The worldwide legal cannabis industry posted its biggest year of growth in 2019, according to data firm BDSA.
The Arcview Market Research/BDSA forecast model shows worldwide spending grew 46.1% to $14.8 billion in 2019 over the course of a six-year period from 2013 to 2019.
During that time, legal spending grew at a 34.3% compound annual growth rate (CAGR).
Worldwide legal cannabis industry revenue is forecast to grow another 38% to $20.4 billion in 2020, and sales are forecast to reach $46.8 billion in 2025, growing at a 21.2% CAGR 2019-2025.
The U.S. Market
In 2019, U.S. legal cannabis spending increased 36.5% to $12.4 billion.
The report also addresses several key features of the U.S. market that will support a compound annual growth rate (CAGR) of 18.2% to $33.9 billion in 2025.
Emerging Adult-Use Markets
Emerging adult-use markets launched between Jan. 1, 2017 and Jan. 1, 2020, were the biggest component of the market at $5.1 billion in 2019. Most are faring much better than the largest U.S. market, California.
Massachusetts’ total revenue grew 170% in its first full year of adult-use sales while California struggled to grow sales by 18% in 2019, following the launch of its adult-use program in January 2018.
However, the report notes how even mature adult-use markets (launched before 2017) can show news signs of life. For instance, Colorado cannabis revenue jumped 13% to $1.7 billion in 2019, compared to just 3% growth in 2018.
Emerging Medical Markets
Emerging medical markets launched in the last three years also posted large gains in 2019.
Pennsylvania revenue hit $420 million in its second year of sales, and Oklahoma sales increased to $365 million.
But yet again, even mature medical markets (launched before 2017) can show explosive growth, BDSA argues. In 2019, Hawaii’s sales were up by 90%, Puerto Rico’s doubled.
Looking ahead, 20 new medical markets will add $2.2 billion in spending to the market by 2025, BDSA predicts. The movement will be led by Texas, Missouri and Georgia.
New adult-use mrkets are forecast to add $8 billion in sales between 2019 and 2025, led by Florida, New York and New Jersey.
“Through each annual edition ‘The State of Legal Cannabis Markets’ has been the definitive report on the worldwide legal cannabis industry,” David Abernathy, VP of Research & Consulting of The Arcview Group, tells Benzinga. “The 8th Edition extends industry forecasts to 2025, providing a solid basis for business planning for companies throughout the legal cannabis value chain.”
BDSA launched its retail sales tracking service in 2014.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
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