Medical Marijuana Market Size Report & Growth Trends 2028

[Research Report] The medical marijuana market size was valued at US$ 11,706.50 million in 2021 and is projected to reach US$ 40,027.59 million by 2028; it is estimated to register a CAGR of 19.2% from 2022 to 2028.

Analyst’s ViewPoint

The cultivation and usage of medical cannabis have been legalized in America. In the United States, marijuana has been legalized for medical use in 37 states and the District of Columbia as of February 2022. Canada passed the Cannabis Act in 2018, which established strict regulations for controlling the production, distribution, sale, and possession of cannabis throughout the nation. Mexico, Luxembourg, Lesotho, and several other countries have recently legalized the medical use of marijuana. Uruguay was the first nation to legalize the recreational use of cannabis in 2012. Brazil, on the other hand, authorized medical marijuana use in 2014 and permitted the importation of CBD oil-based drugs, THC-based products, and marijuana flowers in 2016. In 2017, Peru authorized the medicinal and therapeutic use of cannabis and its derivatives under the legislation.

Although the use of cannabis has been legalized in many countries, the cultivation and production of marijuana have been primarily limited to developing nations. In September 2019, the Ministry of Commerce, Agriculture, and Fisheries of Jamaica announced a collaboration with the Harvard International Phytomedicines and Medical Cannabis Institute (HIPI) to conduct research on the pharmacological benefits of marijuana. Jamaica also intends to leverage this partnership to advance its national marijuana industry. Furthermore, the World Health Organization (WHO) reports that about 80% of the global population uses marijuana or cannabis for medicinal purposes. As a result, the increasing acceptance, cultivation, and production of medical marijuana in developing countries are significantly contributing to the growth of the medical marijuana market

Market Overview

Medical marijuana treats diseases or ailments by using the marijuana plant or its components. It is the same product as recreational marijuana, but it's used for medical reasons. Medical marijuana continues to have a significant impact on the healthcare industry, especially in cases where traditional medicines are not entirely suitable. Essentially, medical marijuana is just a typical marijuana plant that undergoes processing to obtain the fundamental composition of cannabinoids required to synthesize the product for use. One of the key factors contributing to the growth of this market is the increasing approvals of medical marijuana products and the growing acceptance of marijuana's medicinal properties. However, the growth of the market is also hindered by the illegal use of cannabis as a street drug and misconceptions surrounding marijuana, which limit its potential applications in the medical field.

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Medical Marijuana Market: Strategic Insights

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Market Driver

Increasing Approvals of Medical Marijuana Products to Drive the Medical Marijuana Market Growth

The medicinal potential of marijuana has attracted various researchers and companies to use marijuana in medical applications. For instance, tetrahydrocannabinol (THC) is predominantly used for producing medicinal products. The US Food and Drug Administration (FDA) has approved THC-based medicinal products such as Cesamet, which contains naboline as its active ingredient, is a synthetically derived product that has a structure similar to THC. Cesamet is prescribed for the treatment of nausea in patients receiving chemotherapy. Cesamet is generally prescribed when other medications cannot control nausea and vomiting. The FDA has also approved Marinol and Syndros for therapeutic uses in the US. Marinol and Syndros contain the active ingredient dronabinol—a synthetic 9-THC considered the psychoactive component of cannabis. Marinol and Syndros drugs are prescribed to stimulate appetite in patients with wasting syndrome developed as one of the indications of AIDS. Similarly, various marijuana-based products have been approved or are in clinical trials. For instance, nabiximols (Sativex) is an approved drug commercialized in Canada. Nabiximols is a cannabis extract used to treat spasticity and neuropathic pain related to multiple sclerosis. It is formulated with a combination of THC and other cannabidiol (CBD). In February 2020, CanaQuest Medical Corp, a Canadian company, applied for the approval of the production and commercialization of Mentabinol to Health Canada. Mentabinol is a THC-based product, and its approval application has been filed under the Cannabis Act. Increase in approval of the above-mentioned marijuana-based products by FDA is driving the medical marijuana market growth.

Segmental AnalysisProduct-Based Insights

Based on product, the medical marijuana market is bifurcated into dried form and extract form. The extract segment held the largest share in 2021 and is anticipated to register the highest CAGR in the medical marijuana market during the forecast period. The growth of the extract form segment is attributed to several factors, including the increasing demand for liquid extracts in medical applications, rising awareness of the benefits of extracts over dried marijuana, and the growing trend of health and wellness with the consumption of natural health products.

