The worldwide marijuana market keeps growing.
According to the “The Road Map to a $57 Billion Worldwide Market” report released by ArcView Market Research, in partnership with BDS Analytics, the international consumer expenses on legalizing marijuana is forecasted to reach $57 billion by 2027. The report also forecasts that the use of cannabis among adults will make up the majority of spending totaling $38.3 billion, while spending on medical marijuana will reach $19.1 billion.
North America constitutes the highest spending volume which has increased from $9.2 billion in 2017 to $47.3 billion in 2027, however, because of the large market size, the growth rates are still comparatively low at a compound annual growth rate (CAGR) of 18%. The highest growth rate is forecasted to happen within the Rest of World (RoW) markets, in which expenditure is predicted to rise from $52 million in 2017 to $2.5 billion in 2027 for a CAGR of 47%.
Though the market for adult marijuana use is forecasted to dominate in North America, the market for medical marijuana will have benefits in foreign countries because the government-sponsored health systems cover the cost for patients. The paper also mentions that Europe, which has 739 million residents and more than $1.5 trillion in health care spending, has the likelihood to become the biggest medical marijuana market in the world.
Tom Adams who is Editor-in-Chief at ArcView Market Research and Principal Analyst at BDS Analytics said “Out of the United States and Canada, it will be almost completely a business consisting of only medical cannabis until the United Nations renews the 1961 Single Convention on Narcotic Drugs, which will probably only happen after the Federal government of the United States ends prohibition, which isn’t expected until 2021,”.
According to said Troy Dayton, CEO of The ArcView Group, “California receives a lot of media attention while Canada receives the investment cash since they permit adult to use marijuana, however, the move of Germany to make cannabis flower accessible for medicinal purposes in pharmacies was a huge event that happened in 2017 from an international point of view perspective”. He added, “The tables have shifted in favor of marijuana legalization all over the world and we forecast that this pattern will flow as more research is done to favor the efficiency of cannabis as a medication.”
Similar discoveries, “The Road Map to a $57 Billion Worldwide Market” shows:
Primarily, the choice by most states in the US and Canadian provinces to start medical-only regulatory policies made different nations to permit restricted access to cannabis-infused pharmaceuticals. However, the willingness of California and Canada to legalize cannabis among adults has started another flow of laws which liberalizes accessibility to medical marijuana
Medical Cannabis markets in South America account for the most liberally licensed worldwide. The worldwide expenditure on legal marijuana is set to rise from $125 million in 2018 to $776 million in 2027, which will be led by countries like Brazil, Argentina, Uruguay (the only country in the world in which adult use is legal today), and Peru.
Germany has placed itself at the center of the European market, while Italy is forecasted to rank as the second cannabis market internationally with $1.2 billion in sales by 2027.
The long history of Israel’s legalized use of medicinal cannabis has promoted a sizable controlled market for its conscious population, however, Israel passes most nations by years in the evolution of cannabis pharmaceutical applications.
The progress of Canada’s policy of Licensed Producers and mail-only distribution, as indicated by the nation’s ability to switch to adult-use legality, has made another flow of policies which has loosened the availability of cannabis. Investors are confident that the legality of Canada’s marijuana industry will send billions of dollars into public equity investments, which will help organizations to quickly grow.
The other findings in the new report include;
The licensing of medical marijuana markets in South America, which has made South America’s marijuana spending is forecasted to rise from $125 million in 2018 to $776 million in 2027.
Australia is forecasted to become the fifth biggest largest cannabis industry internationally, with the expenditure predicted to rise from $52 million in 2018 to $1.2 billion in 2027, a CAGR of 53 percent.
About The ArcView Group:
The ArcView Group came into existence in 2010, they control many mind blogging projects in the cannabis industry. The ArcView Investor Network constitutes of more than 600 accredited investors who have invested more than $150 million in 165 organizations. Since 2011, ArcView Market Research is responsible for publishing the State of Legal Marijuana Markets and it has turned out to be the most oft-cited data in the sector(2). In 2017, they joined with BDS Analytics to include a more robust point-of-sale data and consumer insights to its offerings. In 2015 they partnered with Canopy, which is the only seed-stage mentor-driven business accelerator. Arcview co-founded Cannasure Insurance Services, which is the main distributor of business insurance to the marijuana industry. Arcview was also recently listed among the top 5 financial firms in the cannabis sector according to Forbes Magazine.
On the other hand, BDS Analytics which is found in Boulder, Colo., BDS Analytics distributes cannabis brands, growers, manufacturers, dispensaries, and investors with diverse, actionable, and accurate industrial research. They provide a holistic comprehension of the marijuana industry by giving awareness from sale systems of dispensaries through its market-dominating GreenEdgeTM platform, which drives consumer research with its Cannabis Insights Group.