Legal cannabis sales are set to soar in the coming years, a new study by Euromonitor International has found, with the research firm predicting the sector to grow by 376% over the next five years.
The loosening of regulation in the United States, where several states voted to legalise recreational cannabis use last week, as well as a more progressive approach to drug misuse in other markets, is expected to create a burgeoning marketplace, Euromonitor said.
New Consumption Occasions
“New consumption occasions and tailored value propositions will drive the industry into fast-moving consumer goods territory,” commented Spiros Malandrakis, head of alcoholic drinks at Euromonitor International.
“The modern cannabis consumer will not only continue to drink less alcohol and smoke less tobacco but also diversify from traditional recreational flower to other formats.”
A webinar on the topic, The Evolving State of Global Cannabis: Market, Consumers and the Future, is set to discuss how recreational cannabis will capture 67% of legal sales globally in 2025, whereas medical cannabis will account for only 9%, declining from 23% in 2020.
Cannabis is currently a global industry worth $170 billion, however the legal market is currently only worth $30 billion. But as more countries and regions loosen regulations, this is expected to grow exponentially.
'Nurture The Curiosity'
“As regulation progresses, the legal market is expected to capture 40% of global cannabis sales in 2025, and companies will be able to tap into a large existing user base as well as nurture the curiosity of new adult consumers," commented Shane MacGuill, senior head of nicotine and cannabis at Euromonitor International.
Flower remains the dominant legal cannabis format globally but will record the biggest share of sales decline, from 35% in 2020 to 27% in 2025, as topicals, tinctures and edibles steal market share over the next five years.
Euromonitor has launched a new 'cannabis database' to track global, regional and country-level sales and pricing across a number of categories, including recreational, medical, CBD and illicit sales.
The research firm will be hosting the webinar, The Evolving State of Global Cannabis: Market, Consumers and the Future, on Tuesday 17 November at 16.00 CET, on Tuesday, November 17, to examine the latest growth trends, market potential and consumer preferences.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.