Legal Cannabis Market Size, Share, Growth, And Industry Analysis, By Type (Cannabis Concentrates, Cannabis Infused Foods, Cannabis Seeds), By Application (Medicinal Use, Recreational Use, Cannabis Infused Foods), Regional Forecast To 2034

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LEGAL CANNABIS MARKET OVERVIEW

The global Legal Cannabis Market size stood at USD 89.12 billion in 2025, growing further to USD 829.3 billion by 2034 at an estimated CAGR of 28.13% from 2025 to 2034.

The United States Legal Cannabis Market size is projected at USD 29.6664 billion in 2025, the Europe Legal Cannabis Market size is projected at USD 21.09353 billion in 2025, and the China Legal Cannabis Market size is projected at USD 24.99677 billion in 2025.

mCig, CBD American Shaman, NuLeaf Naturals, Pharmahemp, Aurora Cannabis are the top companies operating in the legal cannabis market.

The global COVID-19 pandemic has been unprecedented and staggering, with legal cannabis experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.  The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Cannabis refers to a collection of three psychoactive plants: Cannabis sativa, Cannabis indica, Cannabis ruderalis and Cannabis sativa. When the petals of these seedlings are collected and dried, one of the world's most common drugs is produced. Some refer it as weed, others pot, and still others marijuana. As marijuana becomes acceptable in more places, new names for it emerge. People are increasingly utilizing the word cannabis to mention marijuana. Cannabis contains the active chemicals known as cannabinoids, which have drug-like effects throughout the cell, along with the nervous system followed by the immune system. Cannabis could help treat cancer symptoms or cancer treatment side effects including nausea and vomiting pain, and cachexia.

KEY FINDINGS

COVID-19 IMPACT

Interruption in Supply Chains to Decline Market Share 

The eruption of coronavirus illness (COVID-19) did act as a humongous restriction mostly on legal cannabis market growth in 2020, as supply chains have been interrupted because of international limitations and utilization has declined due to global government lockdowns. COVID-19 is an extremely contagious disease characterized by flu-like symptoms such as fever, coughing, and difficulty breathing. A shutdown, boundary shutdown, lockdowns, followed by other forms of suppression have only exacerbated the situation. To cope with this pandemic scenario, all travel and outdoor activities were suspended. Because of health and safety concerns, all of the individuals were staying at home, which has a negative impact on the cannabis market and on every other market for consumer goods. Due to the global lockdown caused by the Covid-19 pandemic, the production of different drugs inside the market has been halted. This has hampered the growth of the market in recent months and is expected to continue in 2021. The main reason for the drop in total income was the government-imposed prohibition on cross-border trade due to the continuing pandemic. Consumers were stockpiling due to concerns about the scarcity of cannabis and similar items.

LATEST TRENDS

Help Relieve the Toxicity of Chemotherapy to Intensify Market Magnification

Cannabis has been used to treat contraction and other seizure syndromes for decades, and a recent study found that it can help reduce symptoms and seizure frequently. Legal cannabis has not only been used to help relieve the toxicity of chemotherapy, but research findings have also shown that it can inhibit cellular proliferation and induce death of cells in cancer cell lines, and it has innumerable anti-cancer effects that really can actually mitigate a range of cancers, cure tumors, and advantage the immune system. Beyond these advantages, there are many more that are being explored and tested and is furthermore believed to benefit the legal cannabis market share.

• U.S. legal cannabis sales totaled $30.1 billion in 2024, with licensed dispensaries accounting for over 70 % of all sales.

• Cannabis‑infused beverages are projected to exceed $1 billion in the U.S. market in 2025, comprising up to 15 % of beverage sales in some retail channels.

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LEGAL CANNABIS MARKET SEGMENTATION

• By Type Analysis

According to type, the market can be segmented into Buds, Derivates or Extracts.

• By Application Analysis

According to application, the market can be segmented into Medicinal Use, Recreational Use.

DRIVING FACTORS

Usage of the Consumer Goods for Medical Purpose to Boost Market Share

Cannabis and its original consumption have risen dramatically in recent years. CBD for medical purposes has grown in popularity, and several governments around the world are developing policies to govern its use and distribution. The Cannabis Act made legal cannabis use in Canada, and the government launched the CCS (Canadian Cannabis Survey) in 2017, which has been performed annually since then. In 2020, 14% of those aged 16 and up claimed to use cannabis for medical purposes. 

