LOUISVILLE,
Colo., March 6, 2024 – PRESS RELEASE –
BDSA, a leading provider of market intelligence for the
cannabis industry, released its latest projections for the global legal
cannabis market over the next five years. In 2023, global legal cannabis
spending grew to $36 billion. BDSA forecasts sales to grow at a compound annual
growth rate (CAGR) of 10% from 2023 to 2028, resulting in a $58 billion market
by 2028. The growth of legal cannabis sales has been largely driven by U.S.
markets, and particularly fueled by the adult-use channel.
“U.S.
adult-use markets currently represent approximately 56 percent of total global
cannabis sales, and are poised to claim an even larger share of global sales in
the coming years as U.S. medical markets contract,” BDSA co-founder and CEO Roy
Bingham said. “The cannabis industry is incredibly dynamic, with each market
facing unique regulatory changes and industry pressures. Looking ahead to 2028,
emerging adult-use states, particularly those on the East Coast and in the
Midwest, are expected to contribute the strongest increase to total U.S. and
global sales.”
U.S.
sales totaled $29.5 billion in 2023. Sales are expected to grow to $32.4
billion this year and reach $46 billion in 2028. While emerging adult-use
markets, including Connecticut, Maryland, Missouri, New Jersey, New York and
Illinois, are forecast to see some of the fastest growth, the most mature
adult-use markets have struggled under the pressure of price compression and
illicit competition since late 2021. Some mature markets, such as Michigan,
have continued to grow their legal sales. Others, such as California, have
stagnated but are expected to return to modest growth in the coming years.
Emerging
markets that are on the verge of legalizing adult use are forecast to be
another top driver of cannabis industry growth. Florida and Pennsylvania, both
home to strong medical markets, are forecast to launch adult-use sales in 2025
and see strong growth out to 2028.
Like
in the U.S., Canada’s cannabis market remains largely driven by adult-use
sales, with $4.2 billion of the $4.5 billion in sales for 2023 attributed to
the adult-use channel.
Globally,
legal cannabis markets beyond the U.S. and Canada remain small, with BDSA
estimating sales totaling just $2.4 billion in 2023. Total international
cannabis sales are forecast to grow at a CAGR of 24% through 2028, reaching $7
billion.
BDSA
will discuss the new market forecast report in a webinar at noon Mountain Time on
March 20. This free webinar will unveil the top cannabis industry growth
opportunities in 2024, analyze industry forecasts through 2028 and delve into
the factors driving growth in the U.S. and beyond. To register, visit https://event.on24.com/wcc/r/4506921/6B6A4EB941427C1A498A6C47C3BAA050.
