Medical Marijuana Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 21.13 Billion |
| Market Size (2029) | USD 44.47 Billion |
| CAGR (2024 - 2029) | 16.05 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Medical Marijuana Market Analysis
The Medical Marijuana Market size is estimated at USD 21.13 billion in 2024, and is expected to reach USD 44.47 billion by 2029, growing at a CAGR of 16.05% during the forecast period (2024-2029).
The major factors driving the medical marijuana market include the increasing number of countries legalizing the use of medical marijuana, the trend of producing edible products with Cannabis, and favorable reimbursement environment and government support in selected countries.
The increasing legalization of the use of cannabis across the countries coupled with growing government initiatives are expected to fuel the growth of the studied market over the forecast period. For instance, according to a United Nations press release in June 2022, Cannabis legalization has accelerated daily use and related health impacts. It also stated that there is a rise in the manufacturing of cocaine and the expansion of synthetic drugs to new markets. Additionally, in June 2022, Luxembourg's government unveiled a draft law permitting adults to cultivate up to four cannabis plants at home for recreational use. Additionally, the law would sanction non-medical cannabis consumption within private residences. Also, in January 2022, the Delhi High Court stated that the use of Cannabis is not completely banned in India, and its medical and scientific use is allowed under the law.
Furthermore, the growing consumer shift towards the use of edible products prepared using cannabis is anticipated to fuel the market growth. For instance, in June 2023, a survey by New Frontier Data revealed a notable trend, about 69% of individuals aged 18 to 24, in the United States, prefer marijuana over alcohol in 2022. Notably, this shift isn't limited to the younger demographic; consumers up to age 44 are also increasingly embracing this change. Thus, the rising adoption of marijuana among the population raises its demand which in turn is anticipated to bolster the market growth over the forecast period.
Moreover, the adoption of key strategies such as partnerships and acquisitions has been improving the potential of marijuana in medical applications, which is expected to augment the market growth during the forecast period. For instance, in February 2022, tBombay Hemp Company, an agro-based enterprise, partnered with Poonthottam Ayurvedasram to unlock the ancient Ayurvedic potential of Cannabis through human reason. Together, they've launched 'AyurCann: Ayurvedic Cannabis Therapies,' marking Asia's pioneering Ayurvedic Cannabis Wellness Retreat.
Thus, owing to the factors above, the market studied is anticipated to grow over the analysis period. However, limited awareness of marijuana's dosage and medicinal properties, along with social stigma related to cannabis use, are likely to restrain market growth.
Medical Marijuana Market Trends
The Chronic Pain Segment is Expected to Experience the Fast Growth Over the Forecast Period
Chronic pain, defined as persistent discomfort that extends beyond typical recovery periods or accompanies chronic health issues like arthritis, poses a significant challenge for many individuals. Multiple studies underscore medical cannabis as a potent remedy for chronic pain, often proving safer than conventional alternatives. It is an affordable, natural alternative that lacks side effects and is traditionally used to treat chronic pain.
The segment's growth is primarily propelled by the escalating burden of chronic pain. For instance, an April 2023 CDC article highlighted that in the United States, approximately 51.6 million adults, constituting 20.9% of the population, experienced chronic pain in the preceding two years. Among them, 17.1 million, or 6.9%, suffer from high-impact chronic pain, severely curtailing their daily routines. In addition, non-Hispanic American Indian or Alaska Native adults showed a higher prevalence of these conditions. Thus, the rise in chronic pain cases is directly fueling the demand for medical marijuana, consequently driving market expansion.
Various studies were conducted to assess the effectiveness of medical marijuana for chronic non-malignant pain management. For instance, according to an article published by Current Pain and Headache Reports, in March 2023, medical cannabis effectively manages pain, particularly for patients with chronic non-malignant conditions. In addition, medical cannabis offers both convenience and efficacy for patients dealing with chronic non-malignant pain. Thus, the high efficacy offered by medical cannabis for treating pain is expected to fuel its adoption among consumers, boosting the segment growth.
Similarly, a study from the Journal of the American Medical Association, published in January 2023, reported that approximately one-third of Americans have turned to medical marijuana for managing chronic pain. Specifically, 31% of the respondents reported using medical marijuana for chronic pain relief. This increasing adoption of marijuana among the patient population is poised to significantly propel the segment's growth in the coming years.
