The medical marijuana market size was valued at USD 26.9 billion in 2021 and is projected to grow from USD 35.49 Billion in 2022 to USD 432.65 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 32.0% during the forecast period (2023 - 2032). Key factors that are driving the legal marijuana market growth include a rise in the legalization of marijuana in various countries, and the use of cannabis for medical purposes is gaining momentum worldwide.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Medical marijuana, often known as medical cannabis, is an extract from the marijuana plant used to treat various ailments and symptoms. Governmental limitations and production concerns have prevented the thorough testing of marijuana as a medicine. Cannabinoid-based medications treat various conditions, including HIV/AIDS-related weight loss and appetite loss, vomiting and nausea brought on by chemotherapy, and a few uncommon forms of neurological diseases. Growing clinical trial initiatives for this marijuana will majorly affect the market's expansion. As a result, clinical studies to determine the safety and effectiveness of utilizing marijuana to treat various diseases were insufficient. However, the use of cannabis for medicinal as well as recreational reasons is already legal in some North American jurisdictions.
Additionally, several other nations worldwide are similarly legalizing cannabis to North America. As a result, the market for medical marijuana will be heavily driven during the projected period by the increasing pattern of decriminalizing cannabis. The industry is expanding as people become more aware of the product's potential therapeutic uses for pain management, boosting hunger, and lowering ocular strain. The market for medical marijuana is primarily driven by the rising number of nations that have legalized its use, the development of edible cannabis products, a favorable reimbursement environment, and government assistance in some nations. Cannabis is increasingly used legally worldwide to fulfill medical and recreational uses, but the laws governing its ownership, distribution, and cultivation vary from country to country.
There is also an expanding market for marijuana being a functional food, with alleged health advantages significantly outweighing those offered by kale, turmeric, or kombucha for consumers. Cannabis Sativa and Cannabis Indica, native to the western hemisphere's nations and the central and south Asian regions, are the two varieties of medical marijuana. Some key factors anticipated to drive consumer appetite for medical marijuana over the years include the rising number of states that have legalized marijuana for medical use, the expanding use of cannabis in the healthcare industry, and recreational uses. The need is also anticipated to increase as efforts to conduct research and development expand.
News:
Avicanna, a company with its headquarters in Toronto, recently completed the acquisition of Shoppers Drug Mart's Medical Cannabis by Shopper's Business division. The purchase price was 2.6 million Canadian dollars ($1.9 million), including earnout payments depending on net revenue for two years. Avicanna, a biopharmaceutical business specializing in cannabinoid-based medications, also unveiled MyMedi.ca, a platform for medical cannabis care that replaces Shoppers.
Therapeutics containing cannabinoids are used for treating certain rare forms of neurological disorders, vomiting and nausea associated with chemotherapy, loss of weight and appetite associated with HIV/AIDS and several others. Increasing initiatives pertaining to the clinical trials of this marijuana will significantly drive the market growth. For instance, several National Center for Complementary and Integrative Health (NCCIH) funded studies are exploring the mechanism of substances in marijuana, including terpenes and minor cannabinoids. The aim of such trails is to support the evidence concerning marijuana components and find whether they have potential roles in pain management. NCCIH is also conducting other research activities on medical cannabis that includes research on the effects of edible cannabis and its constituents on inflammation, chronic low-back pain, and research to evaluate the relationship between cannabis smoking and type 2 diabetes.
The medical marijuana market segmentation, based on the product type, includes solid and gas & dissolvable/powders. The gas & dissolvable/powders segment dominated the market of medical marijuana in 2021 and accounted for the largest revenue share of 53.1%. The growth is largely attributed to its growing medicinal usage. Clinical studies have shown that non-psychoactive compounds in marijuana, such as CBD have the property to reduce inflammation and thus have the capability to provide a new treatment for chronic pain. The beneficial property can also be used for treating cancer, sleep disorder, anxiety, and others. Moreover, the growing legalization of cannabis throughout the globe is further expected to drive the industry’s growth.
