Medical Marijuana Market

Medical Marijuana Market Outlook (2023-2033)

Worldwide revenue from the medical marijuana market stands at US$ 22.4 Bn in 2022, with the global market estimated to surge ahead at a CAGR of 14.0% to reach a valuation of US$ 96.7 Bn by the end of 2033.

As assessed by Persistence Market Research, retail pharmacies segment is expected to hold a largest market value of US$ 20.2 Bn by 2023. Overall, medical marijuana market sales account for approximately 87.6% revenue share in the global pain management drugs market, which was valued at around US$ 25.6 Bn at the end of 2022.

Sales Analysis of the Global Market from 2013 to 2022 Vs Market Outlook for 2023 to 2033

The global market for medical marijuana recorded a historic CAGR of 14.5% in the last 9 years from 2013 to 2022.

The legalization of marijuana uses for medical purposes either to treat ailments or alleviate their symptoms, according to several state rules played a significant role in boosting demand for medical marijuana. Medical marijuana can be used to treat a number of ailments, including Alzheimer's disease, extreme nausea, and excruciating and persistent pain. Thus, its broad range of medical applications has played a crucial role in propelling the market.

Medical marijuana acts as an immediate bronchodilator, which relaxes the airways and aids in breathing, to treat or manage asthma symptoms like coughing, breathing trouble, and wheezing. As a result, demand for medical marijuana is increasing globally, which is eventually driving the market's growth. This is due to the growing range of uses for medical marijuana in the healthcare industry.

Conventional medications are getting more expensive over time. Medical marijuana is a more affordable and effective option for the adult population. It is also given to kids with epilepsy or cancer discomfort. As the population is getting older, they frequently choose alternative solutions to alleviate their troubles with various conditions. The fact that medical marijuana can be used alone and can be beneficial to the adult population makes it more advantageous than other pharmaceuticals because it doesn't need other supportive drugs to function.

The global market is thus likely to show high growth over the coming years at a CAGR of 14.0% and reach a global market size of US$ 96.7 Bn by 2033.

What Factors Will Drive the Market to Grow Over Forecast Period?

“Rise in the Number of Social Clubs Promoting Medical Marijuana”

Social groups, also referred to as marijuana clubs, are the origin of the idea of recognizing medical marijuana as a generally acknowledged treatment for ailments like pain relief and other issues. The clubs work to downplay the negative beliefs associated with medical marijuana, which compare it to heroin or cocaine, and instead emphasize its positive effects. Similar to what happened in the Europe, many countries began to legalize medical marijuana in 2017, which led to the establishment of numerous marijuana clubs. The establishment of such clubs will have a good effect on the medical marijuana market with additional customers, especially in light of the changing restrictions around it.

“Expanding Use of Marijuana in Healthcare Industry”

One of the key factors projected to drive the demand for medical marijuana in the upcoming years is the rising number of countries that have legalized marijuana for medicinal use, as well as the expanding use of marijuana in the healthcare industry and for recreational purposes. The need is anticipated to be fuelled by the increasing research and development activities on the medicinal application of marijuana in treating chronic disease.

• According to scientific studies, marijuana is effective at treating chronic diseases. According to figures released by the WHO, the burden of chronic diseases had reached 57% in 2020. As a result, the market is anticipated to experience rapid growth during the forecast period due to the increased prevalence of chronic diseases globally.

“Increasing FDA Approvals”

Key players of the market are majorly focused toward gaining FDA approval for launching their new products in the market which can be derived from cannabis plants and increase the sale of medical marijuana.

• To treat seizures in rare genetic diseases, the FDA approved a new indication for a medications containing an active component derived from cannabis in July 2020.

Growing FDA approvals will create new lucrative opportunities for the manufacturers operating in the medical marijuana field. Consequently, there will be more products in the market with enhanced efficacy, as a result market will develop in the future.

Is there Any Impact on the Growth of the Medical Marijuana Market?

“Societal Stigma Related to Marijuana – A Major Barrier”

Due to its societal stigma, the medical marijuana sector frequently faces resistance from various societies and is frequently suppressed by the general public. According to their primary business, medical marijuana is processed to be useful in terms of medicine. Manufacturers do think that customer perception is crucial in this ambiguous business model with regards to its medicinal advantages. Regulatory investigations will be advantageous to the unfavourable perception of the medical marijuana industry because there is no current scientific study that has accurately demonstrated the medicinal benefits of medical marijuana.

“Black Market Restricting the Overall Sales of Regularised Medical Marijuana”

The black market running the unregulated sale of marijuana is still thriving in sales of marijuana products due to its easy availability and cheap price offerings as compared to regularized medical marijuana. The sale of marijuana with such approach is generally carried in low-economic regions having less awareness towards medical marijuana but with greater availability of marijuana plant. Though black market sales are also observed in developed countries due to many reasons perceived. All these practices have suppressed the sale of medical marijuana, as some of the potential patients choose to stay in the black market. Industry leaders are expressing their concern that the sale is not meeting the projected state, and the complicated regulations, taxes, and a thriving black market are having deleterious effects.

