As investors continue to flock to cannabis-related opportunities, they have much to look forward to as new data compiled by Genesis Market Insights estimates that the global cannabis market will explode over the next few years.
According to their report, the 2017 global market was valued at 17.18 Billion USD and is expected to surge up to 58.90 Billion between 2018 and 2023.
The primary driver for this growth is the growing legalization of both medical and recreational cannabis, and while Canada and the U.S. control the majority of the global cannabis market, other regions such as Europe and Australia are promising to grow as well. Currently, the U.S. has nine states and the District of Columbia that have legalized marijuana, with many more coming soon in the near feature.
The report goes on to mention a number of key players, including Canopy Growth Corporation (TSE: WEED) and Medical Marijuana, Inc. (OTCMKTS: MJNA), adding that their market share is “because of its better global presence both at production and at an operational level.” It went on to mention “rising research and development expenses to address the changing demand of end users.”
“The industry is at about 5 percent of what it will be someday,” said Tyler Stratford, director of client operations for Canna Advisors, a major cannabis consulting firm. “Even if the path forward isn’t straight, we’re certainly on a path forward. The tide has changed, and there’s no turning it back now.”
The report goes on to break down the North American cannabis market by related products, with oils leading the market demand, followed by creams and powders.
However, other related products such as cannabis-infused beverages are one of the many developing niche products in the marketplace as indicated in the report.
Edgar Montera, CEO of the recently listed Chemesis International Inc (CSE: CSI), commented that the overall cannabis market is exploding with new potential sub-markets.
“Entering into the cannabis-infused beverage market is an extremely important step for Chemesis,” said the CEO a few weeks ago. “The cannabis market is expanding into more product categories, and Chemesis is identifying opportunities that will build long-term value and consistent revenues. Our existing licenses and facilities will allow us to expand our portfolio of products without the added regulatory delays. The company will continue to ensure it expands and creates a footprint in markets and product spaces that align with our ambitious business plan.”
Nor is this the only report that had a favorable forecast for the Cannabis industry. According to Grand View Research, their estimates have the global marijuana market reaching USD 146.4 billion by the end of 2025, citing several medical applications such as chronic pain, cancer, mental disorders, and others as being a key factor for revenue growth in the future.
Aside from the North American Market, other markets include Israel which, despite its small population, has a lengthy history of legal medical marijuana usage and is an emerging leader in the field of cannabis pharmaceuticals.
In the South American continent, Uruguay remains the only other country in the world besides Canada to legalize cannabis consumption for all its citizens.
While it might not be surprising to pro-cannabis investors that the market is growing rapidly, the potential for explosive growth in this industry over the coming years could mark one of the biggest investment opportunities of the decade.