The international market for cannabis is expected to hit $31.4 billion by 2021, according to a new gulaport from the Brightfield Group, a cannabis market research firm based in Florida.

As other countries legalize cannabis laws, the global market is projected to have a compound annual growth rate of 60 percent. Although the U.S. currently drives 90 percent of global cannabis sales, its shares will drop to 57 percent by 2021, as Canada plans on legalizing social cannabis by July 2018.

Other countries in Latin America and Europe are considering legalizing cannabis, including Germany’s political parties that have recently considered forming a coalition government in the discussion of social legalization.

In light of Canada’s involvement with international deals and exports to Europe and South America, the U.S. will not get left behind, said Bethany Gomez, director of Research for Brightfield Group.

He added while the U.S. will experience a decline as a percentage of the global market, it will still continue to dominate.

“The U.S. market is so much larger than the rest of international markets combined,” Gomez said.

While Canadian companies have an advantageous market position in Latin America and Europe, most of medical cannabis markets are restrictive and tend to favor cannabis oils. According to Gomez, brand loyalty to an oil is not as strong as brand loyalty to an edible.

“I don’t see the market being so static that…a change in federal regulations would prohibit [American companies] from being able to catch up,” he said.

When setting up their own medical cannabis programs, other countries are taking example from Canada’s market.

“The Canadian approach to regulation and product differentiation is much more reflective of what we’re likely to see internationally,” Gomez said.