The scope of the legal marijuana market is broadly confined to medical and recreational applications. Marijuana is one of the most effective drugs with proven medical applications. However the drug is categorized as a narcotic and psychotropic substance and its legality varies in different regions. Globally, the cultivation of the crop is restricted to meet certain industrial requirements, medical applications, and recreational usage. Some countries, do not allow cultivation or trade of marijuana and have a harsh view of the consumption of these products.
In 2016, the legal marijuana market was estimated at USD 14.3 billion and is projected to grow at a CAGR of over 20% till 2024. The growing legalization drive across U.S., Canada, France, Germany and several other European nations is anticipated to create a ripple effect by boosting the tax revenue from product sales for medical & recreation purpose, tourism activity, and a decrease in crime rate.
In Europe, more than ten countries allow the sale of marijuana with several restrictions on sale, import and export of cannabis products for medical and recreational use. In 2017, Germany has passed a law to legalize medical marijuana, which is expected to generate strong demand for cannabis products over the forecast period. North America accounts for the majority share of the market, with the U.S. dominating the market. In the U.S., 28 states allow the sale of medical marijuana and out of these seven states allow the sale of marijuana for both recreational and medical use. In the U.S., the tax revenues of legal marijuana are now comparable with other commodities such as draft beer and e-cigarettes. Moreover, Canada has passed a new bill in 2017, to legalize marijuana for recreational use. The proposed law would make Canada the second nation after Uruguay to legalize cannabis as a consumer product.
There are over 20 conditions for which medical marijuana is used, some of the key applications include pain management, arthritis, cancer, multiple sclerosis and Alzheimer’s, and others. in 2016, chronic pain was identified as the largest segment due to wide usage in pain management. As per the U.S., National Institute of Health (NIH), nearly 40 million adults experienced severe levels of pain and over 25.3 million adults experienced chronic pain. Due to unhealthy lifestyle factors, medical conditions, the number of people requiring pain management is growing rapidly
key market players include Cara Therapeutics Inc, Axim Biotechnologies, Arena Pharmaceuticals, United Cannabis Corporation, Lexaria Corp, International Consolidated Companies, Inc., Corbus Pharmaceuticals, GreenGro Technologies, Inc., Canopy Growth, Insys Therapeutics, GW Pharmaceuticals, Aurora Cannabis, Cannabis Sativa, Inc., and others. Due to the high entry barriers, the market is dominated by the public companies with huge financial resources.