Medical Marijuana Market Research, Key Players, Analysis And Forecast 2030: Grand View Research Inc.
Posted by Mrudula Karmarkar on December 9th, 2022
The global medical marijuana market size is expected to reach USD 65.8 billion by 2030 and is expected to expand at a CAGR of 21.6% over the forecast period, according to a new report by Grand View Research, Inc. The major factors attributed to the industry growth are the rapid adoption of cannabis in therapeutic applications and a surge in the number of countries legalizing the usage of medical marijuana.
Marijuana belongs to a family of plants named cannabaceae. It is mainly categorized on the basis of its shape, height, smell, and color. In the ancient Chinese tradition, marijuana was used for the management of malaria, reproductive system disorders, constipation, rheumatic pain, etc. Over 70 psychoactive compounds with the chemical structure of tetrahydrocannabinol (THC) have been identified. Cannabidiol (CBD), a nonpsychoactive component, and THC, a psychoactive component, are two major compounds used for therapeutic applications. Reports suggest that tetrahydrocannabinol helps in alleviating symptoms suffered by cancer and AIDS/HIV patients.
As per numerous studies, cannabis has shown positive results in the treatment of chronic diseases. Thus, with the growing penetration of chronic disease throughout the globe, the industry is expected to see a steep rise in demand. For instance, as per the data released by the WHO, the chronic disease burden was expected to reach 57% by 2020. The growing research and development activities in the industry are also expected to drive the growth in demand.
Additionally, various factors such as a rise in disposable income, increasing social acceptance of cannabis, and growth in awareness regarding the benefits of the product, along with improvements in intellectual property rights of cannabis are some of the major factors that are expected to fuel the growth of the industry.
Key players are coming together on strategic initiatives such as mergers & acquisitions, collaborations, partnerships, funding & investments, and innovative product developments & launches to expand their expertise & product portfolio. This also fuels the industry’s growth. For instance, in March 2021, Germany's largest pharmaceutical company, Stada entered the medical marijuana market by launching its two flower products, and further, the company has plans to offer five flower products along with three extracts with different compositions of CBD and THC.
One of the major factors that restrict industry growth is the strict regulation policy. To date, FDA has not allowed the marketing usage of cannabis for the treatment of any disease or condition. Although, the organization has approved one cannabis-derived drug product: Epidiolex (cannabidiol), and three synthetic cannabis-related drug products: Marinol (dronabinol), Syndros (dronabinol), and Cesamet (nabilone). These permitted drug products are only available with a prescription from a licensed healthcare provider.
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The growing social acceptance has notably raised the revenue for the cultivators and dispensary owners, which depicts expanding business opportunities for significant players. An increasing number of states, countries, and regions legalizing marijuana has propelled the number of vendors entering the market, which is expected to grow the market over the coming years. Some of the key vendors are Canopy Growth; American Cannabis Company; Medical Marijuana, Inc., Terra Tech Corp, and mCig, Inc. The growing percentage of countries permitting the usage of medical marijuana in various parts of the globe is one of the key factors driving the penetration rate of cannabis in therapeutic applications. With changes in government policies, the demand for medical marijuana is also increasing.
Many countries have legalized the usage of medical marijuana which is the leading way for its cultivation that will cut the imports and will lead to revenue generation in the form of taxes. The increasing figure of states legalizing medical marijuana and the growing adoption of cannabis in healthcare sector and recreational applications are some of the major aspects that are expected to propel the demand for medical marijuana over the coming years. The growing research and development activities are also expected to drive the demand.
Medical Marijuana Market Report Highlights
As per clinical studies, cannabis is highly effective for the treatment of chronic diseases. As per the data published by the WHO, the chronic disease burden reached to 57% in the year 2020. Thus, owing to the rising prevalence of chronic diseases throughout the globe the market is expected to see a steep growth in the forecast period.
One of the major challenges faced by the medical marijuana market is that, to date, the FDA has not permitted the marketing usage of cannabis for the treatment of any disease or condition. However, the organization has approved one cannabis-derived drug product: Epidiolex (cannabidiol), and three synthetic cannabis-related drug products: Marinol (dronabinol), Syndros (dronabinol), and Cesamet (nabilone). These permitted drug products are only available with a prescription from a licensed healthcare provider.
Like other industries, the ongoing Covid-19 pandemic had negatively impacted the medical marijuana market. The medical marijuana market growth declined by a rate of 32% from 2022 to 2020. Due to lockdown, most of the places were shut down and no movements were taking place in most of the industries which negatively impacted the market. The import-export business was negatively impacted on a huge scale due to lockdowns and changes in guidelines for the transportation of its products.
Most importantly, major healthcare companies were focusing on the production of COVID-19 vaccines thus, there is a decline in the research work related to medical marijuana. However, acquisitions and mergers among cannabis manufacturers are projected to fuel the growth of the market. Active research work, proven medical properties, growing legalization, and improvements in intellectual property rights of cannabis are some of the major factors that are expected to fuel the market growth.
List of Key Players in the Medical Marijuana Market
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
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