Revised Projections For The Global Cannabis Market
The TDR Three Key Takeaways regarding cannabis market and its revised projections:
- U.S. cannabis sales are forecast to hit $33.6 billion by the end of 2023.
- The global cannabis market is projected to reach $197.74 billion by 2028.
- North America’s cannabis market sees a promising 26.65% CAGR until 2032
The North American legal cannabis market is experiencing growth, with recent studies projecting significant sales and economic impact increases. According to a report by ResearchAndMarkets.com, the North America’s legal cannabis market is expected to grow at a compound annual growth rate (CAGR) of 26.65% from 2023 to 2032. This expansion is due to increasing legalization across states, favorable regulatory changes, and financial support through bank loans, facilitating business expansions and new market entries.
In contrast, Statista’s projections for the U.S. market estimate combined sales of medical and recreational cannabis to reach $33.6 billion by the end of 2023. This figure underscores the rapid growth within the domestic market, largely fueled by the opening of new adult-use markets and a steady increase in consumer acceptance. MJBizDaily provides a detailed outlook, predicting that U.S. retail cannabis sales will grow at a compound annual growth rate (CAGR) of approximately 12.7% per year, reaching $53.5 billion by 2027.
The 2024 MJBiz Factbook highlights the industry’s overall economic impact, estimating that the cannabis sector will grow at a CAGR of about 16.5% per year, contributing up to $130 billion to the U.S. economy by 2024. This broader economic contribution includes job creation, ancillary business growth, and significant tax revenues that support various state and local projects.
Globally, the cannabis market is also set to expand rapidly. According to Fortune Business Insights, the global cannabis market is projected to grow from $20.47 billion in 2020 to $197.74 billion by 2028, reflecting a CAGR of 32.04%. This global perspective includes markets outside North America, suggesting that international legalization trends and market expansions are key drivers of this growth.
Comparing these studies reveals a consistent trend of growth driven by legislative changes, market maturation, and increasing consumer demand. However, the scope and time frames of these projections vary. While the ResearchAndMarkets.com report provides a long-term view extending to 2032, MJBizDaily and Statista focus on shorter periods up to 2027 and 2024, respectively. Additionally, MJBizDaily’s emphasis on the total economic impact, including indirect benefits and job creation, offers a broader understanding of the cannabis industry’s influence compared to the more specific market size and growth rate estimates provided by ResearchAndMarkets.com and Statista.
The North American cannabis market is on a trajectory of significant expansion, supported by various legislative, economic, and social factors. These projections not only highlight the market’s potential but also underscore its importance as a major economic contributor in the coming years. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.
