North America Legal Cannabis Market Growth 2025 | Growth, Size, and Trends Forecast by 2033

North America Legal Cannabis Market Overview

Market Size in 2024: USD 44.83 Billion

Market Size in 2033: USD 354.82 Billion

Market Growth Rate 2025-2033: 24.55%

According to IMARC Group's latest research publication, "North America Legal Cannabis Market Size, Share, Trends and Forecast by Products Derived, Distribution Channel, and Country, 2025-2033", The North America legal cannabis market size was valued at USD 44.83 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 354.82 Billion by 2033, exhibiting a CAGR of 24.55% from 2025-2033.

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Growth Factors in the North America Legal Cannabis Market

• Surge in Electric Vehicle Adoption:

  Battery recycling has climbed to prominence with the rapid rise of electric vehicle (EV) adoption. Millions of EVs are now present on the road which correlates to a massive uptake in lithium-ion battery demand. These trends have created an urgent need to recycle end-of-life batteries. To illustrate, an estimated 11 million EV batteries will be recycled in the U.S. by 2030. Lithium-ion batteries contain abundant materials such as lithium, cobalt, and nickel. The rationale for recycling is to recover these materials in order to lessen reliance on mining. To address this, companies such as Redwood Materials are partnering with automakers like Toyota to create a closed-loop recycling system to keep materials cycling through the supply chain. A conducive regulatory framework supports EV battery recycling with policymakers enacting more legislative coverage like California’s Responsible Battery Recycling Act keeping in mind the need for sustainable disposal of batteries. The battery recycling business may galvanize the EV revolution and even be the growth factor for the battery recycling industry!

• Stricter Environmental Regulations:

  Globally, legislation is tightening on how battery waste must be handled, and in turn, growing the recycling sector. For example, the EU Battery Directive requires batteries to be recycled, which pushes companies to build and invest in existing operations that can recycle batteries (Frost and Sullivan, 2020). The Environmental Protection Agency (EPA) has similarly drafted measures. Lead acid battery disposal is tightly monitored and regulated to ensure recycling effectively recycles the product and does not contaminate the environment. These regulations drive demand for recyclers, since improper disposal can lead to steep fines and the cost of recycling is minimal relative to system negativity of disposal. China recently published its Circular Economy Development Plan, were reuse of batteries continues to assemble more activity and potential investments in recycling. Batteries are subjected to regulation and resultantly, materials undergo recycling and not waste. Both regulations and long standing attributes such as long life cycles of reusable materials promote a circular economy. In addition, this massive global campaign to promote sustainability is leading companies to generate more recycling activity, which has been a pivotal driver of growth.

• Advances in Recycling Technology:

  Recycling technology advances are making battery recycling more efficient and more cost effective, contributing directly to industry growth. Advanced techniques such as hydrometallurgy and direct recycling are recovering as much as 90 percent of critical materials from lithium-ion batteries, while also lowering waste and energy consumption. Companies such as Li-Cycle and Ascend Elements are at the forefront of those methods and these technologies will help attain not only higher recycling rates, but also greater recoveries of metals such as cobalt and lithium. American Battery Technology Company recently announced the acquisition of a commercial-scale facility where it will deploy its lithium-ion battery recycling processes. There is also evidence that such forces will lower operational costs in a significant manner and increase recovery expediency of recovered metals, which will enhance the potential economic benefits of recycling lithium-ion batteries. New consumer electronics and large scale energy storage systems, driven by and increasingly important renewable energy markets, will shape the future of lithium-ion battery manufacturing and the demand for recycled materials. It also appears that the industry is about to enter a period of enormous growth.

Key Trends in the North America Legal Cannabis Market

• Product Diversification:

  The North American legal CBD market has increasing product variety including consumer beverages and topical products, moving away from traditional flower. Some of the new products are uniquely licensed to meet consumer needs for modified behaviors, including edible and beverage products infused with cannabinoids and topical products focused on wellness such as CBD and adaptogens. For example, Canopy Growth is launching a beverage with 2-5 mg of THC to health conscious consumers. In 2024, the cannabis edibles market was valued at over $10 billion, indicative of demand for edibles. Companies are combining cannabinoids with vitamins creating functional products that signal trends in wellness. This product variety represents the ongoing potential of new consumers and increased profit margins, drawbacks to differentiation product price and higher charges for derivative cannabis products - edibles especially - is very favorable and propels market growth.

• Rising Medical Applications:

  Across North America, interest in medical cannabis continues to grow because of the developing science pertaining to cannabis use and its health benefits. Research studies such as the study from Johns Hopkins that found a dronabinol reduced agitation in patients with Alzheimer’s disease by 30%, are helping to only grow the use of cannabis in the treatment of conditions such as chronic pain, epilepsy, and anxiety - with contributions from cannabis producers like the previous example of Sativex and Marinol in many cases. As noted in the medical cannabis segment review from 2024, the medical market held 71.6% of the revenue in the region for medical cannabis. Doctors are commonly articulating the benefits if they are working with products like Sativex or Marinol, but more importantly, the legalization of medical cannabis and in some states recreationally, the public stigma is less than as little as a decade ago. Cannabis developers such as GW Pharmaceuticals, are investing in a pharmaceutical form of cannabis since the interest in using cannabis in health care is being shown in more clinical trials. Therefore with the type of consumer trust in the private sector around cannabis you are only seeing significant demand, which means that medical cannabis is an attractive growth opportunity!

• Sustainable and Organic Practices:

  Consumers in North America are increasingly expecting more organic and sustainably sourced cannabis to encourage companies to pursue environmental sustainability goals. For example, Curaleaf has adopted sustainable cultivation methods by implementing renewable power to decrease their carbon footprint. In 2024, there was a 20% increase for the demand of organic cannabis products in the market as consumers preferred brands engaged with environmentally friendly production. Companies are cutting packaging waste and using biodegradable materials to appeal to consumers who care about the planet. Not only does this trend fall back to a larger health and wellness movement - especially among younger consumers wanted organic alternatives - as they create sustainability in a crowded market, these companies like Green Thumb Industries are carving out their own space, strengthening consumer loyalty and accelerating advanced growth as similar products are appearing and expanding demand.

The north america legal cannabis market report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the market and capitalize on emerging opportunities.

North America Legal Cannabis Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Product Derived:

• Marijuana
• Industrial Hemp
• Others

Analysis by Distribution Channel:

• Regulated Dispensary
• Recreational Stores
• Stand-Alone Retailers
• Others

Country Analysis:

• United States
• Canada

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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