Why it matters: The global recreational marijuana market is projected to nearly double by 2027, with legal sales reaching almost $50 billion per year. This growth is attributed to ongoing cannabis reform and the opening of new markets in Europe.
What they are saying: Prohibition Partners, a cannabis data, media, and tech company, highlights North America as the global leader in legal cannabis, with the US experiencing state-by-state growth and promising regulatory reform, while Canada maintains a strong international presence. Europe is described as a fragmented and heavily regulated business environment, with steady growth in key countries and ongoing confusion over CBD.
The big picture: The report forecasts global annual sales of recreational cannabis to reach approximately $49.7 billion by 2027, driven by policy reform in the US and Europe. North America is expected to remain the leader in adult-use cannabis sales, with Canada and the US contributing significantly. Other regions, including Latin America, Africa, Oceania, and Asia, are also gradually entering the global cannabis market.
What to watch: The evolution of cannabis reform in Europe is a key factor to monitor, as countries such as Malta, Switzerland, the Netherlands, and Germany make progress towards legalization. Additionally, the growth of the global medical cannabis market and the untapped potential in the Asian market, particularly in Thailand and Japan, are worth observing.
My take: The projected growth of the global recreational marijuana market highlights the expanding acceptance and demand for cannabis worldwide. With ongoing policy changes and increasing commercialization, it is evident that the cannabis industry is becoming more mainstream and poised for further expansion. As legal barriers continue to be lifted, there will be opportunities for businesses to capitalize on this market growth and for consumers to access regulated and tested cannabis products.