A cannabis extract is a specific type of cannabis concentrate. The extract is obtained from cannabis plants that are processed to keep the most required and desired compounds of the plant by removing excess plant materials and other impurities. The concentrates of marijuana have higher proportions of terpenes and cannabinoids as compared to naturally occurring cannabis flowers. Moreover, cannabis concentrates also help to increase the potency of the flower. One can consume cannabis concentrates on their own without any need for further processing for multiple reasons. Some of the processes that are used to produce cannabis concentrates include dry processing, dry ice processing, water-based processing, pressure/heat processing, and the use of flammable or non-flammable solvents. Once produced, a concentrate may look like a liquid wax, a soft solid, or a hard solid.

Application -Based Insights

Based on application, the medical marijuana market is segmented into pain management, tourette’s, alzheimer’s disease, migraines, depression and anxiety, multiple sclerosis, cancer, and others. The pain management segment held the largest medical marijuana market share in 2021 and is anticipated to register the highest CAGR during the forecast period.

Distribution Channel-Based Insights

In terms of distribution channel, the medical marijuana market is categorized into retail pharmacy, e-commerce, and others. The retail pharmacy segment held the largest medical marijuana market share in 2021. However, the E-commerce segment is anticipated to register the highest CAGR during the forecast period.

Regional Analysis

North America held the largest market share for the medical marijuana market in 2021 and expected to retain its market position during the forecast period. The factors enabling the North American market growth include the growing application of cannabis in the medical field, research activities associated with the benefits of cannabis, and developed healthcare infrastructure is likely to offer wider growth opportunities to the market players during the forecast period. Moreover, product launches are also fueling the growth in the North America medical marijuana market. In North America, the US records the maximum medical marijuana market share. The increasing incidence of chronic ailment among the growing geriatric population and expanding presence of key market players drive the medical marijuana market in the country. In addition, the increasing cannabis legalization in the U.S. and growing government support to enhance medical cannabis studies also offer an attractive environment for the players in the medical marijuana market by 2028.

 

Aphria, Inc., Canopy Growth Corporation, CanaQuest Medical Corporation, GW Pharmaceuticals, Organigram Holdings Inc., VIVO Cannabis Inc., Panaxia Pharmaceutical Industries Ltd., Phoena Holdings Inc., Emerald Health Therapeutics Inc., and MARICANN INC are among the leading players operating in the global medical marijuana market growth. Several other essential market players were analyzed for a holistic view of the market and its ecosystem. The report provides detailed market insights, which help the key players strategize their market growth. A few developments are mentioned below:

Medical Marijuana Market Regional Insights

The regional trends and factors influencing the Medical Marijuana Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Medical Marijuana Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Medical Marijuana Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Medical Marijuana Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Medical Marijuana Market are:

1. Aphria, Inc.
2. Canopy Growth Corporation
3. CanaQuest Medical Corporation
4. GW Pharmaceuticals
5. Organigram Holdings Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

In November 2021, VIVO Cannabis Inc. launched its newest medical cannabis product formulation: high-dose cannabidiol (CBD) oil under its Beacon Medical brand. The entire family of Beacon Medical oil products are formulated using a non-GMO, food-grade medium-chain triglycerides (MCT) carrier oil which results in the final product being both scentless and flavourless in taste. VIVO simultaneously launched a Pediatric Compassionate Care Program to support caregivers and families requiring medical cannabis to treat a variety of pediatric conditions.

In November 2020, Panaxia Global Israeli subsidiary, Panaxia Labs Israel Ltd. (Panaxia Israel) completed the registration process and receipt of final regulatory approval from the health authorities in Germany, Europe's largest and fastest-growing cannabis market, for the marketing and distribution of a line of medical cannabis premium products. The products would be marketed in Germany under the brand name, Naxiva-Panaxol.

In September 2020, Emerald Health Therapeutics, Inc. and STENOCARE A/S received special approval from the Swedish Medicines Agency to provide medical cannabis oil to Swedish patients who have applied via their doctor to use such products for treatment purposes. Under an agreement signed in November 2019, Emerald supply STENOCARE with its medical cannabis products for Denmark and other markets such as Sweden. Together with the Swedish authorities, the companies are now processing the required information to commence import and distribution in Sweden.