Cannabis Market Predicted to Hit $146 Billion by 2025
As shown by reports done by Grand View Research, Inc. the global cannabis market value is expected to reach a staggering $146.4 billion by the time 2025 rolls around. With an appraisal assuming a market value of USD $10 billion now in 2018, suggestions it’ll grow over 14 times in size in just several years seems a bit crazy. We’re talking dot com bubble numbers here. Is this really possible?
How exactly can the global cannabis market value grow so much?
There are many variables that’ll affect the market value. As more states and nations veer towards legalization, it’s hard to say exactly when prohibition will reach its final grasps. As 70-75% of North American cannabis trade has been reported to be illegal, it’s no doubt a legal market will skyrocket in value once legislation becomes more open.
With Canada’s legal cannabis market about to erupt, anxious yet excited investors are keen to see how things go. It may begin to persuade states or even entire countries to adopt legal policies, further catapulting the market size.
Where does the market get its value from?
The global cannabis market extends beyond recreational use however. With the market of medical cannabis also skyrocketing and hundreds of studies being conducted on the medical merits of CBD, cannabis has the potential to make its mark in the $1.1 trillion dollar pharmaceutical industry.
Whole cannabis buds dominated revenue shares at 62.9%, and predicted to have a gross value of $82.9 billion by 2025. Other products include lotions, tinctures, oils, textiles and more. In short – most of the money comes from people smoking or using whole herb.
Beyond that, hemp-derived products such as textiles, foods, biofuels and more drive a significant chunk of the market, with a rapid climb in market share becoming apparent. The Industrial hemp market will account for a substantial USD $10.6bn by 2025 as indicated by another Grand View Research report.
Still, the global cannabis market value is largely dominated by the medical scene, accounting for 80.3% of revenue in 2016. The medical scene is predicted to lose 40% of its market share in Canada as recreational cannabis becomes easier for patients to access.
The quickly growing roots.
To understand the extent of the market growth, we have to see the roots and history of it all. How far has the market come in such a short time is perhaps the most fascinating aspect of all. With it only gaining more and more momentum, how far can it keep growing?
The global cannabis market value was appraised at USD $7.06 Billion in 2016, expecting to grow at a CAGR (compound annual growth rate) of 24.9% between 2017 to 2025. With the third quarter of 2018 underway, the currently global cannabis market has been estimated to be pushing over USD $10 billion now.
Compared to the generic pharmaceutical market growth at USD $52.7bn in 2012 to USD $72.68bn in 2017, it looks like the global cannabis market value will surge ahead in just a few years’ time – growing from a meager yet respectful $10bn market to over $140bn in several years.
How far will the global cannabis market value really extend?
It’s a billion dollar topic where overwhelming enthusiasm is sometimes met with realistic skepticism. We may see the medical side of the cannabis industry take off even more, somewhat competing with the pharmaceutical industry. The dot com bubble showed us that sometimes what goes up must come down. However – it’s not unrealistic to believe that the market will be one of the fastest growing industries we’ll have ever seen.