Medical Marijuana Market: Current Analysis and Forecast (2022-2028)

Report Description

The global medical marijuana market is experiencing significant growth due to the increased number of patients suffering from chronic diseases like Epilepsy, Crohn’s disease, and Alzheimer’s disease and awareness regarding this has also fueled the growth of the medical marijuana market. For instance, Aurora Cannabis, in August 2019, successfully acquired Hempco Food and Fiber Inc., to gain access to cost-effective hemp, to extract cannabidiol (CBD). Similarly, Aphria acquired CC Pharma, which provides numerous pharmaceutical products, such as cannabis, in Germany and other European countries, in January 2019. Cannabidiol (CBD) is a medical benefit associated with the plant are anticipated to boost product demand. Thus, it works by helping to restore the balance to have several medicinal benefits. For instance, epidiolex is a CBD oil extract that is currently undergoing clinical trials for epilepsy. Furthermore, epilepsy is one of the most common neurological diseases globally. Therefore, the market for medical marijuana is expected to witness a significant CAGR of ~21% during the forecast period.

Global medical marijuana market is expected to register a CAGR of around ~21% over the period of 2022-2028. This is mainly due to its increasing application in the therapeutic field for the treatment of such disorders as Alzheimer’s disease, cancer, and schizophrenia. It is derived from the Cannabis sativa plant, which can be used for the treatment of chronic diseases and pain management. Medical marijuana has stringent government regulations coupled with the growing focus of major stakeholders in the healthcare industry to adopt to make medical marijuana products more sustainable with fewer side effects and cost-effective. Major healthcare companies are investing heavily in their products due to rising social awareness regarding chronic pain disorder cases, and other associated disorders, such as mania, anxiety, cancer, and treatment of seizures. For instance, in 2018, the Centers for Disease Control and Prevention (CDC) reported that an estimated 50 million Americans, or just over 20 percent, have some form of chronic pain. This rise in the demand for cannabis in medical is contributing to market growth. Furthermore, various factors such as growing research and development activities are also expected to drive the demand for the drug over the forecast period which is responsible for excessive use of medical marijuana and also significantly contributes to the market for meditation for the treatment of a health condition. As a result, the government is focusing on raising awareness about the illnesses and the effect which significantly contributes to the market for medical marijuana. Therefore, the market for medical marijuana is expected to witness significant growth during the forecast period

Canopy Growth Corporation, Cannabis Sativa, Inc, GW Pharmaceuticals plc., Emerald Health Therapeutics Inc., Tilray, Aphria Inc, Aurora Cannabis, Cara Therapeutics, Medical Marijuana, and Pfizer Inc. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Application, chronic pain category accounted for the majority share in the market in 2020”

Based on application, the market is classified into chronic pain, arthritis, migraine, cancer, and others. The chronic pain category accounted for a significant share of the market. This is mainly due to the use of medical marijuana in the treatment of the increasing prevalence of pain, cancer, arthritis, and treatment of seizures in the global markets. For instance, in 2018, the Centers for Disease Control and Prevention (CDC) reported that an estimated 50 million Americans, or just over 20 percent, have some form of chronic pain. Over the forthcoming years, the rising application in the therapeutic field is likely to boost the demand for medical marijuana.

“Amongst Type, Oil and Tinctures are expected to witness highest CAGR during the forecast period”

Based on product, the market is categorized into flowers, oil and tinctures, edibles, and others. Among these, Oil and Tinctures are expected to witness the highest CAGR during the forecast period. This is mainly due to the strong prevalence of medical ability in the treatment of various health conditions and governments of many countries are either legalizing or approving it for medicinal use. Marijuana oils are preferred as they are a blend of cannabis extracts and inert carrier oils. The oils are easier to find and are expected to support the growth of the segment over the forecast period. These results boost the production of medical marijuana the continuous development of the new products and treatments is likely to strengthen the market of the segment during the forecast period

“North America to witness significant growth during the forecast period”

North America is expected to show the highest CAGR growth in the medical marijuana market. The major contributors to the growth of this market are US and Canada. This is mainly due to the growing various medical marijuana and therapeutic uses of marijuana products as well as the potential impact of marijuana legalization on the U.S. economy. For instance, in February 2020, Verda Innovations, a medical cannabis-based company in the U.S. announced the launch of its legal cannabis e-commerce and delivery platform in Canada, and U.S. Launch of such online platforms is considered to be one of the major factors expanding growth. Thus, increase in the number of countries legalizing it and an increase in the number of prescriptions filled for medicinal marijuana biopharmaceutical companies and diagnostics industry owing to the presence of well-established market players and frequent product launches in the region.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

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Research Methodology

Research Methodology for the Global Medical marijuana Market Analysis (2022-2028)

Analyzing the historical market, estimation of the current market, and forecasting the future market of the global medical marijuana market were the three major steps undertaken to create and analyze the adoption of medical marijuana in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global medical marijuana market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the medical marijuana market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the medical marijuana market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as an application, type, distribution channel, and region. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the medical marijuana market. Further, we conducted factor analysis using dependent and independent variables such as the application, type, distribution channel, and region of medical marijuana. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the medical marijuana market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global medical marijuana market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach were applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the medical marijuana market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global medical marijuana market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global medical marijuana market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application, type, distribution channel, and region in the global medical marijuana market.

The main objective of the Global Medical marijuana Market Study

The current & future market trends of the global medical marijuana market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the medical marijuana market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of application, type, distribution channel, and region.
• Define and analysis of the regulatory framework for the medical marijuana market industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the medical marijuana market for the major region.
• Major countries of regions studied in the report include North America, Europe, Asia Pacific, and Rest of the world.
• Company profiles of the medical marijuana market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

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