According to an October 27 press release, the North American cannabis industry is projected to surpass $65,161.4 million, (or over $65 billion) up from $6,036.9 million in 2019 by 2027. In other words, the cannabis market in North America is anticipated to grow at a compound annual growth rate (CAGR) of 29.9 percent from 2020 to 2027.
Reportlinker.com announced the release of its new report, “North America Cannabis Market Forecast to 2027 – COVID-19 Impact and Regional Analysis By Product Type; Application; Compound, and Country.”
The growing CAGR is a direct result of larger inventories and regulations that allow for larger inventories. “The growth of the North America cannabis market is attributed to increasing approvals for cannabis-based products and growing sales and inventory for cannabis,” Report Linker summarized. “However, stringent regulatory framework for cannabis is likely to hinder the market growth during the forecast period.”
One of the highlights of the reports was the growing impact from Canada. “Canada is among the fastest and largest countries in terms of production of cannabis and commercialization of its products.In October 2018, the Federal Government accepted the Cannabis Act, and since after the cannabis industry has boomed in the country.”
About 73 percent of total cannabis sales were sold as dried cannabis, while cannabis extracts contributed 14 percent, and edible cannabis contributed 13 percent of Canada’s total sales.
Also noted in the report, approximately 43,309,909 packaged units of cannabis products are currently recorded in inventory by cultivators, manufacturers and suppliers across the country. Among the total inventories, 42 percent of cannabis-based products are held by the distributors and retailers.
The rise in cultivation operations was also attributed as one of the main drivers of industry growth. The report represents a hopeful watershed moment for the continual growth of the industry in North America.