Legal Marijuana Market Report 2026

The legal marijuana market size has grown exponentially in recent years. It will grow from $32.31 billion in 2025 to $39.26 billion in 2026 at a compound annual growth rate (CAGR) of 21.5%. The growth in the historic period can be attributed to legal reforms enabling medical cannabis use, rising acceptance of recreational cannabis, early establishment of dispensary networks, increasing awareness of cbd health benefits, shift from illegal to regulated cannabis supply.

The legal marijuana market size is expected to see exponential growth in the next few years. It will grow to $84.8 billion in 2030 at a compound annual growth rate (CAGR) of 21.2%. The growth in the forecast period can be attributed to expansion of pharma-grade cannabis products, rising demand for low-dose wellness formats, growing investment in large-scale cultivation, increasing adoption of cannabis-infused consumer goods, wider acceptance across new medical conditions. Major trends in the forecast period include rising demand for regulated cannabis products, expansion of medicinal cannabis applications, growth in premium and specialty marijuana strains, increasing development of non-smokable cannabis forms, greater adoption of standardized potency and quality measures.

The rise in the incidence of epilepsy is expected to drive the growth of the legal marijuana market going forward. Epilepsy is a neurological condition that causes recurring seizures due to abnormal electrical activity in the brain. The increase in epilepsy cases can be linked to improved diagnosis, greater awareness, and enhanced reporting, along with potential environmental, genetic, and lifestyle factors. Medical marijuana, particularly cannabidiol (CBD), has demonstrated significant potential in reducing the frequency and severity of seizures in epilepsy patients, including those with severe forms such as Dravet syndrome. This alternative treatment is gaining traction due to its favorable safety profile compared to traditional anti-epileptic medications, offering hope to individuals who do not respond to conventional therapies. For instance, in May 2024, according to the Centers for Disease Control and Prevention, a U.S. federal public health agency, about 2.9 million U.S. adults reported active epilepsy. Therefore, the rise in the incidence of epilepsy is contributing to the growth of the legal marijuana market.

Key players in the legal marijuana sector are concentrating on product innovations, such as cannabis beverages, to meet changing consumer preferences, differentiate their offerings, and capture a larger segment of the expanding market. Cannabis beverages are infused drinks that provide the benefits of cannabis while offering a smoke-free consumption method. For instance, in March 2023, Canopy Growth Corporation, a Canadian cannabis company, introduced six new beverage flavors, including a cannabis-infused drink called Deep Space Propulsion, which contains naturally occurring caffeine. Canopy's new cannabis beverages, featuring caffeinated sodas and iced teas, offer unique flavors designed to enhance consumer enjoyment with refreshing, THC-infused options.

In March 2024, Standard Wellness Holdings LLC, a US-based medical cannabis firm, acquired Forest Springville for an undisclosed amount. This acquisition enhances Standard Wellness’s capacity to provide a comprehensive range of cannabis products and expand its presence in Utah, improving patient access to quality cannabis-based health solutions. Forest Springville operates as a cannabis pharmacy store in the US, offering a variety of medical cannabis products.

Major companies operating in the legal marijuana market are Trulieve Cannabis Corp., Green Thumb Industries Inc., Cresco Labs Inc., Tilray Brands Inc., Canopy Growth Corporation, Acreage Holdings Inc., Aurora Cannabis Inc., Organigram Holdings Inc., Cronos Group, Medical Marijuana Inc., Green Roads, MediPharm Labs, CV Sciences Inc., Maricann Inc., Tikun Olam Ltd., United Cannabis Corporation, Cannabis Sativa Inc., Isodiol International Inc., Ascend Wellness Holdings, Verano Holdings Corp., Curaleaf Holdings Inc., TerrAscend Corp., Columbia Care Inc., Hexo Corp., Harvest Health & Recreation Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the legal marijuana market by increasing the cost of imported cultivation equipment, extraction machinery, packaging materials, and laboratory testing instruments, thereby raising operational expenses across product categories such as buds, oils, concentrates, and tinctures. North America and Europe face the greatest effects due to reliance on overseas hardware and technology inputs. Despite these challenges, tariffs can stimulate the growth of domestic manufacturing ecosystems, drive local innovation in processing and packaging solutions, and reduce long-term dependence on global supply chains.

The legal marijuana market research report is one of a series of new reports that provides legal marijuana market statistics, including legal marijuana industry global market size, regional shares, competitors with a legal marijuana market share, detailed legal marijuana market segments, market trends and opportunities, and any further data you may need to thrive in the legal marijuana industry. This legal marijuana market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Legal marijuana refers to cannabis that is authorized for use according to state or national laws, which may encompass medicinal, recreational, or both types of use. The legality of cannabis varies widely by jurisdiction. The goals of legalization include regulating the cannabis market, decreasing illegal sales, and generating tax revenue, among other objectives.

The primary types of legal marijuana products include buds, oils and concentrates, and tinctures. Buds are the flower part of the cannabis plant and have the highest concentration of cannabinoids, such as THC and CBD. The different cannabis compounds can be categorized as THC-dominant, CBD-dominant, or balanced THC and CBD, and they come in various delivery methods, including capsules, concentrates, edibles, and others. These products are utilized for a range of applications, such as chronic pain relief, mental health disorders, cancer treatment, and more. Additionally, they are employed by various end-users, including pharmaceuticals, food and beverage industries, tobacco companies, personal care sectors, and research and development institutions.North America was the largest region in the legal marijuana market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the legal marijuana market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the legal marijuana market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The legal marijuana market consists of sales of medical marijuana, recreational marijuana and hemp-derived cannabis. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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