Global Cannabis Market Set To Reach $59.6B In 2027, Says BDSA's CEO

BDSA, a leading provider of market intelligence for the cannabis industry, released an updated five-year global legal cannabis market forecast on Wednesday. According to BDSA, global legal cannabis spending grew by 4.8% to $32 billion in 2022. Based in Colorado, the company forecasts a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in a market size of $59.6 billion by 2027. Despite economic uncertainty and rising inflation, BDSA expects legal U.S. cannabis sales to grow 14% by the end of 2023.

Strong Growth Driven By Developing Markets

Although legal cannabis spending slowed significantly in 2022 due to rapid price declines across all markets, BDSA’s updated forecast predicts strong growth in the U.S. driven by developing markets, particularly the adult-use markets of Missouri, New Jersey and New York.

“Four of the top five U.S. markets—Florida, Illinois, Massachusetts, and Michigan—will increase by a combined 9.5% in 2023, adding nearly $770 million in new spending,” and that the growth of the U.S. cannabis market “accounts for slight further declines in some mature markets, but strong growth in recently launched markets—especially the adult-use markets of Missouri, New Jersey, and New York,” Roy Bingham, co-founder and CEO of BDSA told Benzinga.

“Recently launched adult-use markets in Maine, Montana, New Mexico, New Jersey, and New York are expected to see rapid growth through 2027. Globally, new adult-use sales in Germany and Mexico are the primary drivers of growth.”

BDSA expects to see a number of new adult-use markets emerge over the next few years in Florida, Maryland, Ohio and Oklahoma. “In addition, we predict market expansion in the European Union and Latin America, where limited medical programs currently exist,” Bingham added.

Highlights Of The Report

• While BDSA expects to see a return to growth for most mature markets in 2024, mature markets in the U.S. are expected to grow slower during the forecast period.
• Several newer markets accomplished a strong expansion in 2022. New Jersey and Montana, which launched adult-use sales in 2022, saw approximately 140% growth while Missouri grew by 84% in its second full year of medical-only sales.
• By 2027, adult-use sales are forecasted to contribute 78% of the total global legal cannabis spending, up from 64% in 2022.
• The U.S. legal cannabis spending is expected to grow at a CAGR of 11.3%, from $26.1 billion in 2022 to $44.5 billion in 2027, driven primarily by the New York, Florida, New Jersey and California markets.
• BDSA forecasts the launch of several new adult-use markets by 2027, including Maryland and Oklahoma in 2024 and Florida and Ohio in 2025.
• Globally, cannabis markets beyond the U.S. and Canada are forecast to grow at a CAGR of 40% to $9.5 billion in 2027, up from $1.8 billion in 2022.
• BDSA forecasts the Canadian market will see 12% overall growth this year, becoming a $5.7 billion market by 2027 at a CAGR of 6.3%.
• New adult-use markets and Germany and Mexico are the primary drivers of global growth, and currently, limited medical cannabis programs are expected to expand, primarily within the European Union and Latin America.

Stay Tuned

BDSA will cover the new market forecast report in a free webinar on March 7 at 11 a.m. MT. The webinar will explore what the cannabis industry will look like by 2027 and what factors are driving growth in the U.S. and beyond. To register, visit here.

Photo Credits: Roy Bingham co-founder and CEO BDSA - Janon Stock on Shutterstock and photo on LinkedIn.