Global Medical Marijuana Market Size By Type (Flowers, Concentrates, Edibles, and Others), Application (Chronic Pain, Arthritis, Migraine, Cancer, and Others), Distribution Channel (Online, Dispensaries, Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Medical Marijuana Market was valued at USD 9.55 Billion in 2022. The market is projected to grow to USD 48.27 Billion by 2030, exhibiting a CAGR of 22.45% between 2023 and 2030.

Medical marijuana, also known as medical cannabis, is a plant-based drug derived from the cannabis plant, specifically used to alleviate symptoms and as part of treatment for various diseases such as cancer, chronic pain, and mental disorders. The two main cannabinoids derived from this plant, Tetrahydrocannabinol (THC) and Cannabidiol (CBD), possess medical benefits that have been extensively studied and recognized. One of the primary drivers contributing to the growth of the medical marijuana market is the increasing demand for the legalization of medical cannabis in different states and countries worldwide. Governments across the globe are gradually recognizing the potential medical benefits of marijuana and are taking steps to legalize its usage. For instance, governments of the Indian states o Uttarakhand and Madhya Pradesh have allowed the production of the plant for medical purposes. Notably, in the United States, the government has established large-scale crops for research purposes.

Furthermore, the rising prevalence of various ailments such as Parkinson's disease, cancer, neurological disorders, and acute pain diseases is expected to drive the demand for medical marijuana. The efficacy of marijuana in managing these conditions has been proven through research and clinical trials, leading to increased adoption in the medical sector. In terms of applications, medical marijuana has shown promising results in the treatment and management of epilepsy and other neurological illnesses. In fact, in June 2018, the FDA approved the first medicine derived from marijuana for the treatment of epilepsy. Epidiolex, an oral solution containing cannabidiol (CBD), was authorized for the treatment of seizures caused by Lennox-Gastaut syndrome and Dravet syndrome, two rare and severe forms of epilepsy.

However, excessive misuse of marijuana beyond the recommended dose can lead to adverse effects such as hallucinations, dizziness, and low blood pressure. This poses a significant challenge to the market, as the misuse and abuse of medical marijuana can have detrimental consequences. This is one of the vital factors resulting in low adoption rate of marijuana across numerous countries.

Key Insights

• Based on type, the flowers segment held the dominating position in 2022
• Based on application, the chronic pain segment acquired the largest market share in 2022
• Based on distribution channel, the dispensaries segment is expected to grow with the highest CAGR through the forecast period
• On the basis of region, North America accounted for the largest market share in 2022

Increasing Global Acceptance of Medical Cannabis Legalization to Augment Market Revenue

The legalization of medical cannabis is also on the rise on a global scale. The growing acceptance of cannabis for the treatment of chronic conditions has fueled the expansion of the global medical marijuana market. Moreover, many countries have relaxed their legislation regarding cannabis cultivation, particularly for hemp, which has a low concentration of THC. This liberalization of cannabis growing regulations has further accelerated the adoption of medical cannabis. Additionally, the legalization of marijuana in several countries, coupled with its increasing use for medical purposes, has stimulated the growth of the cannabis production business. These trends and driving factors are expected to continue shaping the industry's trajectory in the coming years. The growing acceptance of cannabis for the treatment of chronic conditions has fueled the expansion of the global medical marijuana market. Moreover, many countries have relaxed their legislation regarding cannabis cultivation, particularly for hemp, which has a low concentration of THC. This liberalization of cannabis growing regulations has further accelerated the adoption of medical cannabis. Additionally, the legalization of marijuana in several countries, coupled with its increasing use for medical purposes, has stimulated the growth of the cannabis production business. These trends and driving factors are expected to continue shaping the industry's trajectory in the coming years.

The demand for the decriminalization of cannabis has been steadily increasing, driven by the growing support for medical cannabis legalization in various states across the United States. This surge in demand has contributed to the rapid growth of the medical marijuana market. Initially, cannabis was classified as illegal under the Marijuana Tax Act of 1937, which prohibited its use and distribution. However, in recent years, a number of states have chosen to legalize cannabis for both medical and recreational purposes. These factors, combined with the rising demand, are expected to have a significant impact on the market's revenue in the foreseeable future.

Challenges in Research, Regulation, Stigma, and Financial Services to Impede Medical Cannabis Market Growth

The limited scientific research and clinical trials on the efficacy and safety of medical cannabis pose challenges. The lack of comprehensive data makes it difficult for healthcare professionals and regulatory bodies to confidently prescribe and regulate medical marijuana. Furthermore, the stigma surrounding cannabis continues to persist, creating societal barriers to acceptance and hindering patient access to treatment options. Moreover, the banking and financial services sector's reluctance to work with cannabis-related businesses creates obstacles. This leads to difficulties in accessing banking services, hindering financial transparency and limiting the market's growth potential.

Recent Development

February 2022 (Expansion) - Tilray announced the medical cannabis division in Malta. The company completed its first sale of medical cannabis across pharmacies providing patients safe access of high-quality medical cannabis.

