What’s the Potential of the Legal Global Cannabis Industry?

In the grand scheme of things, the legal global cannabis industry is just getting started. As it stands right now, 57 countries have adopted some form of medical cannabis legalization, and six countries have adopted national adult-use cannabis legalization measures. Of those nations, only some have implemented robust cannabis commerce models. This leaves a significant amount of untapped cannabis industry potential.

According to researchers at New Frontier Data, more than 260 million adults worldwide consume cannabis at least once a year. The researchers estimate that global cannabis consumers “spent an estimated $415 billion on high-THC cannabis in 2020,” and that figure is expected to increase to $496 billion by 2025.

However, 94% of the money cannabis consumers spent on cannabis in 2020 went to unregulated sources, which demonstrates how the legal cannabis industry is barely scraping the surface of what it could become. At a regional level, leading international cannabis economist Beau Whitney estimates that the cannabis markets in Central and South America are worth a total of $8 billion and that much of that market is still unregulated.

Pet CBD and Cannabis Products on the Rise

Adding to the emerging legal cannabis industry is the diversification of how the cannabis plant is used. In addition to ingestible products for human patients and consumers, parts of the cannabis plant are being used to make products for pets and other animals. For example, regulators in Brazil recently approved the dispensing of cannabidiol (CBD) products to animals by licensed veterinarians.

According to a recent sector analysis by Global Market Insights, the global CBD pet market was worth an estimated $693.4 million in 2023 and is projected to grow at an 18.2% compound annual growth rate from 2024 to 2032. Market growth will be driven by “growing pet ownership coupled with increasing awareness and acceptance of the potential therapeutic benefits of hemp-derived CBD for pets” the researchers stated.

“The dogs segment is set to lead the market, accounting for the largest revenue of USD 416.1 million in 2023, anticipating its dominance throughout the forecast period with a significant growth rate,” Global Market Insights reported.

Growing Demand for Hemp Fiber

Non-consumable hemp products are also projected to be big business going forward. Hemp fiber, which can be used to make clothing and other textiles, is a massive sector. Market analysts estimate that the global hemp fiber market was worth $11.05 billion in 2023, and that figure will rise to $15.15 billion by the end of this year. The sector is expected to experience exponential growth in the coming years and rise to a global value of $50.38 billion by 2028.

Consumable Hemp Products

Not to be outdone, consumable hemp products are a sector that’s increasing in size at a seemingly ever-increasing pace, with some subsectors increasing at faster rates than others. The worldwide hemp tea subsector was valued at $56.2 million in 2021 according to analysts associated with Allied Analytics, and the subsector is estimated to reach $392.8 million in value by 2031, a compound annual growth rate of 22.1% during the forecast period.

The hemp milk subsector is another noteworthy example. Evolve Business Intelligence estimates that the global hemp milk industry was valued at $240 million in 2023 and will grow at a compound annual growth rate of 5.24% from 2023 to 2033. The organic shelled hemp seeds market alone is valued at over $2 billion in 2024. Organic shelled hemp seeds are a great source of protein and a sustainable alternative to animal-based proteins.

Cannabis Seeds

A major component of adult-use cannabis reform around the globe is permitting adults to cultivate a personal amount of cannabis. Adults in Uruguay, Canada, Malta, Luxembourg, Germany and South Africa can now legally cultivate cannabis in their private residences. Those personal cultivation freedoms are, in turn, increasing the size of the cannabis seeds sector.

“The global cannabis seeds market size was valued at $1.3 billion in 2021, and is estimated to reach $6.5 billion by 2031, growing at a CAGR of 18.4% from 2022 to 2031.” stated Allied Analytics in a recent market analysis.

In Germany, where adults can cultivate up to three plants in their private residences as of April 1, a recent YouGov poll found that 7% of respondents indicated that they had already purchased cannabis seeds (or clones) since legalization took effect. In addition to the 7% of poll participants indicating they had already purchased cannabis genetics for their home gardens, another 11% of poll participants responded that they plan to purchase cannabis genetics in the future. Increased demand for cannabis seeds in Germany has resulted in booming sales among Europe’s seed banks.

Opportunities Abound

As the legal global cannabis industry continues its march across the planet, new opportunities for investors and entrepreneurs will be created. For those who want to get in on the action while things are still largely on the ground floor, a great option is joining The Talman House which recently hosted an exclusive event on November 8 at the prestigious Sofitel Munich Bayerpost.

Through a rich array of expert presentations, The Talman House underscored its commitment to delivering exclusive, high-impact opportunities that keep members at the forefront of European cannabis investment. The next gathering will take place on April 28, 2025, at the five-star Hotel Adlon Kempinski in Berlin, Germany, presenting yet another unique opportunity for members to gain valuable insights, network with industry leaders, and stay ahead in the cannabis investment landscape.