Detroit, MI--BDSA, a firm offering cannabis industry market intelligence, has updated its key market forecast, predicting significant growth in the legal U.S. cannabis market. The market is projected to expand by 12% by the end of 2023, reaching a worth of $29.6 billion. By 2027, BDSA anticipates U.S. total legal sales to hit $45 billion.
According to a Benzinga report, BDSA also highlights the global legal cannabis industry, estimated to achieve $36.7 billion by 2023, where U.S. sales contribute 80%. From 2022 to 2027, the global industry is expected to see a compound annual growth rate (CAGR) of 13%. BDSA will update its market forecast quarterly instead of biannually in response to market dynamics.
The report noted that emerging adult-use states largely drive growth in the U.S. market. Missouri's legal cannabis sales are predicted to hit $1.4 billion in 2023, bolstered by a strong start in adult-use sales. Similarly, New York's legal cannabis sales are anticipated to reach $631 million by 2023 end, with projections of $2.5 billion by 2027, reflecting a CAGR of 71% between 2023 and 2027.
As per the report, new markets such as Minnesota, which legalized adult-use cannabis in May 2023, are expected to see sales beginning in 2024 and amounting to $177 million for the year. The state's total sales are expected to grow at a CAGR of 68% from 2023 to 2027, reaching $875 million by 2027. Maryland and Delaware are also preparing to initiate adult-use sales in July 2023 and late 2024, respectively. Despite legal hurdles, Florida is projected to commence adult-use sales in 2025 and achieve $4.3 billion by 2027.
Midwest cannabis markets are also seeing substantial growth. Illinois' total spending is anticipated to grow 8.3% to over $2 billion this year. Michigan's adult-use sales have exceeded expectations in 2023.
The report noted that not all states are experiencing growth. BDSA's forecast predicts a 9% decrease in 2023 California sales, totaling $4.8 million, mainly due to price compression and unfair competition. Pennsylvania is also expected to see a slight decrease in cannabis spending in 2023, with total legal sales forecast to be just over $1 billion.
Learn more in the full Benzinga report.