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Business is booming for the cannabis industry as global cannabis sales reach $21.3 billion in 2020, up 48% from the previous year where it stood at $14.4 billion.
This was disclosed in a recent BDS Analytics report on the analysis of the Global Cannabis industry for 2020.
The Colorado-based cannabis analytics firm reports that the jump was a result of the accelerated growth of markets in the United States and Canada, and the emergence of new markets in Europe.
In the United States, legal cannabis sales in the U.S. passed $17.5 billion in 2020, exceeding 2019 growth by 46%. Mature markets in the U.S. such as Colorado and Oregon saw accelerated growth, with Colorado doubling its 2019 growth rate at 26%, and Oregon expanding by 39%, 18% more than its 2019 rate.
Medical and adult-use markets that launched in 2019 and 2020 contributed $1.6 billion in spending in 2020, BDSA said, with $422 million in medical cannabis sales and nearly $1.2 billion in adult use.
California saw the biggest market expansion of $586 million, followed by Florida ($473 million), Colorado ($451 million), and Oklahoma ($400 million).
BDSA predicts U.S. sales to reach $41.3 billion in 2026, a CAGR of 15%.
In Canada, the market saw an impressive leap up 61% in 2020 more than $2.6 billion as the country transitioned to Cannabis 2.0 (a shift in preference away from the traditional capes and cartridges to low-priced cannabis-infused products such as cannabis-based edibles, vapes, beverages, oils and topicals).
Canada, the largest national market legalized cannabis federally in 2018, and 2020 marked the first year of “Cannabis 2.0.” BDSA estimates by 2026 Canada’s sales will increase to about $6.4 billion, a CAGR of 16%.
Outside North America, the emergence of new markets spurred on by recent legalization fueled the growth trajectory experienced in 2020. Countries like Mexico, the United Kingdom and France produced good outcomes but what’s important is the promise of growth in these markets.
BDS Analytics estimates CAGR in France, Germany, the UK and Mexico to reach 186%, 36%, 57%, and 104% respectively by 2026.
Globally, the analytics firm estimates that global cannabis sales will grow to $55.9 billion by 2026, representing a compound annual growth rate (CAGR) of more than 17%.
BDSA CEO Micah Tapman said the company’s previous forecast was “conservative” based on the expected fallout from the coronavirus pandemic. “…But the industry not only survived, it thrived and legal cannabis gained considerable ground, exceeding our expectations in several markets.”
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