The global medical marijuana market was valued at USD 6,338.1 million in 2018 and is anticipated to reach USD 26,920.4 million by 2026, exhibiting an impressive CAGR of 20.4% during the forecast period. In 2018, North America dominated the global landscape, holding a substantial market share of 94.59%.
Medical marijuana, also known as medical cannabis, refers to the use of cannabis plant extracts for the treatment of various health conditions and symptoms. Historically, the use of marijuana in medical applications has been limited due to strict governmental regulations and production challenges, which have restricted extensive clinical research into its efficacy and safety. Despite these limitations, numerous states across North America have decriminalized the use of cannabis for both medical and recreational purposes. This shift has inspired several other countries worldwide to consider or adopt similar legislative changes. The growing global movement towards the decriminalization and legalization of cannabis is expected to be a major driving force for the expansion of the medical marijuana market throughout the forecast period.
Medical Marijuana Market Overview
The medical marijuana market is witnessing significant momentum, driven by increasing legalization across various countries and growing acceptance among healthcare professionals and patients. The market trend indicates a shift from traditional pharmaceutical treatments towards more natural and plant-based therapies, especially for chronic conditions such as cancer pain, epilepsy, and multiple sclerosis. Alongside this, advancements in cannabis research and innovative product development are further stimulating the market growth.
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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:
Market segmentation in the medical marijuana market plays a crucial role in understanding the diverse dynamics of this rapidly evolving industry. The market segmentation is typically based on product type, application, and distribution channels. By product type, the market segmentation includes oils, tinctures, capsules, and dried flowers, with oils and tinctures witnessing rising popularity due to their ease of use and fast-acting effects.
Further, the market segmentation by application reveals insights into how medical marijuana is utilized across various therapeutic areas. Key segments include pain management, neurological disorders, oncology, and others. Pain management dominates this market segmentation, as medical marijuana has proven highly effective in alleviating chronic pain symptoms, which is a major driver for patient adoption.
Additionally, market segmentation by distribution channel encompasses dispensaries, online platforms, and hospital pharmacies. Dispensaries currently hold the largest share in this market segmentation, benefiting from personalized service and immediate product availability. However, the online platform segment is expected to witness notable market growth due to increasing digitalization and convenience offered to consumers.
Market Growth
The medical marijuana market is projected to experience robust market growth over the forecast period, supported by expanding clinical applications and increasing consumer awareness regarding the therapeutic benefits of cannabis. Factors such as rising investments in cannabis research, increasing adoption of medical marijuana in pain management, and growing demand for cannabis-infused pharmaceuticals are all contributing to this accelerated market growth. The easing of regulatory frameworks in multiple regions is also paving the way for a thriving market.
Restraining Factors:
Despite the positive outlook, the medical marijuana market faces several restraining factors. These include the complex regulatory landscape in many countries, potential side effects associated with marijuana use, and a lack of standardized dosing guidelines. Furthermore, limited clinical evidence and ongoing stigma related to cannabis consumption continue to pose challenges for market players. These restraining factors could hinder the pace of market growth, especially in regions where legalization processes are still under debate.
Regional Analysis:
In terms of regional analysis, North America continues to lead the global medical marijuana market, driven by progressive legalization and strong consumer demand. The United States and Canada, in particular, are pivotal in shaping the market trend, with widespread adoption and active research initiatives. Europe is also emerging as a promising region in the regional analysis, as several countries, including Germany and Italy, have approved medical cannabis programs. Meanwhile, the Asia-Pacific region presents untapped potential, but faces regulatory hurdles that currently limit its market growth.
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.