Movement to Legalise Cannabis: The Global Context

From TobaccoUnmasked

Summary

  • Cannabis is an addictive substance, still illegal to use in most countries in the world.
  • The cannabis industry is concentrated mainly in North America, with highest number of companies hosted by Canada and the United States of America.
  • Tobacco industry had invested in cannabis industry as tobacco is losing its popularity throughout the globe.

Background

Cannabis is an addictive substance, illegal in most countries of the world. It is known by many names such as ganja (ගංජා), kansa (කංසා), marijuana, weed, pot, or dope. Derived from the hemp plant Cannabis sativa, 9-tetrahydrocannabinol (THC) is the main psychoactive constituent.[1][2]

Cannabis, after alcohol and nicotine, is the third most commonly used drug in the world causing a wide range of negative effects on the body and the brain[3][1][4] The risk of developing cannabis use disorder is stronger in those who start using cannabis early in life and in those who use cannabis more frequently.[5]

The World Drug Report 2025 emphasize that 244 million people used cannabis in 2023, representing 4.6 per cent of the global population aged between 15 and 64 years. Cannabis accounts for a significant share of drug-related harm globally, with cannabis use disorders representing 42 per cent of all drug use disorder cases worldwide in 2021. The long-term upward trend of cannabis use until 2020 dropped in 2021 and further in 2022. Only a slight increment by 5 per cent was seen in 2023, still remaining well below the peak reported in 2020.[6]

Effects of Use

Although lobbyists promoting cannabis claim that it is a medicine, it is still only used in treatment of a few diseases in ayurvedic medicine and is undergoing research for treatment for few rare diseases in allopathic medicine. Scientific evidence clearly suggests cannabis use causes a range of harmful health effects which worsens with increased frequency and duration of use.

The adverse effects associated with cannabis use are listed below:

  • Addiction - Teen cannabis users are more likely to become addicted to cannabis than people who start using the drug when they are older.[7][8][9][10][11][12]
  • Schizophrenia (a severe long term mental illness marked by delusions and hallucinations)[7] [8]
  • Other psychoses (mental illnesses with delusions and hallucinations other than schizophrenia)[7]
  • Suicidal ideation[7]
  • Social anxiety disorder[7]
  • Worsened symptoms and course of bipolar disorder[7]
  • Impairment of learning, memory, and attention. The damage may last even after stopping the use[7]
  • Permanent effects on developing brains of adolescents and young adults, especially to the parts responsible for memory, learning, attention, decision-making, coordination, emotions, and reaction time, reducing their IQ levels.[7]
  • Negatively affecting adolescents’ and young adults’ health and well-being, including their school performance, education level, social lives, and future employment and income.[7][9][10][11][12]
  • Cannabis use makes the heart beat faster, raises blood pressure, and causes postural hypotension – an abnormal drop in blood pressure when standing. It can also reduce blood flow to the heart (cardiac ischemia) and lower oxygen levels in the blood, which will combinedly increase the risk of heart attacks and strokes in the hours after use. Cannabis can cause other heart diseases and vascular problems in the long term.[8][1][7][13][14][15]
  • Smoking cannabis causes lung damage, leading to chronic cough, excessive phlegm production, wheeze, and acute and chronic bronchitis[16]
  • Cannabis smoke contains many of the same toxins, irritants and carcinogens as tobacco smoke does. Cannabis smokers tend to inhale more deeply and hold their breath longer than cigarette smokers. This leads to a greater exposure to tar content per breath, increasing the risk of lung damage due to tar and other toxins[16]
  • Negatively effects of cannabis on the immune system reduce the ability of the lungs to fight disease, especially in already immunocompromised patients (e.g. patients on immunosuppressive drugs or diseases, patients with AIDS), leading to increased risk of opportunistic infections including lower respiratory tract infections like pneumonia[16]
  • Cannabis negatively affects skills needed for safe driving, such as causing slower reaction time, slower decision making, and impaired coordination and distorted perception. These effects increase the risk of road traffic accidents[7]
  • Poisoning due to accidental ingestion, especially among children and elderly, is another problem[17][18]
  • Becoming addicted to other substances such as alcohol, tobacco, and other illicit drugs is a known negative effect of cannabis use[8]
  • Smoking cannabis during pregnancy can lead to low birth weight in babies[7]
  • Chemicals from cannabis (particularly THC) can be passed to a baby via breastfeeding[7]

Legal status regarding cannabis around the world

As of September 2025, cannabis consumption is legally prohibited in the majority of countries.[19]

Following countries have fully or partially legalised cannabis for use.

