According to a new report conducted by the research firm Statista, the revenue for the global cannabis market is projected to reach $51.27 Billion in 2023.
The report estimates the market to have an annual growth rate (CAGR 2023-2028) of 14.95%, resulting in a market volume of US$102.90 Billion by 2028.
“The Global cannabis market just continues to keep growing year after year”, states the report. “The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market.”
“The maturity of the Cannabis market varies across the globe mainly due to differing legal environments and public attitudes towards cannabis”, notes researchers. “Some countries such as Canada and the United States have adopted fully regulated frameworks that allow cultivation, consumption, and retail distribution of various cannabis products. There are other countries that have more limited frameworks that allow the cultivation of cannabis, but have not legalizied retail sales (e.g., South Africa). Regulations can also differ regarding how cannabis is used. Some countries allow consumption of products that contain high tetrahydrocannabinol (THC) strictly for medical use, while there are other countries that also permit the consumption of high THC products for recreational use.”
Some of the most active cannabis companies in the market, according to the report, includes:
- Lucy Scientific Discovery Inc. (NASDAQ: LSDI)
- SNDL Inc. (NASDAQ: SNDL)
- Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED)
- Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB)
- Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY)
The report states that the legalization of cannabis “is an important source of economic growth as it contributes to the growing tax revenue, increasing demands on the construction industry and to the creation of new work places. In addition to economic benefits, legalization of cannabis leads to more transparent tracking of its supply chain and therefore reduces the counterfaiting activities and overall criminal rates.”
The majority of consumers “will shift from illicit markets to legal ones and potential users will be more eager to use cannabis as it will not be subject to penalties. Apart from benefits, there are however potential negative consquences of the growing cannabis market mainly for the environment. In this regard, the governments have to take a lead in shaping the more sustainable production infrastructure.”
The report concludes by stating: “We believe that loosening of legal restrictions in the coming years, rising demand and social acceptance as well as increasing investment flows in infrastructure, technology, and real estate around the world will lead to considerable growth in the overall market. COVID-19 has also contributed to the higher usage of cannabis mainly due to increased levels of stress and anxiety along with lack of social isolation.
The Cannabis market is still in an emerging phase with considerable potential for growth as it can bring greater benefits to citizens, governments, and companies in the future. The industry will evolve dramatically in the future with more and more individuals and revenues being involved in it.”
You can find more information on this report by clicking here.