U.S. Legal Marijuana Market: An Investor's Guide

The U.S. legal marijuana market size accounted for USD 16,380 million in 2024 and is expected to exceed around USD 1,22,620 million by 2034, growing at a CAGR of 22.3% from 2025 to 2034.

U.S. Legal Marijuana Market Report Highlights

• By marijuana type, the medical use segment dominated the U.S. legal marijuana market with the highest revenue share of 70% in 2024 .
• By marijuana type, the adult use segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By product type, the buds segment accounted for a considerable share of the market in 2024.
• By product type, the oils segment is projected to expand rapidly in the market in the coming years.
• By application, the chronic pain segment captured a significant portion of the market in 2024.
• By application, the mental disorders segment is anticipated to grow with the highest CAGR in the market during the studied years.

The U.S. legal marijuana market refers to the production, distribution, and application of legal marijuana, which is a mind-altering (psychoactive) drug produced by the Cannabis sativa plant. Marijuana is the psychoactive dried resinous flower buds and leaves of the female hemp or cannabis plant that contain high levels of THC and are smoked, vaped, or ingested especially for their intoxicating effect. Marijuana is also called weed, dope, or pot, which is a mix of dried flowers, stems, seeds, and leaves from the cannabis plant. THC (tetrahydrocannabinol) is the ingredient in marijuana that causes someone to feel high. Legal marijuana means law enforcement cannot arrest or convict you for lawful marijuana use. The health benefits of legal marijuana include it can relieve specific types of chronic pain, including neuropathic pain, which is caused by nerve damage. It can help to treat appetite loss associated with conditions like AIDS/HIV and certain types of cancers; it can relieve pain and spasticity associated with multiple sclerosis, and it is also effective in relieving nausea and vomiting.

The rising number of clinical trials and research and development activities are driving the growth of the U.S. legal marijuana market. Well-designed and well-performed clinical trials provide benefits while enabling you to help others by contributing to knowledge about new treatments or procedures. We gain new access to new research treatments before they are highly available. Research and development (R&D) is the term applied to the discovery, development, enhancement, and delivery of medicines. R&D can lead to innovations in business. These may be in terms of new products and services, enhanced processes, and new ways to interact with customers. These innovations can result in greater profits and lower costs. The advantages of participating in clinical trial activities also include learning more about your disease or health condition, gaining focused healthcare for a particular disease or health condition, and gaining access to new and possibly effective treatments or medicine available only to those participating in the trial. A clinical trial is a research study designed to test the safety and effectiveness of a treatment.

Growing demand for medical marijuana legalization in the U.S. is driving the growth of the U.S. legal marijuana market. There are many benefits of medical marijuana legalization. It can relieve many types of chronic pain, including neuropathic pain, which is caused by nerve damage, help to treat appetite loss linked with conditions like AIDS/HIV and specific types of cancers, can relieve spasticity, and it is also effective in relieving vomiting and nausea. Medical marijuana benefits also include addiction and dependency risk, alternative forms of consumption, reduced dependency on opioids, seizure disorders, mental health benefits, nausea and vomiting relief, appetite stimulation, and pain management.

Marijuana contains the therapeutic potential of cannabinoids, an active compound that is driving the growth of the U.S. legal marijuana market. These cannabinoids are renowned for their purported anti-inflammatory and analgesic properties, making them a popular choice for diseases like certain neurological disorders and chronic pain. The use of marijuana for chronic disorders cannabis derivatives is highly studied for analgesic use in chronic disorders. Marijuana oils are also studied for various indications in many countries. Rising industrial development and increasing healthcare expenditure provided by organizations will help the growth of the market. All these factors led to significant industrial expansion worldwide.