Legalization and sales have been progressing at a rapid speed within the United States as well as across the globe, though each country is regulating it differently. Despite variations across countries, the trend of expansion is apparent throughout global cannabis markets.
Global Cannabis Legalization
Recent trends in legalization can be seen across the world, especially in Asia. In Thailand, people are now allowed to cultivate and process marijuana legally, making Thailand the first nation in Asia to decriminalize marijuana for medical and industrial use.
In 2019 it was reported that only a low 2 percent of Asia’s population used cannabis. China and Japan account for 90% of the cannabis market in Asia, bringing in an estimated worth of $4.4 billion (about $14 per person in the US) and $800 million. Ideally, this makes the continent a common choice for expanding legalization, at least from a marketing point of view. Real changes were not apparent until 2018-2019, when countries like Singapore, known for their zero-tolerance cannabis laws and harsh punishments, were among the first to make changes when parliament amended their Narcotic Act of 1979 to legalize medical use. Although progress has been slow, cannabis expansion is spreading through Asia. While the majority of European countries have legalized medical marijuana, Germany plans to legalize it fully. They originally wanted to loosen their recreational cannabis regulations, though, with global troubles such as COVID-19 and the war in Ukraine, they’ve put it to a halt. Their plan now is to legalize recreational cannabis fully by the end of 2022, because they believe that cannabis reform could bring over $5.3 billion (about $16 per person in the US) in tax revenue to the country as well as create around 27,000 legal jobs for their citizens. Much like their neighbor, Luxembourg has also legalized cannabis as well as decriminalized it. They became the first European country to legalize cannabis fully while also permitting citizens to grow their own cannabis. Citizens above the age of 18 are allowed to grow up to 4 cannabis plants per household for personal use with no fine. Europe as a whole is slowly starting to relax its ideology when it comes to cannabis in general, and at the rate that it’s going, every country will loosen its cannabis regulations.
The Cannabis Boom
There are many opportunities for new cannabis businesses to form and for other industries to integrate cannabis products into their own business models. In particular, the alcohol, tobacco, and pharmaceutical industries have been happily embracing cannabis products. Global cannabis sales are expected to grow from $13.4 billion (about $41 per person in the US) in 2020 to $33.6 billion (about $100 per person in the US) by 2025.
Currently, cannabis legalization is spreading through the United States. As of right now, Massachusetts adult-use cannabis sales have increased 21% since 2021. Adult-use retailers reported just more than $120 million in May 2022 in sales, bringing the state’s yearly total to $585.6 million, amounting to a 20.7% increase from the $485.2 million in sales during the same timeframe in 2021.
Global Cannabis Challenges
Though many countries are starting to come on board with cannabis legalization and acceptance, laws can still vary widely across borders. In North America, Canada has been seizing an increasing amount of cannabis and cannabis products at the border to the United States. Since valid permits are needed to legally import cannabis in and out of Canada, the Canada Border Services Agency (CBSA) issued a notice to Canadians that although the drug has been legalized and regulated in Canada, and some parts of the United States, it remains illegal to carry or ship cannabis across the border.
Some research shows that the global cannabis market may reach USD $176,005.5 million (about $540 per person in the US) by 2030. Medical cannabis expansion is likely related to the increasing research on the medicinal benefits of cannabis, while an increasing number of US states and countries have legalized recreational cannabis as a way to boost their economies.
Overall, the future of the global cannabis industry is looking bright!