The legal cannabis industry is set to be worth a staggering $84bn by 2028, according to new analysis.
A report by Grand View Research, US-based market research and consulting company, predicts favourable regulatory changes will continue to fuel growth globally.
The report’s authors point to movement on medical cannabis laws and Europe’s designation of CBD products as novel foods as key drivers in the near future.
In 2020, the legal cannabis trade was worth around $24.6bn.
North America, which has seen a wave of liberalisation in recent years, continues to dominate the market and is home to over 90% of cannabis revenue.
But the report singles out the UK as a ‘promising market’ along with Germany, Australia, Mexico, Colombia and Israel.
In 2020 alone, the UK has seen a wave of listings on the LSE by cannabis companies, a change in CBD regulations expected to boost consumer confidence and was singled out by a UN drugs report as being a major producer of cannabis.
A report summary states: “These countries have started indigenous production, and therefore these countries are secondary markets expected to become viable in the coming years.
“Furthermore, the market demand is expected to surge rapidly due to changes in government policies.
“Several new startups are venturing in the research & development and manufacturing of cannabis.
“The number of applications for which marijuana is prescribed is expected to increase, thereby opening up new revenue channels for the players in various countries.
“This eventually is expected to influence the growth of the market.”
Much of Europe is still some way behind North America and Canada on recreational use, which accounted for 60.3% of the total market in 2020 owing to ‘high demand among millennials and patients who do not qualify for medical cannabis’.
Like the vast majority of businesses, the cannabis industry has been slowed down by the the Covid-19 pandemic, according to the report.
The authors state: “The Covid-19 pandemic has disrupted the supply chain management of cannabis products.
“Due to the strict lockdowns across the globe, the supply of cannabis in dispensaries has reduced. Moreover, the Covid-19 pandemic has hit the export business.
“The disruption in the supply chain caused due to lockdowns in major countries has affected import as well as export business.”
