New Report Finds Cannabis Industry Reaches $35 Billion in Legal Markets Globally

LOS ANGELES– According to the latest report from New Frontier Data, the cannabis industry in legal markets reached $35 billion in 2022, while total demand in both legal and illicit markets was estimated to be closer to $460 billion. The Cannabis Capital: 2023 Industry Market Report also found that the North American market is still the global leader for cannabis consumers, with the US and Canada accounting for 96% of legal cannabis sales in 2022.

The report noted that despite cannabis still being federally illegal, the US reported 10 times the amount of cannabis spending than any other legal country. In the US, states with legal industries commanded 85% of the market, recording $30 billion in sales, while Canada came in second with $4 billion in legal sales in 2022. However, the report also highlighted that legal markets are capturing only 30% of estimated annual cannabis spending in North America, with most of the demand residing in illicit or unregulated markets.

New Frontier Data expected little progress on federal legalization, reclassification of cannabis, and tax issues such as 280E and/or banking reforms, which will keep new investors out of the market. This could lead to belt-tightening and consolidation in the industry, creating a healthier and stronger standing to face the challenges of federal legalization, according to the report.

Despite the challenges, the report forecasts the US market to continue dominating globally, with even more states legalizing adult use in 2023 and 2024.