Not long ago, the legal cannabis market was just a newly established sector in a handful of countries and regions causing many debates towards its social impact. But today, the global cannabis industry has turned into a booming market, generating multi-billion dollars sales per year. Countries and regions are increasingly legalizing the usage of cannabis, especially medical cannabis, mainly attributed to the extensive benefits of cannabis products in terms of medical applications and recreational purposes. As the regulations towards legal cannabis continue to mature and investments continue to be injected into the market, the global legal cannabis market is expected to witness a stronger growth through 2023 with the soaring medical usage of cannabis forecast to be the major driving factor.
Global Legal Cannabis Market Overview
According the latest market report from Technavio, the global legal cannabis market size will grow by USD 33.48 billion from 2019 to 2023, marking an impressive CAGR of over 27%. The legalization of cannabis in a growing number of countries worldwide is one of the key factors boosting the market growth. An increasing number of countries are moving towards decriminalizing cannabis and legalizing the use of marijuana for recreational and medicinal purposes. Countries such as Portugal, Canada, Jamaica, Australia, South Africa, and many others are also encouraging the legalization of cannabis for medicinal purposes. As a result, the global market for legal cannabis products is expanding rapidly.
Medical Cannabis Usage is the Major Driving Factor
The increasing use of cannabis for medical purposes is one of the key factors driving the the growth of the global legal cannabis market. Medical cannabis contains a variety of compounds such as THC and CBD, which are used to address pain symptoms in several diseases. One of the major benefits of cannabis for medical uses is the pain relief. Patients who suffer chronic pains are using cannabis products as one of the effective pain management remedies, therefore posing a huge demand in the global legal cannabis market. With the observation of the benefits of cannabis in diseases such as glaucoma, liver disease, and cancer the demand for legal medical cannabis is expected to rise over the near future.
Similarly, the high prevalence of cancer is another factor driving the demand of cannabis products. According to the World Health Organization (WHO), cancer is the second leading cause of deaths in the world, causing nearly 9 million deaths around the world annually. Several scientific studies have shown that medical cannabis can be used to treat cancer as it offers palliative care benefits, including appetite stimulation, pain relief, and more. The International Journal of Oncology published a study indicating that cannabinoids can kill cancer cells, and the benefits increase when combined with chemotherapy.
In North America, the growing awareness regarding the exceptional benefits of Cannabidiol (CBD oil), including anti-inflammatory properties, protection from Alzheimer’s disease, effective treatment of epilepsy and other mental disorders, is the major reason for legalizing the cannabis. CBD oil products are also widely adopted to treat cancer as it suppresses the growth of cancer cells. Combine this with the growing influence of online retailing on shoppers, it is eminent that the growth in the sale of legal cannabis products will increase significantly over the next five years.
Global Legal Cannabis Market Report 2019-2023
Check Technavio’s Global Legal Cannabis Market Report for more information about this topic. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.
