The global cannabis market is expected to reach a value of approximately USD 176,005.5 million by 2030. It will grow at a robust rate of 23.9% during the next decade. The increasing awareness of the various health benefits of cannabis is one of the factors that is expected to drive the growth of the global market.
Due to the growing understanding of the benefits for chronic diseases, such as cancer and Alzheimer’s, the demand for cannabis oil is expected to increase during the next few years. It can be used for various health conditions such as anxiety and depression.
The increasing number of people using cannabidiol (CBD)-based products for treating various ailments is expected to drive the global cannabis market during the next few years. However, the strict regulations associated with the production and sales of cannabis can be a challenge for the players.
The regulations in different countries around the world regarding the production and sales of cannabidiol can also hamper the market’s growth. The presence of major pharmaceutical and biotechnology companies in the global cannabis market is also expected to fuel the market’s development. Here are some of the trends and predictions in the current market.
1. Usage Stats
According to a survey conducted by the Gallup organization, the percentage of Americans who have tried marijuana has increased to 49 percent. This marks the highest measurement in the survey’s history.
The survey also revealed that the increase in the number of people who have tried marijuana can be attributed to the varying generations. For instance, the percentage of people born before 1945 who have tried marijuana was 19%, compared to 51% of Millennials.
A report by BofA Securities stated that the US’ cannabis sales grew by 40% in 2021 to reach a total of $25 billion. Despite not being as robust as the previous year, the sales still surpassed the previous year’s total.
The global sales of cannabis reached a total of $31 billion in 2021. The report attributed the increase in the market’s value to the huge amount of cash that the industry has accumulated.
2. Widespread Recreational Use
The use of recreational marijuana is legal in 18 states, Washington D.C., and Guam in as of April 2022.
A study conducted by New Frontier Data revealed that approximately 44% of Americans live in states where recreational marijuana is legal. The other nine states that are most likely to pass similar legislation within the next couple of years are Ohio, Pennsylvania, Florida, Missouri, Maryland, New Hampshire, Rhode Island, Oklahoma, and South Dakota.
3. Growing Market Opportunity
The legal marijuana industry in the US is expected to reach a total of $32 billion in 2022. This is a huge increase from the $26.5 billion that was reported last year. Every year, analysts predict that the market will surpass their expectations.
According to New Frontier Data, the legal marijuana industry is expected to grow at a rate of 11% from 2020 to 2030. It’s estimated that the market will reach a value of over $57 billion by 2030.
Wall Street analysts believe that the legal marijuana industry will reach a value of over $100 billion by 2030. This is due to the increasing number of states that have started to allow the recreational use of the drug.
The amount of money that investors poured into the legal marijuana industry in the US in 2020 slowed down dramatically. However, after the emergence of the medical marijuana industry, the amount of money that was raised in 2021 increased significantly. Multiple-state operators (MSOs) also raised a huge amount of money in the year.
