A new report by Grand View Research believes the global legal cannabis market will pass all expectations and reach $146 Billion by the end of 2025. Legal marijuana has started to gain momentum worldwide due to very high consumer demand and increasing legalisation of recreational and medical marijuana in various countries. Currently the majority of cannabis is sold via illicit channels. To curb this illicit trade, governments have started legalising Cannabis in all forms in order to monitor the products that enter the supply chain and reap the reward of taxes levied on these products.
"Europe is expected to emerge as the largest market for legal cannabis by the end of 2025."
Recreational use of Marijuana is considered as a substitute for cigarettes and alcoholic beverages such as beer. As such, legal Marijuana and CBD is expected to take some of the revenues present in these other markets. The market for recreational cannabis is consequently anticipated to see faster growth as compared to that for medical usage owing to the larger customer pool.
Europe is expected to emerge as the largest market for legal cannabis by the end of 2025. Countries such as Germany, UK, Italy and Poland are expected to emerge as strong markets. The Netherlands and Czech Republic are anticipated to become the largest exporters of hemp, owing to their lax laws. Latin American countries like Uruguay and Colombia are planning to capitalise on their climate and affordable labour force to emerge as large exporters of cannabis.
As the cannabis market continues to grow, hemp and cannabidiol (CBD) are occupying an increasing large share of the escalating industry. Another report by the Brightfield Group, cannabis industry analysts, predicts the hemp-CBD market alone could hit $22 billion by 2022. The CBD market in the U.S. has been somewhat constrained by the legal grey area that has existed for many years. However the 2018 Farm Bill which is expected to be approved amending the term “Marijuana”, currently found in the 1972 Controlled Substances Act to exempt hemp, will open a huge industry to farmers across the country and is expected to propel the CBD market to new heights.
Canopy Growth Corporation; Aphria Inc; Aurora Cannabis; Maricann Group, Inc.; Tilray; & The Cronos Group are some of the players operating in the market today. Some are Hemp and Marijuana growers and others major companies in the burgeoning medical marijuana & CBD space. The medical marijuana industry is currently catering for demand for prescriptions relating to chemotherapy-induced nausea, patients with epilepsy, rheumatoid arthritis, Alzheimer’s; adults with ADHD & stomach disorders, anxiety disorders, and even AIDS. The potential for this natural plant to disrupt the pharmaceutical industry is incredible.