The Legal Cannabis Market Expected to Witness Wider Adoption

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.

 

Legal Cannabis Market Gaining Traction

NEW YORK: The global medical marijuana market is expected to reach a value of USD 55.8 billion by 2025, according to a new report by Grand View Research, the report indicates that together with Washington D.C. 28 states have legalized marijuana for medical uses.

In 2016, states such as ArkansasFloridaNorth DakotaOhio, and Pennsylvania were approved to use the drug in medical applications such as chemotherapies and pain management. The growing number of states and countries getting approval for using it in therapeutic applications is one of the crucial factors driving the demand over the coming few years. In addition, successful legalization for recreational use in states like California.

Florida by itself is projected to become a major market after voters overwhelmingly chose to legalize medical marijuana with more than 70% of the vote. According to Arcview Market Research, the potential growth of the medical market in Florida is strong. The market is projected to reach $1.6 billion by 2020, growing at a compound annual growth rate of 140%.

“The opportunity for good jobs, tax money and wealth creation created by Amendment 2 passing cannot be understated. Savvy entrepreneurs and pioneering investors are rightfully exuberant about the Florida market. And, thankfully, seriously ill patients will no longer need to go to high school parking lots or drug dealers to get their medicine,” said Troy Dayton, CEO of the Arcview Group.