  • Uruguay (2013) – First country to fully legalise cannabis.[20]
  • Canada (2018) – Second country in the world to legalise cannabis nationwide, allowing use by adults aged 18 and older.[21][22][23] After the initial legalisation, Canada did several amendments to their Cannabis Act. Canada announced new regulations for edible cannabis, cannabis extracts, and cannabis topical use products on June 2019. That amendment focused to make the rules and standards that apply to the production, distribution, sale, importation, and exportation of cannabis by federal licence holders stricter.[24]
  • South Africa (2018 court ruling) – Legal for private use and cultivation, but sales remain prohibited[25]
  • Malta (2021) – First European Union (EU) country to legalise cannabis use.[26] Four years after legalisation, the Malta parliament passed amendments introducing additional safeguards for minors under 18 and regulations concerning organizations registered with the Authority on the Responsible Use of Cannabis (ARUC).[27][28]
  • Mexico (2021) – Decriminalised cannabis use. Allows adults 18 years and over to possess up to 28 grams of cannabis and grow up to six plants on their property.[29]
  • Thailand (2022) –First country in Asia to decriminalise cannabis. However, after three years, in June 2025, Thai government again changed policies to restrict its use to medicinal use, stopping online sales and sales via vending machines due to the rapid expansion of the use. The advertisements on cannabis were also banned.[30][31][32]
Image 1: Thailand recriminalising cannabis use. Source: ABC News[33]
  • Luxembourg (2023) – Personal cultivation up to 4 plants and possession and consumption at home are legal but not public sale and use.[34][35][36]
  • Germany (2024) – Legalised the possession, cultivation up to 3 plants, and use of cannabis by adults aged 18 and over.[37][38]
  • United States - As of April 2025, 39 states, three territories, and the District of Columbia (DC) have legalised cannabis for medicinal use, and 24 states, two territories, and Washington (DC) have legalised cannabis use for adults aged ≥ 21 years.[39]

Currently, 64 countries have provisions in their national legislation or guidelines allowing medical use of cannabis, with varying degrees of restrictions or permissiveness. In 2020, around 40 countries reported to the International Narcotics Control Board (INCB) on the production, consumption, or stock of cannabis for medical purposes. United Kingdom, Northern Ireland and Canada stood out as the leading cannabis producers for medicinal purposes, together responsible for 71% of the global output of 650 tons. The United Kingdom was the main source of cannabis extracts and pharmaceutical preparations containing cannabis extracts.[40]

Countries that have legalised medicinal use of cannabis include Argentina, Australia, Austria, Brazil, Belgium, Canada, Chile, Colombia, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary , Iceland, Ireland ,Israel, Italy, Jamaica, Kuwait, Liechtenstein, Luxemburg, Malta, Macedonia, Mexico, the Netherlands, New Zealand, Norway, Peru, Portugal the Philippines, Poland, Puerto Rico, Romania, Spain, Sri Lanka, Slovakia, Sweden, Switzerland, United Arab Emirates, United Kingdom, United States, Uruguay[41][42]

Medicinal claims for Cannabis

Claims exaggerating the therapeutic benefits of cannabinoids are not backed by scientific evidence.[43] Most of the studies on the therapeutic use of cannabis and cannabinoids concluded their effects were “probably beneficial” or “unclear” or "no effect".[44] Of all the cannabis-based medications, the US Food and Drug Administration (FDA) has approved only one cannabis-derived medication (Epidiolex) and three synthetic cannabis-related products (Marinol, Sativex, CesametTM) so far. These products are used for few rare illnesses to reduce symptoms that can be treated by existing medicines as well.[45] The medicinal compounds registered under the Ayuruveda Department of Sri Lanka that use cannabis as an ingredient in small amounts are all aphrodisiacs sold under different trade names.[46]

Economical Claims for Cannabis

Since the beginning of the legal cannabis industry, they have been making excessive claims about its economic and business potential. To the contrary, only around one in four American cannabis companies are profitable over the past two years.[47]

