If the moment is uncertain due to the new coronavirus, what you know is that the Cannabis market will continue to grow and even after the pandemic. As we have already published in a text here on the blog, working with marijuana is no longer a dream, but a reality. And proof of this is a recent report, dated February 2020, which predicts that the cannabis market could be worth around $ 73 billion dollars by 2027 worldwide.
In 2019, the market was valued at $ 17.7 billion. That is, it will grow 18.1%. This means that this legal cannabis market that already employs thousands of people where the plant is already regulated, and many others where consumption and cultivation are still illegal, will also be able to generate more job opportunities for those wants to work with marijuana. Especially in the area of medical Cannabis, which already has its production and sale regulated here as well and continues to be a booming area.
The projection is from the American consultancy Grand View Research, and it only reinforces the thesis that Cannabis may be fundamental for the economic recovery after the covid-19 pandemic. After all, it is an innovative, emerging industry capable of generating jobs in different areas, in addition to being a fully sustainable economy on a large scale. So much so that it can be the lifeline for getting rid of plastic, for example. But what does this report say in order to make this estimate? We bring the details.
What is considered in the report?
- Cannabis flowers / buds, oils, or dyes traded legally in the world.
- For medical or recreational consumption.
The trade in accessories for consumption or cultivation is not included in the report, although with the increase in the market in general it is inevitable that these sectors grow together.
Medical cannabis remains high on the market
It is nothing new that it is regulation in countries or states that drives the growth of the Cannabis market worldwide. Try to imagine what it would be like here, where even without legalization, consumption, trade, and cultivation take place, as well as products and accessories for that purpose are freely sold. If all of this were indeed legal, many new businesses would emerge, as well as opportunities. An example of this is the case of medical cannabis.
With medical use being regulated in several countries the market grows. According to the report, the wide benefits of Cannabis, capable of helping in different diseases, make it increasingly demanded by patients, and also by doctors who end up prescribing the plant when it is already regulated. This makes this medicinal use dominate 71% of the cannabis market.
Within this universe, the number of patients using Cannabis for chronic pain is the largest. However, the trend is for an increase in consumption for disorders such as anxiety, depression and Alzheimer’s disease in the coming years.
Recreational cannabis will grow as legalized
The Grande View Research report also believes that by 2027, recreational use should emerge as the fastest growing segment within the Cannabis market. This is because so far, few American states or countries in the world have regularized the plant for this purpose, which is the case of Canada, Uruguay and Colombia, for example. However, the trend is that legalizations for adult use, as recreational use is expected to advance worldwide. With this happening, with more and more countries legalizing the plant in the next seven years, without a doubt this market will be huge.
Users prefer flowers
Among Cannabis flowers / buds, oils or dyes, users prefer flowers. In 2019, the bud trade accounted for about $ 9.1 billion. The reason is simple: smoking flowers is more economical than investing in oils and dyes, although the consumption of both is also growing. In addition, the effects of a smoked bud also tend to be faster, which is ideal for those who use medicine and want to cure pain.
Where is this cannabis market going and where is it going?
With legalization in Canada, in addition to more and more American states, it is North America that practically dominates this legal cannabis market in the world. Americans and Canadians had an 88.4% share in this industry in 2019. What remains for us for the time being is the market related to the plant, its cultivation or consumption, besides of course this medical area.
According to the report, other promising markets for cannabis are Australia, Germany, Poland, Colombia, Uruguay and Israel. Israel is at the forefront of the high-yielding Cannabis genetics sector, due to knowledge in the country’s agro-space sector. Meanwhile, in Latin America, Uruguay and Colombia are working to become future suppliers in the global market.