Legal Cannabis Market Size, Growth, Global Trends, Forecast 2034

Legal Cannabis Industry Perspective:

The global legal cannabis market size was worth around USD 33.57 billion in 2024 and is predicted to grow to around USD 248.23 billion by 2034, with a compound annual growth rate (CAGR) of roughly 22.20% between 2025 and 2034.

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Key Insights:

• As per the analysis shared by our research analyst, the global legal cannabis market is estimated to grow annually at a CAGR of around 22.20% over the forecast period (2025-2034)
• In terms of revenue, the global legal cannabis market size was valued at around USD 33.57 billion in 2024 and is projected to reach USD 248.23 billion by 2034.
• The legal cannabis market is projected to grow at a significant rate due to the increasing demand in the medical care sector.
• Based on the product type, the oil & tinctures segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the medical segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Legal Cannabis Market: Overview

Legal cannabis refers to weed or marijuana that has been legalized by state officials for medical or recreational use. Cannabis is obtained from the dried leaves of the Cannabis sativa plant and contains several compounds that are known as cannabinoids. The primary element in the wide range of compounds is delta-9-tetrahydrocannabinol (THC), and it is a psychoactive compound. According to industry research, cannabis is consumed in several forms, including vaporizing and smoking. However, cannabis is banned for consumption in several parts of the world, and legal laws concerning production or consumption may vary from one region to another. The ban on cannabis is a result of several health concerns and social factors. Cannabis is currently under international control after the signing of the 1961 Single Convention on Narcotic Drugs. The commonly perceived health risks of consuming cannabis include addiction and dependence. It is also known to impair cognitive functions, leading to accidents.

However, a growing number of healthcare experts and state bodies are working in favor of legalizing cannabis consumption in restricted quantities. Research has indicated a positive impact of medical cannabis consumption in treating certain physical and mental health conditions. Growing demand for medical cannabis will promote the industry demand rate in the coming years. However, complicated and dynamic resolutions concerning the legalization of cannabis may impact market revenue streams.

Legal Cannabis Market Dynamics

Growth Drivers

Will the increasing demand in the medical care sector fuel the legal cannabis market expansion in the long run?

The global legal cannabis market is expected to be driven by the growing demand for medical cannabis globally. According to the Mayo Clinic, medical cannabis is used to alleviate conditions associated with certain medical conditions. Studies indicate that consumption of medical cannabis in controlled dosage can become a part of treatment for several diseases, notably Amyotrophic lateral sclerosis (ALS), Crohn's disease, glaucoma, posttraumatic stress disorder, serious nausea or vomiting caused by cancer treatment, epilepsy, and seizures, and many others.

In April 2025, New Medical Life Sciences published a report showing long-term advantages of medicinal cannabis in patients with chronic medical conditions. The study conducted by scientists at the University of Sydney concluded that the prescribed use of medical cannabis improved health-related quality of life (HRQL) and was associated with reduced fatigue and sleep disturbances. The growing number of patients worldwide suffering from chronic medical disorders, including mental conditions, will encourage the legalization of cannabis production and sale under monitored conditions.

Growing regulatory acceptance worldwide is expected to promote industry demand in the coming years

In recent times, regulatory acceptance of cannabis has increased worldwide. A growing number of countries and state legislations are legalizing cannabis production and consumption for medical or recreational purposes. For instance, in September 2024, the Himachal Assembly in the Indian state adopted a new resolution for legal cannabis cultivation. The proposal committee discussed the potential economic benefits of cannabis production.

According to Marijuana Moment, 9 out of 10 Americans support cannabis legalization. In June 2025, Texas, US, became the 40th state in the country to legalize medical cannabis. Adult-use cannabis legalization is gaining extreme growth momentum in the country. Delaware is expected to launch legal adult-use cannabis on 1st of August 2025, following the establishment of the Office of the Marijuana Commissioner. As cannabis production and sale achieve regulatory approvals, the global legal cannabis market is expected to thrive during the forecast period.

Restraints

Dynamic and evolving legal environment affects market revenue in the long run

The global legal cannabis industry is projected to be restricted due to dynamic industry standards. Government regulations concerning the production and use of legal cannabis are evolving rapidly. In addition to this, the rules are highly dynamic, and regulatory frameworks may change from one state to another or between countries. Several factors must be considered before legalizing cannabis cultivation or distribution for medical and recreational purposes. These factors will impact the market demand rate in the future.

