This is the Cannabis Industry’s Biggest Catalyst for Long-Term Growth
After generating a bit more than $3 billion in worldwide sales in 2014, the global cannabis industry saw nearly $11 billion in sales last year. By 2024, Arcview Market Research and BDS Analytics foresee worldwide ales surpassing $55 billion.
Green Entrepreneur just forecast $40 billion sales in the global cannabis markets by 2024. Grandview Research projected that the global market could reach $66.3 billion by the end of 2025. And while estimates vary, one thing is very clear. Global growth is expected to be incredibly explosive.
All thanks to incredible demand from consumers.
Global acceptance of CBD is quickly expanding.
According to Arcview Market Research and BDS Analytics, global spending on cannabis could reach $57 billion by 2027. All as consumers around the world wake up to the health benefits of cannabis, including the treatment of insomnia, stress, anxiety, pain, and even chronic issues.
Better, 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, too.
In fact, 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.”
In addition, "CBD is just starting to take hold in Europe, with both product availability and consumer awareness still quite limited. This is a great opportunity for developed brands to enter and expand through Europe with far less competition than we're seeing in the U.S.,” as highlighted by the Brightfield Group.
In Asia, “While 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.”
In the U.S. alone, analysts at Nielsen project CBD sales of $6 billion by 2025.
“As legal restrictions are loosened, the process of bringing a hemp CBD product to market, including the leveraging of mainstream distribution channels, could soon mirror that of other CPG (consumer packaged goods) products,” Nielsen said, as quoted by Food Business News. “From over-the-counter medications, to cosmetics, pet care and even products throughout the traditional food and beverage space, the future potential of hemp-based CBD could impact billions in CPG sales across categories.”
In short, the global boom has only begun, as global consumers clamor for CBD.