According to a new publication from consulting firm The Insight Partners, by 2028, the net profit of the global market for therapeutic cannabis and related products will be worth $40 billion.
As this article states, over the past two decades, the global therapeutic cannabis market has experienced a very explosive growth phase, during which its profitability has jumped from below $1 billion a year to about $11.7 billion at the moment. At the same time, analysts note that the growth of market profits continues to gradually increase, thanks to the development of reform in already legalized countries and the arrival of legalization in more and more new states around the world. As a result, the company's experts believe that, on average, the market's rate of return will increase by 19.2% each subsequent year until the beginning of 2028, where, judging by such projections, the market's profit will be approximately $40 billion per year. And this is only on average, moderate projections. In comparison, other promising industries such as video games and electric vehicles have a return rate of 14.5% and 18.2% respectively, making the canna industry one of the most promising new business types to invest in.
As analysts note in their report, the main market expansion was in the segment responsible for the use of cannabis as a painkiller. In particular, in 2021, as in the two years before, this market segment was responsible for the largest increase in the total global number of consumers. However, as the authors believe, in the near future, this aspect of the industry may crowd out the possibility of using cannabis in the treatment of various neurodegenerative diseases. This segment of cannabis medicine is now developing very dynamically and it is possible that by 2028, it is the use of cannabis as a similar type of medicine that will become the main driver of development and income generation in the industry.
In terms of product consumption, the bulk of the global therapeutic cannabis market revenue still comes from the marketing and production of plant inflorescences, despite the growing popularity and less stringent regulation of cannabinoid extracts derived from plant oils. On the other hand, analysts note that last year, 2021, plant extracts overtook the sale of inflorescences in terms of total profit for the first time in the history of data collection. For this reason, analysts believe that by 2028, extracts will become by far the most widespread and profitable type of medical canna in the global market. According to another report, the international market for medical cannabinoid extracts could generate up to $32.5 billion in profits (vs. about $9 billion today) by early 2030, at current levels of market expansion.
Finally, analysts believe that over the next 5 years, the share of profitability of electronic canna shops will increase significantly. The Insight Partners believes that by 2028, the market share of this segment in terms of total revenue generation will increase by approximately 19.8%, which will allow it to outperform physical stores by an order of magnitude.
Of course, analysts themselves make a reservation that the forecasts take into account the current market growth. Many of the experts believe that given the US progress in terms of legalization, as well as the possibility of the onset and expansion of reforms in other regions of the world, from Europe to Asian countries, it is possible that the described projections will turn out to be extremely underestimated. It is possible that in this decade, we will see a real explosion of interest in the canna business and medical cannabis in particular, around the world.