For many years, cannabis has been unfairly burdened with the stigma associated with drugs. The fact that it is a plant with scientifically proven beneficial effects on the human body has been overlooked. However, Canada, the US, and many EU countries have already legalized medical marijuana in pharmaceutical distribution. The market is currently highly insatiable. The cannabis market size gradually increases while more countries liberalize access to this plant. The use of hemp is wide: manufacturers use the stems to produce fibers and ecocrete, the inflorescences to make cosmetics and oils, and the seeds to produce oil.
The Current and Expected Cannabis Market Size
In 2018, the European cannabis market growth started. It was estimated at nearly $320 million. In 2019, growth estimates pointed to a market value of almost $5 billion by 2024. Recent studies highlight a sharp demand boost for cannabis goods, estimating the EU market to reach $36 billion by 2027. The global cannabis market size is expected to reach $300 billion in the upcoming ten years.
Cannabis Market Statistics: How Much Do Customers Spend on CBD?
The New Frontier Data publication mentioned that EU consumers spent around $9.85 billion on CBD in 2020. According to the current cannabis market statistics, spending is expected to increase to $16.14 billion by 2025.
The industry boomed when EU subsidies for the industrial hemp cultivation were introduced. In 2014-2020, a significant increase in the cultivation acreage was noted. In addition, there has been an increase in the popularity of CBD products.
Prohibition Partners prepared a paid report on the cannabis market growth, broadly analyzing the market itself, the division into categories, and consumers in Germany, one of the leading countries in the European CBD industry.
The Cannabis Market Growth: Two Good Country Examples
Let’s take a look at the two major cannabis markets in the EU that showed a significant cannabis market growth in previous years: Germany and Poland.
Germany is the major marijuana market in the EU. As cannabis in general, and CBD in particular, have grown in global popularity, Germany has reconsidered its conservative standpoint. In 2017, the government changed its drug laws and excluded hemp and CBD from the definition of hazardous substances. This change forced Germany to become a leading country in this industry.
According to Prohibition Partners, the German market is the most lucrative for medical marijuana after North America. In 2020 alone, it closed with the amount of €75 million. According to New Frontier Data cannabis market statistics, the entire German cannabis market accounts for approximately $2.17 billion in annual expenditure in 2020. By 2025, it is expected to grow to $3.57 billion.
According to cannabis market statistics, Poland is also worth paying attention to. Polish farmers almost doubled their hemp cultivation area in 2019. Furthermore, the country is already known as a European CBD processing center. The production of CBD in Poland in 2019 amounted to approximately $58.7 million. The Canadian company HemPoland possesses as much as 20% of the market. The rest of the country’s industry is very fragmented.
According to the report, The Poland Cannabis White Paper prepared by the British consulting company Prohibition Partners, the Polish cannabis market size in 2028 will reach €2 billion. In addition, in Poland, analytical companies estimate that in 2028 the value of the medical marijuana market will be around €2 billion. If marijuana is legalized for recreational purposes along the way, the market value will double to €4 billion. In total, this would give €6 billion.