Legal Cannabis Market size is set to grow by USD 100.61 billion from 2024-2028, Rising number of countries decriminalizing and legalizing cannabis boost the market, Technavio

NEW YORK, June 28, 2024 /PRNewswire/ -- The global legal cannabis market size is estimated to grow by USD 100.61 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 28.85%  during the forecast period. Rising number of countries decriminalizing and legalizing cannabis is driving market growth, with a trend towards use of advanced techniques in cannabis cultivation. However, lack of funding and investment in cannabis market  poses a challenge. Key market players include Aurora Cannabis Inc., Bhang Nation, Cannabinoid Creations, Cannoid LLC, Canopy Growth Corp., CBD American Shaman., Cronos Group Inc., CV Sciences Inc., Elixinol Wellness Ltd., Folium Biosciences, Jazz Pharmaceuticals Plc, Medical Marijuana Inc., MediPharm Labs Inc., Mentor Capital Inc., PharmaHemp d.o.o., Tikun Olam, Tilray Brands Inc., and Unrivaled Brands Inc..

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Market Driver

The legal cannabis market experiences growth due to advancements in cannabis cultivation. Fully-equipped laboratories with sanitized chambers and controlled environments facilitate the use of techniques like Screen of Green and Sea of Green. These methods enhance production levels and THC content in cannabis. Marijuana-derived CBD oil products also benefit from these techniques, increasing revenue in the sector. The application of these advanced techniques is anticipated to boost yield and meet escalating cannabis demand, driving market expansion during the forecast period. 

The legal cannabis market is experiencing significant growth with various trends shaping its future. Environments and practices, such as cultivation, packaging, and processing, are crucial aspects of this industry. Cannabinoids, like CBD and THC, are popular products in this market. Producers are focusing on improving yields and quality through advanced techniques. Carbon dioxide and hydrocarbon extraction methods are commonly used for extracting these cannabinoids. Regulations, including those related to labeling and testing, are essential for maintaining consumer trust and safety. Medicial and recreational uses continue to drive demand, with patients and consumers seeking relief from various conditions. Overall, the legal cannabis market is a dynamic and evolving industry, with innovation and compliance being key factors for success. 

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Market Challenges

• The legal cannabis market faces challenges in securing investments from various sources. In the US and Canada, banks and financial institutions have been hesitant to provide loans or invest in cannabis vendors due to regulatory and ethical concerns. This lack of banking options results in high-interest rates for vendors and complications in fund transfers and accounting. Furthermore, religious and moral objections in Islamic and European countries limit investment opportunities, hindering the market's growth.
• The legal cannabis market faces several challenges in various areas. One significant challenge is regulation and compliance. Cannabis businesses must adhere to strict regulations regarding production, distribution, and sales. This includes obtaining proper licenses, following safety protocols, and ensuring accurate labeling and packaging. Another challenge is taxation and pricing. With varying tax rates and costs, it can be difficult for businesses to maintain profitability while also keeping prices competitive. Additionally, marketing and advertising restrictions limit the ability to effectively reach and target consumers. Lastly, the stigma surrounding cannabis use can impact public perception and acceptance, potentially hindering growth in the market.

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Segment Overview 

This legal cannabis market report extensively covers market segmentation by  

1. Product 
• 1.1 Medical cannabis
• 1.2 Recreational cannabis
2. Derivative Type
• 2.1 CBD
• 2.2 THC
• 2.3 Balanced THC and CBD
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Medical cannabis-  The legal cannabis market is experiencing significant growth. Businesses are entering this sector, supplying various products such as edibles, oils, and seeds. Regulations are in place to ensure quality and safety. Consumers are purchasing legally, contributing to tax revenues. This market is attracting investors and creating jobs. Businesses are complying with laws, ensuring a stable and profitable industry.

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Research Analysis

The legal cannabis market encompasses a wide range of products derived from the Cannabis plant, which is classified as a Schedule I drug in the medical field. CBD products, which contain little to no THC, have gained significant attention due to their potential therapeutic properties for various conditions, including epilepsy seizures, chronic pain, and nausea. Pharmacists play a crucial role in the prescription of medical cannabis for adults suffering from chronic diseases. The medicinal properties of different species, strains, and cultivation techniques can significantly impact the therapeutic potential of these derivatives. CBD and THC are the two primary compounds found in marijuana, each with distinct health benefits and medical applications. The therapeutic potential of cannabis is vast, extending to the treatment of epilepsy, multiple sclerosis, and other chronic diseases. The cultivation of specific strains with high CBD content and low THC levels is essential to maximize the health benefits of these products.

Market Research Overview

The Legal Cannabis Market refers to the production, distribution, and sale of cannabis and cannabis products in accordance with the laws and regulations of specific jurisdictions. This market encompasses various types of cannabis, including marijuana and hemp, and a range of products such as flowers, edibles, concentrates, and topicals. The industry is driven by growing consumer demand for medicinal and recreational use, as well as the increasing recognition of the economic potential of the cannabis industry. The market is subject to strict regulations, including licensing requirements, quality control measures, and compliance with taxation laws. The use of advanced technologies, such as automation and biotechnology, is also transforming the industry. The market is expected to continue growing, driven by expanding legalization efforts and evolving consumer preferences.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Medical Cannabis
• Recreational Cannabis
• Derivative Type
• CBD
• THC
• Balanced THC And CBD
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

SOURCE Technavio