The global cannabis market has experienced remarkable growth in recent years. As more countries starts to embrace the legalization and decriminalization of cannabis for medicinal and/or recreational use. This burgeoning market has sparked immense interest among investors, entrepreneurs, and policymakers alike. Which indicates Medical Cannabis is one of the world’s fastest growing industries. Between 2014 and 2018, legal weed sales more than tripled, and they’re on course to approximately double between the $10.9 billion earning in license cannabis stores. In 2018 and the predicted $40.6 billion in worldwide license retail sales by 2024.
This is according to Arcview Market Research and BDS Analytics’ 2019 “State of the Legal Cannabis Markets” report. Which was released earlier On 2020. In this article, we delve into the question of which country spends the most in the cannabis market and explore the factors contributing to their robust expenditure.
United States: By 2024, cannabis spending will total $30.1 billion.
It’s not surprising that the United States, with its vast population and progressive cannabis regulations. That leads the pack in terms of cannabis spending. According to research the U.S. accounted for approximately 90% of the global legal cannabis market. With more than half of its states having legalized medical marijuana and a growing number allowing recreational use. The U.S. has become a hotbed for cannabis-related businesses.
The United States is projected to be the world’s largest marijuana industry by sales in 2024. In fact, licensed-store income of $30.1 billion should account for nearly three-quarters of global licenced sales. According to Arcview and BDS, $9 billion of these sales will be medicinal marijuana, up from $4 billion in 2018. With the remaining $21.1 billion coming from recreational marijuana, up from $5.9 billion last year.
The thing about the United States is that cannabis stocks can prosper even if the federal government does not modify marijuana’s classification from Schedule ‘I’. As long as Congress and the president respect states’ freedom to make their own cannabis decisions, the business may have plenty of room to grow.
Canada: By 2024, $5.18 billion
Canada, often touted as a pioneer in cannabis legalization, has been making significant strides in the market. The recreational sector will generate $4.8 billion in sales by then, with the remaining coming from medical cannabis sales. When adult-use marijuana is legalized. It’s not uncommon for the medical industry to be cannibalised because patients no longer have to wait for a doctor’s approval and prescription to acquire weed. The country legalized recreational cannabis nationwide in 2018. Which will become the second country after Uruguay to do so.
With a well-regulated framework in place, Canada has witnessed the emergence of a thriving cannabis industry. Although its population is considerably smaller than that of the United States, Canada has attracted substantial investments, both domestically and internationally, bolstering its cannabis market expenditure.
Germany: By 2024, $1.35 billion
Even while we do not expect Germany to legalise recreational cannabis. The company’s lenient approach towards medicinal marijuana. So, fact is that health insurance in the country cover medical weed, could allow sales to skyrocket from $79 million in 2018 to $1.35 billion by 2024.
Europe’s largest economy, Germany, has emerged as a major player in the global cannabis market. In 2017, the country legalized medical marijuana. It pave the way for a flourishing industry. Germany’s commitment to providing medical cannabis to its citizens through insurance coverage has contributed significantly to the country’s high cannabis spending. With a population of over 80 million and a robust healthcare system. Germany continues to be a key market for cannabis companies worldwide.
Mexico: By 2024, the total Cannabis market amount will be $1.02 billion.
Since 2015, the United States Supreme Court has decided five times that prohibiting recreational cannabis use is unconstitutional. Mexico has exhibited an impressive level of cannabis market expenditure. Mexico has one of the strangest “legality” situations with marijuana right now. This is significant because when Mexico’s Supreme Court issues five comparable verdicts on the same issue, it becomes the national standard.
In other words, the Supreme Court has virtually endorsed the legality of recreational marijuana and is only waiting for the country’s legislature to iron out the details. But that Sparks an influx of investments and a growing number of cannabis businesses. In Mexico recreational marijuana sales are predicted to hit $582 million by 2024. With an additional $441 million in medicinal spending, for a total of $1.02 billion. Mexico has a much larger population than Canada, making it an appealing market potential, but it’s unknown how well legitimate sectors will perform in the face of the presence of illicit manufacturers.
United Kingdom: By 2024, the total Cannabis market amount will be $546.9 million.
Although the United Kingdom’s cannabis market is still in its early stages. it has witnesses a notable growth and expenditure. This country will reach $1 billion in sales by 2024, the United Kingdom is positions itself to be one of the world’s fastest rising cannabis expenditure countries. Following only $9.9 million in medical spending last year. The United Kingdom is expected to generate about $547 million in medical marijuana income by 2024. Which reflects a compound annual growth rate of 95.2%.
It signals a shift in attitudes towards cannabis-based treatments. The U.K. has seen a surge in the number of prescriptions for medical cannabis, indicating the increasing acceptance of its therapeutic benefits. As the market continues to evolve, the United Kingdom is expected to make further headway in cannabis spending.
Cannabis market:: Take Away
The global cannabis market is experiencing a seismic shift. Of course, with numerous countries embracing the economic and health benefits of cannabis legalization. While the United States, Canada, Germany, Mexico, and the United Kingdom are currently at the forefront of cannabis spending. Other countries are also entering the market. As regulations continue to evolve and societal perceptions change, the landscape of cannabis expenditure looks to expand further. It presents both challenges and opportunities for businesses and investors around the world.
