According to a new report by Research and Markets, the global market for legal marijuana is valued at just over $47 billion, and is expected to grow substantially in the coming years.
“2023 was something of a mixed bag for the legal cannabis industry”, states the report. “While 13% year-on-year growth to reach USD47.1 billion represents a modest recovery from the high single-digit growth experienced in 2022, it remains some way off the 40% and 30% expansion achieved during the pandemic in 2020 and 2021, respectively.”
That said, the “forecast remains positive”, as the $47.1 billion market is expected to grow at a compound annual growth rate of 18% through 2028, leading to a valuation of $107 billion.
The report estimates that 81% of the total global value is currently consumed in the illicit market, which could decline to around two thirds by 2028 if further legalization occurs.
“The modern cannabis consumer is diversifying away from the traditional image of ritual recreational flower consumption”, notes the report. “There will still be ritual, as well as recreation, alongside a range of fresh use occasions involving innovative delivery mechanisms and sophisticated infused formulations, meaning that flower’s share will decline from 32% in 2023 to around 28% by 2028.
The fundamental driver of value growth in the global legal cannabis industry over the period to 2028 “will be the wider legalisation of adult-use cannabis in the US (and potentially internationally) driving the user population up by almost 100% to over 40 million. Growth will also occur in other areas, with the CBD user population growing to around 65 million.”
More information on this report can be found by clicking here.
