If more countries fully legalize cannabis, including the United States and all European countries, the global cannabis market could be worth $194 billion in seven years according to a new report from the Bank of Montreal. It could lead to a $30 billion medical cannabis market and a $68 billion recreational market in Europe. In the U.S., legalization would mean up to $19 billion medical cannabis sales and a further $49 billion from the adult-use of cannabis.
According to the report “The Road Map to a $57 Billion Worldwide Market“, spending on legal cannabis worldwide is expected to hit $57 billion by 2027, while cannabis market in the United States and Canada is estimated to be about $46.5 billion and other $10.5 billion would go to other markets. The recreational cannabis market will cover about 67% of the spending while medical cannabis will take up the remaining 33%.
The global legal cannabis market amounted to $9.5 billion in 2017, growing by 37 percent on the year. The North America legal cannabis market reached $12 billion in 2018, growing by 30 percent on the year. The largest market was the United States, which totaled $10.4 billion. It was followed by Canada with $1.6 billion. Analysts predicts the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021 and will grow to $47.3 billion six years later. That brings the compound annual growth rate (CAGR) to almost 28%, however the largest growth rate is predicted within the rest-of-world markets, from $52 million spent in 2017 to a projected $2.5 billion in 2027.
- The initial decision by many U.S. states and Canada to create medical-only cannabis regulations prompted many other countries to act similarly while legalization of adult recreational use in California and Canada triggered a second wave of legalizing laws internationally to increase access to medical cannabis.
- South America countries have the most liberal medical cannabis programs. Led by Brazil, Argentina, Peru and Uruguay, the South American medical cannabis market may grow from $125 million in 2018 to $776 million in 2027.
- Germany is ready to become the leader of the European cannabis market, and Italy is expected to be second with $1.2 billion in sales by 2027. Some form of medical cannabis is now legal in 22 countries in Europe.
- Australia’s legal cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion in 2027, the 5th largest in the world.
- Israel has a small population and a long history of legal medical cannabis use. It continues to be a leader over the years in the development of cannabis pharmaceuticals.
- Canada became the first in the G7 and the second country in the world to fully legalize the cannabis and is among the few countries where investors have already shown confidence in the future of the cannabis industry.