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Consumer Entry into the Cannabis Market Spikes Post Legalization
- Global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025.
NEW YORK, July 9, 2019 — Within the first quarter of legalization, 5.3 million or 18% of Canadian ages 15 years and older reported using cannabis, according to Statistics Canada. Following legalization, a large number of new users were willing to try cannabis solely because it was legalized and readily accessible. However, a year prior to legalization, only around 14% of Canadians reported using the plant. During the quarter, approximately 646,000 of the users reported trying cannabis for the first time, rising dramatically when compared to 327,000 users a year prior. Overall, the rise year-over-year is largely due to the abundance of male users between the ages of 45 to 64.
Generally, within that age group, adults tend to use cannabis for medical purposes, largely due to medical conditions associated with aging. For instance, cases such as chronic pain, Alzheimer’s, and Parkinson’s are typically associated with the older generation. And through extensive studies, researchers have discovered that cannabis can be used to treat these and several other medical conditions. Furthermore, based on gender, a more significant amount of males used cannabis when compared to females and it was estimated that 22.3% of Canadian males used cannabis compared to only 12.7% of females.
Now, while the large increase in users is largely attributable to the older generation, cannabis is also much more prevalent among the younger generation. Statistics Canada reported that 29.5% of Canadians ages 15 to 24 years old used cannabis in the first quarter. Similarly, approximately 28.7% of Canadians ages 25 to 34-year-olds also used cannabis during the quarter.
While the adoption of cannabis grew among Canadians, it is important to remember that the market is still maturing. And despite its legalization, there are still many legal barriers imposed on the market, restricting the growth of businesses. Nonetheless, the market is projected to continually grow throughout the shortcoming years, developing into a global industry leader. And according to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025.
Source: https://www.prnewswire.co.uk/news-releases/consumer-entry-into-the-cannabis-market-spikes-post-legalization-897625196.html
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