The legal cannabis market is expected to reach US$48.3 billion within the next six years, says a new analysis by the research firm Vantage Market Research (VMR).
On Wednesday, the firm published an analysis of the global legal cannabis market and found that the market is increasing because of the competitive landscape, the aging of the baby boomer world population, cannabis being used for chronic pain and the rise of legalization in states due to government support.
The ongoing increase in diabetes and cancer is also a factor in the research. The rise in people suffering from chronic pain after car accidents or sports injuries has led to the need for products that can help with sleeping issues or relieve chronic pain like CBD.
According to a financial report by Global Market Insights Inc, the CBD market value reached US$7.7 billion and is expected to reach over US$56.2 billion in global sales revenue by 2028. The sleep and insomnia CBD market was found to surpass US$1.1 billion in 2021.
The historical year for the legal cannabis market was 2018 when the use of cannabis for recreational purposes became legal in Canada on October 17. According to VMR, the cannabis market in 2021 reached US$12.8 billion. 2022 is predicted to increase sales by approximately US$35.5 billion.
According to VMR’s analysis, another reason the market is expected to grow is because of the increasing aging population globally. Currently, in the United States, more than 46 million adults are 65 or older.
North America is the leading region of the legal cannabis market due to the rise in legalization and the medical use of cannabis according to VMR’s analysis. Customers are becoming more aware of the medical advantages cannabis has. Government decriminalization of cannabis for medical use is a major component of market growth.
The analysis found that some of the top international legal cannabis companies like Canopy Growth Corporation, (TSE: WEED) (NASDAQ: CGC) Aurora Cannabis, (TSX: ACB) (Nasdaq: ACB) and Tilray (Nasdaq: TLRY; TSX: TLRY) propel the market growth in the region and enhance market growth because of the increase in demand for legal cannabis for medical reasons.
Vantage Market Research also predicted that the Asian market will have a high increase in sales between 2022 to 2028. The increase is due to the new social acceptance of medical cannabis in underdeveloped economies.