According to a new report from ArcView Market Research, the global medical and adult-use cannabis market is expected to reach $55.4 billion by 2028. This is an increase of more than a quarter over the current market size. Certainly, the market’s growth will be driven by the availability of more cannabis-friendly states in the U.S. and around the world.
Medical Marijuana was legalized in Canada in 2001 and has been growing in popularity since, with sales projected to double in the next five years.
Medical cannabis sales increase due to growing acceptance
Legal cannabis is one of the most popular sectors at the moment. In fact, medical and recreational marijuana is legal in Canada and Mexico. In the United States, more than 35 states have legalized medical marijuana in some form, and 17 states have legalized recreational marijuana. This has contributed to the huge increase in grass stocks. Moreover, the outlook for North American cannabis stocks looks bright as the federal legalization of marijuana in the U.S. nears the finish line. Currently, more than 40% of Americans live in states where they have access to legal marijuana in some way. The sector is expected to reach $100 billion in annual sales by 2030. (Source: Welcome to the Last Illegal 420, Forbes, April 20, 2021). To do that, we may need to legalize recreational and medical marijuana at the federal level. But we’re getting closer. Thanks to a number of states that have legalized recreational and medicinal cannabis (the most recent being Alabama), sustained pressure from state governors and attorneys general may force the federal government to take action. The voters are definitely on their side. According to a recent Gallup poll on the subject, 68% of Americans believe cannabis should be legal. (Source: Support for legal marijuana reaches new high of 68%, Gallup, November 9, 2020). According to a recent Quinnipiac University poll, the percentage is even higher: 70% of Americans think marijuana should be legal. (Source: Majority favor stricter gun laws, Quinnipiac University national poll; opinions on police and voting issues divided, Quinnipiac University, April 15, 2021) You’d think a politician who sees 70% approval for anything would be all over the place. There is still a lot of work to be done, but the momentum is clearly there. The House of Representatives passed the Safe and Fair Banking Act of 2021 (SAFE Banking Act) more than a year ago. If passed by the Senate, the SAFE Banking Act would allow banks and financial institutions to make loans to marijuana businesses without being prosecuted under federal law. If this bill passes, it will put even more pressure on the federal government to legalize marijuana. Some politicians who were once staunch opponents of recreational and medicinal cannabis have jumped on the bandwagon. John Boehner, former Speaker of the House of Representatives, is now a lobbyist for the cannabis industry and sits on the board of directors of Acreage Holdings Inc (CNSX:ACRG.U, OTCMKTS:ACRGF). (Source: Management Team, Acreage Holdings Inc. last visited June 16, 2021). In an interview in April, the former cannabis opponent said he likes to drink red wine and smoke cigarettes, so if someone wants to light up a joint, that’s fine. (Source: Former House Speaker John Boehner changes his mind about the cannabis industry, CNBC, April 15, 2021) Boehner added: It’s time for the federal government to pull out of this. So there is hope that recreational and/or medical marijuana will become legal across the country in the United States in the next few years. Still, it’s important for investors to know that the medical cannabis industry doesn’t just cover North America, although it’s a large market of more than 371 million people. Medical marijuana is legal in many countries, including Argentina, Australia, Brazil, Czech Republic, Denmark, Finland, Germany, Greece, Ireland, Israel, Italy, Jamaica, New Zealand, Norway, Peru, Switzerland and the United Kingdom. As more and more countries legalize medical marijuana, it is difficult to obtain accurate data on the global medical marijuana market. It depends on who you ask and when the study was done. Either way, the growth is explosive. According to a recent study, the global medical marijuana market is expected to grow from $9.2 billion in 2020 to $27.9 billion by 2026, at a compound annual growth rate (CAGR) of 20%. (Source: Global medical marijuana market size growing at 20% CAGR, to reach USD 27,988 million by 2026: facts and factors, GlobeNewswire, June 14, 2021). Another recent study is even more optimistic, predicting that the medical cannabis market will grow at a CAGR of 25.1% between 2021 and 2028, to $67.3 billion. (Source: Medical Cannabis Market Size, Share 2021, growing rapidly at a CAGR of 25.16% with industry trends, application outlook, revenue and opportunities Elixinol Global Limited, Medical Marijuana, Extractas, GlobeNewswire, May 25, 201) These are not figures that politicians or investors want to ignore.
The medical marijuana industry is experiencing tremendous growth. The best part is that the entire legal cannabis industry is still in its infancy. As previously reported, medicinal cannabis sales are expected to increase by at least 20% over the next five years and more than 25% by 2028. As a result, there has never been a better time for investors to look for medical marijuana operators with a growing presence in the United States and plans for international growth.
cannabinoid market size