According to new research by the Market Reports Center, the worldwide legal cannabis market is expected to grow at a compound annual growth rate of 37.38 percent from 2016 to 2020, the company said in a press release. The analysts point to the “digitization trend in business processes” and “rising social acceptance” of marijuana as key drivers for the market’s growth.
“Many vendors are using the internet to reach a large number of targeted audience through online and mobile advertisements. In addition, several new start-ups are launching their mobile apps to reach remotely located customers,” an analyst from the company said in the release. “The introduction of such technologies has increased the vendor’s reach, impacting the market positively.”
From 2013 through 2014 the cannabis market posted a 70 percent growth rate.
In their report, the analysts recognized seven companies as “key players” in the global market, identifying another 17 as “prominent vendors.”
The report also outlines potential challenges to the industry; including protecting farm workers, and exposing some populations to “passive consumption.” Additionally, the researchers were concerned that legalizing cannabis for recreational use would open up the population near commercial markets to adverse health risks such as substance abuse and misuse.