MEDICAL MARIJUANA MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Medical Marijuana Market Size and Trends

The medical marijuana market is estimated to be valued at USD 22.34 Bn in 2024 and is expected to reach USD 56.27 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 14.1% from 2024 to 2031.

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Legalization of medical cannabis in various countries for the treatment of chronic diseases such as cancer, arthritis, and other diseases is expected to boost the demand. Additionally, people are inclining more towards plant-based drugs due to the various potential health benefits associated with cannabis such as relief from nausea, stress, and improved sleep, which is further augmenting the market growth. However, threats associated with substitutes and stringent regulations in certain regions are some of the factors anticipated to hamper the market expansion.

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Insights By Product Type - Potency and effectiveness of marijuana oil in relieving pain

In terms of product type, oil segment is expected to contribute the highest market share of 45.6% in 2024, owing to its potency and effectiveness in relieving pain due to its effectiveness in pain management. Cannabis oil comes with high concentrations of delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD), delivering more potency compared to other forms such as capsules, tinctures, etc. This segment is expected to continue growing as more patients turn to cannabis oil to manage chronic pain.

Insights By Application - Growing prevalence of pain-related conditions drives the chronic pain segment growth

In terms of application, chronic pain segment is expected to contribute the highest market share of 39.3% in 2024, owing to growing prevalence of pain-related conditions. Chronic pain has emerged as the leading application segment for medical marijuana due to a variety of factors. Chronic pain conditions like fibromyalgia, arthritis, lower back pain, cancer pain afflict millions worldwide and often do not adequately respond to traditional pain therapies. This wide applicability, combined with a vulnerable aging demographic, will continue augmenting the chronic pain segment in the medical marijuana industry.

Regional Insights

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Regional Analysis: Medical Marijuana Market

Dominating Region: North America

North America is expected to dominate the medical marijuana industry with a market share of 42.4% in 2024, due to the early legalization of medical cannabis in some states and the large patient pool suffering from conditions like chronic pains and mental illnesses.

Fastest-Growing Region: Asia Pacific

Asia Pacific exhibits the fastest growth in the medical marijuana industry with a market share of 23.5% in 2024, led by countries taking steps to ease restrictions on cannabis for medical use. A more accommodating regulatory environment allowing imports and facilitating local production has enabled the market to expand rapidly to meet the increasing demand.

Medical Marijuana Market Outlook for Key Countries

Strategic investments in medical marijuana in the U.S.

The U.S. medical marijuana industry is driven by ongoing state-level legalization, expanding insurance coverage, and strategic investments from multistate operators. Companies like Averix Bio, LLC have established a strong presence through large cultivation facilities and extensive retail networks, enhancing their competitive edge in this evolving landscape.

Increasing demand for cannabis products in Canada

Canada medical marijuana industry has liberalized significantly since the legalization of adult-use cannabis. Licensed producers like Aurora Cannabis have expanded their domestic supply and global export capabilities, leveraging the country's favorable regulatory framework to enhance their market presence and meet increasing demand for cannabis products.

Well-regulated cultivation and distribution system in Germany

Germany continues to lead the medical marijuana industry with a well-regulated cultivation and distribution system. Key players such as Tilray have emerged as a major supplier to pharmacies nationwide, effectively meeting the growing needs of chronic pain patients and benefiting from recent legislative changes that enhance access to medical cannabis.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Medical Marijuana Market Players

• Established players in the medical marijuana industry focus heavily on research and development to drive innovation. Companies like Canopy Growth and Aurora Cannabis invest over 20% of annual revenues into R&D. This allows them to develop new high-potency and customized cannabis products.
• Global expansion is another key priority. Global expansion is another key priority for firms as they seek to access new international markets like Germany, Australia, and Latin America. This strategy helps strengthen their supply chains and better meet the growing global demand for medical cannabis.
• Mid-level players carve niches with affordable options. Companies targeting cost-conscious consumers develop high-quality generic brands. Some focus on cannabis extracts and oils that offer consistency and value. Collaborations also help mid-level players gain an edge. Partnerships with technology companies and cultivators strengthen production and bring new products to market.
• Small-scale players specialize in niche areas largely ignored by other firms. Some develop specialized topical creams and lotions. Others focus on innovative consumption methods like dissolvable strips. To compete, these companies partner with local operators for supply and distribution or adopt emerging technologies.

