Worldwide consumer spending on legal cannabis is projected to reach $57 billion by 2027, according to the “The Road Map to a $57 Billion Worldwide Market” report released today by Arcview Market Research, in partnership with BDS Analytics. The report also predicts that adult-use cannabis will make up the majority of spending totaling $38.3 billion, while medical spending will reach $19.1 billion.
North America will continue to represent the largest spending volume, growing from $9.2 billion in 2017 to $47.3 billion in 2027, but due to the massive size of the market, the growth rates remain relatively low at a compound annual growth rate (CAGR) of 18%. The largest growth is expected to occur within the Rest of World (RoW) markets, where spending is forecast to grow from $52 million in 2017 to $2.5 billion in 2027 for a CAGR of 47%.
While the adult-use market is expected to dominate in North America, the medical market will have advantages overseas due to government subsidized health systems covering cost for patients. The report also notes that Europe, which has 739 million people and more than $1.5 trillion in healthcare spending, has the potential to be the largest medical cannabis market in the world.
“Outside the United States and Canada, it will be almost wholly a medical-only business until the United Nations revamps the 1961 Single Convention on Narcotic Drugs, which will likely only come after the United States’ Federal Government ends prohibition, which we don’t expect until 2021,” said Troy Dayton, CEO of The Arcview Group.
“California gets the media attention and Canada gets the investment dollars as they allow adult use, but Germany’s move to make cannabis flower available for medical use in pharmacies was really the big news of 2017 from a worldwide perspective” said Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics. “The tables have turned in favor of legalization across the world and we predict that the trend will spread as research continues to support cannabis’ effectiveness as a medication.”
The 65-page report is available for $297, or as part of the 8-part Cannabis Intelligence Briefing subscription service from Arcview Market Research and BDS Analytics for $1975.
Among other findings, “The Road Map to a $57 Billion Worldwide Market” reveals:
- Initially, the decision by many US states and Canada to launch medical-only regulatory regimes prompted many other countries to allow limited access to cannabis-based pharmaceuticals. But, now, California’s and Canada’s willingness to move on to adult-use legality has triggered a new wave of laws liberalizing access to medical cannabis.
- South America medical markets are some of the most liberally licensed in the world. The continent’s legal spending is set to grow from $125 million in 2018 to $776 million in 2027, led by Brazil, Argentina, Uruguay (the only country in the world in which adult use is legal today), and Peru.
- Germany positioned itself as the leader of the European market, while Italy is expected to be the second-ranked cannabis market on the continent with $1.2 billion in sales by 2027.
- Total legal cannabis spending in Australia is forecast to grow from $52 million in 2018 to $1.2 billion in 2027, a CAGR of 53%, making is the 5th largest market in the world.
- Israel’s long history of legal medical use has fostered a sizable regulated market for such a modest population, but it leads other countries by years in the development of cannabis pharmaceutical applications.
- The success of the Canadian system of Licensed Producers and mail-only distribution, as evidenced by the country’s willingness to move on to adult-use legality, has prompted a new wave of laws liberalizing access to medical cannabis. Canada is one of the few countries where investors have been confident enough in the legality of the industry to pour billions of dollars into public equity investments, helping companies to grow rapidly.
For more information, to purchase “The Road Map to a $57 Billion Worldwide Market” report or to sign up for the Cannabis Intelligence Briefing series, please visit arcviewgroup.com/research.
About The Arcview Group:
Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $150 million behind 160 companies. Arcview Market Research has published the State of Legal Marijuana Markets since 2011 and it has become the most oft-cited data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides cannabis brands, cultivators, producers, dispensaries, and investors with comprehensive, actionable, and accurate industry research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group. To learn more about how you can utilize BDS Analytics’ superior data and insights, please visit www.bdsanalytics.com.
Source: Globe NewsWire