5-Year Global Cannabis Market Forecast: $59.6 Billion by 2027
On February 22, 2023, BDSA, a leading provider of market intelligence for the cannabis industry, released an updated five-year global legal cannabis market forecast.[0] According to their projections, global legal cannabis spending is expected to grow at a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in a market size of $59.6 billion by 2027.[0] In the U.S., adult-use sales are forecasted to contribute 78% of the total global legal cannabis spend, up from 64% in 2022.[0]
The legal cannabis market has seen rapid growth in recent years, with New York City taking its first steps to open a legal recreational marijuana dispensary in late 2022.[1] Washington State also passed a bill to protect most job applicants from being discriminated against for using marijuana outside of the workplace.[2] In Illinois, House Democrats announced the formation of a cannabis working group in February 2023 to steer the industry’s expansion in a business-friendly way while still satisfying the equity goals of the landmark 2019 legalization law.[3]
Mendon Venture Partners, an investment firm aimed at technology and banks, recently led an investment in Green Check, a cannabis supplier.[4] Daniel Goldfarb, co-founder and partner of Mendon Venture Partners, stated that Green Check surpasses their expectations in regards to strong management, company potential, and opportunity for total market growth, making it an ideal investment.[4]
In Fiscal Year 2022, Illinois experienced a record-breaking $1.5 billion in recreational cannabis sales, yielding a total of $445 million in taxes.[5] By law, 25% of the taxes generated from recreational cannabis sales must be allocated to economically distressed communities or those that have been adversely affected by the war on drugs.[5] Evans and Ford have both introduced bills — House Bills 1436 and 1498 — to create a cannabis oversight commission in order to ensure the industry’s growth is handled in an equitable and responsible manner.[3]
0. “BDSA Reports Global Legal Cannabis Sales to Reach $59.6” www.globenewswire.com, 25 Feb. 2023, https://www.globenewswire.com/news-release/2023/02/22/2613335/0/en/BDSA-Reports-Global-Legal-Cannabis-Sales-to-Reach-59-6-Billion-in-2027.html
1. “Cannabis News | Cannabis Blog | Herban Creative” herbancreativenj.com, 25 Feb. 2023, https://herbancreativenj.com/cannabis-news
2. “GOP lawmakers tout cannabis poll (Newsletter: February 24, 2023 …” www.marijuanamoment.net, 25 Feb. 2023, https://www.marijuanamoment.net/gop-lawmakers-tout-cannabis-poll-newsletter-february-24-2023/
3. “House Dems' cannabis working group to engage industry | Local …” www.effinghamdailynews.com, 25 Feb. 2023, https://www.effinghamdailynews.com/news/local_news/house-dems-cannabis-working-group-to-engage-industry/article_7cf6f0f2-b4a0-11ed-9fdd-179f93151e15.html
4. “Green Check Verified nabs $6m to further bridge cannabis and finance” fintech.global, 25 Feb. 2023, https://fintech.global/2023/02/24/green-check-verified-nabs-6m-to-further-bridge-cannabis-and-finance/
5. “Illinois House Dems' cannabis working group will engage industry …” www.kpvi.com, 25 Feb. 2023, https://www.kpvi.com/news/national_news/illinois-house-dems-cannabis-working-group-will-engage-industry-equity-advocates/article_9243b158-e254-5d05-bf68-41868f6109cd.html
