The global legal cannabis market has exhibited substantial growth over the past few years and is expected to continue this growth in the next several years. Due to legalization in several parts of the world, the usage of cannabis is gaining momentum for medical purpose. Medical cannabis is used for the treatment of various chronic conditions, such as Parkinson's disease, Alzheimer's disease, arthritis, cancer, depression, anxiety, epilepsy and other neurological conditions. Thus, a wide application scope has led to an increased product demand for the treatment of various chronic conditions.
A report from Research And Markets said: "In addition, due to cannabis being slowly accepted in various countries, some developed countries—such as Canada, Uruguay, and certain states of the U.S.—have gone a step further and legalized the recreational use of cannabis. As recreational cannabis is easily available in the market with an economical price tag, the demand for the same has increased exponentially. This is expected to increase cannabis cultivation to suffice the growing demand. However, the COVID-19 pandemic has adversely affected the market growth owing to the imposition of lockdown, limiting consumers from visiting brick-and-mortar shops."
"Based on the sources, the marijuana segment accounted for the highest revenue share in 2020 and is expected to exhibit the fastest growth rate during the forecast period. This can be attributed to increased awareness about its medical benefits and easy availability. For instance, Marijuana oil is used for the treatment of cancer and nausea and can also be used for the improvement of the sleep cycle and alleviating stress, pain and anxiety," the report shares.
As well, decriminalization and legalization of medical marijuana in some countries have led to significant shrinkage in the black market. The high efficacy of marijuana-derived CBD is one of the pivotal factors accountable for the segment's large share. The use of cannabis for medical applications has witnessed an expansion with rising support, among the scientific community, due to its benefits in various treatment processes. In recent years, numerous countries have legalized medical cannabis, but its prescription is dependent on the demand of the patient and physician's preference.
The recreational-use segment is expected to be the fastest-growing segment during the forecast period, with many areas around the world accepting its use.