The Legal Marijuana Market Demand is a multi-billion dollar industry witnessing strong demand for cannabis and marijuana-based products across medical and recreational uses. Marijuana is approved in various countries for treatment of several medical conditions including chronic pain, cancer, epilepsy, and neurological disorders due to its pain-relieving and anti-inflammatory properties. Within the medical segment, products containing cannabidiol (CBD) are gaining popularity owing to lack of psychoactive effects.

The global legal marijuana market is estimated to be valued at US$ 20.05 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players: 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, and Kardex Group. These players are focusing on automated solutions for processing, packaging, and distribution of legal marijuana to gain a competitive edge.

Key opportunities: Legalization of marijuana for medical and recreational use in many countries has opened lucrative growth opportunities for players. Also, development of novel product formulations for new medical and wellness applications will further aid market expansion.

Global expansion: Favorable regulations and growing consumer acceptance have encouraged key players to expand globally. Companies are investing in markets like Europe, Latin America, and Asia Pacific seeing rising demand for cannabis. Partnerships with local players help strengthen distribution andafter-sales support.

Market drivers: Growing acceptance of marijuana for medical use due to advantages such as relief from chronic diseases is a key driver. Also, legalization of recreational marijuana in countries such as Canada is fueling market growth. Rising investments by companies in technologically advanced solutions for production, processing, and logistics is another major factor boosting the legal marijuana market.

PEST Analysis

Political: Legalization and decriminalization of marijuana use for medical and recreational purpose by various states and countries is creating new opportunities in this market. However, federal regulations still prohibit marijuana use in many countries.

Economic: Rising healthcare cost is driving demand for alternative treatment options, providing opportunities for medical marijuana products. Additionally, legalization of marijuana is generating tax revenues for governments.

Social: Changing social attitudes towards use of marijuana is contributing to the market growth. However, social stigma still exists around recreational use of marijuana in many communities.

Technological: Development of innovative product forms such as edibles, oils, and other concentrated products is increasing product options and driving their demand.

The market in terms of value is highly concentrated in North America region, primarily in United States. Following the legalization of medical and adult-use marijuana in several states, US accounts for the majority share in the global legal marijuana market. Colorado, Washington, Oregon are some of the states where sales of legal marijuana products are maximum.

The Asia Pacific region is projected to be the fastest growing market during the forecast period. Countries like Australia, South Korea, Thailand, and Israel have legalized marijuana for medical use, contributing to market growth. In addition, rising healthcare expenditure, growing elderly population facing chronic diseases, and increasing acceptance of alternative treatments are expected to boost demand of medical marijuana products in several emerging economies of Asia Pacific region. However, recreational use of marijuana still remains illegal in most of the Asia Pacific countries.

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