U.S. Legal Cannabis Market Sales To Soar To $45 Billion In 2027: Report

Even with last year’s downturn, the U.S. legal cannabis market, which comprises both medical and adult use, is poised to reach $45 billion in sales in 2027. That bullish projection is the latest made by top cannabis researcher BDSA, which just released its critical market forecast update.

While many mature markets saw spending declines last year, Stahura remains confident that the market will return to growth this year. The firm is also bullish on newer states with emerging adult-use markets, such as Illinois and Florida, which are expected to show brisk growth.

In addition to the United States, BDSA expects international marijuana market sales to grow 12% in 2023 to $29.6 billion. That includes countries like Mexico, Germany, and the U.K., which are positioned to benefit from growing geriatric populations that will continue to need potent painkillers.

The firm also has high hopes for Canada’s marijuana industry, which is set to see a 12% rise in 2023 sales to nearly $4.7 billion. That could help lift North America’s dominance of the global marijuana market, predicted to grow 14% in 2023 to make up 81% of total sales worldwide.

Those gains are driven by the rapid expansion of the legal marijuana market, with more states now adopting recreational or medical marijuana laws and expanding their programs. The number of states with regulated marijuana markets is now 34, with New York, New Jersey, and Florida preparing to launch adult-use programs this year.

Medical marijuana markets also show strong growth as patients become more accustomed to buying and consuming the drug. This trend has been especially pronounced in states that recently passed adult-use laws, such as Arizona, which launched its legal adult-use market in early 2021. In that state, BDSA anticipates annual dollar sales to the medical channel will fall 30% this year and be roughly half what they were in 2021.

The upcoming growth of the legal marijuana industry will create a massive opportunity for investors, but it’s not without its challenges. The biggest obstacle is finding a way to get cannabis in front of the people who need it, whether patients with chronic pain or veterans struggling with post-traumatic stress disorder.

Another challenge is creating a stable regulatory environment for the industry, which will require collaboration between federal, state, and local officials, private businesses, community leaders, and advocacy groups. That’s why it’s so important for cannabis companies to invest in research and development and continue advocating for reform.