North America Legal Cannabis Market Size, Share, Growth Analysis, By Source(Marijuana, Flowers), By Derivative(CBD, THC), By End - Use(Medical Use, Chronic Pain) - Industry Forecast 2023-2030

North America Legal Cannabis Market size was valued at USD 15.50 Billion in 2022 and is poised to grow from USD 17.83 Billion in 2023 to USD 54.53 Billion by 2031, at a CAGR of 15% during the forecast period (2024-2031).

The legal cannabis industry has been greatly influenced by North America, particularly the United States and Canada, where numerous states and provinces have legalized cannabis for both recreational and medical use. This shift in attitude can be attributed to cannabis' effectiveness in treating chronic conditions compared to traditional treatments, leading to a noticeable growth in the local market. Cannabis is employed in various forms such as oils, tinctures, dried flowers, or buds, often used to mitigate epileptic seizures or manage persistent pain in conditions like multiple sclerosis and HIV/AIDS. The active compounds, CBD and THC, work on pain receptors to reduce signal transmission. While research on the effects and mechanisms of cannabis's active substances, known as cannabidiols, remains limited, its acceptance as an alternative treatment is expanding. Anticipated growth in the cannabis industry is partly due to governmental efforts to combat the illegal drug trade, exemplified by the reintroduction of the MORE (Marijuana Opportunity, Reinvestment, and Expungement) Act in the U.S. House of Representatives. If passed, this proposal could end the federal ban on cannabis and support decriminalization. Economically, legalizing adult use is expected to create jobs and significantly benefit industries such as travel, real estate, banking, food, and transportation. This shift in legislation is likely to increase legal cannabis usage while reducing the black market, fostering the expansion of the legal cannabis business in North America.

Top-down and bottom-up approaches were used to estimate and validate the size of the North America Legal Cannabis and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

North America Legal Cannabis Market Segmental Analysis

Based on Source, the market is divided into Marijuana, Flowers, Oil and Tinctures, Hemp, Hemp CBD, Supplements, Industrial Hemp. Derivative-based market segmentation gives us CBD, THC, Others. Market segmentation based on end-user includes medical use, chronic pain, anxiety and depression, cancer, arthritis, diabetes, glaucoma, migraines, epilepsy, multiple sclerosis, aids, amyotrophic lateral sclerosis, alzheimer's, post traumatic stress disorder (PTSD), parkinson's, tourette's, others, recreational use, industrial use. And based on region, the market is divided into North America, Europe, Latin America, Asia- Pacific, Middle East and Africa.

Drivers of the North America Legal Cannabis Market

The growth of the legal cannabis market in North America can be mainly credited to favorable government regulations and the partial legalization of cannabis for both adult recreational and medical use in the United States and Canada.

This expansion is supported by the entry of local businesses and the involvement of major cannabis producers. Established competitors and new entrants alike are changing the competitive landscape.

The market demand for medical cannabis products has surged due to heightened public awareness of the therapeutic benefits of cannabis and its derivatives, driving market expansion.

Restraints in the North America Legal Cannabis Market

Regulatory bodies are focused on the health risks associated with cannabis use, particularly among specific demographics, which can influence the growth of the market.

Legal cannabis markets could encounter competition from existing illegal markets, especially if regulatory efforts are not entirely successful in eradicating illicit trade.

The cannabis supply chain is vulnerable to disruptions due to factors like weather conditions, transportation issues, and shifts in regulations.

Market Trends of the North America Legal Cannabis Market

Expansion of Product Offerings: The legal cannabis industry is seeing a surge in product innovation, with a range of consumption methods, potency levels, and derivative products catering to diverse consumer preferences.

Cannabis in Health and Lifestyle: From cosmetics and skincare to beverages, cannabis-infused products are being embraced by the health and lifestyle sectors, adapting to evolving consumer preferences.

Emphasis on Sustainability: The market is witnessing a growing trend towards sustainable farming and production methods, meeting consumer demand for environmentally friendly products.