Global Recreational Cannabis Market on Track to Reach $50 Billion by 2027, Report Finds

LOS ANGELES- In a significant development for the global cannabis industry, a recent report from Prohibition Partners, a leading U.K.-based cannabis data, media, and technology firm, projects a dramatic expansion in the worldwide market for legal adult-use cannabis. The report estimates that by 2027, global sales will nearly double, reaching around $50 billion, driven largely by policy reforms and the opening of new markets, particularly in Europe.

North America continues to lead the global cannabis market, with the United States and Canada at the forefront. Despite federal prohibition, the U.S. has seen a surge in state-level legalization, with 24 states adopting recreational cannabis laws and 38 allowing medicinal use. Sales in the U.S. reached approximately $26 billion in 2022, with projections to hit $33 billion by 2027. Canada, having legalized cannabis in 2018, reports around CAD 6 billion in sales, with the majority coming from the recreational sector.

Europe is rapidly emerging as a significant player in the industry. With Malta pioneering the movement as the first European country to legalize recreational cannabis, others like Switzerland, the Netherlands, and Germany are making significant strides. Germany, in particular, is poised to become a major market with its impending legalization plan.

Alex Khourdaji, a senior analyst at Prohibition Partners, noted the progress made in 2023, highlighting advances in both recreational and medical cannabis markets. With new markets opening in the U.S. and ongoing policy reforms globally, the industry is expected to continue its upward trajectory into 2024.

This expansion is not confined to North America and Europe. Latin America and Africa are slowly emerging as suppliers for the global market, while Oceania is making strides in both imports and exports. Asia, however, remains largely untapped, with Thailand and Japan as notable exceptions.

The report underscores the significant economic potential of the cannabis industry, with legal reforms and commercialization laying a strong foundation for future growth. As nations continue to reform their cannabis policies, the industry is poised for substantial expansion, offering significant opportunities for investors and businesses globally.