Cannabis analytics firm BDSA updated its ongoing five-year forecast for the global cannabis market which now predicts the industry will reach a market size of $55 billion by 2027. The substantial growth is primarily attributed to the expected increase in recreational cannabis sales, particularly in Midwestern and Northeastern U.S. cannabis markets.
According to the analytics firm, the cannabis markets in the Midwest and Northeast are driving a global compound annual growth rate of nearly 11% from 2022 to 2027. The United States would account for $43 billion of the forecasted $55 billion global market, with adult-use cannabis accounting for $35 billion of sales.
“New York, Missouri, New Jersey and Maryland are set to experience significant market growth, with New York and New Jersey each projected to be $2.5 billion markets by 2027,” BDSA CEO Roy Bingham said in a press release. “While mature markets like California and Colorado continue to face stagnating or declining sales, Michigan has emerged as an outlier and is expected to become a $3.8 billion market by 2027.”
The BDSA forecast expects California to resume sales growth in 2025 and reach $5.24 billion in 2027. Colorado is expected grow at a much slower pace, closing at $1.6 billion in 2023 and reaching $1.7 billion in 2027.
The firm predicts Canada’s cannabis market to close 2023 at $4.6 billion and reach $5.3 billion in 2027.
Outside of North America, BDSA is predicting the market to grow by 38% and reach $2.4 billion in sales by the end of 2023. International markets are forecasted to have a compound annual growth rate of 29% from 2022 until they will reach $6.3 billion in sales in 2027. Adult-use sales are predicted to be the primary driver of growth for international markets.
— Patrick Wagner