Global Cannabis Market Expected to Reach Nearly $60 Billion by 2027, with U.S. Accounting for Three-Quarters of Sales, says BDSA Report
LOS ANGELES–The global cannabis market is poised for massive growth in the next four years, with projected sales of nearly $60 billion by 2027, according to a recent market forecast by BDSA. This represents a nearly doubling of the industry’s sales from $32 billion in 2022.
The United States is expected to continue to dominate the global cannabis market, with three-quarters of the $59.6 billion in sales projected for 2027 coming from U.S. markets alone. Last year, U.S. sales totaled $26.1 billion.
CEO Roy Bingham attributes much of the growth to developing markets in U.S. states such as Missouri, New Jersey, and New York. According to Bingham, the U.S. cannabis market is projected to reach $44.5 billion in sales by 2027, with California, New Jersey, and New York being the primary drivers.
In contrast, BDSA predicts that the Canadian market will hit just $5.7 billion in cannabis sales by 2027, while other nations will only total $9.5 billion in sales.
While consumer spending on marijuana experienced a marked slowdown and widespread price declines that followed wholesale price crashes, BDSA still predicts a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in the projected $59.6 billion market size by 2027.
BDSA also predicts that mature state markets that suffered sales declines last year, including California, Colorado, Nevada, and Oregon, will experience a “return to growth”. These markets combined saw a 16.5% sales dip.
Four of the top five U.S. markets, including Florida, Illinois, Massachusetts, and Michigan, are expected to increase by a combined 9.5% in 2023, adding nearly $770 million in new spending.
Despite the industry hurdles, there is still good reason for optimism about the industry overall. The growth of the cannabis industry is nowhere near complete, and much of the U.S. and the rest of the world have yet to embrace legal cannabis.
In conclusion, the cannabis industry is on the brink of explosive growth in the next few years. The U.S. market remains the primary driver, with a projected $44.5 billion in sales by 2027, while other nations will only total $9.5 billion in sales. Developing markets in U.S. states such as Missouri, New Jersey, and New York are expected to play a key role in driving the growth. Despite the challenges the industry faces, including the marked slowdown in consumer spending and price declines that followed wholesale price crashes, the cannabis industry’s projected compound annual growth rate of 13.2% from 2022 to 2027 paints a positive outlook for the industry.
(This information is primarily sourced from Reportlinker. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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