Around the world, a legal cannabis market is growing quickly. Euromonitor provided a report about the sector worldwide. There was a temporary decline in 2022. It was caused by price tightening, consumer loss, and macroeconomic uncertainty.
Predictions for world cannabis market
Wider legalisation and social acceptance of cannabis are driving the expansion. They are causing customers to switch from the illicit market to legal channels or to enter the market as new users.
Thus according to the report the cannabis market on the world will keep growing. There is a predicted 23% value CAGR over 2022–2027. All despite the fact that it faltered in 2022 with 13% growth compared to 30% in 2021.
The majority of cannabis usage globally still happens in the illicit market. Euromonitor calculates that 82% of the overall international consumption value is illegal. However, if more legalisation takes place, this might fall to about two thirds by 2027.
What will change by the year 2027?
The current cannabis consumer is shifting away from the traditional image of recreational flower consumption. Innovative methods of delivery and complex infused formulations are being used more frequently. Such products work for therapeutic, calming, mood-management, and other new use situations. As a result, it looks like the cannabis flower’s market share will decrease from 34% in 2022 to around 26% by 2027 in the world.
The expansion of adult-use cannabis legalisation in the US and elsewhere will be the primary factor driving value growth in the global legal cannabis market through 2027. This could result in an almost 300% rise in the number of users, to more than 40 million. With the number of CBD users likely to reach 50 million, growth will be seen in other areas.
Overall, growing legalisation and social acceptance are leading to an expansion of the legal cannabis business. Even though the illegal market still accounts for the vast bulk of cannabis consumption worldwide, this could change as legalisation progresses. The widespread legalisation of cannabis for adult use will be the primary driver of value growth in the legal cannabis business since modern cannabis consumers are shifting away from conventional recreational flower use.