Legal Cannabis Market Forecast: Global Spending to Reach $59.6 Billion by 2027
On February 22, 2023, BDSA, the leading provider of market intelligence for the cannabis industry, released an updated five-year global legal cannabis market forecast.[0] According to the study, global legal cannabis spending grew 4.8% to $32 billion in 2022 and forecasts a compound annual growth rate (CAGR) of 13.2% from 2022 to 2027, resulting in a market size of $59.6 billion by 2027.
The forecast was accompanied by a major investment by Mendon Venture Partners, an investment firm aimed at technology and banks. The investment was led by Mendon Venture Partners and is dedicated to investing in technologies that predominantly serve incumbent regional and community banks across foundational pillars of financial services.
In the United States, legal cannabis spending is expected to grow at a CAGR of 11.3%, from $26.1 billion in 2022 to $44.5 billion in 2027, driven primarily by the New York, Florida, New Jersey and California markets. Furthermore, Amendment 3’s passage marks a significant reduction in how marijuana is regulated in the state.
In addition to this, the most recent cannabis news comes from the state of Vermont where the Senate passed a bill to protect most job applicants from being discriminated against for using marijuana outside of the workplace. Senate Bill 2321 protects employees who consume cannabis off the job from employment discrimination, but employers would still be permitted to administer drug tests and they would still be permitted to refuse to hire an individual based on a positive drug test result.
In Illinois, House Democrats announced the formation of a cannabis working group Thursday that will aim to steer the burgeoning industry’s expansion in a business-friendly way while still satisfying the equity goals of the landmark 2019 legalization law.[1] In 2019, legislation was passed that allowed for the recreational use of cannabis and also enabled people who had been charged with minor cannabis-related offenses to have their records expunged.[1] At the end of 2020, Governor Pritzker announced 492,129 cannabis-related convictions had been expunged and 9,219 low-level cannabis convictions had been pardoned.[1]
Overall, the cannabis industry has seen remarkable growth in the last year and is expected to continue to grow in the coming years.[0] In order for the industry to be successful, it is important to understand how to remain on the right side of the law when it comes to recreational or medical cannabis.
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. “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
