Supported in part by pre-existing use, there is a widespread growth narrative for legal cannabis. More regions are transitioning from prohibition to regulation and taxation of cannabinoid products. Consumers are incorporating cannabis into various aspects of their lives - for therapeutic purposes, relaxation, mood management, and more, fueling an 18% compound annual growth rate (CAGR) between 2023 and 2028.

Key Findings

• The legal cannabis industry had a mixed performance in 2023.

• While there was a 13% year-on-year growth reaching USD47.1 billion, it was a modest recovery compared to the 40% and 30% growth experienced during the pandemic in 2020 and 2021, respectively.
• Dominance of the legacy market Cannabis has been used by humans for thousands of years and is currently consumed (despite government regulations) in all corners of the world. Our data suggests that 81% of the total global value is currently consumed in the illegal market, which may decrease to two-thirds by 2028 if further legalization occurs.
• Positive forecast Supported by pre-existing use, there is a widespread growth narrative for legal cannabis. More regions are transitioning from prohibition to regulation and taxation of cannabinoid products. Consumers are incorporating cannabis into various aspects of their lives - for therapeutic purposes, relaxation, mood management, and more, fueling an 18% compound annual growth rate (CAGR) between 2023 and 2028.
• Decline in flower's market share The modern cannabis consumer is diversifying away from the traditional image of consuming recreational flower. While there will still be recreational use, there will also be a range of new use occasions involving innovative delivery methods and sophisticated infused products, resulting in a decline in flower's market share from 32% in 2023 to around 28% by 2028.
• Adult-use as the main driver The primary factor driving value growth in the global legal cannabis industry until 2028 will be the increased legalization of adult-use cannabis in the US (and possibly globally), leading to a nearly 100% increase in the user population to over 40 million. Growth will also occur in other areas, with the CBD user population reaching approximately 65 million.
• The World Market for Cannabis report is specifically designed for current and potential stakeholders in the emerging legal cannabis market. It aims to provide a comprehensive overview of the size and scope of the global cannabis market, examining past and future trends. By analyzing the factors influencing the emerging legal industry, such as regulatory momentum, current illegal consumption trends, changing consumer behaviour, and corporate activity, the report identifies opportunities and challenges in the medical, adult-use cannabis, and CBD sectors. Forecasts in the report are available until 2027.