Within three to four years, the global cannabis market is expected to reach $ 31,4 billion. This is the consequence of reforms in many countries.
The United States, which now controls most of the legal market, will lose some of it. This will benefit first Canada and Europe, then Africa and South America.
In 2021, the world market cannabis is expected to reach 31,4 billion. The amount of 2017 is estimated at only 7,7 billion. This remarkable figure, which marks an annual growth rate of 60%, was found in a new report by Brightfield Group, a market research company. Its results were first published in the magazine Forbes.
Unlike the current situation, where US companies control about 90% of the global cannabis market, this share will drop to 57% by 2021. The main reason is the legalization planned for Canada from summer 2018.
The legal cannabis market in Canada is expected to reach $ 5,7 billion by 2021. This amount is almost half the value of the US market. The United States and Canada will account for over 86% of cannabis sales over the next four years.
A future market dominated by Canada
According to the report, Canadian medical cannabis companies will become leaders in exporting cannabis abroad. Australia and Israel will invest primarily in research and the transition to the pharmaceutical market.
In the coming years, more and more cannabis exporting countries will be authorized abroad, as has already been done in the past two years: Canada, Argentina, Uruguay Colombia, the Australia, Sri Lanka and many others. Israel is also in the process of approving the export of medical cannabis overseas. This process has already been validated by the government. However, it is delayed for the moment by opposition from the Minister of Police.
Last month we unveiled the planned cooperation between Canadian giant Canopy and Dutch companies Greenhouse and Orgena. In this context, companies will sell their products in Canada and export to other markets around the world.
Despite the explosion of cannabis activity in Canada and Europe and the loss of some control on the ground, the United States will not be left behind, emphasizes Bethany Gomez, Brightfield Group Research Director. They will always be in control.
“The US market is much larger than all other domestic markets combined,” she said. “The vast majority of branches of medical cannabis are completely different from those in the United States. It's not like buying rubber teddy bears. The Canadian approach to regulation and product definition better reflects what we expect to see in the international market ”
The economic forecast is based on how cannabis reforms are implemented around the world. Gomez pointed out that the report is “conservative” in its assessment of the expected growth in the cannabis market:
“We certainly don't want to inflate the numbers just to make the headlines,” she said.