A new market research study projects that the global legal marijuana market will surge to $63.5 billion by 2024.
The global legal marijuana market will be worth $63.5 billion by 2024, according to a new market research study published by Ameri Research. Valued at $14.3 billion in 2016, the global market is forecast to grow at a compound annual growth rate (CAGR) of 21.1 percent between 2017 and 2024.
“North America accounts for over 49% of the market, with the U.S. being the single largest market,” the report’s description reads.
“In the U.S., the tax revenues of legal marijuana are now comparable with other commodities such as draft beer and e-cigarettes. The actual demand for recreational marijuana is more than USD 40 billion, however as most of the economy involves illegal trade, it is difficult to gauge the accurate demand.”
In its report, the U.S. based market research and consulting company claims the market growth surge over the next seven years will be fueled by the expansion of legalization, an increase in use for medical purposes, high tax revenue, and research and development investments to introduce new products.
“The rising demand of marijuana for recreational use and medical use is a key factor driving the growth,” reads the report’s description. “Due to the complex regulatory structure at state level and federal level, the full potential of the market is not yet realized.”
Over the past two years, a wave of legalization has reached the U.S. and expanded beyond. While cannabis remains federally illegal in the U.S., 29 states now have laws allowing marijuana for medical purposes, and eight of those have also legalized recreational marijuana.
In 2017, the Canadian government introduced a bill to legalize recreational marijuana and it’s expected that the law will be implemented sometime next year. Earlier this year, Germany passed a law to legalize cannabis for medical purposes. Legislation to legalize medical marijuana has also recently passed in South Africa, Argentina, Ireland, and Mexico.
Other key findings in the report include:
- Pain management was the largest application area for medical marijuana in 2016 and it is expected to continue its dominance through 2024.
- By 2024, it is expected that cancer will outpace other applications in growth rate. This growth is primarily due a projected significant increase in its use for chemotherapy.
- In 2016, medical use accounted for the majority revenue share. By 2024, however, the revenue generated from recreational use is expected to exceed that of medical sales.
- Majority of cannabis users prefer inhaling cannabis products because the consumption method provides fastest onset of effects. For longer, more sustained effects, users prefer pills and other products.
Also included in Ameri Research’s report is a list of key market players within the cannabis industry as of 2016. The list features Medical Marijuana, Inc.’s investment company AXIM® Biotechnologies (AXIM® Biotech).
You can view Ameri Research’s report description here.