The Cannabis industry is massive. And it will grow even more massive. According to a report by Prohibition Partners, the North American cannabis industry could reach $47.3 billion annually by 2024, with the U.S. comprising $44 billion of the market in the next five years, according to an outline of the report by Health Europa.
Daragh Anglim, managing director at Prohibition Partners, said that figure is likely an underestimation as it doesn’t include illegal sales.
Anglim added that the “legal disconnect” in the U.S. between federal and state laws “presents significant challenges for businesses looking to mature a market with significant potential.”
“Moreover, conflicting adult-use laws in the US are forcing businesses to move to neighboring states,” Anglim said in the report. “On a positive note this is fueling momentum behind legislation as state regulators look to generate and protect tax revenues.”
The research firm suggests that by 2024 medical cannabis sales in the U.S. will comprise just half of all legal sales, expecting more states to legalize cannabis for adult use.
In May, Prohibition Partners suggested that if hemp and medical cannabis were fully legalized in Asia, the market could be worth $5.8 billion by 2024, but noted that just three Asian nations – Thailand, Pakistan, and Uzbekistan – have legalized medical cannabis use and it’s unlikely that Hong Kong and China would move toward any legalization in the next decade.