Image 2: Cannabis Market Collapse[48]

The Companies Market Cap website is a market-data directory that lists publicly traded companies worldwide along with their key financial metrics. They list 41 cannabis companies along with their Price/Earnings ratio or P/E ratio, which is a measure of the relationship between a company's stock price and its earnings per share. The website reveals each company’s profit/ loss status compared to its current valuation based on the P/E ratio. Following table shows the number of companies according their country of origin that have reported losses (As of 5th December 2025).[49]

Country Number of companies that reported losses out of total
USA 23/27
Canada 6/9
Australia 1/1
Germany N/A
Israel 1/2
UK 1/1
Total 32/41

Role of the Tobacco Industry in Legalising Cannabis

Interest of Tobacco Companies in Cannabis

Tobacco industry had shown an interest in the cannabis market and legalisation of cannabis since 1970s and had modified their corporate planning strategies to incorporate cannabis in their products.[50][51] In the 1970s and 1980s, tobacco was considered as a “gateway” to cannabis. The association of cannabis and tobacco use had direct implications for the tobacco industry when cannabis became more accessible.[52][53][54] A study, done by University of Edinburgh in 2014, states that the tobacco industry or other comparable multinational organisations (e.g., food and beverage industries) are prepared to enter the cannabis market with the intention of popularising its use.[50] An investigation conducted by The Daily Caller News Foundation in 2016, reveals three reasons as to why tobacco companies are interested in cannabis, in the background of tobacco smoking becoming increasingly unpopular during the past years.[55]

  • New Market: Cannabis is a new market for tobacco firms. There are an estimated 4-6 million regular cannabis user base currently, which can potentially be expanded by a well-funded, well-defined branding strategy to attract new loyal and repetitive customers.
  • Redeem Smoking: Many use cannabis by smoking the drug, which may help reduce the current stigma on cigarettes.
  • Big Profits: Tobacco companies are buying up the e-cigarette manufacturers because they can be used for both cannabis and tobacco.

Tobacco Companies Funding Cannabis Lobby

Evidence has emerged that the new cannabis industry and their lobbyists have received funding from the tobacco industry.[56] Marijuana Policy Project (MPP), the main group campaigning to legalise cannabis in USA admitted it received funding and support from tobacco companies. Rob Kampia, MPP’s Executive Director, revealed that the tobacco companies got interested because of the proposed oligopoly in the business. MPP publicly acknowledged receiving USD 50,000 from Wild Bill’s Tobacco, “a chain of smoke shops”.[57][56]

