A new market research study predicts that the global cannabis market is on track to reach $147.4 billion by 2027 from $14.3 billion in 2019 with an estimated Compound Annual Growth Rate (CAGR) of 29 ,1% from 2020 to 2027. Researchers include no THC. The products infused with cannabinoids in their data.
The Insight Partners report, “Cannabis market Size, Share, Growth, Trends and Forecast to 2027: Global Analysis and Forecast by Product Type, Compound and Application”, highlights the prevailing trends in the global cannabis market, and the key drivers and obstacles it has identified for the expected growth areas of the market.
Researchers have found that the growth of the global cannabis market is driven by the expanding legalization of medical and adult cannabis; growing medicinal applications of cannabis; and increasing awareness of medical cannabis through conferences, symposia and workshops. A sample of the report is available here, one can request the full report at this link or purchase it directly here.
The market is segmented into flowers, concentrates and other products and segmented into medical and recreational uses. In 2019, flowers have the largest share of the market; However, the concentrates segment is expected to register the highest CAGR during the forecast period. In 2019, the medical segment held a larger share of the market, but the recreational segment is expected to witness a faster CAGR in the cannabis market from 2020 to 2027. The THC-dominant segment of the cannabis market held the largest share of the market. in 2019 followed by balanced THC and CBD, but the dominant segment of CBD is expected to register the highest CAGR during the forecast period.
America, Europe and Asia are all making progress
According to the report, the United States is expected to be the main contributor to the increase in the use of medical and adult cannabis markets. Thirty states, which make up 60% of the total population of the United States, have legalized some use of cannabis. Currently, more than 8,000 active state licenses have been issued to cannabis companies in the country, the only nation with such a large number of market players. The US House of Representatives voted to legalize and regulate adult use, but the bill has been stalled in the US Senate for years. Canada, Mexico and Uruguay have also regulated legal adult markets.
Europe also witnessed respectable market growth. There has been progress towards the legalization of cannabis among European countries, and Malta is the first nation to legalize adult use. In November 2018, the United Kingdom legalized medicinal cannabis. Concern about pesticides in cannabis is a key factor driving the demand for cannabis regulations in Europe. In addition, the growing number of commercial cannabis testing laboratories has fueled a demand for their services in this region.
Asia Pacific is projected as a large future market for cannabis and product testing. This is attributed to the medical benefits of natural cannabis and extracts in the treatment of patients with chronic neuropathic pain and spinal cord injury. The treatment of anorexia in HIV AIDS is another major market in this region. Thailand became the first country in Southeast Asia to legalize medical cannabis in December 2018 and decriminalized its cultivation and non-medical use in 2022.