Emerging Startups in the Medical Marijuana Market

• Several startups are applying advanced technologies to reshape the industry. Companies like Innovative Industrial Properties use controlled indoor farming techniques like aeroponics to boost yields. Other startups develop cannabis-infused patches and other advanced delivery methods using inventions like responsive hydrogels. These technologies could help standardized dosing and new use cases.
• Sustainability is another rife area for innovations. Startups craft cannabis products from industrial hemp or use greenhouse cultivation to reduce water and land usage. Some innovators develop techniques for recycling glass containers. If adopted broadly, these solutions could lower the industry's carbon footprint.
• Startups also fill critical market gaps through collaborations. Firms partnering with research institutes develop specialized extracts for rare diseases. Partnerships with major retailers help startups launch new brands nationwide.

Medical Marijuana Industry News

• On October 1, 2024, Trulieve Cannabis Corp., a leading and top-performing medical marijuana company in the U.S., announced a partnership with Black Buddha Cannabis, a purpose-driven and women-owned medical marijuana brand. The collaboration will introduce Black Buddha Cannabis products to Trulieve dispensaries. Products from Black Buddha's "BLYSS" and "DREAM" lines of premium medical marijuana flower will be available in Trulieve stores throughout Arizona and Pennsylvania, U.S.
• On June 24, 2024, Curaleaf Holdings Inc, a leading international provider of consumer cannabis products, announced the launch of an all-new line of hemp-derived THC products under the company's Select and Zero Proof brands
• On January 24, 2024, Aurora Cannabis Inc., a Canada-based leading global medical cannabis company, announced the launch of three new cannabis-infused beverages, available exclusively at first to veteran patients. Designed to deliver on taste, potency, and choice, the introduction of beverages is in response to the needs of patients looking for alternative forms of cannabis to support their wellbeing.

Key Takeaways from Analyst

The global medical marijuana industry has tremendous growth potential over the next decade driven by increasing legalization of medical cannabis across regions. More countries are realizing the medicinal benefits of marijuana in treating conditions such as chronic pain, epilepsy, and cancer. This will significantly expand the patient pool requiring cannabis medicines.

While increasing legal acceptance is opening up new avenues, strict regulations pertaining to manufacturing and distribution pose challenges to companies seeking smooth operations across borders.

North America currently dominates the global medical marijuana space, owing to legal dispensing in major markets like the U.S. and Canada. The U.S. stands as the largest national market. The Asia Pacific region offers promising growth prospects with initiatives like the legalization of medical cannabis in more countries of Oceania. Latin America too presents substantial expansion prospects for industry players.

Market Report Scope

Market Dynamics

Market Driver - Increasing legalization of medical cannabis

There has been a significant global shift towards the legalization and commercialization of cannabis for medical purposes. An increasing number of countries and states are enacting laws such as California's Proposition 215 to regulate medical marijuana use, driven by compelling scientific evidence of its efficacy and changing societal attitudes. This growing acceptance is fostering greater access to medical cannabis, reflecting a broader recognition of its therapeutic benefits and the need for effective pain management and treatment options.

Market Challenge - Stringent regulations and barriers

The medical marijuana market faces significant challenges due to stringent regulations and varying laws across countries and states. Many regions still classify medical cannabis as illegal, while those where it is legal often impose complex licensing requirements. This regulatory uncertainty, coupled with social stigma and limited insurance coverage, restricts market expansion. Additionally, formidable lobbying from opposition groups complicates progress. Without relaxed and harmonized regulations, companies will struggle to scale beyond local markets, although evolving public acceptance may gradually influence change.

Market Opportunity - Emerging new application areas and delivery formats

The medical marijuana market presents significant opportunities through emerging application areas and innovative delivery formats. Beyond traditional flower and oils, new cannabinoid-based formulations are being developed for conditions like chronic pain, epilepsy, and neurodegenerative diseases. Innovative delivery methods such as edibles, vapes, and topicals enhance patient convenience and compliance by allowing customized dosing. With ongoing clinical research and expanding public acceptance, these advancements are expected to drive demand and facilitate market growth in new geographies and medical uses.

Key Stakeholders of Market

What does growth in the medical marijuana industry mean for different stakeholders?

The medical marijuana industry has multiple players with varied designations and offers multiple opportunities based on their scope of operations.

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Market Segmentation

• By Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Oil
  • Capsules
  • Tinctures
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Chronic pain
  • Mental Disorders
  • Cancer
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Tilray
  • Aphria, Inc.
  • Vantage Hemp
  • Averix Bio, LLC
  • Curaleaf
  • Bright Green Corporation
  • Cresco Labs
  • Trulieve
  • GW Pharmaceuticals, Plc.
  • Canopy Growth Corporation
  • Aurora Cannabis