Global cannabis sales reached nearly $21.3 billion in 2020, an increase of 48% over the previous year’s $14.4 billion in sales, according to BDSA. The analytics firm forecasts global cannabis sales will grow to $55.9 billion by 2026, representing a compound annual growth rate (CAGR) of more than 17%.
The more mature markets in the U.S. saw accelerated growth in 2020, BDSA said, noting that Colorado grew by 26% – double its 2019 rate – while Oregon expanded 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.
Canada, the largest national market which legalized cannabis federally in 2018, grew by 61% in 2020 to more than $2.6 billion. 2020 marked the first year of “Cannabis 2.0,” which included edibles and concentrates. BDSA estimates by 2026 Canada’s sales will increase to about $6.4 billion, a CAGR of 16%.
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.” – Tapman in a press release
Legal cannabis sales in the U.S. passed $17.5 billion in 2020, exceeding 2019 growth by 46%. BDSA predicts U.S. sales to reach $41.3 billion in 2026, a CAGR of 15%. California saw the biggest market expansion of $586 million, followed by Florida ($473 million), Colorado ($451 million), and Oklahoma ($400 million).
BDSA found legal cannabis product sales, including cannabis-derived pharmaceuticals, outside of North America reached nearly $1.1 billion in spending last year. BDSA forecasts international sales will exceed $8.3 billion in 2026, a CAGR of 40%. The bulk of that new legal spending internationally will be driven by Mexico at a 104% CAGR. Mexico is required to legalize cannabis following a 2018 Supreme Court ruling that declared cannabis prohibition unconstitutional. Mexico is expected to account for almost 32% of legal cannabis spending beyond the U.S. and Canada in 2026, BDS said.
In Europe, BDSA estimates legal cannabis product sales in France will see a 186%, followed by Germany with a 36% CAGR. The firm anticipates the U.K. – which has legalized cannabis-derived pharmaceuticals – will grow at a CAGR of 57%.
Get daily cannabis business news updates. Subscribe