In this article, we are going to discuss the top 20 countries where weed is legal in 2023. You can skip our detailed analysis of the global cannabis industry, the benefits of legalizing marijuana, and the offshore business activities of some US-based cannabis companies, and go directly to Top 5 Countries Where Weed Is Legal In 2023.
The history of the cannabis industry is riddled with changes and conflicting legislation. The international media has played an important role in shifting perspectives and today, we are watching the slow and steady change of mainstream opinion to consider cannabis one of the more harmless – and probably even potentially beneficial – drugs still largely illegal. As perspectives change, we can also expect the laws to eventually follow suit.
Global Cannabis Industry:
The global cannabis market was valued at $47.32 billion in 2022, and is projected to grow from $57.18 billion in 2023 to $444.34 billion by 2030, growing at a CAGR of 34% during the forecast period.
Marijuana legalization is gaining momentum around the globe, driven primarily by the increasing recognition that the product may have a range of legitimate medicinal benefits and therapeutic applications. It is the most widely cultivated, trafficked, and consumed drug worldwide.
The Benefits of Legalization:
Cannabis legalization is a controversial and multi-faceted issue that has recently been the subject of serious debate around the world. It may be difficult for physicians viewing cannabis through the lens of addiction to see any silver lining from legalization, but the first and most immediate benefit is that patients who use weed for therapeutic purposes will no longer fear legal sanctions. The most common therapeutic use of marijuana is for pain control, and while the drug isn’t strong enough for severe pain, it is quite effective for the chronic pain that plagues millions of people, especially as they age.
Another expected benefit is the establishment of a legal cannabis market, which would drive people away from its shady black counterpart that has been the main form of marijuana trade for decades. The product from the black market may often contain traces of pesticides and even other drugs that could put people’s lives at risk, so having a legal and regulated alternative gives consumers a safe and healthier option to choose from.
And last, but not least, are the economic benefits of legalizing ganja, which could potentially generate billions of tax dollars in revenue for the government, aside from creating hundreds of thousands of direct and indirect employment opportunities. In merely the first three years since Canada became a country with legalized recreational weed at the federal level, the industry contributed around $43.5 billion to the national GDP, while sustaining 151,000 jobs and putting $15.1 billion into government coffers.
The U.S. Census Bureau’s new report documenting state-level cannabis tax revenues also reveals that states generated $5.7 billion in revenues from cannabis taxes over the 18 months from July 2021 through December 2022. Although these numbers are already making a substantial difference, the real game changer would come in the form of federal legalization, which would remove a ton of obstacles that are currently plaguing the country’s burgeoning legal marijuana industry and unlock its full and mighty potential.
Offshore Business Activities:
The United States of America is a behemoth of the global cannabis industry, so much so that even just one of its states – California – is the single largest cannabis market in the world. Americans love a good buzz and they’re forking over big bucks for it. This provides a huge opportunity for companies and entrepreneurs everywhere, who want the lion’s share of the sweet green ganja pie and are thus coming up with more and more innovative solutions to bring about a paradigm shift in the industry.
Large and mature consumer markets like LA and Chicago act as testing grounds for such innovators to test their ideas, before they bring them to the rest of the country and even across the border.
A great example is Curaleaf Holdings, Inc. (OTC:CURLF) – a Massachusetts-based leading medical and recreational cannabis company serving over 350,000 registered customers across 23 states in the country. Curaleaf has worked to introduce new products in the American market, including the vape hardware system Cliq by Select, Select X Bites gummies, and even a cannabis-infused Seltzer brand. The company also maintains a presence in the U.K. and Germany – two of the countries that consume the most weed in Europe.
Since Germany is in the process of drafting its adult-use cannabis framework, Curaleaf Holdings, Inc. (OTC:CURLF) has already acquired a majority stake in the local pharmaceutical company Four 20 Pharma, thus positioning itself to take advantage of the upcoming adult-use opportunities. The company also anticipates that more countries will follow Germany’s lead in the coming years and adopt more liberal adult-use regulations.
Similarly, Tilray Brands, Inc. (NASDAQ:TLRY) is a leading cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America. Headquartered in New York, Tilray is one of the leading global companies in the production and research of medical cannabis.
It was announced earlier this year that the industry giant’s medical cannabis division, Tilray Medical and FL Group, has received authorization from Italy’s Ministry of Health to distribute three new medical cannabis compounds to pharmacies across Italy, further broadening its portfolio of pharmaceutical grade cannabis offerings. Tilray Brands, Inc. (NASDAQ:TLRY) also announced a new strategic partnership with Pharmaidea, a Petrone Group company, to market and educate over 12,000 pharmacies across Italy on the benefits of medical cannabis and medical cannabis patient care.
Both, Curaleaf Holdings, Inc. (OTC:CURLF) and Tilray Brands, Inc. (NASDAQ:TLRY), rank among the Biggest Marijuana Companies in the World.
With that said, here are the Countries with Legal Cannabis in 2023.
