New Report Puts North American Cannabis Market At $47.3B By 2024

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Market research and data analytics firm Prohibition Partners has released its first North American Cannabis Report.

In the 134-page paper, the firm analyzes the current state of the cannabis industry in Canada and the United States to draw key insights into the industry’s future in the region.

The firm is estimating that by 2024, the continent’s cannabis market will be worth $47.3 Billion.

Daragh Anglim, the firm’s managing director, said the report offers good reason to believe that both medical and recreational cannabis will be completely legal in the entire region by that same year and “integrated across a number of industry verticals from pharma to food.”

Key Insights

Although the report places Canada as a global leader and an example for countries looking to follow suit with cannabis legalization, it also said the U.S. could soon challenge its northern neighbor’s leadership.

Federal legalization could turn the scale around for the two countries.

Big-name brands entering the game and celebrity endorsements are cited as important steps toward positioning cannabis as a mainstream product.

A long-term decline in smoking and a stagnation in alcohol consumption are helping the cannabis sector accelerate through Big Tobacco and Big Alcohol investments and alliances, which are expected to continue to flourish, according to Prohibition Partners. 

The cannabis industry is expanding within the beauty market, with many premium retailers offering cannabis products.

The edible revolution is expected to hit big, with great expectations around Canada’s legalization of cannabis edibles next month. 

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Publicly Listed Cannabis Companies

The number of cannabis companies listed on stock exchanges has increased substantially.

The CSE is by far the largest lister for cannabis companies, with 156.

Curaleaf (OTC: CURLF), Green Thumb Industries (OTC: GTBIF), Cresco Labs (OTC: CRLBF), Acreage Holdings (OTC: ACRGF) and Harvest Health & Recreation (OTC: HRVSF) top the CSE’s list in terms of market cap.

The TSX follows with 22 listed companies; NASDAQ with 15; and NYSE with nine, where the leaders in terms of market cap are Canopy Growth (NYSE: CGC), Aurora Cannabis (NYSE: ABC), The Scotts Miracle-Gro Company (NYSE: SMG), Aphria (NYSE: APHA) and Hexo Corp. (NYSE: HEXO). 

Current, Projected Cannabis Market Values

The estimated value for medicinal cannabis in both Canada and the U.S. today is of $10.6 billion, and that figure is expected to climb to $25.2 billion by 2024, the North American Cannabis Report said.

The recreational market is estimated at $6.5 billion, with a climb to $22.1 billion projected in five years. Both markets are projected to climb to a cumulative $47.3 billion in 2024, which would represent 177% growth.

Cannabis Consumers: Key Insights

In both countries, 22% of the population reported having consumed cannabis within the past 12 months.

In the U.S., 19% of users said they use cannabis products to relieve pain. In Canada, the average age of first-time consumption is almost 19 years old.

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