Tobacco company investments in cannabis

  • In July 2018 Imperial Brands PLC (former Imperial Tobacco) made the first formal investment in Cannabis industry. The Imperial Brands’ subsidiary Imperial Brands Ventures Ltd (Fontem Ventures) made the investment in the British medical marijuana research firm Oxford Cannabinoid Technologies (OCT) with Casa Verde, a seed investment firm which is backed by the rap musician Snoop Dogg.[58] Media reports noted that the investment was made a year after Imperial named an expert in medicinal cannabis to its board of directors and three days after the United States Food and Drug Administration (FDA) approved the use of a cannabis-based drugs to treat two rare forms of childhood epilepsy.[58][59][60] In May 2023, Oxford Cannabinoid Technologies (OCT) received approval for its clinical trial application targeting cannabinoid receptor type 2 (CB2), being developed as a potential treatment for neuropathic pain linked to Chemotherapy-Induced Peripheral Neuropathy (CIPN) and visceral pain in Irritable Bowel Syndrome (IBS). According to the details found in public domain, the clinical trial is currently in the patient enrolment phase. Additionally, OCT also started work on an inhaled phytocannabinoid drug/device combination for the treatment of trigeminal neuralgia, a severe neuropathic facial pain condition. However, the project was abandoned in April 2023.[61]
  • Imperial Brands PLC has a 20% stake in Auxly Cannabis.[62] As part of this partnership, Auxly received global licenses to Imperial’s vaping technology Nerudia, for the development of cannabis-related products. In addition, Auxly became Imperial’s exclusive global partner for the development, manufacturing, commercialisation, sale, and distribution of cannabis products.[63] Auxly is introducing new cannabis products from its dried flower, vape and pre-roll offerings, which are currently at various stages of development.[64]
  • Altria, the world’s largest tobacco company and owner of Philip Morris, made a $1.8 billion investment in Canadian cannabis producer Cronos, i.e., 45% of the company’s shares in March 2019.[62][65] Under the agreement, Altria obtained rights to nominate directors to Cronos’ board and, in turn, Altria has agreed to make Cronos Group its exclusive partner for pursuing cannabis opportunities throughout the world. Through the partnership the Cronos received device-technology expertise from Altria, and they used it to develop vape devices and cartridges.[66] After the formation of this partnership following products were introduced by Cronos to the market.
In October 2023 – THCV infused pre-roll under the Spinach FEELZ™ brand[67]
In March 2024 - Lord Jones Chocolate Fusions - a confectionary infused with cannabinoids[68]
In April 2025 - three new cannabinoid vapes infused with fruit flavours[69]
  • In March 2021, British American Tobacco (BAT) acquired almost 20% of Organigram, a Canadian cannabis research company[62] They increased its equity position from 20% to 45% investing £74m between January 2024 and January 2025 and [70] BAT and Organigram entered into a Product Development Collaboration (PDC) Agreement to establish “Center of Excellence (CoE)” to focus on developing the next generation of cannabis products.[71] Fast Acting Soluble Technology (FAST ™, breaking down the cannabinoids into extremely small, water-compatible particles to make them easier for the body to absorb) was the first innovation of this collaboration and reportedly expects to use it to manufacture cannabis gummies.[72]
  • Philip Morris International invested $20 million in the Israeli medical cannabis company Syqe Medical[62] Philip Morris is showing interest towards medical cannabis.[73] They initially invested USD 120 million to support the process of obtaining Food and Drug Administration (FDA) approval for Syqe's inhaler. Reportedly, if the approval was granted, Philip Morris had been planning to purchase all the shares of the Syqe for $650 million as the inhaler will become an approved prescription drug in the U.S. However, Syqe has not received FDA approval for its cannabis inhaler as of October 2025.[74]
  • In November 2022, British American Tobacco (BAT) invested in approximately 20% of shares of Charlotte’s Web, a cannabinoid extract retailer.[62] The aim of that investment is to explore products beyond tobacco and nicotine.[75] In April 2023, Charlotte's Web formed a joint venture ("DEFLORIA") together with British American Tobacco PLC and AJNA BioSciences PBC to develop a drug for a neurological indication. BAT committed USD10 million in initial funding, taking a 20% preferred interest. Charlotte's Web and AJNA BioSciences PBC each hold 40%.[76] In February 2024, Charlotte's Web reported that DeFloria, is at the Phase 2 clinical trial stage.[77]

Alcohol company investments in cannabis

With the demand for healthier choices in the younger generations, the alcohol industry is experiencing pressure on their businesses. Thus, their attention has turned to the new commercial cannabis market[65]

  • In October 2017, Alcohol giant Constellation Brands, made a USD 245 million investment in the largest Canadian cannabis company, Canopy Growth with the aim to develop, market, and sell cannabis-infused beverages.[78] This partnership deepened in 2018 with an additional USD 4 billion investment, increasing Constellation Brands’ stake to 38 %. As part of the agreement, Constellation Brands gained the right to appoint four directors to Canopy’s board.[79][65] In 2024, Constellation Brands reduced its involvement in Canopy by converting its shares to non-voting exchangeable shares and giving up its board seats.[80]
  • In September 2018, Molson Coors, North America’s second-largest beer maker, partnered with Canadian cannabis leader Hexo Corp to form a joint venture, Truss Beverage Co.. By the end of August 2020, they launched the first line of cannabis infused beverages in Canada[65]
  • In December 2018, Anheuser-Busch InBev invested in Tilray, a Canadian cannabis producer to explore the development of THC- and CBD-infused beverages. Each company contributed USD 50 million towards this joint venture. The partnership brought CBD-infused non-alcoholic drinks to the Canadian market at the end of 2019. However, by 2024, this partnership was dissolved, reportedly due to AB InBev’s reluctance to pursue the production of THC-infused beverages[81][65]

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Notes

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