The global Medical Marijuana market size was estimated at USD 11.8 billion in 2021 and is expected to surpass around USD 65.20 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 21.09% during the forecast period 2022 to 2030.
Key Takeaways:
The industry is experiencing growth due to the rising awareness regarding various therapeutic applications of the product, such as pain management, appetite enhancement, and reducing eye pressure. Medical marijuana is classified into two types, namely, Cannabis Sativa and Cannabis Indica, which originate from the countries of the western hemisphere and central & south Asian regions, respectively.
The major factors attributed to the industry growth are the rapid adoption of cannabis in therapeutic applications and a surge in the number of countries legalizing the usage of medical marijuana.
As per numerous studies, cannabis has shown positive results in the treatment of chronic diseases. Thus, with the growing penetration of chronic disease throughout the globe, the industry is expected to see a steep rise in demand. For instance, as per the data released by the WHO, the chronic disease burden was expected to reach 57% by 2020. The growing research and development activities in the industry are also expected to drive the growth in demand.
Additionally, various factors such as a rise in disposable income, increasing social acceptance of cannabis, and growth in awareness regarding the benefits of the product, along with improvements in intellectual property rights of cannabis are some of the major factors that are expected to fuel the growth of the industry.
Key players are coming together on strategic initiatives such as mergers & acquisitions, collaborations, partnerships, funding & investments, and innovative product developments & launches to expand their expertise & product portfolio. This also fuels the industry’s growth. For instance, in March 2021, Germany's largest pharmaceutical company, Stada entered the medical marijuana market by launching its two flower products, and further, the company has plans to offer five flower products along with three extracts with different compositions of CBD and THC.
One of the major factors that restrict industry growth is the strict regulation policy. To date, FDA has not allowed the marketing usage of cannabis for the treatment of any disease or condition. Although, the organization has approved one cannabis-derived drug product: Epidiolex (cannabidiol), and three synthetic cannabis-related drug products: Marinol (dronabinol), Syndros (dronabinol), and Cesamet (nabilone). These permitted drug products are only available with a prescription from a licensed healthcare provider.
Report Scope of the Medical Marijuana Market
Report Coverage |
Details |
Market Size |
US$ 65.20 Billion by 2030 |
Growth Rate |
CAGR of 21.09% from 2022 to 2030 |
Largest Market |
North America |
Fastest Growing Market |
Asia Pacific |
Base Year |
2021 |
Forecast Period |
2022 to 2030 |
Segments Covered |
Product type, application and Region, |
Companies Mentioned |
Tilray; Aurora Cannabis; Canopy Growth Corporation; Aphria, Inc.; Maricann Group, Inc.; Tikun Olam, Ltd.; MedReleaf. Corp.; GW Pharmaceuticals plc.; Cannabis Sativa, Inc.; Medical Marijuana, Inc. |
Product Insights
The oil and tincture segment dominated the medical marijuana market in 2021 and accounted for the largest revenue share of 51.8%. 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. Furthermore, children who consume cannabis derivatives for their treatment are prescribed oils and tinctures as they cannot use flowers to smoke due to respiratory problems which can be caused by smoking flowers.
The flower segment is expected to have a slower CAGR in the upcoming years. However, the launch of new products is expected to push the market growth of the segment. For instance, in March 2021, Germany's largest pharmaceutical company, Stada entered the medical marijuana market by launching its two flower products further, the company has plans to offer five flower products along with three extracts with different compositions of CBD and THC.
Application Insights
The chronic pain segment held 25.9% of the revenue share in 2021. The studies of various research, state that medical cannabis is safe for treating patients with chronic pain and neuropathic pain. The growing number of clinical trials with marijuana to treat neuropathic and chronic pain is one of the key indicators, which highlights the rising usage of cannabis in pain management over the coming few years.
New York’s “New Medical Marijuana Law” states that a patient certified by a healthcare professional to use medical marijuana, possessing a patient identification card registered with the New York State Department of Health is eligible to use medical marijuana for pain management.
However, amyotrophic lateral sclerosis (ALS) will be the fastest-growing application segment with a CAGR of 30.9% during the forecast period. 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 ALS 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.
Regional Insights
North America accounted for the largest revenue share of 76.7% in 2021. The increasing cannabis legalization in the U.S. is one of the vital factors contributing to its increased demand. Moreover, in the U.S., 37 states and the District of Columbia have legally permitted the use of cannabis for therapeutic purposes. Whereas, other ten states have also legalized the usage of cannabis for recreational 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.
Asia Pacific is anticipated to register the fastest CAGR over the forthcoming years 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.
Some of the prominent players in the Medical Marijuana Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Medical Marijuana market
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Medical Marijuana Market Study: