New York, US, Sept. 23, 2021 (GLOBE NEWSWIRE) — The legalized cannabis market is expected to grow at a compound annual growth rate (CAGR) of 26.4% in the forecast period from 2020 to 2029.
The global legalized cannabis market is expected to reach USD 40 billion by 2025.
The industry is largely driven by increased demand for legal marijuana due to the swirling number of legal cannabis nations. Besides, the consumption of medical marijuana for various diseases is becoming prevalent worldwide. Thus, it is expected to generate maximum cannabis demand. In addition, the surge in cannabis-related R&D activities is likely to impact the demand further.
According to the Cannabis Industry Statistics, 2021, 12% of Americans consume marijuana recreationally. Further, according to the National Institute of Drug Abuse, 22.1% of 18–25-year-olds in the United States consumed marijuana in the past. In addition, a study report by the Cannabis Industry Statistics suggests that the buyer pool is huge as over half of the population aged 18 years have consumed marijuana in North America. Besides, the U.N. estimates that 192 million individuals smoked marijuana globally in 2018.
Due to changes in government laws, demand for legal marijuana is projected to skyrocket. Several new cannabis firms are pursuing R&D, testing, and production. Many jurisdictions in Canada are anticipating the privatization of cannabis retail outlets. Many provinces that formerly picked a single supplier are now asking numerous vendors to submit bids. These factors are expected to drive the market over the projected period.
COVID-19 Enriches Revenue
The market has witnessed significant positives due to the worldwide lockdown amidst the pandemic. The period of isolation has extensively increased the consumption rate and purchase volume of cannabis in many regions. For example, consumers in the United States spent almost USD 18 billion on cannabis during the lockdown. Although individuals