Significant Increase in Acceptance and Legalization to Expand Market Forwarding

Since the pandemic, both medical and recreational marijuana have seen a significant increase in acceptance and legalization. Medical marijuana is legal in a lot of countries, including the United States, Canada, Italy, Croatia, and Australia. Many countries are legalizing marijuana production as well as household use. Ecuador, for example, has now legalized legal cannabis cultivation. The growing legal cannabis consumer base, as well as the legal purchase of marijuana followed by other legal cannabis products, have decriminalized possession and sale in regulated quantities.

• The CDC reports a rising number of frequent cannabis users nation‑wide, boosting demand for regulated product offerings.

• 83 % of states with adult‑use legal cannabis now implement social equity programs, expanding access and market diversification.

RESTRAINING FACTORS

Chances of Mental Disorders Deplete Market Advancement

Not everyone's cannabis experience is positive. It frequently causes anxiety, fear, panic, or paranoia. Cannabis use may increase the chances of developing severe depression or exacerbate the symptoms of prevailing existing mental disorders. Therefore, the above-mentioned fact will act as a hindrance in the market growth.

• Marijuana remains classified as a Schedule I drug federally, conflicting with state legalization and limiting business access to banking and federal services.

• In Australia, although 41 % of adults have used cannabis, recreational legalization remains blocked by federal law, limiting market expansion.

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LEGAL CANNABIS MARKET REGIONAL INSIGHTS

Increasing Rate of Consumption to Market Growth in North America and Asia Pacific

The legal cannabis market in North America is being driven by factors such as the increasing count of legalization and to cure several cancer diseases. The various countries allowing cannabis production for internal and household use has increased. Canada is the first to legalize cannabis and implement regulatory protocols. The current legal cannabis market for import and export is limited; the market will change only when pharmaceutical companies show interest in developing API grade Cannabidiol and an institution such as the WHO develops trade policies governing its use, generation, and selling both import, export of cannabis.

Anxiety is the most common condition for which people have used CBD in the Asia Pacific region, and a preclinical study discovered that CBD might be beneficial in treating symptoms of anxiety, severe anxiety, social anxiety, intense disorder, and post-traumatic traumatic stress.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

The analyst provides a comprehensive picture of the market through the study, synthesis, and summarization of data from various sources, as well as an examination of important variables such as financial gain, sales prices, competition, and promotions. It identifies the key industry influencers and presents various market facets. The information provided is thorough, reliable, and the result of extensive primary and secondary research. The market report provides a comprehensive competitive landscape as well as an in-depth vendor evaluation methodology and analysis based on both qualitative and quantitative studies to accurately forecast market growth.

The reports cover important advances with in market, as well as inorganic and organic growth strategies. Various companies are concentrating on organic business expansion such as product announcements, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the inorganic growth strategies observed in the market. The above activities have paved the way for market participants to expand their business and customer base. With the growing demands for filter products in the international market, market participants in the market are expected to benefit from substantial growth opportunities in the near future.

• CV Sciences Inc.: Engages in research and marketing of CBD-dominant wellness products, part of the substantial 46 % CBD segment of legal cannabis.

• Canopy Growth Corp.: Acquired Lemurian in May 2022 to strengthen premium extract portfolio across North America.

List of Top Legal Cannabis Companies

• CV Sciences Inc.
• Canopy Growth Corp.
• Tilray Inc.
• Medical Marijuana Inc.
• Bhang Corp.
• GW Pharmaceuticals Plc
• Aurora Cannabis Inc.
• Aphria Inc.
• VIVO Cannabis Inc.
• Cronos Group Inc.

REPORT COVERAGE

The industry's growth was significantly influenced by the tactics employed by market participants in recent years, such as extensions. The report provides details and information on the companies and their interactions with the market. The data is gathered and published through appropriate research, technological advancements, expansions, and expanding machinery and equipment. Other criteria considered for this market are the firms that develop and provide new products, the areas in which they operate, mechanisation, innovative techniques, making the most money, and using their products to have a large social impact. This analysis examines the global and regional effects of the outbreak mostly on the market. The study describes the market share features, and market growth by type, industry, and customer sector.

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.