The cannabis market is a rapidly growing industry that is gaining momentum globally. The market is currently valued at approximately USD $21.3 billion, and it is expected to reach USD $73.6 billion by 2027, growing at a compound annual growth rate (CAGR) of 18.1% from 2020 to 2027 (1).

North America is the largest cannabis market in the world, with the United States and Canada accounting for most of the market. The US cannabis market is currently valued at approximately USD $17.5 billion, and it is projected to grow to USD $41.5 billion by 2025, at a CAGR of 18.9% (2). In 2020, five more US states legalized cannabis for recreational use, bringing the total number of states with legal cannabis to 15. Additionally, 36 US states have legalized medical cannabis, indicating a shift in public perception towards the drug.

Canada legalized recreational cannabis in 2018, making it the first G7 country to do so. The Canadian cannabis market is currently valued at approximately USD $2.6 billion and is projected to reach USD $8.3 billion by 2025, growing at a CAGR of 17.3% (3).

Europe is also experiencing growth in the cannabis market, with Germany being the largest market in the region. The German cannabis market is expected to reach USD $2.1 billion by 2025, growing at a CAGR of 28.7% (4). Several other European countries, including Italy, Portugal, and the Netherlands, have also legalized medical cannabis, and the European Union has approved the use of cannabis-based medicines.

Australia and New Zealand are emerging markets in the cannabis industry. In Australia, medical cannabis was legalized in 2016, and the market is expected to grow to USD $1.2 billion by 2025, at a CAGR of 28.4% (5). New Zealand legalized medical cannabis in 2018 and is currently in the process of legalizing recreational cannabis. The New Zealand cannabis market is expected to reach USD $1 billion by 2025, growing at a CAGR of 39.6% (6).

The Asia-Pacific region is also showing potential for growth in the cannabis industry. In 2020, Thailand became the first country in Southeast Asia to legalize medical cannabis, and the Thai government has set a goal to become the leading cannabis producer in the region (7). South Korea, Japan, and Malaysia have also legalized medical cannabis, while the Philippines and Indonesia have expressed interest in the industry.

The global cannabis market is expected to experience significant growth in the coming years due to the increasing legalisation of the drug. However, the industry is also facing challenges such as regulatory hurdles, lack of standardisation, and the stigma associated with cannabis use. The lack of federal legalisation in the US has created obstacles for businesses operating in the industry, including difficulties accessing banking services and limited access to capital (8).

In conclusion, the cannabis market is a rapidly growing industry that is gaining traction globally. The North American market is currently the largest in the world, but other regions such as Europe, Australia, and Asia-Pacific are also experiencing growth. As more countries legalize cannabis, the industry is expected to continue to expand, although it will also face challenges such as regulatory hurdles and stigma associated with cannabis use.

References:

1. Grand View Research. (2021). Cannabis Market Size, Share & Trends Analysis Report By Product Type, By Compound, By Application, By End-use, By Region And Segment Forecasts, 2020 - 2027. Retrieved from https://www.grandviewresearch.com/industry-analysis/cannabis-market

2. Prohibition Partners. (2021).

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