Incredible Facts about the Cannabis Market Investors Can't Overlook
It’s no secret the cannabis market is booming globally.
And the industry shows no signs of slowing.
Fact No. 1 – The Industry Could be Worth $77 Billion by 2022
The Marijuana Business Factbook estimates the industry could be worth $77 billion by 2022.
By 2025, Cowen & Co. analysts believe CBD use will grow to 10% of Americans, which implies a potential $16 billion market opportunity. Along the way, retailers have been quick to wake up to that very opportunity.
In addition, according to the Brightfield Group, worldwide CBD sales are expected to soar from $591 million in 2018 to as high as $22 billion by 2022 – a compound growth rate of 147%.
Fact No. 2 – Nearly 7% of Americans Use Cannabis
Nearly 7% of Americans currently use CBD, according to Cowen & Co. analysts. In fact, according to Cowen’s January 2019 consumer survey of 2,500 adults, 6.9% of respondents are using CBD. “This initial response piqued our interest considerably, as it was much higher than we would have suspected,” they said, as quoted by the Press Herald.
Fact No. 3 – Corporate America is Jumping on the Bandwagon
Neiman Marcus is pushing ahead with CBD sales at some of its stores and online. Simon Property Group is partnering with Green Growth Brands to open 108 stores in its malls just in 2019. Barney’s will launch “The High End.” CVS will carry a line of CBD products in eight states, including California, Illinois, Colorado, and Alabama. Walgreen’s will sell CBD products, including creams, patches, and sprays.
Even the Vitamin Shoppe just announced it’s selling CBD soft gels, and will soon begin selling CBD drops. According to CNBC, Vitamin Shoppe hopes that selling CBD products will help further distinguish itself as it fends off competition from Amazon and other online retailers who make it easy for consumers to order vitamins and protein powders online.
Even the CEO of Whole Foods has indicated he’s keeping a close eye on cannabis regulation, suggesting that it could show up on shelves. “If cannabis is ever passed in Texas,” he said, as quoted by Leafly, “chances are good that grocery stores will be selling that, too.”
Fact No. 4 – Global spending on cannabis could reach $57 billion by 2027
That’s according to Arcview Market Research and BDS Analytics.
In their report, “The Road Map to $57 Billion Worldwide Market,” analysts note that the South American market for example could grow from $125 million in 2018 to $776 million by 2027. They also note that Germany could become the leader in the European cannabis market, with Italy expected to see $1.2 billion cannabis sales by 2027.
Colombia is quickly emerging as a cannabis hot spot, for example.
The country is already on its way to capture as much as a fifth of a global market that could be worth $40 billion a year, according to Reuters.
“Colombia is wooing foreign investors, talking up its potential in the new era of peace as a resource-rich country with a business-friendly regulatory environment,” noted The Globe and Mail. “Colombia has the ideal climate for cannabis, with the evenly split 12 hours of light and dark each day that the plant prefers, a pool of low-cost labor and easily-transferable expertise and infrastructure from a large cut-flower export business.”
Fact No. 5 – Asia’s Medical Cannabis Market Could Reach $5.8 Billion by 2024
“In our view, while Asian investors and start-ups continue to keep an eye on legal developments in Europe and North America, western-based cannabis companies are getting ready to explore new opportunities in the Asian market,” says Prohibition Partners, as quoted by the South China Morning Post. “If legalized across Asia, China and Japan would potentially be the biggest markets in terms of value, accounting for an estimated 75 per cent share in 2024, according to Prohibition Partners. That could quadruple by 2027.”