Global marijuana market to reach US$166 billion by 2025
The total worth of the marijuana market will reach US$166 billion by 2025, according to a market report made public on Tuesday (February 26) from Euromonitor International.
The firm expects legal cannabis to represent over 70 percent of the total market globally by the target date.
Zora Milenkovic, head of drinks and tobacco at Euromonitor International, said cannabis will serve as an ingredient in several consumer goods.
The researcher highlighted food, beverages, beauty, health and tobacco as the ones with highest potential of disruption from the growing cannabis market.
At the same time, the industry will continue to experience exponential growth while alcohol and tobacco will grow at a much slower pace, the report says.
“From 2018 to 2025, legal cannabis is estimated to grow more than 2,000 percent globally, compared to alcoholic drinks at 1.4 percent and tobacco at 1.2 percent,” the research firm indicated.
As the cannabis legalization movement continues across the globe, Canadian marijuana firms with first mover status in the industry have moved forward with expansion plans internationally.
Through joint ventures, acquisitions and other business tactics, Canadian cannabis companies pursue ventures across the legal marijuana map.
“Euromonitor International expects global sales of packaged food with CBD to double over the next two years, further blurring the lines between consumer health and food,” the research firm wrote.
Cannabidiol (CBD) has picked up in consumer interest as the product, derived from hemp, finds its way to the US market.
Cannabis companies across the US and Canada have started pursuing operations involving hemp production to enter the CBD market.
Projections for global market value continue rising
In January, financial institution Cowen’s (NASDAQ:COWN) raised its outlook on the overall value of the cannabis industry.
Vivien Azer, managing director and senior research analyst specializing in the beverage, tobacco, and cannabis sectors for Cowen, indicated US cannabis sales will reach US$80 billion by 2030.
Similarly, research firm Seaport Global issued its own cannabis report and initiated coverage in several stocks in the market.
“From a little over $12B in global value today, we see the market ultimately evolving to almost $630B in due time,” the firm indicated according to a report from New Cannabis Ventures.