Worldwide Cannabis Sales Predicted to Top $50 Billion by 2025
Is that even a surprise?
New Frontier Data recently published a report that reveals just how much the cannabis industry is expected to grow before the end of this decade. The comprehensive report states that global cannabis sales are estimated to reach at least $50 billion before or by 2025.
New Frontier Data is a technology-driven company that prides itself on its quality analytics reports on the cannabis industry. The independent company analyzes data obtained from the adult-use cannabis industry as well as the medical cannabis industry.
Its recent report, which is titled Global Cannabis Report: Growth and Trends through 2025, explores the possibilities of events in both industries. The detailed document analyzed the expectations of experts in the cannabis industry to make more comprehensive predictions of what may happen in the global cannabis industry.
The authors also considered the present trends of cannabis industries in the Caribbean, Asia, Africa, Latin America, North America, Europe, and even Oceania to predict future trends.
New markets evolving around the globe
The report begins with a letter from the publisher, founder, and Executive Chair of New Frontier Data, Giadha A. Decarcer. In her letter, Decarcer shows her optimism in the growth and expansion of the global cannabis industry.
She referred to the company's first global cannabis industry report that was released in two years. In that publication, the company explained how cannabis legalization would be a very important tool for socio-economic movement in the next few years.
Between the time the report was released and now, about 20 countries have decriminalized cannabis totally or partially, making the total number of countries with cannabis reforms 70. Out of these 70 nations, 10 have fully decriminalized the use of cannabis and permit the recreational and medical use of marijuana.
Decarcer wrote that each country, region, and the market will require distinct approaches to understand, quantify and qualify the expected changes to societal norms due to these new regulatory structures. As more countries legalize cannabis, new markets will begin to evolve around the globe.
Details of the report
North America holds the record for the highest amount of sales generated by selling high-THC marijuana products. According to the report, in 2020 alone, the legal markets in North America made about $23 from only high-THC products. This amount is about ten times larger than sales recorded by other global regulated markets.
The United States generated $20.3 billion combined from its adult-use and medical cannabis sales. The other North American country, Canada sold $2 billion worth of high-THC marijuana products. If both countries continue with this upward trend, the $50 billion mark may come earlier than expected.
In contrast to the high sales of THC dominant products in North America, other countries around the world had relatively lower sales in their recreational industries.
In Europe, Germany has a rather flourishing medical cannabis industry that is currently the largest on the continent. The country made a total sales of $206 million from its medical cannabis program in 2020.
New Frontier Data reports that the amount was generated collectively from medical patients who are registered under insurance companies and those who purchase their medical products through other means.
Cannabis legislation in Spain is akin to that of the United States. Cannabis has not been decriminalized federally, however, states and individual provinces have the right to approve regulations on cannabis sales. These provinces allow the establishment of cannabis clubs in designated locations.
The total sales made by these clubs hit $431 million in 2019. Two years later, Spain has the potential to own one of the largest cannabis industries in the world. Other contenders for this title are Canada and the United States.
''Investment in the cannabis industry is expected to grow''
A webinar that featured key players in the global cannabis industry was held on September 23. The event which focused on trends projections and opportunities within the global cannabis economy was attended by important speakers that discussed the future of the world's cannabis industry.
Some of the notable names that spoke include Tim O' Neil, Mikhail Saga, Lincoln Eckhardt, and New Frontier Data Chief Knowledge Officer John Kagia. The speakers concurred that more investment has to be put into the cannabis industry.
Tim O' Neil added that the Chinese and Indian markets present the most profit-oriented opportunities for investors right now. Mikhail Saga insisted that countries outside Northern America have to establish a regulatory framework ASAP for their cannabis industries to record successful sales. Lincoln Eckhardt, managing director of FTI Consulting had a somewhat unique stance which New Frontier Data describes as 'hoping for the best but expecting the worst. Lincoln used the platform to talk about the vaping crisis that occurred in 2020 and explained that the best course of action to tackle the crisis was to address the issue directly.
He made a comparison of the separate medical markets in Oklahoma and Alabama. He believes that stakeholders must conduct risk assessments as well as confirm corporate investments before deciding what should be offered in medical markets
Attributing the current trend to medical cannabis initiatives
New Frontier Date acknowledges that the extent of cannabis sales on a global scale can be attributed to the various medical cannabis reforms popping up all over the world.
In Europe, countries are sticking to the therapeutic benefits of cannabis, giving their residents a chance to be included in medical cannabis programs. Latin American countries are also embracing the medical route and giving their citizens better access to medical cannabis.
New Frontier Data predicts that the total number of medical cannabis patients could be as high as 6.5 million before 2025.
The recreational cannabis industry as well as the medical cannabis industry are doing considerably well. Medical cannabis sales will be responsible for one-third of the total cannabis industry by 2025, while the recreational industry takes over the remaining two-thirds.
Looking forward to more comprehensive reports on the cannabis industry by New Frontier Data in the coming months.