Country-wise Insights

Why is the U.S. Market Booming?

“Rising Preference for Medical Marijuana and its Related Health Benefits”

The U.S. accounted for around 65.9% market share in the North America medical marijuana market in 2022.

The FDA's approval of the use of medical marijuana in the treatment of epilepsy is the main reason for the rise in demand for medical marijuana. According to a study published in Annals of Internal Medicine, more and more U.S. citizens are signing up for medicinal marijuana programmes, with the total exceeded 2.97 million in 2020 and more than quadrupled from 2016. Participants in these programmes are able to purchase marijuana for medical purposes.

Will Germany Be a Lucrative Market for Medical Marijuana Manufacturers?

“Increasing Adoption of Medical Marijuana in Treating Various Health Issues”

With a 12.9% market share, Germany dominates the market in Europe in 2022.

In recent years, Germany has implemented specific laws and initiatives to permit patients to consume marijuana-based medications to treat a variety of serious illnesses. Cannabis has therefore been successfully used to treat neurogenic pain, as well as chronic pain, muscle cramps, and stiffness in individuals with spinal cord damage. Cannabis has also been used to treat nausea and vomiting in patients with AIDS and terminal cancer. Concluding, due to its medical advantages, medical marijuana has witnessed an increase in demand across the country.

How is Mexico Emerging as a Prominent Market for Medical Marijuana?

“Increasing Regularization of Medical Marijuana in Research and Medical Field”

Mexico held a market share of about 13.4% of the Latin America medical marijuana market in 2022.

Mexico's health ministry announced regulations for the use of medical cannabis in January 2021. According to the guidelines, cannabis will be grown especially for research and pharmaceutical product production, which applies to both private and public research. The regulations also included measures for quality control and appropriate manufacturing standards for products containing cannabis. Since the rules have been established, it is anticipated that the adoption of medical marijuana in healthcare industry will greatly be appreciated, generating more revenue for the government and fostering market expansion.

Category-wise Insights

Which Product is Driving Growth of the Global Market?

“Health Benefits of Extracted Concentrations Over Dried Flowers”

Extract form segment held around 64.9% share of the total medical marijuana market in 2022.

Medicinal marijuana based extracts are frequently recommended to patients by doctors. A specific kind of marijuana concentration is a cannabis extract. The advantages of marijuana extracts include their ability to be produced using a variety of mechanical methods as well as the use of a solvent. Extracts comes with better efficacy because they are produced solely using a solvent and are successful in treating chronic pain.

Which Application Segment Has Dominated the Medical Marijuana Market Globally?

“Rising Consumption of Marijuana in Pain Management”

Pain management segment holds a major market share of around 48.4% in 2022 globally.

In preliminary studies on pain, cannabinoids have demonstrated substantial promise. Numerous cannabinoid receptors can be found in peripheral nerves that sense pain, and cannabinoids reduce or eliminates pain in these peripheral nerves. Basic research indicates that cannabinoids decrease pain in a variety of ways. Opiates and marijuana-based medications can be used to increase pain relief while reducing side effects. Since medicinal marijuana has been legalized in many countries, people have been using it successfully to treat pain.

Which Distribution Channel Offers the Global Market a Profitable Outlook?

“Growing Awareness Regarding Available Medical Marijuana”

Retail Pharmacies held the larger share of about 77.6% with a market value of around US$ 17.4 Bn in 2022.

A number of retail pharmacies have started selling medical marijuana after their legalization, leading to wide availability of these products over-the-counter and convenience for the patients.

Competition Landscape

The market is fast growing as more countries have legalized marijuana for medical use. Early adopters of the market are anticipated to profit by increasing their regional presence and solidifying their market dominance. Different regulatory, quality, and pricing requirements have an impact on cross-border trade as well. Manufacturers in the medical marijuana sector are primarily fortifying their positions through a variety of strategic actions, including as partnerships, acquisitions, and agreements to expand their product lines. Several recent examples include.

Key instances include:

• In June 2021, the Supreme Cannabis Company was fully acquired by one of the biggest cannabis companies, Canopy Growth. They were able to further solidify their position as the industry leader thanks to the acquisition.
• In Jan 2019, Tauriga Sciences had a manufacturing deal with a Maryland-based gum manufacturer to manufacture their line of cannabis/CBD chewing gum (CBD Gum).

Industry Report Scope

Key Segments Covered in Medical Marijuana Industry Research

Product:

• Dried flower
• Extract Form

Indication:

• Pain Management
• Seizure
• Others

Distribution Channel:

• Retail pharmacies
• E-commerce

Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa

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