US ‘domino’ could accelerate global cannabis market
Euromonitor International forecasts the global legal cannabis market to reach $95 billion by 2025, which would be more than triple the market of $28 billion in 2020. Legalization in various parts of the world could have the market moving even higher.
Spiros Malandrakis, head of alcoholic drinks for London-based Euromonitor, said he could see a “domino effect” happening. If federal legislation goes through in the United States in the next couple of years, other nations could follow.
The federal floodgates opening in the US in the next one or two years can unleash all this pent-up potential,” he said in a Nov. 17 webinar.
Economic issues could accelerate legislation as well. Mr. Malandrakis pointed out the 21st Amendment, which repealed the prohibition of alcohol, was ratified in 1933 during the Great Depression. Since shutdowns related to COVID-19 have caused economic hardship, states need to raise money. They could do so through sales taxes on cannabis products.
“I do believe we will gradually see much more momentum when it comes to legalization,” Mr. Malandrakis said. “The (Joe) Biden presidency probably will accelerate that further.”
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A Euromonitor global survey showed 63% of respondents said they foresaw recreational cannabis being legalized in their country within 10 years, and 52% said they believed cannabis legalization would have a positive economic impact.
If cannabis products become legal, they still could face stiff compliance regulations, said Shane MacGuill, senior head of nicotine and cannabis for Euromonitor.