Medical Marijuana Market: Current Analysis and Forecast (2022-2028)

Medical Marijuana Market: Current Analysis and Forecast (2022-2028)

The medical marijuana market is expected to register a CAGR of around ~21% over the period of 2022-2028. This is mainly due to its increasing application in the therapeutic field for the treatment of such disorders as Alzheimer’s disease, cancer, and schizophrenia. It is derived from the Cannabis sativa plant, which can be used for the treatment of chronic diseases and pain management. Medical marijuana has stringent government regulations coupled with the growing focus of major stakeholders in the healthcare industry to adopt to make medical marijuana products more sustainable with fewer side effects and cost-effective. Major healthcare companies are investing heavily in their products due to rising social awareness regarding chronic pain disorder cases, and other associated disorders, such as mania, anxiety, cancer, and treatment of seizures. For instance, in 2018, the Centers for Disease Control and Prevention (CDC) reported that an estimated 50 million Americans, or just over 20 percent, have some form of chronic pain. This rise in the demand for cannabis in medical is contributing to market growth. Furthermore, various factors such as growing research and development activities are also expected to drive the demand for the drug over the forecast period which is responsible for excessive use of medical marijuana and also significantly contributes to the market for meditation for the treatment of a health condition. Therefore, the market for medical marijuana is expected to witness significant growth during the forecast period.

• Based on application, the market is classified into chronic pain, arthritis, migraine, cancer, and others. The chronic pain category accounted for a significant share of the market. This is mainly due to its use in the treatment of chronic pain, arthritis, migraine, and epilepsy. For instance, as per the World Health Organization, 10 years after being diagnosed with rheumatoid arthritis, almost half of the patients are not able to have a full-time job, on account of the acute pain. Over the forthcoming years, this segment rising due to the use of medical marijuana in the global market is likely to boost the demand for medical marijuana.
• Based on type, the market is categorized into flowers, oil and tinctures, edibles, and others. Among these, oil and tinctures are expected to witness the highest CAGR during the forecast period. This is mainly due to the strong prevalence of medical ability in the treatment of various health conditions and governments of many countries are either legalizing or approving it for medicinal use. Marijuana oils are preferred as they are a blend of cannabis extracts and inert carrier oils. The oils are easier to find and are expected to support the growth of the segment over the forecast period. These results boost the production of medical marijuana.
• Based on distribution channels, the market is categorized into dispensaries, online channels, and others. Among these, dispensaries are expected to witness the highest CAGR during the forecast period. The dispensaries are widely used for easy access to medical marijuana because the prescriptions for antipsychotics can only be administered after a thorough medical examination. 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.). The rapid growth in the number of authorized dispensaries to sell the product is the major growth driving factor.
• For a better understanding of the market adoption of the medical marijuana industry, the market is analyzed based on its worldwide presence in the countries such as North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Spain, and Rest of Europe); Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), and Rest of World. North America is expected to witness the highest CAGR during the forecast period on account of the growing various medical marijuana and therapeutic uses of marijuana products as well as the potential impact of marijuana legalization on the U.S. economy. For instance, in February 2020, 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 considered to be one of the major factors expanding growth. Thus, increase in the number of countries legalizing it and an increase in the number of prescriptions filled for medicinal marijuana biopharmaceutical companies and diagnostics industry owing to the presence of well-established market players and frequent product launches in the region.
• Some of the major players operating in the market include Canopy Growth Corporation, Cannabis Sativa, Inc, GW Pharmaceuticals plc., Emerald Health Therapeutics Inc., Tilray, Aphria Inc, Aurora Cannabis, Cara Therapeutics, Medical Marijuana, Pfizer Inc.