Global Legal Cannabis Market Expected To Reach $58 Billion In 2028
The global legal cannabis market is experiencing remarkable growth, with projections indicating a substantial increase in market size over the next decade. According to market intelligence firm BDSA, global legal cannabis sales are forecasted to reach $58 billion by 2028, reflecting a compound annual growth rate (CAGR) of 10% from 2023 to 2028. Cannabis Business Times
Market Drivers
Several factors are contributing to this rapid expansion:
Increased Legalization: As of early 2025, numerous countries and U.S. states have legalized cannabis for medical and recreational use, broadening the consumer base and stimulating market growth.
Evolving Consumer Perceptions: Shifting societal views have led to greater acceptance of cannabis use, both medically and recreationally, further driving demand.Happy Fruit
Product Innovation: The development of diverse cannabis products, including edibles, tinctures, and topicals, has attracted a wider range of consumers.
Regional Insights
North America: The United States remains the largest market, with legal recreational cannabis sales projected to reach nearly $57 billion by 2028. Canada also contributes significantly, maintaining a steady share of the market.InvestopediaCannaReporter
Europe and Oceania: These regions are experiencing accelerated growth in medical cannabis markets, with countries like Germany and Australia expanding patient access. The German medical cannabis market is expected to reach $1.2 billion by 2028, while Australia and New Zealand's combined market is projected to exceed $1.3 billion. CannaReporter
Market Segmentation
The cannabis market is broadly categorized into:
Adult-Use (Recreational): Projected to grow from $27.3 billion in 2024 to $41.3 billion by 2028, with North America leading sales. Grand View Research+2CannaReporter+2Bizplanr+2
Medical Cannabis: Expected to expand from $11.4 billion in 2024 to $14 billion by 2028, with significant growth in Europe and Oceania. CannaReporter
CBD Products: Forecasted to grow from $6.04 billion in 2024 to $6.06 billion by 2028, with the U.S. currently accounting for 60% of CBD sales. CannaReporter
Challenges and Considerations
Despite optimistic growth projections, the industry faces several challenges:
Regulatory Hurdles: Navigating the complex legal landscape remains a significant obstacle, particularly in regions where cannabis is not yet legalized.
Market Competition: An influx of new entrants has led to market saturation, making it challenging for companies to differentiate themselves.
Financial Constraints: Limited access to traditional banking services and capital can hinder business operations and expansion.
Conclusion
The legal cannabis market is on a trajectory of significant growth, with projections indicating a market size of $58 billion by 2028. This expansion is driven by increasing legalization, evolving consumer perceptions, and continuous product innovation. However, stakeholders must remain vigilant of the regulatory, competitive, and financial challenges that accompany this rapidly evolving industry.
Note: Market projections are subject to change based on evolving legal frameworks, consumer trends, and economic conditions.
As you have read in this article it is not as straightforward as other industries. Operating a cannabis business is extremely difficult, and not having the know-how can really affect your bottom line. Vende Platform is made to help its clients run the business they have always wanted. Providing you with all the necessary tools for your business to succeed is our goal. Schedule a demo with us today and see how running your business on the Vende can help.