SINGAPORE (June 11): Canada will legalise recreational cannabis (also known as weed, ganja or marijuana) on July 1. The cannabis market was given a shot in the arm when California legalised the drug for recreational use on Jan 1 this year. California is the largest state in the US by GDP and the world’s fifth-largest economy after the US, China, Japan and Germany.
Prior to that, though, pharmaceutical products made from cannabis had been legalised and available for use. Last year, Germany allowed medicinal cannabis to be sold. Around 15 European countries, including Germany, have legalised cannabis for medical purposes. Australia legalised cannabis for medical usage and export in 2016.
In February this year, Arcview Market Research, which studies growth companies, released a report that projected legal cannabis to be one of the fastest-growing sectors in the next 10 years. Spending on legal cannabis worldwide is expected to hit US$57 billion ($76.3 billion) by 2027. The adult-use (recreational) market will cover 67% of the spending; medicinal marijuana will take up the remainder, the report said. Arcview estimates that the largest group of cannabis buyers will be in North America. Sales stood at US$9.2 billion in 2017 and could rise to US$47.3 billion by 2027 for a compound annual growth rate of 18%. Rest-of-the-world growth is likely to rise to US$2.5 billion by 2027, from US$52 million in 2017, representing a CAGR of 47%.
