Although, the legal marijuana market is just a couple of years old it is already hitting milestones one after another. In late 2018, many countries introduced marijuana legalization bills, laying out a plan for the nation’s medical marijuana dispensaries to begin selling the drug to all customers.
Though no one was expecting a profit turn for the first couple of years of legalization, at the end of 2018, the legal marijuana market has already demonstrated a rapid surge combined recreational and medical sales.
Moreover, the legalization of edibles and other extracts is dramatically expanding the market leading to larger revenues.
Acknowledging the colossal traction, the market is garnering currently, Market Research Future (MRFR) in its recently published study report asserts that the global legal marijuana market will accrue USD 4.69 BN by 2022, registering a CAGR of 22.03% over the forecast period (2016-2022).
With lucrative legal cannabis edibles on the horizon, market players have raised their expectations’ bar for a bigger revenue pocket. Maybe it’s approval policies, but it also shows the entrepreneurial spirit.
Marijuana also popularly referred to as Cannabis is intended to use as a psychoactive drug or medicine. The main psychoactive parts of Marijuana are Cannabidiol (CBD) and tetrahydrocannabinol (THC). Unlike THC, the CBD part has medicinal effects and doesn’t really get one high. CBD is typically used for health benefits instead of for recreational purposes.
Until a couple of years back, the marijuana industry was operating mainly in the black market. However, the tables were turned dramatically with the emergence of medical applications, letting marijuana garner a huge prominence on the global platform.
The flourishing legal marijuana market analysis is not merely a collaboration of growers and producers; it is rather a conglomerate of science and technology. This is why the legal marijuana market is arguably the fastest growing industry globally.
The rapid growth of marijuana and its applications in medicinal purposes has driven the growth in this market. With the legalization of recreational use of marijuana in 2018; under a law that approves it as a medicine, allows consumers to vape, eat, drink, and apply marijuana as a medicine or administer a drop or two of a marijuana-infused tincture.
With the emergence of portable vapes and e-Cigarette which promote the use of an electronic element to heat a marijuana-infused oil has spurted the market growth to an extent. As no organic material burning is involved, vaping marijuana is considered as safer further shifting the methodology of utility and escorting its market to become mainstream.
On the other hand, factors such as supply shortages, logistical challenges, and a smattering of legal violations are impeding the growth of the market. Nevertheless, the legal marijuana industry is expected to keep increasing with the increasing demand throughout the forecast period.
An increasing number of banks are now funding to marijuana deals if firms can pass all the tests. For example; Bank of Montreal (BMO) became the first major Canadian bank to arrange a stock sale for a pot firm when it helped lead a USD 200.7- MN equity financing for Canopy Growth in the four-year-old medical marijuana industry.
Global Legal Marijuana Market – Segmentations
For enhanced understanding, the report has been segmented into three key dynamics.
By Type : Indica, Sativa, and Hybrid among others.
By Application : Medical Use and other uses of Marijuana.
By Regions : Asia Pacific, North America, Europe, and the Rest-of-the-World.
Global Legal Marijuana Market - Regional Analysis
The North American region, heading with its largest production and consumption in medicinal purposes, accounts for a leading market for legal marijuana. Moreover, factors such as the legal acceptance of marijuana in various North American countries and the increasing application of legal marijuana in pharmaceutical products drives the growth of the regional market.
Besides the region is a hub for those marijuana-based medicine companies. In North America, annually an increasing number of advancements of medical science, biotechnology, medicines/ pharma, and technology take place.
Due to the increasing consumption of legal marijuana infographic in countries such as Turkey, Australia, and the Philippines the Asia Pacific region is expected to emerge as a promising market, globally. Moreover, Continuous research on the marijuana spices to bring out value-added products from cannabis strains have been contributing to the growth of the legal marijuana market in the APAC.
Whereas, the RoW is projected to witness a CAGR of 15.94% during the review period owing to the consumption of legal marijuana over the past few years.
Global Legal Marijuana Market - Competitive Analysis
The well-established legal marijuana market appears to be highly competitive and fragmented with the presence of several large and small-scale players. Innovation, mergers & acquisitions, and brand reinforcement remain the key trends of these players.
Major Players:
Key players leading the global legal marijuana market include AmeriCann, Inc. (U.S.), Medicine Man (U.S.), Novus Acquisition & Development (U.S.), GW Pharmaceuticals (U.K.), Abattis Bioceuticals Corp (Canada), Canopy Growth (Canada), and Insys Therapeutics (U.S.) among others.
Industry/ Innovations/ Related News
February 13, 2019 – European Parliament Passed Cannabis Resolution on a resolution that would help advance medical cannabis in the countries that form the European Union. In response, the World Health Organization (WHO) is now recommending a rescheduling of cannabis and several of its key components under international drug treaties. This resolution shows how widespread support for cannabis legalization is, but does not change any actual laws on the international or local levels
While non-binding, the resolution seeks to incentivize European nations to increase access to medical marijuana, prioritizing scientific research and clinical studies. Same as the WHO’s recommendation.
February 13, 2019 – Khiron Life Sciences Corp. (Latin America), a leading a pharmaceutical company, involved in developing and commercializing medical cannabis products for trauma treatment facilities announced that it is well-positioned to take advantage of the Mexican legalization.
The company confirms that it has grown over 100% since December 2018, i.e. post to its Mexican entry and partnership with Dixie Brands. Khiron holds important strategic value to potential acquirers looking to get into the Latin American/Mexican market.
February 13, 2019 – The Molson Coors Brewing Company (Canada), leading global brewing company, launched a line of cannabis-infused beverages, as it grapples with declining beer demand in North America. The launch is in line with the company’s plans to continue focusing on offering more premium and innovative drinks, including a soon-to-be.
The company also mentioned that it is accelerating premiumization of its portfolio and innovation agenda. The company also outlined some of its innovation efforts, including cannabis-infused beverages.
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