North America’s cannabis market will go from $9.2 billion in 2017 to $47.3 billion in 2027.
Spending on legal cannabis worldwide is expected to hit $57 billion by 2027.
According to Arcview Market Research, over the next 10 years, the legal cannabis industry will see much progress around the globe. Spending on legal cannabis worldwide is expected to hit $57 billion by 2017. The adult-use (recreational) market will cover 67% of the spending; medical marijuana will take up the remaining 33%.
The largest group of cannabis buyers will be in North America, going from $9.2 billion in 2017 to $47.3 billion a decade later. The largest growth spread, however, is predicted within the rest-of-world markets, from $52 million spent in 2017 to a projected $2.5 billion in 2027.
Still, the main difference between the U.S. and European cannabis markets is that in the U.S., recreational use will dominate sales. With a budget of $1.3 trillion in health care spending, European government-subsidized health care systems will bring the medical cannabis market to dominate Europe and become the largest medical marijuana market in the world.”
Bloomberg also chimed in on the U.S. infused beverage market:
Cannabis-Infused Drinks Could Be a $600 Million Market in U.S. by 2022
Drinks infused with marijuana-derived compounds could swell to become a $600 million market in the U.S. within the next four years, outpacing the growth of other categories of retail cannabis products, according to analysts at Canaccord Genuity
Canaccord sees the demand for beverages featuring CBD, or cannabidiol, the non-psychoactive compound in marijuana, reaching $260 million by 2022, up from the “negligible revenue” the limited number of drinks contributes now, while THC-based drinks could reach $340 million, up from $106 million expected this year.
What will the long-term cannabis market look like?
Mergers and acquisitions?
FORBES expects mergers and acquisitions as the big players in the cannabis markets start to align with existing big brand conglomerates, possible alcohol and tobacco producers:
“First of all, we have always viewed the cannabis space as one that would eventually be dominated by large alcohol and tobacco producers. Companies with deep pockets to grow new brands, experience to navigate legal restrictions in distribution, and the operational excellence to squeeze profitability from highly competitive marketplaces. Sure, we expect there to be smaller “artisanal” farms that cater to connoisseurs or consumers looking for something a little different – our view is something akin to the way the beer market looks today with large producers dominating sales and new craft brewers popping up every day. But in cannabis, we believe the majority of supply will be acquired and delivered by large alcohol and tobacco producers because the opportunity is so enormous and compelling for them. Tobacco and alcohol companies should want to participate in the first major consumer drug product to be legalized since maybe the end of alcohol prohibition in 1933. Whether you think the global opportunity is $75 billion or $250 billion, that is a huge new market and companies like Constellation Brands, Phillip Morris, Molson Coors, and others will be compelled to participate by the possibilities of this new global market.
Already some names of multi-national non-cannabis companies are being attached to possible entries into the market. Coca-Cola is one. An article in the U.K.’s Independent reported Coca-Cola’s interest:
“Coca-Cola explores entering cannabis market with ‘wellness beverage’
Global drinks giant ‘watching closely’ as it considers introducing non-psychoactive products.
The Coca-Cola Company has revealed it is “closely watching” the development of cannabis drinks as it mulls whether to enter the market with a non-psychoactive product.
The beverage giant’s announcement came following reports it was in talks with (a) Canadian marijuana company… to create drinks infused with cannabidiol (CBD).
Coca-Cola said it was considering a move into the market in order to use CBD as an ingredient in “wellness” products but had made no formal decision on whether to invest.
“We have no interest in marijuana or cannabis,” Coca-Cola said in a statement…
“Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world.
“The space is evolving quickly. No decisions have been made at this time.”
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