Cannabis stocks grow as medical benefits come further

Added on 24 November 2023

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Cannabis stocks grow as medical benefits come further

The cannabis industry has seen a significant surge in popularity in the last 10 years, leading to enhanced transparency, market understanding and growing revenues.

In 2023, the cannabis market is forecast to generate revenues of US$380.60 million. The sector is anticipated to experience an annual growth rate (Compound Annual Growth Rate, CAGR, 2023-2028) of 15.77%, leading to a projected market volume of US$791.60 million by 2028.

When compared globally, the United States is expected to be the largest contributor, with revenues reaching US$33,880 million in 2023. Furthermore, when considering the total population, the revenue per person is expected to be US$59.19 in 2023.

This growth trajectory is mirrored in the industry's impact on the American economy.

The North American market stands out as the largest legalised cannabis market globally, accounting for nearly all cannabis sales worldwide. This is further underscored by the fact that in 2021, North America's largest cannabis multi-state operators (MSOs) raised a considerable $2.8 billion, as reported by Flowhub.

Retail sales in the US cannabis sector are also on an upward trend. The MJBiz Factbook suggests that sales are expected to surpass $52 billion by 2026.

Potential health benefits fuel Aussie market

In Australia, according to Statista the legal cannabis market was valued at US$67.4 million. It is anticipated to reach US$828.2 million by 2033, growing at a CAGR of 30.1% over the next decade. The estimated value for 2023 is $US87.7 million.

Fuelling growth in Australia is the understanding that cannabis may have several medical and health benefits.