Market Challenges And Opportunities

Global Legal Marijuana Market Drivers:

Increasing legalization to augment market growth

One of the key factors expected to augment the growth of the global legal marijuana market during the forecast period is the increasing number of countries legalizing the use of medical marijuana. For instance, each year, the legal use of cannabis for medical and recreational purposes is steadily growing. According to the United Nations Office on Drugs and Crime (UNODC), over 70 nations have legalised cannabis in some capacity for medical purposes, with 26 of those nations allowing access to high-THC cannabis for medical patients. Several countries worldwide have legalized the use of cannabis for medicinal and recreational purposes.

Rise in disease burden to underpin market growth

Another factor which is driving the growth of the global legal marijuana market is the increase in prevalence of chronic and neurological disease across the globe. For instance, a number of studies have shown that medical marijuana and its derivatives can be used to treat symptoms of various diseases, for e.g., it has been successfully used to treat patients with chronic pain, chemotherapy-induced nausea, Alzheimer’s, Parkinson’s, and other neurological disease. In March 2021, STADA launched its own product portfolio for therapy with medical cannabis, which is primarily directed at chronic pain patients who suffer from pain or its side effects.

Global Legal Marijuana Market Opportunities:

Favorable government initiatives/programs are expected to offer significant growth opportunities for players in the legal marijuana market. For instance, government initiatives to legalize marijuana in medical application is driving the market growth. Many states or nations have begun to adopt medical marijuana from the point of view of good public health. In April 2020, the New Zealand’s Medicinal Cannabis Agency, Ministry of Health, launched its new Medical Cannabis Scheme to improve access to quality medical cannabis for patients. The Food & Drug Administration (FDA) has also approved some of its derivative compounds for medicinal use.

Growing medical applications of marijuana is expected to provide significant growth opportunities for players in the global legal marijuana market. For instance, According to the U.S. Government Accountability Office (under State Medical Marijuana Laws), symptoms and conditions that can be treated by cannabis include anorexia, cancer, glaucoma, arthritis, epilepsy, nausea, migraines, cachexia, pain, spasticity, multiple sclerosis, wasting syndrome, HIV/AIDS, Crohn's disease, and Alzheimer’s disease. Continuous research and standardization of products for medicinal purposes are also expected to increase demand for cannabis in the future.

Global Legal Marijuana Market Restraints:

Shortage of medical marijuana to hinder market growth

One of the key factors expected to hamper the growth of the global legal marijuana market is the supply shortage of medical marijuana in various countries. With legalization of medical marijuana in various countries, its demand has increased across the globe. However, high demand for medical cannabis has led to supply chain bottlenecks in certain countries. For instance, some Pennsylvania medical marijuana dispensaries are experiencing shortages. The state is in the grip of a medical marijuana drought. However, Pennsylvania's (US) medical marijuana program provides access to medical marijuana for patients with specific medical conditions.

Legalization for selected indications to hamper market growth

Another factor which is hampering growth of the global legal marijuana market is the legalization of medical marijuana only for selected indications. Although medical marijuana has been legalized in various countries, some countries have legalized medical marijuana only for certain indications. For instance, medical marijuana in Queensland, Australia can be only used for indications such as severe muscle spasms, chemotherapy-induced nausea and/or vomiting, and epilepsy. This limited scope of application in several countries is expected to hinder market growth.