Moreover, the surge in research and development initiatives serves as a pivotal driver fueling the market's expansion. For instance, the Canpain trial, initiated by the government in April 2022, is pioneering the exploration of cannabinoids' effectiveness in chronic pain management. This government-backed trial marks a pioneering step, potentially paving the way for the inclusion of medical cannabis in National Health Service (NHS) prescriptions.
With an increasing population suffering from chronic pain, a rising acceptance of marijuana for pain management, and a surge in clinical trials, this segment is poised to be a key driver of market growth.
North America Accounted for the Significant Share in the Global Market Over the Forecast Period
North America holds a significant share of the medical marijuana market, a trend projected to continue steadily through the forecast period. This is propelled by the region's growing marijuana legalization, a shift towards cannabis-infused edibles, and increasing government initiatives.
The accelerating rate of cannabis legalization in North America is a primary driver of its escalating demand. For instance, in April 2022, the United States House of Representatives approved a bill, aiming to legalize marijuana across the nation. This move would effectively remove criminal sanctions for individuals involved in the substance's production, distribution, or possession.
Moreover, In April 2022, Metrc, a provider of cannabis regulatory systems in the United States, signed a deal with Mississippi. The agreement aims to bolster the state's oversight of its burgeoning medical cannabis sector. Metrc's cutting-edge track-and-trace platform plays a pivotal role in ensuring data accuracy and regulatory compliance, fostering a secure environment for both patients and providers.
Furthermore, according to a December 2022 survey by Statistics Canada, about 70% of cannabis users favored smoking in the past year, with 53% opting for edibles and 19% for beverages. For more frequent users, the preference shifted, with 29% favoring edibles and 8% opting for beverages. This trend underscores the rising popularity of THC-infused gummies and chews in Canada, driven by their precise dosing, unique flavors, and discreet appeal in social settings. With robust sales and consumption figures, the North American cannabis market is poised for significant growth in the coming years.
Moreover, the establishment of cannabis research centers across the region to frame policies related to the use of cannabis and its related products is expected to propel the market growth over the forecast period. For instance, in November 2023, the University of Minnesota School of Public Health launched a new Cannabis Research Center (CRC) to assess the impact of adult-use cannabis legalization and help inform future cannabis policies and practices across the state of Minnesota.
Thus, owing to the high adoption of marijuana edible products, the rising company’s strategic activities, the rising trend in the legalization of marijuana, and the development of new marijuana research centers, the demand for marijuana is expected to increase across the region which in turn is anticipated to boost the market growth over the forecast period.
Medical Marijuana Industry Overview
The medical marijuana market is moderately concentrated in nature due to the presence of companies operating globally as well as regionally. Some of the companies are adopting key strategic activities such as collaboration and agreements to expand their product offering across the globe. The competitive landscape includes an analysis of companies, including Canopy Growth Formation, Acreage Holdings, Aurora Cannabis, Tilray Brands, Inc., and Jazz Pharmaceuticals Inc., among others.
Medical Marijuana Market Leaders
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Aurora Cannabis
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Jazz Pharmaceuticals, Inc.
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Canopy Growth Corporation
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Acreage Holdings
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Tilray Brands, Inc.
*Disclaimer: Major Players sorted in no particular order
Medical Marijuana Market News
- In March 2024, Jesse Ventura introduced a cannabis edible brand. Ventura partnered with Retro Bakery, based in Columbia Heights, to manufacture THC edibles derived from hemp.
- February 2023: Metrc reported the expansion of its contract with the State of Missouri to support the regulation of its adult-use cannabis market.
Medical Marijuana Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing Number of Countries Legalizing the Use of Medical Marijuana
- 4.2.2 Trend of Producing Edible Products with Cannabis
- 4.2.3 Favorable Reimbursement Environment and Government Support in Certain Countries
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4.3 Market Restraints
- 4.3.1 Lack of Awareness about the Dosage and Medicinal Properties of Marijuana
- 4.3.2 Social Stigma Related to Cannabis Use
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - in USD)
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5.1 By Formulation Type
- 5.1.1 Capsules
- 5.1.2 Oils
- 5.1.3 Other Formulation Types (Drops, Gel)
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5.2 By Application
- 5.2.1 Chronic Pain
- 5.2.2 Arthritis
- 5.2.3 Migraine
- 5.2.4 Cancer
- 5.2.5 Other Applications
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Spain
- 5.3.2.6 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 South Korea
- 5.3.3.6 Rest of Asia-Pacific
- 5.3.4 MiddlecEast and Africa
- 5.3.4.1 GCC
- 5.3.4.2 South Africa
- 5.3.4.3 Rest of Middle East and Africa
- 5.3.5 South America
- 5.3.5.1 Brazil
- 5.3.5.2 Argentina
- 5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Lexaria Bioscience Corp.
