Cannabis Industry Predictions for the Next Decade
Aug 9, 2024
A Global Surge in Cannabis Markets
Over the next ten years, the cannabis market is expected to develop significantly worldwide. Even though the US is still the industry leader, with revenues predicted to reach $46 billion by 2028, other regions, particularly Europe and the UK, are also making significant progress.
At 56% of worldwide cannabis sales, the adult-use market in the United States is the main force behind this rise. New York and Illinois, two emerging markets on the East Coast and in the Midwest, are anticipated to make a substantial contribution to this growth.
Mature markets, such as California, are anticipated to recover moderately following a period of stagnation brought on by price compression and illegal competition.
The UK: A Rising Star in Europe
The cannabis market in the United Kingdom is expanding at a rapid pace, particularly in the medical sector. By the end of 2024, it is anticipated that 63,000 patients will be using medical cannabis, bringing in €240 million in sales.
The UK has a higher per-patient consumption rate than other European countries, largely because the market is private and financial incentives are in place to reward high prescription volumes.
The number of patients using medical cannabis in the UK is expected to more than double by 2028, reaching about 141,000. Private clinics have played a major role in this growth, as they have made medical cannabis more accessible and affordable.
The Role of Private Clinics and Market Expansion
The cannabis industry still confronts a number of obstacles despite its growth:
Fierce rivalry and little difference between products.
Complicated and multifaceted laws.
Large costs associated with marketing.
Cash flow problems.
In addition, customer preferences are changing, and complicated circumstances like as the COVID-19 pandemic have increased. Numerous of these problems have remedies provided by data analytics.
Challenges and Opportunities in the UK Market
The cannabis sector in the UK is facing a number of obstacles despite its rapid expansion. The dependence on imported medical cannabis products is one of the primary problems, as it may result in shortages and increased expenses for patients.
In addition, no new NHS prescriptions have been written in the previous two years due to the stringent regulation implemented by regulators.
Due to this, a large number of patients are now looking for items on the black market; an estimated 1.4 million patients are currently obtaining cannabis illegally.
But there are also a lot of great prospects in the industry. The majority of the medical cannabis produced in the UK is exported to foreign markets, making it one of the biggest producers in the world.
The Future of Cannabis in the UK and Beyond
Future predictions indicate that the UK's cannabis business will likely continue to grow quickly due to a rise in patients and the opening of more private clinics.
But in order for the market to realise its full potential, legislative measures pertaining to patient access and affordability must change.
This might involve the legalisation of cannabis for recreational use, which has the backing of 48% of people in the UK and has the potential to have major positive social and economic effects.
Conclusion
By 2028, the cannabis market is predicted to generate $58 billion in sales worldwide, with the US market setting the pace.
Adult-use sales will continue to fuel Canada's market, while growth in overseas markets is predicted to reach $7 billion by 2028 at a compound annual growth rate of 24%.
The next decade promises to be a transformative period for the global cannabis industry, with new markets emerging, regulations evolving, and consumer demand driving unprecedented growth.
The UK, in particular, is well-positioned to become a key player in this global market, provided it can address the current challenges and seize the opportunities ahead.