20. Ecuador
Annual Prevalence of Cannabis Use: 0.67%
Ecuador has made significant strides towards transforming its approach to weed. While the country had notoriously punitive cannabis laws before, the drug was finally decriminalized in 2013 but the law took full effect in June, 2020. Medical cannabis is also legal in Ecuador but it must not exceed 1% THC.
With the Criminal Law Reform enacted in 2021, the cannabis and industrial hemp industry has become an emerging industry in the South American country.
19. Thailand
Annual Prevalence of Cannabis Use: 1.33%
In June 2022, Thailand became the first Asian country to decriminalize the cultivation, distribution, marketing, and consumption of all the parts of the cannabis plant. Legalizing the commercial sale and personal cultivation of cannabis products is the latest step in the Thai government’s plan to monetize the plant as a lucrative cash crop.
Agriculture still employs nearly a third of the country’s workforce and the government plans to develop a larger export industry around the crop, expecting the national cannabis industry to exceed $2 billion.
18. Mexico
Annual Prevalence of Cannabis Use: 2.1%
In 2021, Mexican lawmakers approved a law to decriminalize cannabis for recreational, scientific, medical, and industrial uses, but key regulations remain stalled in the Senate. A fully legal cannabis market in Mexico could be worth around $3 billion a year, and at least 101,000 hectares – mostly in the northern states of Sinaloa, Chihuahua, and Sonora – are already used for illegal cultivation.
17. Malta
Annual Prevalence of Cannabis Use: 3.1%
In 2021, Malta became the first country in the E.U. to legalize the cultivation and personal use of cannabis, both for medical and recreational purposes. Malta’s new rules allow people to carry up to seven grams of marijuana, grow up to four plants in their apartments, and keep up to 50 grams of dried cannabis at home, without risk of prosecution.
Last year, Materia Malta became the first company to export medical cannabis from Malta, as it completed the first commercial export of medical marijuana to Germany.
16. Colombia
Annual Prevalence of Cannabis Use: 3.27%
In 1994, Colombia decriminalized the personal use and self-cultivation of several cannabis varieties, and every Colombian resident is allowed to harvest up to 20 plants for their own use. However, selling or purchasing weed remains illegal. A few days ago, a Colombian Senate committee approved a bill to legalize marijuana, sending it to the full chamber for consideration.
Colombia became a Country with Legal Medical Marijuana in 2016.
15. Georgia
Annual Prevalence of Cannabis Use: 3.4%
In 2018, the Georgian Constitutional Court legalized the consumption of marijuana, making the country the first former member of the now-defunct Soviet Union to do so. Yet Georgians are still barred from growing, storing, or selling the drug.
Georgia is counted among the handful of Countries with Legal Weed.
14. South Africa
Annual Prevalence of Cannabis Use: 3.65%
The South African Constitutional Court deemed the prohibition on simple possession and cultivation of cannabis unlawful in 2018 and mandated legislative change within two years. Although the implementation of the court order took longer than expected, the South African lawmakers finally approved a bill earlier this month to legalize marijuana possession and cultivation by adults.
The South African medical and recreational cannabis markets are estimated to be worth around $585.5 million and $1.05 billion respectively.
13. Portugal
Annual Prevalence of Cannabis Use: 5.1%
In 2001, Portugal took an unprecedented step and became the first country to decriminalize all illegal drugs, including ganja. Medical use of marijuana was also legalized in the country in 2018, and there are currently 42 companies with licenses to operate in activities related to medicinal cannabis in Portugal, a growth of 23.5% from 2022.
12. Luxembourg
Annual Prevalence of Cannabis Use: 5.4%
The tiny landlocked country of Luxembourg became the second member country of the European Union to legalize the possession and cultivation of cannabis for personal use earlier this year. The new law allows residents to grow up to four plants per household, and possess up to 3 grams of weed outside their residence.
Luxembourg is counted among the European Countries with Legal Recreational Weed in 2023.
11. Argentina
Annual Prevalence of Cannabis Use: 8.13%
While possession of small amounts of weed is decriminalized in Argentina, the cultivation, distribution, and sale of cannabis remains illegal. The country has taken steps towards legalizing cannabis for medical purposes, and some provinces have also decriminalized the use of the drug for personal use.
Argentina is also looking to build its domestic medical cannabis market and generate foreign currency through exports, with 51 regulated research and development projects currently taking place around the country.
10. Italy
Annual Prevalence of Cannabis Use: 10.21%
At present, cannabis is legal in Italy for medical and industrial uses – although it is strictly regulated – while it is decriminalized for recreational use. Over the course of 2021, approximately 17.7% of high school students in Italy consumed cannabis, with this figure reaching 20% when considering only male students.
The Italian capital city of Rome ranks among the Cities with the Highest Weed Consumption in the World.
