(FinancialPress) — Ameri Research Inc. has released a market report that showcases the value of the global legal cannabis market reaching a peak of $14.6 billion. And it’s is only expected to grow.
Legal cannabis as a global market, was given a projection of a compound annual growth rate (CAGR) of 21.1%, extending from 2017 to 2024.
During that period, both recreational and medical use are bound to increase – with estimated global sales value pegged to reach $63.5 billion.
One of the main engines of the ever-growing market, cannibidiol (or CBD), will continue to push strong according to Greenwave Advisors‘ Matt Karnes:
“In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now, there are 15 states that allow CBD only – this is in addition to the 28 states plus DC that have legalized medical marijuana,”
North American consumers spent what amounted to an estimated $56.1 billion on cannabis in 2016. 88% of that expenditure happened outside of legal channels, according to data released by Arcview Market Research.
“This enormous amount of illicit consumer spending sets cannabis apart from most other major consumer-market investment opportunities throughout history. In contrast to comparable markets which quickly grew from zero to tens of billions of dollars, such as organic foods, home video, cell phone, or the internet, the cannabis industry doesn’t need to create demand for a new product or innovation – it just needs to move demand for an already widely popular product into legal channels“
-Troy Dayton. CEO, Arcview Market Research
CBD is one of the fastest growing market categories in the United States. U.S. hemp-based products are forecasted to reach sales in the realm of $450 million by 2020.
Currently, there are a total of 29 states that allow for comprehensive public medical marijuana and cannabis programs – while another 16 states allow use of low THC, high CBD products for medical purposes.