Worldwide weed sales predicted to hit $47.2B in 2025
Published on September 24, 2020 by David Wylie
The pandemic has not slowed down the growth of cannabis.
Cannabis market analyst BDSA says global cannabis sales for 2020 will reach $19.7 billion—an increase of 38% over 2019 sales of $14.8 billion.
The market analyst predicts global cannabis sales will reach $47.2 billion by 2025. Top international contributors to growth include Mexico, Germany and the U.K.
As for the long-term Canadian cannabis forecast, BDSA predicts the Canadian market will grow to $6.1 billion by 2025.
“While the 2020 forecast is down less than one per cent from the forecast released earlier this year, cannabis sales year to date have swung wildly in different states as a result of COVID-19,” said Roy Bingham, co-founder and executive chairman of BDSA.
He said sales in many U.S. markets performed stronger than expected, including Colorado and Oregon; though sales in Nevada dropped significantly and are struggling to recover.
“Nevada’s dependency on tourism, coupled with mandated delivery for the adult-use channel were largely responsible for Nevada’s performance,” he said.
In the US: Republicans, Democrats support pot
While U.S. government restrictions on cannabis continue to hamper growth, there are signs that may change soon.
There is growing support on both sides of the political spectrum for cannabis.
A new poll has found more than 50 per cent of Republicans support a bill to legalize cannabis in the states. The poll conducted by non-profit think tank Data for Progress found a lot of support of Democratic Sen. Kamala Harris’ proposed the Marijuana Opportunity Reinvestment and Expungement Act.
Harris, who is the Democratic vice-presidential nominee, is the sponsor of the MORE Act. It would decriminalize cannabis at the federal level, removing cannabis from the Controlled Substances Act, expunge the records of those with prior marijuana convictions, and impose a federal five per cent tax on sales, revenue that would be reinvested in communities most impacted by the drug war.
Congress was to vote on the Act this week, but delayed it until later this year.
The poll surveyed about 1,200 voters in early May. It suggests that the majority of Americans, no matter their political affiliation, support legalizing cannabis. For Democratic respondents, 69 per cent supported legalizing weed while 54 per cent of Republicans agreed.
Thirty-three states have now legalized medical cannabis and five states will be voting on legal cannabis on the November ballot, including Arizona, Montana and New Jersey.
London: Cannabis on the stock market
Rules have now been set out for cannabis companies seeking to list on the London stock market. They block recreational makers but open the door to those providing products for medical use.
The UK legalized medicinal cannabis two years ago but the market for consumer use remains tightly regulated.
The Financial Conduct Authority set out guidance on how it will assess applications from cannabis-related businesses. UK-based medicinal cannabis companies and cannabis oil companies can list in the UK with the right Home Office licences, it said, but overseas companies face greater scrutiny.
Hong Kong: First CBD cafe opens
A company in Hong Kong is pushing the boundaries.
The first CBD cafe has opened its doors to customers in the major city.
Cannabis is illegal in Hong Kong, but the new cafe is offering a range of food and drinks that contain parts of the cannabis plant without breaking any local laws.
The cafe, named Found, is the city’s first to offer a range of coffees, biscuits, beer and fruit juices that contain cannabidiol, or CBD, a substance from the cannabis plant that is said to offer therapeutic effects without getting users intoxicated.
“Hong Kong is actually one of Asia’s most progressive cannabinoid markets,” said Fiachra Mullen in an interview with BNN.