The market segments of medical marijuana, based on the application, includes Alzheimer’s disease, cancer, and schizophrenia & multiple sclerosis. The schizophrenia & multiple sclerosis segment held the majority share in 2021, contributing to around ~60-64% of the medical marijuana market revenue. The growing prevalence of amyotrophic lateral sclerosis is one of the factors driving the growth of the segment. For instance, as per the data released by Johns Hopkins Medicine, in the US about 5,000 cases are diagnosed every year and schizophrenia & multiple sclerosis is responsible for five of every 100,000 deaths in people aged 20 or older. The rapidly growing number of states, districts, and territories enacting laws to legalize the use of cannabis for treatment is also driving the market growth. Also, the growing number of research trails aiming to enhance the effects of marijuana in several health conditions are few of the factors is projected to fuel its demand during the forecast period.
The market segments of medical marijuana, based on the distribution channel, includes retail & pharmacy stores and online platforms. The retail & pharmacy stores segment had the highest market revenue share in 2021. High demand for this marijuana, coupled with the increasing number of dispensaries distributing cannabis infused medical products will strongly stimulate the market expansion. Rapid growth in the number of authorized dispensaries to sell the product is the major growth driving factor. For instance, in February 2020, the state Department of Health announced that it has issued the cultivation permits to three new medical dispensaries in New Jersey (U.S.).
Moreover, the online platforms distribution segment is expected to witness tremendous growth during the forecast period. High growth rate is primarily attributable to the increasing demand for cannabis plant as a therapeutics for several acute disease ailments. Moreover, the increasing number of online platforms offering cannabis extracts, edibles and flowers are anticipated to support the segmental growth. Several sellers are launching their online websites to increase the sales of cannabis.Medical Marijuana Distribution Channel 2021-2030
February 2020:Â Verda Innovations, a medical cannabis-based company in the U.S. announced the launch of its legal cannabis e-commerce and delivery platform in Canada and U.S. Launch of such online platforms is one of the major factors augmenting growth.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American medical marijuana market is expected to grow at a significant CAGR during the study period, accounting for USD 12.32 billion in 2021. The increasing cannabis legalization in the U.S. is one of the vital factors contributing to its increased demand. The United States Food and Drug Administration (FDA) encourages new drug development efforts and is steadily authorizing medicines containing therapeutic compounds derived from cannabis. The product could help treat patients of age one year and above with seizures caused by tuberous sclerosis complex (TSC). Moreover, in the U.S., 37 states and the District of Columbia have legally permitted the use of cannabis for therapeutic purposes. The government of the U.S in May 2021, for the first time in more than 50 years has approved new growers of research marijuana. Thus, broadening the capacity to study the drug’s medical value. Furthermore, product launches are also fueling the market growth. For instance, in August 2021, Tilray launched new medicinal cannabis edibles in CBD and TCH-rich varieties of chocolates and soft chew gummies in Canada, escalating the brand's widespread offering of cannabis medicines, which comprises whole flower, pre-rolls, oils, and vapes, designed with patient health and wellbeing in mind.
Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.
News
The new European monograph, which outlines the quality demands of the raw material Cannabis flower, was adopted by the European Pharmacopoeia Commission, according to a report from the Danish Medicines Agency. With the release of supplement 11.5, the latest monograph, Cannabis Flower (Cannabis flower, monograph 3028), is scheduled to be published in January 2024. The monograph will become effective in July 2024, many months later.
Medical Marijuana market SHARE BY REGION 2021
The European medical marijuana market is the world's second-largest owing to increase in R&D activities for drug discovery using medical cannabis, rise in incidence of chronic disease such as cancer and osteoarthritis, and increase in awareness about benefits associated with medical cannabis. In addition, factors such as increase in legalization and active research genetic development and modification of the plant as well as advancements in intellectual property rights of cannabis boost the growth of the market in the region. Top key players operating in the United States are also focusing on geographical expansion strategies to penetrate the market in Europe and thereby boosting regional growth. Further, the UK market of medical marijuana held the largest market share, and the German market of medical marijuana was the fastest-growing market in the European region.
The Asia Pacific medical marijuana market is expected to grow at the fastest CAGR during the forecast period owing to growing favorable government initiatives & support. Additionally, a rise in disposable income, increasing social acceptance, and growth in awareness regarding the benefits of the product, along with the increase in the legalization of cannabis certainly affect the cannabis market. The surge in the popularity of cannabis oil among countries with legalized medical marijuana and the growing percentage of the population from chronic illnesses, such as Parkinson's, Alzheimer's, cancer, neurological disorders, and others accelerate the growth of the industry. Moreover, China’s market of medical marijuana held the largest market share, and the Indian market of medical marijuana was the fastest-growing market in Asia-Pacific.
