Cite this Article: Austin, Kat. “Unveiling Cannabis Industry Statistics: Navigating Trends, Prices, and Legality” VidaOptimaCBD.com, August 24, 2023, https://vidaoptimacbd.com/blogs/cannabis-encyclopedia/cannabis-industry-statistics
In an era marked by shifting perceptions and changing legislation, the cannabis industry stands as a remarkable testament to transformation. This article delves into the landscape of cannabis industry statistics, offering insights into trends, prices, and consumer preferences.
As societal attitudes evolve, so do consumer habits, illuminating a dynamic interplay between supply, demand, and pricing. The intricate web of legal statuses across regions adds more complexity, shaping market growth and innovation.
Revenue in the Cannabis market is projected to reach US$51.27 billion in 2023.
In global comparison, most revenue will be generated in the United States (US$33,880.00 million in 2023).
In relation to total global population figures, the cannabis market experienced a per person revenue of US$77.13 in 2023.
The global Cannabis Market size as per revenue was exceeded $27.7 billionin 2022.
The global legal cannabis market is projected to reach $84 billionby 2028, with a compound annual growth rate of 14.3% from 2021 to 2028.
Facts About Cannabis Industry Trends in the United States
The legal cannabis market in the United States was valued at $20.5 billion in 2020 and is projected to reach $41.5 billion by 2025, with a compound annual growth rate of 15.5%.
The U.S. cannabis industry could reach $100 Billion in annual sales by 2030.
Cannabis cultivation is increasing, leading to fluctuating supply and demand. From 2012–2016 cannabis farms increased in number by 58%, cannabis plants increased by 183%, and the total amount of land area under cultivation increased by 91%.
Cannabis mergers and acquisitions were down in 2022 compared to the year prior. Total M&A volume dropped by 62% in the United States and there were 39% fewer cannabis-related transactions made according to Viridian Capital Advisors.
Vangst's State of the Cannabis Economy report reveals that 52.4% of industry leaders view regulations and compliance as their top challenge, closely trailed by inflation at 50.3% and federal prohibition at 49.7%.
Facts About International Cannabis Markets:
Australia's legal cannabis market is anticipated to grow at a CAGR of 27.4% from 2021 to 2028, reaching a value of AUD 1.8 billion by 2028.
Latin America's legal cannabis market is predicted to grow at a CAGR of 29.3% from 2021 to 2028, with a market value of $12.8 billion by 2028.
As of 2022, Israel is known for having the highest cannabis usage rate per capita in the world, with about 27% of adults aged 18-65having used cannabis in the past year.
Israel, known for its robust medical cannabis research, has exported over $1 billion worth of medical cannabis products to global markets.
In Canada, legal cannabis sales reached $2.6 billion in 2020, a 120% increase from the previous year.
The European legal cannabis market is expected to grow at a CAGR of 67.1% from 2021 to 2028, reaching an estimated value of €3.2 billion by 2028.
Cannabis Price Statistics
Cannabis prices seem to be dropping, despite global inflation. Average retail prices for cannabis have decreased by 20% between 2021 and 2022.
According to Apex Trading, prices in mature markets are significantly lower, with a 50% decline in Colorado and a 36% decline in Oregon over a 12 month span from 2021 to 2022.
Facts About Cannabis Legalization:
In 2021, the U.S. Cannabis Council was formed to advocate for federal legalization and promote equity.
Mexico became the third country in the world to legalize adult-use cannabis nationwide in 2021, following Uruguay and Canada.
The state of New Jersey became the first U.S. state to legalize recreational cannabis through legislative action, rather than a voter referendum, in 2021.
As of 2022, 37 states and the District of Columbia have legalized marijuana for medicinal use.
21 of those states, as well as the District of Columbia and Guam, have also legalized adult-use recreational marijuana.
Germanyplans to decriminalize the purchase and ownership of small amounts of cannabis, potentially setting a standard for Europe.
On October 6th of 2022, President Biden pardoned federal offenses of simple marijuana possession and urged states to follow suit.
In 2022, the Senate passed the Marijuana Research Bill to expand research into cannabis medications.
Thailanddecriminalized marijuana and hemp in 2022, allowing medical use and cultivation with restrictions, though it is still illegal to smoke in public places.
