Medical Marijuana Market

Market Study on Medical Marijuana: Extract Form to Find Wide Use in Range of Applications

Medical Marijuana Market Segmented By Dried Form, Extract Form for Pain management, Seizures in Retail Pharmacy and E-Commerce

  • December-2021
  • PMRREP13897
  • 283 Pages
  • Healthcare
  • PPT, PDF, WORD, EXCEL

Market Snapshot

The global medical marijuana market was valued at US$ 16.5 Bn in 2020, and is anticipated to surge to US$ 76.5 Bn by 2031, reflecting a CAGR of 14.8% over the forecast period (2021-2031), according to a detailed Persistence Market Research study. Medical marijuana consumption accounts for nearly 80% of the global cannabis market, which was valued at approximately US$ 20 Bn in 2020.

Medical marijuana, also known as medical cannabis, is gaining popularity day by day because of its increasing application in the therapeutic field. It is derived from the Cannabis sativa plant, which can be used for the treatment of chronic diseases and pain management.

Medical Marijuana Market Size (2020)

US$ 16.5 Bn

Projected Market Value (2031)

US$ 76.5 Bn

Global Market Growth Rate (2021-2031)

14.8% CAGR

Share of Top 5 Countries

55.8%

Find Out More about the Report Coverage

Companies

  • Aphria Incorporation
  • Aurora Cannabis Inc.
  • Canopy Growth Corporation
  • CANNABIS SATIVA, INC.
  • Green Relief Inc.
  • GW PHARMACEUTICALS PLC
  • Insys Therapeutics, Inc.
  • Medical Marijuana, Inc.
  • MedReleaf Corporation
  • The Peace Naturals Project

Medical Marijuana Consumption Analysis (2016-2020) Vs Demand Outlook (2021-2031)

According to Persistence Market Research, sales of medical marijuana increased at a CAGR of 12.2% from 2016 to 2020. Medical marijuana has wide range of applications in the healthcare sector, especially in pain management.

Tetrahydrocannabinol (THC) is a key compound of marijuana. When someone consumes or inhale THC, it excites the brain’s cannabinoid receptors, which activate the brain’s reward system and reduces pain levels. Thus, medical marijuana can be a potential option for the treatment of management of chronic pain.

According to the Global Burden of Disease Study 2016, pain and pain-related conditions are the leading causes of disability and disease burden globally. Therefore, with increasing prevalence of pain, demand for drugs or substances that help in pain management is also rising, and so is demand for medical marijuana because it has a key role in managing pain.

Persistence Market Research predicts the global medical cannabis market to surge at a CAGR of 14.8% through 2031. High market growth is primarily due to rising use of marijuana in pain management, and key players’ strategic developments such as acquisitions, mergers, new product launches, and gaining approvals for their products from the FDA.

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FDA Approval of Marijuana for Treating Epilepsy Driving Market Expansion

Medical marijuana has various applications in the healthcare field, such as treating or managing epilepsy and other neurological disorders. In June 2018, FDA gave approval to the first drug consisting of an active ingredient derived from marijuana for treating epilepsy. This approval was given for Epidiolex (cannabidiol) [CBD] in oral solution for the treatment of seizures related to two rare and severe forms of epilepsy - Lennox-Gastaut syndrome and Dravet syndrome.

After this approval, sales of medical cannabis increased for treating epilepsy. According to WHO 2019 data, approximately 50 million people in the world have epilepsy, which makes it one of the most common neurological diseases globally.

Thus, increasing cases of epilepsy and use of medical marijuana for treating epilepsy is expected to drive medical marijuana demand over the coming years.

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What are the Key Opportunities for Medical Marijuana Suppliers?

Key manufacturers of medical marijuana are majorly focused on gaining FDA approval for launching new products in the market that can be derived from cannabis plants.

Such approvals help develop sound programs post proper evaluation of the active ingredients contained in marijuana, which can lead to important medical therapies.

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Country-wise Insights

Will the U.S. Continue to Remain a Key Market for Medical Marijuana?

The U.S. accounts for 67.3% value share in the North America market for medical marijuana. Rise in demand for medical marijuana is primarily seen due to approval of the FDA for the use of medical marijuana in epilepsy treatment.

Why is Germany the Most Lucrative Market for Medical Marijuana in Europe?

Germany accounts for nearly 12.2% of the market share in Europe. Rise in demand for medical marijuana in Germany is mainly due to large number of people belonging to the geriatric population who suffer from chronic pain. Thus, need for chronic pain treatment requiring usage of medical marijuana has resulted in high market expansion.

According to World Bank Data, approximately 22% population of Germany comprised older adults of over 65 years of age in 2020. Thus, with increasing geriatric population, there is rise in demand for pain management drugs, thereby driving the market for medical marijuana as well.

Why are Medical Marijuana Providers Eyeing China?

