Medical marijuana market Size, Share, Growth & Industry Trends 2025
The global medical marijuana market was valued at USD 6,338.1 million in 2018 and is expected to grow to USD 26,920.4 million by 2026, reflecting a CAGR of 20.4% over the forecast period. In 2018, North America led the market, accounting for 94.59% of the global share.
Medical marijuana, also known as medical cannabis, refers to the marijuana plant extract used to treat various symptoms, illnesses, or health conditions. The use of marijuana as a medicinal drug has faced limited testing due to government regulations and production challenges, resulting in insufficient clinical research to fully assess its efficacy and safety for treating different conditions. However, numerous states in North America have decriminalized cannabis for both medical and recreational use. Additionally, many countries worldwide are following North America's lead in legalizing cannabis. As a result, the growing trend toward decriminalizing cannabis is expected to significantly drive the medical marijuana market in the coming years.
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List of key companies profiled in Medical Marijuana Market:
· Canopy Growth Corporation
· Aurora Cannabis
· Aphria Inc.
· CannTrust Holdings
· GW Pharmaceuticals
· MedReleaf Corp
· ABcann Medicinals, Inc.
· Emerald Health Therapeutics
· Green Relief Inc.
· The Cronos Group
· Medical Marijuana, Inc.
· Others
Market Segmentation:
By Application
Increasing Applications of Marijuana in Pain Disorders Driving Market Growth
The legal medical cannabis market is segmented into pain disorders, cancer, and other conditions such as neurological and psychiatric disorders. The pain management segment is expected to dominate, driven by the rising incidence of conditions like migraines and cancer pain. With 50 million Americans suffering from chronic pain, many are turning to cannabis as an alternative to painkillers, which have harmful side effects. Additionally, the "other" segment, covering neurological and psychiatric conditions, is projected to grow significantly due to the rising prevalence of mental health issues like depression. Studies have shown that cannabis can help reduce anxiety and improve sleep, further supporting its increasing use.
By Type
Marijuana Flower and Concentrates Leading the Market
The Medical marijuana market is classified into flowers, edibles, concentrates, and others. Cannabis flowers, which are rich in natural nutrients and unprocessed, are expected to hold a significant market share, especially for patients requiring lower dosages for conditions like chronic pain and anxiety. Flowers are also more cost-effective compared to edibles or concentrates. The concentrates segment is projected to grow due to increased demand for intensive therapies needed for severe disorders like cancer and Parkinson’s disease.
By Distribution Channel
Dispensaries and Online Platforms Expanding
The distribution of medical marijuana market is segmented into dispensaries, online portals, and others. The dispensary segment held a substantial market share in 2018 and is expected to grow due to the increasing number of licensed dispensaries. For example, New Jersey issued permits for new dispensaries in 2020, which will drive market demand. The online distribution segment is also expected to see significant growth, driven by the increasing demand for cannabis and the rise of e-commerce platforms offering cannabis products.
Driving Factors:
Increasing Application of Cannabis for Various Medical Conditions to Drive Revenue Growth
The marijuana plant has been used for medical purposes worldwide for centuries until the early 1900s when it became illegal. The growing recognition of its medicinal benefits is expected to drive demand, fueling market growth. Cannabidiol (CBD), a non-psychoactive compound in cannabis, has numerous potential medical benefits. For example, Epidiolex, a CBD oil extract, is undergoing clinical trials for epilepsy treatment. Additionally, nabiximols, a cannabis extract, is approved in Europe for treating spasticity, multiple sclerosis, overactive bladder, and neuropathic pain. A recent survey revealed that the most common uses of medical cannabis include pain management, anxiety, depression, and muscle spasticity. The increasing therapeutic benefits of medical marijuana, coupled with more research into its applications, will significantly boost market growth from 2019 to 2026.
Rising Clinical Research Trials to Fuel Market Expansion
Cannabinoid-based therapeutics are being used to treat various conditions, including rare neurological disorders, chemotherapy-related nausea, and weight loss due to HIV/AIDS. The increasing number of clinical trials exploring marijuana’s medical potential is expected to drive market growth. For example, several studies funded by the National Center for Complementary and Integrative Health (NCCIH) are investigating the mechanisms of marijuana’s components, including terpenes and minor cannabinoids, to understand their role in pain management. NCCIH is also conducting research on the effects of edible cannabis on inflammation and chronic low-back pain, as well as the relationship between cannabis smoking and type 2 diabetes. These ongoing trials will provide critical evidence to support the continued growth of the medical cannabis market.
Restraining Factors:
Potential Side Effects of Cannabis Use May Limit Market Growth
While the use of legal medical marijuana for various health conditions is rising, its potential side effects could hinder market growth. Issues such as dizziness, hallucinations, and low blood pressure are among the concerns that may restrict adoption. Additionally, a lack of awareness about the benefits of marijuana further limits market expansion.
Regional Analysis:
North America leads the medical marijuana market, with the U.S. driving growth due to widespread legalization and major players in the region. The market is expected to grow from USD 5,994.9 million in 2018 to USD 24,578.3 million by 2026. Europe is the second-largest market, benefiting from increasing legalizations and investments, with U.S. companies expanding into the region. Latin America and other regions are also seeing rapid growth, fueled by rising chronic conditions and growing awareness of cannabis' medical benefits.
Key Industry Developments:
· In July 2021, Jushi Holdings Inc. revealed its acquisition of OhiGrow LLC, a licensed cultivator of medical cannabis in Ohio. This acquisition allows Jushi to secure biomass for the production of medical marijuana products.
· In June 2021, Canopy Growth Corporation completed its acquisition of Supreme Cannabis Company, Inc. With the inclusion of Supreme's 7ACRES and 7ACRES Craft Collective, Canopy strengthened its market position and expanded its production capacity.