BDSA CEO Roy Bingham Forecasts Global Cannabis Market Growth To $60 Billion By 2027

Blunt Business

The guest was Roy Bingham, the CEO of BDSA, who provides businesses with cannabis market intelligence, consumer research, and advisory services. He was welcomed on and apologized for the 50 emails. Roy thanked Leo and mentioned that everyone in the company is smarter than him. The host remembered meeting Roy's team at the NCIA's Cannabis Business Summit in 2016 and said everyone was delightful. The host also remembered having Roy on the 2018 show Cannabis Connection.

Roy Bingham, CEO of BDSA, recently released an updated five-year global legal cannabis market forecast, predicting that legal cannabis spending will grow from $32 billion in 2022 to nearly $60 billion by 2027 at a compound annual growth rate of 13.2%. The US is predicted to drive this growth, especially with adult-use markets in Missouri, New Jersey, and New York, as well as the top four markets of Florida, Illinois, Massachusetts, and Michigan, which will see an increase of nearly 10% in 2023, adding $770,000,000 in new spend. Despite the rapid price declines and flattening of sales, the cannabis industry is proving to be an impenetrable force, with growth continuing despite inflation and other obstacles.

The conversation focused on the current and projected growth of the global cannabis market. The speaker noted that the current global cannabis market is valued at $32 billion, of which the United States makes up over 80%. The speaker projected that the global cannabis market would grow to $60 billion in five years' time, with the United States making up 75% of that total. The conversation then turned to the US market, which is projected to grow to $44.5 billion by 2027 at a compound growth rate of 11%. The speaker then discussed the cause of the slower-than-expected growth in 2020, which was attributed to price compression in mature US markets due to an oversupply of cannabis. Price declines of 10-20% were noted in some of the larger US markets such as California, where a 17% decline was experienced in the five-quarter period ending at the end of last year.

The conversation discussed the taxation and revenue issues affecting the legal cannabis industry in California. They discussed the difficulty of being a legal cannabis company in the state, as consumers are still turning to the illicit market due to cheaper prices. The issue has been further compounded by the pandemic and the resulting lockdown orders, making the illicit market even more appealing. The conversation then shifted to investments and the significant decline in stocks of the major macOS in the last twelve months. This has caused companies to struggle to raise capital in order to fuel their growth plans, leading to layoffs and companies trying to get to profitability. The conversation then concluded by discussing the upcoming cannabis markets in New York and New Jersey.

Advertising Inquiries: https://redcircle.com/brands
Privacy & Opt-Out: https://redcircle.com/privacy