- 6.1.2 Canopy Growth Corporation
- 6.1.3 Aurora Cannabis
- 6.1.4 Acreage Holdings
- 6.1.5 Cara Therapeutics Inc.
- 6.1.6 Jazz Pharmaceuticals Inc.
- 6.1.7 LivWell Enlightened Health LLC (PharmaCann Inc.)
- 6.1.8 Tilray Brands, Inc.
- 6.1.9 Medical Marijuana Inc.
- 6.1.10 Arcadia Biosciences
- 6.1.11 Tikun Olam
- 6.1.12 Babylon Sciences SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Medical Marijuana Industry Segmentation
As per the scope of the report, medical marijuana refers to the whole, unprocessed marijuana plant, or its basic extracts, used to treat several diseases and other related symptoms. Scientific studies show that chemical cannabinoids could help treat various diseases and symptoms, attracting several biopharmaceutical companies globally over the past two decades.
The medical marijuana market is segmented by formulation type, application, and geography. By formulation, the market is segmented into capsules, oils, and other formulation types. The application segment is bifurcated into chronic pain, arthritis, migraine, cancer, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report offers the value (in USD) for the above segments.
| By Formulation Type | Capsules | |
| Oils | ||
| Other Formulation Types (Drops, Gel) | ||
| By Application | Chronic Pain | |
| Arthritis | ||
| Migraine | ||
| Cancer | ||
| Other Applications | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | MiddlecEast and Africa | GCC |
| South Africa | ||
| Rest of Middle East and Africa | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America |
Medical Marijuana Market Research FAQs
How big is the Medical Marijuana Market?
The Medical Marijuana Market size is expected to reach USD 21.13 billion in 2024 and grow at a CAGR of 16.05% to reach USD 44.47 billion by 2029.
What is the current Medical Marijuana Market size?
In 2024, the Medical Marijuana Market size is expected to reach USD 21.13 billion.
Who are the key players in Medical Marijuana Market?
Aurora Cannabis, Jazz Pharmaceuticals, Inc., Canopy Growth Corporation, Acreage Holdings and Tilray Brands, Inc. are the major companies operating in the Medical Marijuana Market.
Which is the fastest growing region in Medical Marijuana Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Medical Marijuana Market?
In 2024, the North America accounts for the largest market share in Medical Marijuana Market.
What years does this Medical Marijuana Market cover, and what was the market size in 2023?
In 2023, the Medical Marijuana Market size was estimated at USD 17.74 billion. The report covers the Medical Marijuana Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Medical Marijuana Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the legal and regulatory challenges for the Medical Marijuana Industry?
The legal and regulatory challenges for the Medical Marijuana Industry are a) Federal legalization b) Licensing requirements
What are the legal and regulatory challenges for the Medical Marijuana Industry?
The legal and regulatory challenges for the Medical Marijuana Industry are a) Federal legalization b) Licensing requirements
What are the legal and regulatory challenges for the Medical Marijuana Industry?
The legal and regulatory challenges for the Medical Marijuana Industry are a) Federal legalization b) Licensing requirements
Medical Marijuana Industry Report
The global medical marijuana market is experiencing rapid growth, driven by heightened awareness of its therapeutic applications, ranging from pain management to appetite enhancement. Products derived from Cannabis Sativa and Cannabis Indica dominate, with oils and tinctures leading due to their medicinal benefits in treating conditions like chronic pain, cancer, and anxiety. The increasing legalization of medical marijuana is enhancing accessibility and fostering extensive research to uncover new therapeutic potentials. North America leads the market, benefiting from advanced approvals and market penetration, while the Asia Pacific region is witnessing rapid growth owing to rising legalization and economic growth. Progressive legislation and growing public awareness are paving the way for the expansion of this market, with ongoing research continuously opening new therapeutic avenues. For detailed market insights and the forecast outlook provided by Mordor Intelligence™, including the biggest marijuana companies, download a free sample PDF of the industry analysis.
