Just a few years ago, many people would have rolled their eyes and laughed if someone had told them that cannabis could create a globally dominant industry. However, the sheer money-making potential of cannabis is becoming all the more apparent, as recently examined in this research report.

Commissioned and carried out by Quince Market Insights – a leading provider of market intelligence based in India – the study pinned the price of the global legal cannabis market at USD $50,251 million in 2021. 

Stimulated largely by the fact that the plant can be administered in myriad ways, the market’s projected value is set to inflate at a compound annual growth rate (CAGR) of 26.5 percent during the forecast period. 

How was the report segmented?

To paint a clearer picture of the most prominent growth factors, the legal cannabis market report from Quince Market Insights was subdivided into different categories.

Let’s take a look at the most impactful areas of the industry, as reported by the researchers:

• Route of Administration

Inhalation, oral, rectal, sublingual and topical are the main routes of administration by which consumers can experience cannabis’ effects. Orally consumable products account for the largest market share.

• Compound

THC-dominant, CBD-dominant and balanced CBD/THC products are the three main areas of the compound segment. In particular, this area of the legal cannabis market is being steered by THC which, analysts say, is likely due to the psychoactive cannabinoid’s ability to relieve nausea, insomnia and appetite loss. 

• Product

Of all the different product types that make up the cannabis market, such as capsules, creams, roll-on topical solutions, transdermal patches, tablets/supplements, tinctures, suppositories, isolates and vape oils, the oils segment constitutes the most market share. Analysts say that the rising rate of cannabis consumption in Canada, Colombia, the United States and Uruguay is fueling this avenue.

•  Species

Indica, sativa and hybrid are the three main types of cannabis species featured in this report, with cannabis indica maintaining the largest market share in the worldwide legal cannabis market last year and for the foreseeable future. This sedative type of cannabis is commonly used to ease headaches, body pains and muscle stiffness. 

• Distribution Channel

Wholesale and retail channel cannabis imports are contributing to intense growth in the avenue of distribution. Last year’s legal cannabis market was dominated by offline distribution — an area that is expected to continue generating substantial growth throughout the forecast period.

• Application

Based on application, recreational cannabis accounts for the greatest amount of market share. Recreational cannabis products are classified as either leaves, seeds, stems or flowers.

Medical cannabis is the other main type of application. Such products are subdivided into various categories, including chronic pain, seizures, joint pain, neurological conditions, anxiety/stress, migraine, inflammation and skin care.

• End User

In regards to end users, the legal cannabis market is divided into food, drink, personal care, research and development (R&D) centers, pharmaceuticals and tobacco. Pharmaceuticals constitute the greatest market share, with industry experts attributing the growth of these end-user products to a rise in private and public funding for mental health-focused R&D efforts.

Major market developments are outlined in the legal cannabis market report

In addition to the key takeaways highlighted in each segment of this report, analysts from Quince Market Insights also discuss some important events that will likely spur on the legal cannabis market’s continuous growth.

One such example is the definitive agreement that was inked between Aphria Inc. and Tilray, Inc. in December 2020. The agreement seeks to merge both businesses and develop the largest cannabis company on the planet. The combined business will feature a diverse portfolio of premium Cannabis 2.0 products in stores scattered across the Great White North.  

Another important development emerged in November 2020, when Canopy Growth Corporation released a brand new line of CBD-infused drinks under the brand name Quatreau. Produced in a variety of flavors, the sparkling sparkling waters are available in CBD-only and balanced CBD/THC offerings. 

The report, which also covers the impacts(s) of COVID-19, can be purchased by clicking here.