January 2022 (Acquisition) - Pfizer entered the medical cannabis market by acquiring Arena Pharmaceuticals to focus on the treatment of immuno-inflammatory diseases.

Segmentation Analysis

The global medical marijuana market is segmented into flowers, concentrates, edibles, and others based on type. The flower segment has emerged as the dominant category, primarily due to its versatility and various methods of consumption, making it the most popular form among the population. Additionally, flowers offer a cost-effective alternative to topical applications and medical wax. For example, in 2020, the Minnesota Department of Health reported that approximately 30,000 individuals were enrolled in the state's medical marijuana program, with only two dispensaries in the Twin Cities metro area authorized to sell dried flower marijuana. Flowers are particularly beneficial for conditions that require lower dosages, such as chronic pain and anxiety disorders. Moreover, flowers are generally more affordable compared to other forms of medical marijuana, such as edibles or concentrates. These factors contribute significantly to the growth of the flower segment in the market.

The global medical marijuana market is segmented based on application into chronic pain, arthritis, migraine, cancer, and others. Among these, the chronic pain segment has emerged as the dominant category, primarily due to its effectiveness in addressing the increasing prevalence of chronic pain conditions such as nerve pain, arthritis, cancer, HIV, and others worldwide. Notably, a study conducted by the National Centre for Biotechnology Information in January 2022 revealed that consumption of medical marijuana has resulted in a significant 64% reduction in opioid usage among chronic pain patients.

The global medical marijuana market is segmented based on distribution channels into dispensaries, online platforms, and others. Among these, the dispensary segment has emerged as the dominant category, primarily due to the increasing number of licensed dispensaries and the prevalent adoption of Omni-channel distribution strategies. The medical marijuana market has experienced significant growth following the introduction of new regulations that offer a two-year medical license for patients. Additionally, the absence of restrictions on the number of grow licenses or dispensaries, coupled with low entry barriers, has attracted a surge of out-of-state marijuana entrepreneurs seeking lucrative investments. On the other hand, the online segment is expected to exhibit the highest compound annual growth rate (CAGR) over the forecast period. This growth is driven by the proliferation of e-commerce platforms offering a wide range of marijuana products, including extracts, flowers, concentrates, and edibles. For instance, in 2020, Jane Technologies reported cannabis sales worth USD 2 billion through its e-commerce platform.

North America is the Dominating Region Owing to the Widespread Adoption of Medical Marijuana

The North America region is projected to dominate the global medical marijuana market in the forecast period. This can be attributed to changes in government policies, which are expected to fuel the demand for legal marijuana across various medical applications. In response to these developments, numerous cannabis start-ups are actively engaged in research and development, testing, and manufacturing activities. Additionally, several Canadian provinces are considering the privatization of cannabis retail stores. According to the Centers for Disease Control and Prevention (CDC), approximately 20.4% of adults in the United States suffer from chronic pain, leading to an increased demand for medical marijuana and subsequent growth in market revenue. Moreover, in March 2022, Costa Rica legalized the usage of medical marijuana and allowed its cultivation for industrial purposes. On the other hand, Europe is expected to exhibit the highest compound annual growth rate (CAGR) through the forecast period. This growth is driven by the increasing legalization of medical marijuana and the influx of investments by emerging players. The region has also witnessed significant funding opportunities for start-ups due to the growing acceptance and demand for medical marijuana.

Rapid Growth and Emerging Opportunities to Aid Europe Medical Marijuana Market Progress

The medical marijuana market in Europe is currently experiencing significant growth and is expected to exhibit a high compound annual growth rate (CAGR) over 2023-2030. The region has witnessed a surge in the legalization of medical marijuana, creating a favorable regulatory environment for its use. This has led to increased investments by several emerging players in the market. For instance, countries like Germany, Italy, and the Netherlands have implemented legal frameworks for medical marijuana, encouraging the growth of the market. The growing acceptance and demand for medical marijuana in Europe have also provided start-ups in the region with substantial funding opportunities, further driving market expansion.

Competitive Landscape

The global medical marijuana market is fragmented with key players such as Tilray, Canopy Growth Corporation, Aurora Cannabis Inc., Maricann Group Inc., Aphria Inc., CannTrust Inc., Trulieve, Emerald Health Therapeutics, Tikun Olam, GW Pharmaceuticals, Cannabis Sativa, Medical Marijuana, Inc., and MedReleaf Corp. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

The global Medical Marijuana Market is segmented as follows:

By Type

• Flowers
• Concentrates
• Edibles
• Others

By Application

• Chronic Pain
• Arthritis
• Migraine
• Cancer
• Others

By Distribution Channel

• Online
• Dispensaries
• Others

By Region

• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• U.K.
• France
• Italy
• Spain
• Russia
• Rest of Europe
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Rest of Asia-Pacific
• Middle East & Africa
• GCC
• South Africa
• North America
• Rest of Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America