China accounts for nearly 14% of the market share in the world. This is mainly due to rising cases of neurological disorders in the country, which drives demand for medical cannabis for treatment purposes, due to the various medical marijuana benefits on offer.

According to a 2019 paper of NCBI, from 1990 to 2016, there has been significant growth seen in neurological diseases in the country. Thus, with increasing neurological disease cases, demand for drugs treating the disease, such as medical marijuana, is also bound to increase.

Category-wise Insights

Why is Demand for Medical Marijuana Extract Rising?

Medical marijuana usage in the extract form is expected to be higher over the forecast period as compared to the dried flower form of medical marijuana. This is primarily because the extract form consists of a larger quantity of key compounds, which gives better results in comparison to dried flowers.

Will Pain Management Application of Medical Marijuana Continue to Lead Market Growth?

By application, pain management accounts for approximately 48.8% of the market share because medical marijuana plays a key role in reducing pain levels. Demand for pain management drugs is increasing with rising prevalence of chronic pain across the world.

Impact of COVID-19

Due to COVID 19, there has been a positive impact on the medical marijuana industry. This is primarily due to increase in the cases of pain and epilepsy. Usage and dependency on marijuana increased exponentially during the COVID-19 pandemic since lockdowns prevented people from socializing and going about their normal lives, which led them toward depressive mental states.

According to a paper published in JAMA Network Open in May 2021, approximately 80% of COVID-19 hospitalized patients experienced neurological problems such as headaches. Thus, due to increased neurological disorders, drugs that can help in treating these disorders, such as medical marijuana, experienced enhanced sales.

Competitive Landscape

As a large number of European and Asian countries have legalized marijuana for medical purposes, the market is rapidly expanding. Early adopters are expected to reap the benefits by expanding their regional presence and consolidating their market dominance. Cross-border trade is also impacted by various regulatory, quality, and pricing standards.

Companies producing medical marijuana are mainly strengthening their position through various strategic steps, including collaborations, acquisitions, and agreements, to improve their product portfolios.

Some of the recent instances include:

  • In April 2018, Peace Naturals collaborated with Strainprint, a mobile application used to track patients’ MMJ dosage, intake methods, and different strains.
  • In June 2018, Aurora Cannabis Inc. announced that it had signed an agreement to acquire Anandia Laboratories Inc. Anandia is known as an industry leader in science, genetics, and independent cannabis product testing.
  • In May 2018, Aurora Cannabis Inc. announced completion of the acquisition of CanniMed Therapeutics Inc.

These strategic steps undertaken key medical marijuana suppliers have helped them in improving their product offerings and widening their presence in the market.

Medical Marijuana Industry Report Scope

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Countries Covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • South Africa

Key Market Segments Covered

  • Product
  • Application
  • Distribution Channel
  • Region

Key Companies Profiled

  • GW PHARMACEUTICALS PLC
  • Canopy Growth Corporation
  • MedReleaf Corporation
  • Aphria Incorporation
  • Aurora Cannabis Inc.
  • Insys Therapeutics, Inc.
  • Medical Marijuana, Inc.

Report Coverage

  • Market Forecasts
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Segments Covered in Medical Marijuana Industry Research

Medical Marijuana Market by Product

  • Dried Flower Medical Marijuana
  • Extract Form of Medical Marijuana

Medical Marijuana Market by Application

  • Medical Marijuana for Pain Management
  • Medical Marijuana for Seizures
  • Others

Medical Marijuana Market by Distribution Channel

  • Retail Pharmacy Sales of Medical Marijuana
  • e-Commerce Sales of Medical Marijuana

Medical Marijuana Market by Region

  • North America Medical Marijuana Market
  • Latin America Medical Marijuana Market
  • Europe Medical Marijuana Market
  • East Asia Medical Marijuana Market
  • South Asia Medical Marijuana Market
  • Oceania Medical Marijuana Market
  • Middle East and Africa (MEA) Medical Marijuana Market

Media Release

- FAQs -

The global medical marijuana market is worth US$ 19.3 Bn at present, and is set to expand nearly 4X over the next ten years.

Medical marijuana sales are expected to reach US$ 76.5 Bn by 2031.

The global medical marijuana industry is being driven by increased demand for cannabis extract from the pharmaceutical industry for treating pain.

North America currently holds the largest market share of 31.8%.

Israel and South Africa hold 50% and 31% market share in the Middle East and Africa region.

The global market share of China for medical marijuana is 14%.

The U.S., China, Canada, Israel, and Australia are the top 5 countries that are driving demand for medical marijuana.

Sales of medical marijuana increased at a CAGR of 12.2% from 2016 to 2020.

Leading suppliers of medical marijuana are GW PHARMACEUTICALS PLC, Canopy Growth Corporation, MedReleaf Corporation, Aphria Incorporation, Aurora Cannabis Inc., Insys Therapeutics, Inc., and Medical Marijuana, Inc.

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