Maryland, Missouri, and Rhode Island were the most recent states to join the list of legal adult-use cannabis states in 2022.
Several U.S. states are eyeing legalization in 2023, with Ohio, Oklahoma, Pennsylvania, and Minnesota considering it.
Facts About Cannabis Users:
Young adults are more likely to smoke cannabis over cigarettes. According to Gallup, the number of young adults who have smoked cannabis has increased 5% since 2018, while the number of people in the same age group who smoke cigarettes has droppped ot a historical low.
Over half of U.S. adults (52%) have tried cannabis, and approximately two-thirds (66%) of those people reported a positive experience.
Among cannabis users, 43% used it in the past year and 72% used it in the past month, according to YouGov.
Adults aged 45-64 (63%), liberals (60%), those in the Western U.S. (56%), and white Americans (56%) are most likely to have tried marijuana.
According to a CivicScience survey, 21% of Dry January participants replace alcohol with cannabis and CBD, with 34% being aged 21-24.
14% of all U.S. adults use CBD, with pain (40%) and anxiety (20%) being the most common reasons.
Facts About Cannabis Consumption Trends
According to consumers, THC percentage and price are now the leading factors when purchasing cannabis.
Still, demand for cannabis remains resilient despite inflation, with 73% spending more money per cannabis transaction in 2022.
Beverages, edibles, vape pens, and pre-rolls have risen in popularity since 2020, possibly due to shifting consumer behavior.
Edible cannabis products are becoming increasingly popular, with the edibles market projected to reach $4.1 billion by 2022 in the United States.
Cannabis beverages are gaining traction, with the global cannabis beverage market estimated to reach $2.8 billion by 2025.
Cannabis-infused topicals, such as creams and lotions, are the most commonly used type of cannabis product for localized relief of pain and inflammation. They do not produce the psychoactive effects associated with other consumption methods.
Dabbing, a method of consuming cannabis concentrates using a vaporizing device called a dab rig, has also gained popularity since 2020. It involves inhaling vaporized concentrated cannabis extracts, known as "dabs."
Still, 77.5 percent of people surveyed said they prefer products with less THC, somewhere between 9 and 20 percent THC.
The popularity of CBD-infused products has surged, with the global CBD market expected to reach $23.6 billion by 2027.
Social Equity and Employment in the Cannabis Industry:
According to a Weedmaps report, social equity is important to consumers, with 57% supporting equal opportunities in the cannabis industry.
Leadership diversity in cannabis businesses is stagnant or declining, particularly for non-white ownership.
According to a Business Insider report, approximately 90% of top executives within the cannabis industry are white men.
In-person work led to increased cannabis job opportunities, with 280 new jobs created per day in 2021.
The cannabis industry supports over 428,000 jobs as of January 2022.
The cannabis industry employed around 321,000 people in the United States in 2021, marking a 32% increase from the previous year.
California, Colorado, and Florida were the top three U.S. states for cannabis job growth in 2021, with California adding over 38,000 jobs.
Employment in the legal cannabis industry is expected to reach 500,000 jobs by 2022, making it one of the fastest-growing job markets in the U.S.
Facts About Cannabis Health and Research:
Despite being federally classified as a Schedule I controlled substance in the U.S., researchers have found evidence suggesting that cannabis has potential therapeutic uses for conditions like epilepsy, chronic pain, and multiple sclerosis.
The Endocannabinoid System (ECS), a complex cell-signaling system in the human body, was discovered in the 1990s. It plays a crucial role in regulating various physiological processes, including pain, mood, appetite, and sleep.
A study published in the "Journal of Pain" found that medical cannabis use significantly reduces chronic pain and improves overall quality of life for chronic pain patients.
A clinical trial conducted by the University of Colorado Anschutz Medical Campus revealed that using CBD-rich cannabis extracts reduced seizure frequency by 44% in patients with epilepsy.
A study published in "JAMA Psychiatry" found that regular cannabis use during adolescence is associated with an increased risk of developing depression and suicidal thoughts in young adulthood.
On the other hand, a review published in "The Lancet Psychiatry" suggested that using low-potency cannabis with higher CBD content may be associated with a lower risk of developing psychotic disorders.
