New Report: Legal Cannabis Market Projected To Grow 27% CAGR By 2023

IRELAND: The legal cannabis market is projected to register a CAGR of over 27% by 2023, according to “Global Legal Cannabis Market 2019-2023” a new report just added to ResearchAndMarkets.com.

The latest trend gaining momentum in the market is the use of advanced techniques in cannabis cultivation. According to the report, one of the major drivers for this market is the rapid legalization of cannabis. Further, the report states that one of the major factors hindering the growth of this market is the health hazards associated with the consumption of cannabis products.

Market Trends

  • Increasing demand due to growing number of patients who need cannabis for medical use
  • Use of advanced techniques in cannabis cultivation
  • Rising mergers and acquisitions in the cannabis sector

Key Players

  • Aphria
  • Aurora Cannabis
  • Canopy Growth Corporation
  • CV Sciences
  • Tilray

Data Projects Further Growth For The Legal Cannabis And CBD Markets

NEW YORK: According to Grand View Research, the global medical cannabis market is expected to reach USD 55.8 billion by 2025. Increasing use of cannabis for medical purposes is one of the key factors that drives the market. The CBD market is projected to experience rapid growth in the cannabis industry due to its medical benefits, which are highly in demand.

According to a report published by Hemp Business Journal, the CBD consumer market is expected to reach $2.1 billion by 2020.  Hemp Business Journal Founder and Publisher, Sean Murphy, explained, “The CBD Report is the culmination of more than a year of focused market research. We’ve been to IsraelEuropeCanada and to farms, labs and retailers across the U.S. to cover the hemp industry. By analyzing consumer sales in the hemp and marijuana industries, we’ve provided the first view to investors, executives and regulators on what’s really happening with CBD, the hottest category in the broader multi-billion dollar cannabis industry.”

The Legal Cannabis Market Is Expected to Grow

NEW YORK: According to a research report by New Frontier Data, in 2017 medical cannabis sales are forecasted to grow to $5.3 billion, accounting for 67% of total cannabis sales. By 2025, medical sales in current legal states are forecasted to grow to $13.2 billion, at which point medical sales will account for 55%. Comparatively, adult-use sales in 2017 are projected to reach $2.6 billion, rising to $10.9 billion by 2025. In 2016 alone, adult-use consumers shopped once every 14 days and spent $49 per transaction; medical consumers, by contrast, shop once every 10 days and outspend the adult-use customer by more than three-to-one; spending $136 per transaction.

California by itself is expected to play a major role in the legal cannabis market. “California offers the perfect example of why it is so important to understand trends in consumer behavior. The state’s legal industry is forecast to grow from $2.8 billion in 2017 to $5.6 billion in 2020. That spending will be increasingly directed at products and retailers who understand and serve the market’s evolving tastes and preferences. The market is changing, and the most successful operators will be those who adapt most quickly to the change,” said New Frontier Data CEO Giadha Aguirre De Carcer.

Cannabis Market Brings In Significant Tax Revenues

The cannabis market is experiencing significant growth due to the accelerating pace of cannabis legalization in the United States. According to a research report published by Technavio, the global legal cannabis market will grow at an impressive CAGR of around 37% between 2016 and 2020. The report indicated that rapid adoption of cannabis by individual consumers as well as economic benefits of legalizing cannabis are some of the pivotal factors that drive the growth in the market.

The report also indicated the several other benefits of legalizing cannabis: “The high tax revenues from the purchase of marijuana for recreational purposes have led governments of various countries to legalize marijuana. The legalization of marijuana for recreational purpose will increase at a rapid pace with the increasing number of countries allowing the possession of a limited quantity of marijuana. Such developments have propelled vendors to come up with legal recreational cannabis stores, which will further propel the growth of this segment in the coming years.”