9. Netherlands
Annual Prevalence of Cannabis Use: 10.4%
Cannabis has been available for recreational use in Dutch coffee shops since 1976, and although Amsterdam has dominated cannabis tourism for 40 years, it is now stepping back from this multibillion-dollar industry. Earlier this year, Amsterdam Mayor Femke Halsema told media that marijuana tourism is a blight on the city, fostering crime and public disorder, and proposed banning foreigners from its cannabis cafés.
The Netherlands is set to officially launch its pilot program to legalize the sale of adult-use cannabis in the country in December, when a group of three officially approved companies will be allowed to domestically grow and supply marijuana to the country’s coffeeshops for the first time.
8. Spain
Annual Prevalence of Cannabis Use: 10.5%
Spain has decriminalized the use of cannabis and it is permitted to have up to 100 grams of the drug strictly for private and personal use. The cultivation of weed in private places has also been decriminalized, leading to a surge in the opening of ‘cannabis clubs’.
In Madrid, these cannabis clubs aren’t strictly legal. Instead, they operate in a legal gray area in which ‘members’ join clubs and ‘share’ cannabis that they grow. ‘Donations’ are exchanged for tokens, which are then used to purchase products.
With an average price per gram of $6.8, Madrid ranks among the Cities with the Cheapest Weed in the World.
7. Czech Republic
Annual Prevalence of Cannabis Use: 11.1%
Although the Czech Republic still ranks among the Countries where Recreational Weed is Illegal, it decriminalized cannabis possession for personal use in 2010 and legalized medical marijuana in 2013.
After a decade of progressive liberalization, the Czech Republic is preparing to introduce a fully legal and regulated cannabis market with the approval of the 2023-2025 Addiction Policy Action Plan in April this year.
6. Chile
Annual Prevalence of Cannabis Use: 12.05%
Chile has the highest per capita use of cannabis in South America. While the drug remains illegal for recreational use, the country passed a law in 2005 to decriminalize the possession of small amounts for personal consumption, with medical marijuana attaining legal status in 2015.
Marijuana cultivation appears to be on the rise in Chile, according to the 2021 Narcotrafficking Observatory Report published by the Office of the Attorney General. Authorities seized 285,000 plants in 2020, nearly 50,000 more than in 2019, according to the report.
5. Israel
Annual Prevalence of Cannabis Use: 14%
Israel decriminalized the private use of cannabis for citizens over the age of 18 in 2019. For years, smoking weed has been socially permissible in the Middle Eastern nation despite being technically illegal.
Patio tables in cities like Rishon Letsiyon are dotted with people openly rolling joints and lighting up without a second thought. Ironically, smoking cannabis is tolerated in more public places in Israel than in countries like Canada, where recreational marijuana is legal.
4. Uruguay
Annual Prevalence of Cannabis Use: 14.6%
Uruguay became the world’s pioneering country to legalize adult-use marijuana in 2013, and began its sales four years later in 2017. The country’s pharmacies sold almost 10.7 million grams of marijuana between July 2017 and July 2023. There are three companies producing cannabis, and its sale is authorized in 37 pharmacies distributed across ten departments throughout the country. Uruguay also started exporting weed in 2019, and doubled exports in 2020, to $7.3 million.
3. Jamaica
Annual Prevalence of Cannabis Use: 18%
Ganja is deeply rooted in Jamaica’s history and culture, but it is not legal. The weed-friendly island country legalized medical cannabis and decriminalized possession of under 2 ounces in 2015, after more than a century of prohibition that saw the plant weaponized to silence and disenfranchise dissenters. Illegal cannabis cultivation is rampant in Jamaica, with an estimated 15,000 ha of cannabis cultivated annually illegally, mostly for export.
2. Canada
Annual Prevalence of Cannabis Use: 20.7%
The Canadian cannabis market has continued to grow at a double-digit rate since legalization – rising from a market size of $1.2 billion in 2019 to $4.7 billion in 2022 – with more than 3,000 retail locations in the country. As the first G20 country to legalize cannabis for adult use and create a national marketplace, Canada stands to set a regulatory blueprint for the rest of the world.
Ontario residents purchased more than $1.3 billion worth of legal cannabis products last year, an increase of 38% from 2021. There are currently 1,700 legal cannabis stores that currently operate in the province, with 400 situated only in Toronto.
1. United States of America
Annual Prevalence of Cannabis Use: 22.8%
Although the United States retains its existing federal prohibition on cannabis, the recreational use of weed has been legalized in 24 states, and also in the District of Columbia, Guam, and the Northern Mariana Islands. Ohio became the 24th state to allow adult cannabis use for non-medical purposes when a majority of voters approved a corresponding ballot measure on November 7th 2023.
The U.S. legal cannabis industry took some hits in 2022, but according to top cannabis researcher Brightfield Group, annual revenue of the industry is estimated to reach $31.8 billion by the end of 2023, growing to $50.7 billion by 2028. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market.
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Source: Sultan Khalid – finance.yahoo.com
Image: Eva Darron – unsplash.com
