The global market for legal recreational market was valued at $20 billion at the end of 2022, and is expected to quintuple by 2032, according to a new report.
The report was conducted by the research firm Brainy Insights, which found that the legal recreational marijuana market is expected to grow from $20 billion in 2022 to $123.83 billion by 2032 at a compound annual growth rate (CAGR) of 20%.
According to the report, North America is expected to rise the fastest during the forecast period. In 2022, the edibles segment led the market with the plurality of market share at 25% and market revenue of $5 billion. The “CBD dominant segment” accounted for the largest market share, with 43% and a market revenue of $8.60 billion.
In 2022, the chronic pain segment accounted for the largest market share for medical use, with 46% and a market revenue of $9.20 billion.
One of the key drivers of the market is “the rising awareness about the medicinal benefits of recreational cannabis.”
“It has been demonstrated through numerous tests and investigations that these compounds have anti-inflammatory properties”, states the report. “They can treat mental illnesses, boost appetite, and lessen pain. Recreational marijuana can also treat epilepsy, Parkinson’s illness, post-traumatic stress disorder, and anxiety. More studies have revealed its usefulness in treating nausea, vomiting, and other adverse effects of chemotherapy.”
With this in mind, “The market will expand due to increased public awareness of and acceptance of the use of recreational marijuana in medicine, as well as growing research into further applications.”
The report notes that “Given its therapeutic benefits, recreational marijuana is becoming increasingly popular, creating new prospects for the food and beverage business. Market participants in the food and beverage sector are innovating cannabis-infused foods and beverages due to laws legalising cannabis.”
It continues: “Cereals, candy bars, chocolates, baked products, ice cream, juices, and other drinks are all being tested. The growing demand for cannabis-infused foods and beverages has been fuelled by the expanding popularity among consumers and rising per capita income. Contrary to the powder or dry grass form, the food and beverage business provides simplicity, convenience, and choice for the use of cannabis, creating an attractive market potential for the expansion of the global recreational cannabis industry. The creation and adoption of new flavours will significantly expand the market. Consequently, the worldwide market for recreational cannabis will grow due to the increased manufacturing of cannabis-infused foods and drinks.
Some of the major players operating in the global recreational cannabis market, according to the report, are:
• AURORA CANNABIS INC.
• Cannabis Science Inc.
• Canopy Growth Corporation
• Cresco Labs
• Medical Marijuana, Inc.
• Organigrams Holding Inc.
• STENOCARE A/S
• The Cronos Group