North America Legal Cannabis Market Insights Forecasts to 2032

• The North America Legal Cannabis Market Size was valued at USD 15.4 Billion in 2022.
• The Market is Growing at a CAGR of 12.1% from 2022 to 2032.
• The North America Legal Cannabis Market Size is expected to reach USD 48.6 Billion by 2032.
• Mexico is expected to Grow the fastest during the Forecast period.

The North America Legal Cannabis Market Size is expected to reach USD 48.6 billion by 2032, at a CAGR of 12.1% during the forecast period 2022 to 2032.

Market Overview

Cannabis is commonly used for its relaxing and calming benefits. When the flowers of these plants are collected and dried, one of the world's most commonly used drugs is produced. Some call it weed, others pot and some others call its marijuana. It's also used to treat a variety of medical problems in several context, including chronic pain, glaucoma, and poor appetite. Cannabis's short-term effects can also vary depending on how it is consumed. After smoking cannabis, you will feel its effects within minutes. However, if you take cannabis orally, such as in a capsule or meal, you may experience no effects for several hours. Cannabis is made up of about 120 components known as cannabinoids. Experts are still unsure what each cannabinoid accomplishes, but they do know a lot about two of them: cannabidiol (CBD) and tetrahydrocannabinol (THC). Besides that, it stimulates hunger and lowers the risk of migraines, inflammation, and seizures. Demand for legal cannabis is increasing across North America as it is used to treat asthma and glaucoma, as an antidepressant, anticonvulsant, and anti-spasmodic. As a result, the approaching adult-use legalization is expected to enhance legal cannabis consumption while minimizing the criminal market, so promoting the growth of the legal market in North America.

Report Coverage

This research report categorizes the market for North America Legal Cannabis Market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the North America Legal Cannabis Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the North America Legal Cannabis Market.

Driving Factors

At the moment, increasing consumer preference for cannabis-based medicines over traditional treatments is one of the primary drivers driving market growth in the North American market. Besides that, the rising demand for cannabis to treat stress, anxiety, and depression is providing a good market image across the region. Furthermore, some banks are allowing loans for marijuana businesses to improve the production process, which is helping the region's market expansion. Moreover, the growing use of legal cannabis to treat chronic conditions such as epileptic seizures, chronic pain, and Alzheimer's among individuals is boosting the market in the North American region. Besides that, the widespread availability of legal cannabis via various distribution channels including licensed dispensaries, recreational stores, and stand-alone retailers is positively impacting the market. Additionally, there is an increase in public demand for cannabis for recreational purposes. This, together with the growing use of hemp-derived cannabidiol (CBD) in the skincare and cosmetic industries, is providing lucrative growth potential for regional industry investors. Furthermore, increased demand for marijuana oils and tinctures for treating nausea and vomiting among consumers is driving market expansion in the North American region.

Restraining Factors

Overdosing can cause anxiety or panic attacks in the short term, as well as heart arrhythmia and mental health problems in the long term. Cannabis poisoning, or the temporary harmful effects of consuming an excessive amount of cannabis at once, is also a possibility. People who start smoking cannabis in their teens are more likely to develop mental health problems later in life, including schizophrenia. In addition, they have more memory and learning disabilities than those who didn't take cannabis in their teens.

Market Segment

• In 2022, the marijuana segment accounted for the largest revenue share of more than 83.5% over the forecast period.

Based on the source, the North America Legal Cannabis Market is segmented into marijuana and hemp. Among these, the marijuana segment has the largest revenue share of 83.5% over the forecast period. The increasing legalization of marijuana for therapeutic purposes due to its many positive health effects is the primary driver of the industry. Marijuana is further subdivided into three categories: flower, oil, and tinctures.  Most people like flowers since they are significantly less expensive than other oils and tinctures and have higher efficacy, which enhances segment growth. Moreover, as countries in the area try to ease marijuana laws, demand for cannabis-based products and derivatives is going to surge. The higher efficiency of CBD obtained from marijuana is one of the important elements suggesting a larger proportion of the segment. Changing attitudes toward marijuana-based goods, as well as changes in North American legal frameworks, are also likely to drive marijuana segment growth.

• In 2022, the medical uses segment accounted for the largest revenue share of more than 72.4% over the forecast period.

On the basis of end-use, the North America legal Cannabis Market is segmented into recreational, industrial, and medical uses. Among these, the medical uses segment has the largest revenue share of 72.4% over the forecast period. Plant-based medicines are becoming more popular, particularly for pain control. Current market drugs are opioid-based and are frequently habit-forming and hazardous in the long run; hence, there has been a shift in demand toward CBD-based solutions. This has been driving the market's expansion.

• In 2022, the Cannabidiol (CBD) segment is expected to hold the largest share of the North American set legal cannabis market during the forecast period.          

Based on the derivative, the North America Legal Cannabis Market is classified into Cannabidiol (CBD) and Tetrahydrocannabinol (THC). Among these, Cannabidiol (CBD) segment is expected to hold largest market share, since CBD is widely accepted for a variety of therapeutic reasons. This high market share can be attributed to higher public awareness about the health benefits of cannabidiol, beneficial legislative regulations, and the increased use of CBD oil in a variety of businesses, as well as its application in a variety of treatments. Furthermore, it represents an evolution in the public's opinion of these commodities, as well as an increase in demand for products made from natural components. For example, it is widely utilized in the cosmetic industry in lotions, serums, and other products that have shown benefits in treating dry skin, inflammatory skin diseases, and so on.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the North America Legal Cannabis Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• 22nd Century Group
• Medical Marijuana Inc
• Hemp, Inc
• Axim Biotechnologies, Inc
• Canopy Growth Corporation
• Aphria Inc
• Aurora Cannabis Inc
• Abcann Medicinals Inc.
• Insys Therapeutics, Inc.
• Tilray

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In April 2023, PharmaCielo, a Canadian cultivator and producer of medicinal-grade cannabis extracts, joined forces with CANNPRISMA - PHARMA, a Portuguese Contract Manufacturing Organization. The agreement was designed to offer high-quality EU-GMP1 certified medicinal cannabis flowers to the European market.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the North America Legal Cannabis Market based on the below-mentioned segments:

North America Legal Cannabis Market, By Source

• Marijuana
• Hemp

North America Legal Cannabis Market, By End-use

• Recreational
• Industrial
• Medical Uses
• Others

North America Legal Cannabis Market, By Derivative

• CBD
• THC

North America Legal Cannabis Market, By Country

• United States
• Canada
• Mexico