nature, dependence-forming property, and potential for abuse of marijuana remain major challenges for the market.stringent regulations imposed by various governments are also limiting market expansion.

SWOT Analysis
Strength: The legal marijuana market offers substantial economic opportunities for states. Legal marijuana sales are projected to generate tens of millions in tax revenue for states each year. Legal retail outlets help regulate quality and taxation of the product. With regulated sales, public health and safety are better protected compared to illegal sales.
Weakness: Legalization of marijuana is still controversial in some parts of the U.S. Some perceive it as promoting substance abuse. Dependence potential of marijuana is still debated. In jurisdictions where not legalized, legal marijuana businesses face regulatory and legal barriers to operate.
Opportunity: Many states are slowly moving to legalize marijuana for medical and adult use, opening up new markets. As more states legalize, adjacent industries like equipment manufacturing, packaging, distribution will see growth opportunities. Public opinion is also increasingly in favor of legalization, benefitting the market.
Threats: Potential for abuse and health effects of overconsumption. Potential for increased impaired driving if not regulated properly. Stringent regulations can impede market expansion plans of companies. Illegal market may continue to supply low cost alternatives reducing sales.

Key Takeaways
The Global Legal Marijuana Market Size is expected to witness high growth over the forecast period until 2030.

Regional analysis: The Latin American region is witnessing rising adoption rates driven by countries like Mexico, Colombia and Uruguay legalizing medical marijuana use. Regions like Europe and Asia Pacific are also gradually legalizing both medical and recreational use, raising growth prospects. With favorable regulations and a large population base, countries like Germany, Italy, Australia and New Zealand can emerge as high potential markets over the coming years.

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. These players are focusing on automation solutions and equipment for cultivation, processing, packaging and distribution of legal marijuana and cannabis products.

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