The BDSA’s global legal cannabis forecast shows that global cannabis sales for 2020 reaching nearly $21.3 billion, an increase of 48% over 2019. Global market was valued at $30.6 billion in 2021, an increase of about 44% over 2020, and about $37 billion in 2022, an increase of about 20.9% over 2021.

Spending on legal cannabis worldwide is expected to reach about $50 billion by 2025 at a compound annual growth rate (CAGR) of 13% from 2021 and hit $57 billion by 2027, while cannabis market in the United States and Canada is estimated to be about $46.5 billion and other $10.5 billion would go to other markets. The largest growth rate is predicted within the rest-of-world markets with projected $2 billion in 2027.

The recreational cannabis market will cover about 67% of the spending while medical cannabis will take up the remaining 33%.

Legal medical cannabis spending outside the U.S. and Canada increased 30% in 2021 compared to 2020, from $1.1 billion to nearly $1.4 billion, largely due to markets in Germany and Mexico. According to the report, international cannabis sales will grow in value to about $8 billion in 2026 at a CAGR of 40%.

Key Trends:

• The initial decision by many U.S. states and Canada to create medical-only cannabis regulations prompted many other countries to act similarly while legalization of adult recreational use in Canada and in more than 40% of U.S. states triggered a second wave of legalizing laws internationally to increase access to cannabis products.
• In the seventh edition of the European Cannabis Report – produced by London-based advisory group Prohibition Partners – Europe’s cannabis market is projected to be worth €354 million by the end of 2022 and to grow with a CAGR of 60% to reach €2.3 billion by 2026.
• The size of the Latin America cannabis market has an estimated market value of $60 million in 2022 and is projected to be driven by Mexico with a CAGR of 104%. Mexico is expected to account for nearly 32% of legal cannabis spending outside the U.S. and Canada.
• According to a New Frontier Data report, Africa with over 10% of global cannabis demand will rank fourth after North America, Europe and Latin America.
• Oceania’s legal cannabis market is forecast to grow from about $100 million in 2021 to $1.2 billion in 2027, the 5th largest in the world.
• Israel has a small population and a long history of legal medical cannabis use. It continues to be a leader over the years in the development of cannabis pharmaceuticals.

Global Cannabis Market Infographics