Technavio: Marijuana Market to Reach $71.88B

The TDR Three Key Takeaways:

  1. The Technavio study forecasts the global marijuana market to reach USD 71.88 billion by 2027, with a CAGR of 24.86%, influenced by increased legalization and consumer preference for purchasing from licensed dispensaries.
  2. Statista anticipates the bulk of this growth will come from the U.S., where the legal cannabis market could hit $53.5 billion by 2027, with North America accounting for 90% of this expansion.
  3. The market’s future hinges on legislative advancements, a shift towards e-commerce, and regulatory oversight, with the U.S. playing a pivotal role in the market’s growth.

According to a report this week from Technavio, a market research firm, the global marijuana market is projected to reach USD 71.88 billion by 2027, with a compound annual growth rate (CAGR) of 24.86% between 2022 and 2027. This significant growth reflects an increase from USD 13.56 billion in 2017 to an estimated USD 71.88 billion over a ten-year period. The market includes both medical and recreational marijuana, catering to various consumer needs and preferences.

Consumer trends indicate a preference for purchasing marijuana from licensed dispensaries. This shift is largely due to the increasing legalization of marijuana across countries like Australia, Canada, and the United States at the state level, which has introduced legislation supporting both medicinal and recreational use of cannabis. This legal support has played a crucial role in driving market growth.

Statista, another market research organization, predicts that the majority of this growth will come from legal cannabis use in the United States, expected to reach $53.5 billion USD by 2027. Technavio’s analysis supports this prediction, estimating that North America will contribute 90% to the market’s growth during the forecast period, with significant increases in recreational marijuana sales in both the US and Canada.

Regulatory frameworks are vital in managing the market dynamics, ensuring controlled growth, and monitoring product prices and applications. Additionally, the expansion of e-commerce has further influenced market growth by making online shopping for cannabis products more accessible and attractive. Consumers benefit from the convenience of online shopping, which offers discounts, detailed product descriptions, and a broad selection of products. This move towards online retailing has opened new avenues for market growth, adapting to changing consumer preferences and leveraging the increasing use of the internet and smartphones.

The global marijuana market is set for substantial growth, fueled by legislative advancements, shifting consumer preferences, and the rise of e-commerce. The North American market, especially the United States, is anticipated to play a significant role in this expansion. As the industry evolves, regulatory measures and digital marketplaces will continue to shape its future, ensuring a balanced, accessible, and regulated market for consumers worldwide.
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