Recreational Cannabis Poised for Growth

Source from:  Tobacco reporter 11/11/2020

Recreational cannabis sales will drive global legal market growth by 376 percent over the next five years, outpacing medical and CBD, according to global market research company Euromonitor International’s new cannabis database.

Recreational cannabis will capture 67 percent of legal sales globally in 2025, whereas medical cannabis will account for only 9 percent, declining from 23 percent in 2020, according to Euromonitor.

“New consumption occasions and tailored value propositions will drive the industry into fast-moving consumer goods territory,” says 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.”

Flower remains the dominant legal cannabis format globally but will record the biggest share of sales decline, from 35 percent in 2020 to 27 percent in 2025, according to Euromonitor’s new webinar, “The Evolving State of Global Cannabis: Market, Consumers and the Future,” which is scheduled for Nov. 17. Topicals, tinctures and edibles will steal market share as the three fastest-growing categories, respectively, over the next five years.

Shane MacGuill

“Cannabis is already a nearly $170 billion global industry, but the legal market today is only approximately $30 billion,” says Shane MacGuill, senior head of nicotine and cannabis at Euromonitor International. “As regulation progresses, the legal market is expected to capture 40 percent 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.”

Euromonitor’s new cannabis database provides global, regional and country-level sales and pricing across categories, including recreational, medical, CBD and illicit, and 10 formats, including flower, edibles, vapor and topicals, among others. The database also features a new Cannabis Survey, tracking consumer habits and attitudes in 20 markets.  Enditem