Legal Cannabis Regulatory Scenario

Legal Cannabis - Global Regulatory Scenario Report Overview

The legal cannabis industry regulatory scenario, compiled by Grand View Research, is a collection of regulatory frameworks for more than 15 countries where the sale and consumption of cannabis are legal. Qualitative information regarding rules and regulations with respect to cannabis such as cultivation/production norms, regulatory bodies involved, import-export scenario, ease of business, market penetration, and licensing scenario will be provided in the report. Within the purview of the database, such information is systematically analyzed and provided in the form of outlook reports and summary presentations on individual areas of research. 

Legal Cannabis Regulatory Scenario Report Scope

Legal Cannabis Industry Regulatory Framework Coverage Snapshot

The global cannabis industry is flourishing owing to the rising number of countries devising a systematic regulatory framework for the cultivation and sale of cannabis. Wide acceptance and rising awareness of Cannabidiol (CBD) in various countries, majorly for medical purposes, is gaining impetus. A shifting trend toward cannabis-based products is anticipated to grow in the coming years. With this, there has been a need for establishing specific regulations from seed to the shelf with respect to cannabis. The report will provide you with the specific regulations in each of the countries included in the scope. Kindly note that we have considered four countries for representation purposes. However, the final delivery will include the regulatory framework for all the countries included in the scope.

The above figure demonstrates the penetration, future growth prospects, and market size of different countries in the cannabis industry. We have considered variables such as regulatory framework, legalization timeline, market size, ease of doing business, and ease of market entry for devising the infographic. The size of the bubble signifies the legal cannabis market size of each of the countries. Canada and U.S. have established markets with key players operating in these countries, thereby signifying higher penetration than other countries such as Thailand and Germany. Moreover, positive government reforms and growing awareness regarding the utilization of cannabis are some of the other factors supporting growth in these countries.

Along with regulations, each of the country dynamics for cannabis is changing drastically, thereby signifying the ease of business and ease of market access across geographies. For instance, in 2018, Thailand legalized cannabis for medical purposes, and by June 2022, the government decriminalized the distribution, cultivation, consumption, and marketing of all parts of the cannabis plant. This signifies that Thailand is an emerging market in the cannabis industry, growing at a rapid pace. With the establishment of a better regulatory framework, the market is anticipated to grow at a lucrative rate. In addition, looking at the current scenario, market entry is relatively easy, with significant opportunities for market penetration at various levels of the value chain.

However, the market entry and penetration scenarios are different when considering established markets such as Canada. With established and listed players in Canada, market entry is relatively difficult. These players acquire a major share of the Canadian cannabis market, along with strong networks, thereby posing hurdles for other players to enter. In addition, Canada is one of the first countries to legalize cannabis, thereby gaining initial movers’ advantage in the market. Hence, with respect to the legalization lifecycle of the country, the cannabis market in Canada is expected to reach a stable or mature phase in the coming years compared to other emerging markets such as Thailand and Germany which are currently in the late introductory or early growth phase. The following diagram demonstrates the cannabis market lifecycle of the countries:

The ongoing advancements in key countries such as the U.S. with respect to legalization are expected to shape the future growth of the country as well as the global market. For instance, in May 2021, the U.S. representative reintroduced the MORE (Marijuana Opportunity, Reinvestment, and Expungement) Act in the U.S. House of Representatives. If passed, the legislation would end the prohibition of cannabis by the federal government. Furthermore, in December 2020, the MORE Act was previously passed in the House of Representatives, but it did not advance in the Senate.

The MORE Act, if passed, would be beneficial in decriminalizing cannabis. It would remove cannabis from the list of controlled substances and eliminate the associated criminal penalties. In addition, it will also help advance several other steps toward social justice, criminal justice reform, and the economic development of the country. Moreover, since U.S. reforms play a major role in impacting the global cannabis market, this act will encourage the use of cannabis and create a strict legal framework for controlling the distribution, production, sale, and possession of cannabis across borders. Furthermore, the legalization scenario in major regions such as U.S. and Europe has been pivotal in supporting market growth. The following infographic represents the legalization scenario (As of 2022) in the U.S. and Europe at the state and country level respectively.

Hence, the detailed analysis of the regulatory framework will help in gaining insights into the market entry strategies, trade opportunities, cannabis consumption & adoption, and competitive landscape for all the countries included in the scope.