New Industry Report Forecasts $47.3 Billion North American Legal Cannabis Market By 2024
Nobody has ever believed anything other than that the legalisation of medical and recreational use of cannabis across North America in recent years would result in a huge market. It was in the unique situation of already having a huge consumer base. It’s just that until recently buyers were only able to buy cannabis on the black market. It was known that market was big but accurate estimates were difficult. Add in the full array of how legal cannabis can now be packaged into stand-alone products or as a food supplement and it became clear this was going to be a huge market.
But the sheer extent of the size of the new market for legal cannabis is taking even industry insiders by surprise. In Canada cannabis was fully legalised last year for both medical and recreational use. In the USA it is now legal in either on form or both in 30 states, with several more preparing to legalise it, even if still illegal on a federal level. And the market is booming. To such an extent that the recent North American Cannabis Report, published by consultancy group Prohibition Partner, forecasts the region’s market value to have reached a huge $47.3 billion within five years.
And while growth in fully-legalised Canada is expected to be substantial, at an average 33% annually over the next five years, it is the USA that is expected to really drive the market. Despite cannabis still being illegal on a federal level, the report estimates triple digit market growth over the years until 2024. That will be fuelled by a combination of more states legalising recreational use, states where cannabis is still illegal legalising medical use or both medical and recreational use, and a growing range of products.
"We expect the total cannabis market to be worth US$47.3 billion by 2024. By then, we believe medicinal cannabis, as well as recreational cannabis, will be legal across the region, integrated across a number of industry verticals from pharma to food."
CBD products, those which use cannabis that doesn’t contain the THC element that gives the ‘high’ most associated with the drug, are expected to be a particularly strong growth sector. CBD oil is popular and many users report positive health effects such as improved sleep and improvement of conditions such as anxiety or depression. Edibles and cosmetics containing CBD oil are a quickly growing industry.
The report pointed to the fact that cannabis edibles are currently not legal across all of North America but that the legal status is quickly changing. Celebrity cook Martha Stewart, a mainstream personality, has even teamed up with cannabis company Canopy Growth, on a range of cannabis-infused products.
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