It appears the booming legal marijuana market has no intention of hitting the breaks. According to a recent market research study from Ameri Research Inc., the global market will surge from $14.3 billion in 2016 to an estimated $63.5 billion by 2024.
Fueled by what the report identifies as an increase in legalization across North America and Europe, as well as an increase in demand in cannabis for both medicinal and recreational purposes, the global market is projected to grow at a compound annual growth rate of 21.1 percent between 2017 and 2024.
“The rising demand of marijuana for recreational use and medical use is a key factor driving the growth,” reads the report’s description. “Due to the complex regulatory structure at state level and federal level, the full potential of the market is not yet realized.”
Despite cannabis federally illegal in the United States, with 29 states passing medical marijuana laws and eight legalizing marijuana for recreational use, the country leads the world in marijuana sales.
“North America accounts for over 49% of the market, with the U.S. being the single largest market,” the report reads.
“In the U.S., the tax revenues of legal marijuana are now comparable with other commodities such as draft beer and e-cigarettes. The actual demand for recreational marijuana is more than USD 40 billion, however as most of the economy involves illegal trade, it is difficult to gauge the accurate demand.”
The wave in legalization and decriminalization extends beyond the U.S. Canada, already with a medical marijuana industry that has grown 1,544 percent in users over the past two and a half years, has announced legislation that will legalize recreational marijuana in July of next year. Medicinal cannabis laws have passed in Germany, South Africa, Argentina, Ireland, and Mexico in the past six months alone.
Medical use accounted for the majority of the market’s revenue share in 2016, according to the Ameri Research market report, but by 2024 recreational use is projected to exceed that of medical sales. Pain management, currently the largest application area for medical marijuana, will remain in its place as the top application for medical marijuana through 2024. Outside of pain management, cancer is projected to outpace all other applications in growth rate by 2024. Its growth will be fueled primarily by an increase in application for chemotherapy.
Smoking and vaping were found to be the preferred methods of consumption among all cannabis users, because of their capabilities to elicit fast effects. Pills and other forms were more popular among users looking for sustained release and longer lasting effects.
The report also highlights key market players in the cannabis industry as of 2016. It’s dominated by public companies with larger financial resources, including AXIM Biotechnologies, Inc. (OTC: AXIM), which just recently secured the necessary permits to develop cannabinoid-based pharmaceutical chewing gum for multiple sclerosis.
Ameri Research Inc. is a market research and consulting company based in Tampa Bay, Florida. It’s “Legal Marijuana Market Outlook to 2024” report is available on their website.
Written by: Kim Nunley