Demand for cannabis has been on the rise for the past several years, particularly because the legalization efforts have gained traction. Unlike most other industries, the demand for cannabis products continued to soar globally during the pandemic.
Experts believe that this demand will continue on a growth trajectory. Last year in 2020, the global industry sales for cannabis amassed to over $21 billion. This number is expected to grow more than double in the next four years. Predictions are that global cannabis sales will exceed $51 billion by 2025.
In this article, we will shed light upon the factors that would lead to the increase in cannabis sales and how the industry is expected to progress in the years to come.
Overview of the Recent Trends
According to reviewed statistics, legal cannabis sales were the highest in the US in 2020, reaching $20.3 billion for medical and recreational products combined. Experts believe that this could have been due to the ease in regulations and increasing legalization efforts, especially in some of the biggest cannabis markets in the US, like California.
Advocates of cannabis expect that the soaring sales figures are mainly due to the increasing growth of the industry, particularly in the US and Canadian markets. Spain could emerge as a potential competition in the coming years as its total cannabis-related sales reached the US $431 just before the COVID-19 hit.
Several other cannabis markets are expected to see growth in the coming years, including Germany (Currently US $206.3M), Puerto Rico (Currently the US $145.5M), Israel (Currently the US $158.9M), Netherlands (Currently the US $108.4M), among several others.
Consumer Interests and Spending Will Play a Major Role
One of the main factors behind the soaring cannabis demand on a global scale will be the increasing interest of new users to try out cannabis. While some new users would seek the medical benefits of CBD, others will opt for recreational cannabis to relax and enjoy.
Furthermore, as more studies are coming forward, the hesitance and resistance to trying out cannabis for the first time have started decreasing. New studies continue to unveil how cannabis consumption benefits the human mind and body, which also boosts the confidence of new users to try out products of this plant.
In fact, experts across the globe are suggesting that these new users who are curious to try out cannabis for the first time will play a major role in the growth of the global cannabis marketplace.
Social Acceptance is Gaining Traction
Another critical factor that would play a role in the growth of the global cannabis industry is social acceptance. Cannabis was often considered a harmful substance over a decade ago, a notion that has longed in potential consumer minds for years.
Now that the overall industry is progressing, nations across the world are easing consumption laws, while studies are determining the positive aspects of the cannabis plant. Both of these combine to gain customer confidence. As the social acceptance around cannabis consumption develops, potential users become more confident in giving it a try, which is why the global markets are expected to see a significant rise in new customers.
Canna-Tourism Will Increase
As travel bans across the globe are easing, people have started planning out tours to their long-awaited destinations. Many future travelers also plan on consuming cannabis while on vacation. A recent study found out that over 29% of people traveling for leisure in the coming months or years plan on using cannabis during their vacation.
Canna-tourism is also expected to increase in the US, particularly where consumption laws are easing with each passing month. In fact, individuals and organizations are now focused on creating cannabis-infused experiences through activities like painting, bus tours, food classes, or trips to elite cannabis entertainment complexes.
States like Nevada are even looking forward to opening cannabis consumption lounges, which would be a fun-filled place for people to hang out and enjoy consuming their favorite strains and products. However, they are still under review and may open next year in 2022.
Cannabis entertainment complexes are also becoming an excellent canna-tourism alternative users get to have unique cannabis-related experiences. Planet 13 is one such option growing in popularity. It is, in fact, the biggest dispensary in Vegas and across the globe, and attracts thousands of enthusiasts to its dispensary near the Las Vegas strip.
Experts predict that as the global demand for cannabis increases, the US will continue to enjoy the lion’s share. Currently, Canada is the only country that is competing head-to-head in the legalization race.
Cultural Norms Will Also Make an Impact
It is also observed that despite an increase in demand, certain areas, particularly in the Asian region of the globe, may not participate in the race due to cultural hindrances. However, if they do, their ability to produce top-quality cannabis at a much lower price could emerge them as a significant competitor in the global market.
Furthermore, societal norms related to cannabis consumption also bar regions from expanding product lines and experimenting with new avenues. This is where the European and American markets will continue to lead the global industry – it is because these markets are open to conducting studies on cannabis and diversifying product lines accordingly to meet the changing consumer demands.
The global cannabis industry is growing, and recent efforts to legalize cannabis and streamline regulations have only expedited this progress. While states in the US are doing their part, the US federal legalization could prove truly prolific for the local cannabis industry.
New Frontier Data – a globally recognized cannabis data enterprise – predicts that the North-American region will be playing a significant role in the “industrialization and commercialization of cannabis” in the years to come.
Where to Buy Cannabis in Las Vegas
Looking for high-quality cannabis products in Las Vegas? Place your orders at Planet 13 online for deliveries and curbside pickup between 9:00am and 12:00am, or visit our Las Vegas dispensary open 24/7 near the Las Vegas strip.
Planet 13 is the largest cannabis entertainment complex in the world and the best Vegas dispensary that offers a unique in-store and online purchasing experience. You can head over to our Las Vegas strip dispensary and check out the largest cannabis dispensary for yourself at a time that best suits you!