Medical Marijuana Key Market Players & Competitive Insights
The rapid development of marijuana for medical purpose and its expanding benefits over the therapeutic application has influenced several companies to invest in the medical cannabis industry. While cannabis production and cultivation are the most crucial part of the marijuana ecosystem, high market revenue comes significantly from pharmacological organizations. The market is at its growing phase, owing to increasing legalizations across several countries, thereby encouraging various companies to invest in the market. The key industry players are devising various strategic initiatives to expand their business footprint and gain a competitive edge. They are also focusing on strategic development initiatives such as mergers & acquisitions, collaborations, partnerships, funding & investments, and innovative product developments & launches to expand their expertise & product portfolio.
Canopy Growth Corporation, formerly Tweed Marijuana Inc, is a cannabis company based in Smiths Falls, Ontario. In June 2021, Canopy Growth Corporation announced the completion of acquisition of Supreme Cannabis Company Inc. The addition of 7ACRES and 7ACRES Craft Collective of the Supreme, have enhanced Canopy’s market position and contributed in increasing its production capacity.
Jushi Holdings Inc is a national, multi-state cannabis company developing and operating high-end retail locations, premium brands and state-of-the-art cultivation, processing & manufacturing facilities. The company’s platform is designed to set the new standard for a sophisticated, modern cannabis experience. In July 2021, Jushi Holdings Inc announced the acquisition of OhiGrow LLC. OhiGrow is a licensed cultivator of medical cannabis in Ohio. The company will supply biomass with an aim to manufacture medical marijuana products.
Key Companies in the medical marijuana market include
Medical Marijuana Industry Developments
November 2023Tilray Brands, Inc. announces that it has acquired MedMen Enterprises Inc., a leading cannabis company in North America. The acquisition gives Tilray a stronger position in the US medical marijuana market and allows it to offer a wider range of products and services to patients.Curaleaf Holdings, Inc. announces that it has expanded its operations into Germany, the largest medical marijuana market in Europe. The company has acquired a majority stake in a German cannabis producer, which will give it access to the German market and allow it to provide patients with high-quality medical marijuana products.Trulieve Cannabis Corp. announces that it has launched a new line of medical marijuana products specifically designed for seniors. The products are formulated to be easy to use and have a low THC content, making them ideal for seniors who are new to using medical marijuana.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 26.9 billion |
| Market Size 2022 | USD 35.49 billion |
| Market Size 2030 | USD 432.65 billion |
| Compound Annual Growth Rate (CAGR) | 32.0% (2023-2032) |
| Base Year | 2021 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Application, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Canopy Growth Corporation (US), Cannabis Sativa Inc (Nevada), GW Pharmaceuticals Plc (US), Emerald Health Therapeutics Inc, Aphria (Ontario), CanniMed Ltd (Canada), Pfizer Inc (US), Medical Marijuana Inc (US), GBSciences Inc (Nevada), MediPharm Labs (US) |
| Key Market Opportunities | Emerging application of marijuana for a myriad of medical conditions and symptoms |
| Key Market Dynamics | Rising number of R&D and clinical trial activities |
Medical Marijuana Market Highlights:
Frequently Asked Questions (FAQ) :
The medical marijuana market size was valued at USD 26.9 Billion in 2021.
The global market is projected to grow at a CAGR of 32.0% during the forecast period, 2023-2032.
North America had the largest share of the global market.
The key players in the market are Canopy Growth Corporation (US), Cannabis Sativa Inc (Nevada), GW Pharmaceuticals Plc (US), Emerald Health Therapeutics Inc, Aphria (Ontario), CanniMed Ltd (Canada), Pfizer Inc (US), Medical Marijuana Inc (US), GBSciences Inc (Nevada), and MediPharm Labs (US).
The gas & dissolvable/powders category dominated the market in 2021.
In 2021, Alzheimer’s disease had the largest share of the global market.
Assistant Manager He holds an experience of about 7+ years in market research and business consulting, working under the spectrum of life sciences and healthcare domains. rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. his expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. in addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
