Acceptance of legal cannabis is rising across the United States and the 2020 election season was an eventful one for the cannabis legalization movement.
Sales of products containing cannabidiol (CBD) have been brisk over the past two years, pacing rising consumer awareness of the substance and greater availability of hemp-derived CBD products beyond the regulated dispensary channel. This robust but fledgling market holds opportunities for companies already in the cannabis space, consumer packaged goods companies and makers of pharmaceuticals.
Canada’s legal cannabis market has soared since the introduction of adult-use sales on Oct. 17, 2018. In 2019, sales of adult-use cannabis neared $1.2 billion while medical continued to grow nationally, though signs of a coming contraction in that channel became apparent as the year ended.
Even so, the market is growing more slowly than the forecast in “The State of Legal Cannabis Markets, 8th Edition” published earlier in 2020 by Arcview Market Research and BDSA. In accordance with this slower than anticipated growth, the forecast for 2020 adult-use spending has been adjusted down to $2.1 billion from the previous forecast of $2.4 billion, while medical spending in 2020 has been adjusted down to $402 million from $470 million.
The cannabis industry is faring remarkably well, despite – or, likely, because of – the global COVID-19 pandemic, according to BDSA’s analysis of retail sales tracking data year-to-date 2020.
Nearly every jurisdiction in the United States and Canada declared cannabis an essential service and most cannabis retailers remained open during the pandemic, and consumers have continued shopping, though their behaviors have changed somewhat during the crisis.
As part of our partnership with ACCRES, BDS Analytics' President and Co-Founder, Liz Stahura, recently presented a Cannabis 2.0 webinar for Canadian Retailers. Here are our Top Five takeaways:
Worldwide sales of legal cannabis re-accelerated in 2019, growing nearly 46% to almost $15 billion. The increase represents the largest yearly sales gain since Colorado launched adult-use sales in January, 2014. The growth is further magnified when compared to 2018, which only saw 17% growth.