Opportunities

Do the production innovation and diversification generate growth opportunities for legal cannabis industry leaders?

The global legal cannabis market is expected to generate growth opportunities due to the rising rate of innovation reported in the industry. Legal cannabis product sellers are increasingly diversifying their product portfolio and offering a new range of products to meet the evolving tastes of customers. In June 2025, Snoop Dog, a famous US celebrity and a leading brand owner of legal cannabis, announced the expansion of his business by introducing a new direct-to-customer platform for cannabis products under his Death Row Records label. The product range will include Tetrahydrocannabinolic Acid (THCA) flower and pre-roll. Furthermore, the industry can benefit from industry leaders investing in business expansion strategies..

For instance, in May 2025, Curaleaf International, a segment of Curaleaf Holdings Inc., a London-based leading provider of medical cannabis products, announced the launch of its products in the Australian market. The moves strengthened the hold of Curaleaf in the medical cannabis segment. The initial offering will include four cannabis flower strains and will be distributed through Canngea. The portfolio is expected to broaden in the coming years.

Legal Cannabis Market: Challenges

How do the health-related and social concerns over cannabis legalization challenge the legal cannabis market growth rate?

The global legal cannabis industry is projected to be challenged by the health-related concerns over excessive consumption of cannabis. Frequent use of marijuana can lead to severe addiction and impact the overall quality of the user. According to recent findings, more than 14 million people in the US aged 12 and older have encountered weed addiction as of 2020.

Furthermore, the social impact of cannabis use further discourages weed legalization, especially in countries with limited awareness about the best ways of consuming weed.

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Legal Cannabis Market: Report Scope

Legal Cannabis Market: Segmentation

The global legal cannabis market is segmented based on product, oil, application, and region.

Based on product type, the global market segments are oil & tinctures and flowers. In 2024, the flowers segment experienced the highest growth, accounting for nearly 52% of the total revenue. According to market research findings, cannabis flower is the most popular and commonly sold form of legal cannabis. However, the segment is projected to witness slower demand during the forecast period as oils & tinctures are expected to become more popular.

Based on the application, the global industry divisions are adult use and medical. In 2024, the highest revenue-generating segment was medical. Over the years, researchers have managed to confirm the health advantages of medicinal cannabis, especially when treating mental health disorders. During the forecast period, medical use of legal cannabis is expected to dominate over 55% of the total revenue. However, the adult-use legalization trend will help the former segment drive better results in the coming years.

Legal Cannabis Market: Regional Analysis

What factors will aid North America to take the lead in the legal cannabis market during the forecast period

The global legal cannabis market is expected to be led by North America during the forecast period. The US is the leading revenue generator in the regional market. According to industry analysis, around 40 states in the US have legalized cannabis consumption, which is expected to act as a major growth propeller for legal cannabis. US lawmakers have been actively working on developing a highly regulated marijuana industry, which will work in favor of the North American industry for legalized cannabis. The current US government, led by President Donald Trump, is backing the legalization of cannabis in Florida, which is being done using correct measures. On the other hand, in April 2024, the US state officials were reported to be working on reclassifying cannabis with the intention to categorize it into less strict Schedule III.

Europe is expected to emerge as the second-highest revenue generator in the legal cannabis industry. Cannabis across Europe is currently regulated by diverse decriminalization and legalization laws, which are a major growth barrier for the industry. However, a prominent number of countries across Europe have currently granted marijuana a legal status, helping the regional market thrive. These countries include France, Spain, the Netherlands, Switzerland, and Germany. Demand for medicinal cannabis in Europe is generally high compared to that for recreational purposes. Furthermore, the rising expansion of regional players into emerging markets may help the region deliver improved revenue during the forecast period.

Legal Cannabis Market: Competitive Analysis

The global legal cannabis market is led by players like:

• Verano Holdings Corp.
• Curaleaf Holdings Inc.
• Canopy Growth Corporation
• Organigram Holdings Inc.
• Ascend Wellness Holdings Inc.
• Trulieve Cannabis Corp.
• Tilray Brands Inc.
• Cronos Group Inc.
• Ayr Wellness Inc.
• TerrAscend Corp.
• Green Thumb Industries Inc.
• Aurora Cannabis Inc.
• Jushi Holdings Inc.
• Cresco Labs Inc.
• Aphria Inc. (now part of Tilray)

The global legal cannabis market is segmented as follows:

By Product Type

• Oil & Tinctures
• Flowers

By Application

• Adult Use
• Medical

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa