NEW YORK: The global legal cannabis market was valued at $14.3 billion in 2016 and is projected to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion by 2024, according to a report by Ameri Research.
The market is going through a period of robust growth because of increasing legalization and decriminalization of cannabis products across North America. The report specifies that legalization trends are moving beyond the U.S. region.
NEW YORK: According to a research report by Market Research Future, the Cannabis market in North America was valued at over USD 3.5 billion for the full year of 2015. Of that, the United States being the largest market in the region, was valued over USD 3 billion on its own.
Marketing activities for cannabis products have been challenged by consumer perception and stern federal policies. So as these issues are being tackled over time, the cannabis derivative is expected to witness a wider scale adoption across the region, and is projected to grow over $16 billion by 2021, growing at a CAGR over 29%.
A major portion of the cannabis industry is the cannabidiol (CBD) market. CBD is widely used for medical products, and is not psychoactive, therefore not useful for recreational purposes. The Hemp Business Journal estimated that the CBD market will grow to a $2.1 billion market in consumer sales by 2020, with $450 million of those sales coming from hemp-based sources. That’s a 700% increase from 2016.
NEW YORK: Over the recent few years, particularly in 2016, the legal cannabis industry has accomplished some significant milestones. Most importantly is the change of public opinion regarding the use of cannabis, both for medical and recreational purposes. Before the November 8th elections where five states voted on legislation reform, a Gallup poll showed that 60% of Americans support legal cannabis use. According to the poll, that is the largest percentage of support for legalization ever in the recorded 47-years of studies conducted, with support increasing among all age groups.
As a result of this election cycle, as five additional states voted in favor legalization, including California, the largest market for the industry, The Drug Enforcement Administration also changed its approach. The DEA has previously declined to reschedule cannabis under the Controlled Substances Act, has now made easier access for research, and upping the number of authorized manufacturers that supply the substance to researchers. As for the industry’s presence, a recent report published on cannabis licenses conducted by research firm Cannabiz Media, the cannabis industry is entering 2017 with 2,966 medical dispensaries and 3,973 retailers across the country, with more than 4,200 cannabis cultivators.