According to industry insiders, the global cannabis market could reach $15 billion this year, up 36 percent from last year. The new estimate includes sales of cannabidiol (CBD)-based pharmaceuticals, revenue from medical and recreational dispensaries and other hemp-derived products rich in CBD.
This is the first year the annual “The State of Legal Cannabis Markets” report, done by Arcview Market Research and cannabis industry analysis firm BDS Analytics, evaluated the cannabis industry as the “Total Cannabinoid Market.” This was also the first year to evaluate the effects on the industry of the FDA approval of the CBD-based Epidiolex, the legalization of recreational cannabis in Canada and the 2018 Farm Bill. A surge in the demand for CBD products and Canada’s creating of a legal market are the biggest factors in increasing the market.
“North America will almost certainly continue producing the lion’s share of legal spending, particularly as more U.S. markets transition from medical-only access for a limited pool to full legalization with sales open to all legal adults,” wrote Tom Adams, managing director of industry intelligence at BDS Analytics, in the report.
Arcview and BDS both expect cannabis sales at dispensaries, retail stores and pharmacies will hit $44.8 billion globally by 2024, with sales of CBD products purchased through those channels will reach $20 billion by 2024. A previous report estimates the hemp industry will reach $13 billion in 2026.
Long-term industry predictions by the analysts include Canada becoming a $5 billion cannabis market, European and Latin American countries launching cannabis programs and more U.S. states continuing to legalize cannabis or recreational use. For the first time since legalizing cannabis and after going through a shortage of supply, Canada is set to reach “oversupply” by the end of the year.