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The medical marijuana market size is projected to increase by USD21.25 billion at a Compound annual growth rate (CAGR) of 21.86% between 2022 and 2027. Medical cannabis is derived from legally procured marijuana and used for the treatment of various medical conditions as recommended by doctors. It is taken by patients orally through inhalation or marijuana-infused edibles.
Industry Growth Analysis
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The market share growth by the oil and tinctures segment will be significant during the forecast period. Medical marijuana oil refers to a concentrated form of marijuana extract, usually made by using solvents to extract the cannabinoids and other beneficial compounds from the plant. Oil can be taken orally directly or mixed with food or drink. It can also be applied topically or inhaled using a vaporizer.
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The oil and tinctures segment was valued at USD 3.93 billion in 2017 and continued to grow until 2021. Tinctures, on the other hand, are liquid extracts usually made by soaking the cannabis plant material in a solvent such as alcohol or glycerin. This solvent helps dissolve the cannabinoids and other compounds from the plant, producing a concentrated liquid extract. Tinctures are usually taken sublingually (under the tongue) to facilitate faster absorption into the bloodstream. They provide a convenient method of delivering precise amounts of cannabinoids, allowing individuals to effectively manage their symptoms. Hence, the application of oil and tinctures will drive the demand of the market during the forecast period.
Increasing awareness campaigns are driving the growth of the market. Vendors are launching educational campaigns to promote safe and responsible use of marijuana, aiming to boost sales. For example, Leaf411 and Healer.com collaborated to provide online training, while House of Wise partnered with Last Prisoner Project for a new campaign. In addition, New York launched its first public health education campaign, including public service advertisements. These awareness initiatives are expected to fuel the adoption of medical cannabis in the forecast period.
The market is experiencing growth driven by the increasing number of product launches. The legalization of marijuana for medical purposes has created a demand for new products. Vendors are launching these products to enhance their revenue and market share. For example, Curaleaf introduced a range of medical cannabis products in Germany in May 2021, including a high-THC oil product to meet patient demand. They expanded their portfolio throughout the year to cater to various patient needs. Similarly, in April 2022, Dr. Reddy and MediCane Health Inc. launched medical marijuana in Germany, contributing to the market growth and trends in the forecast period.
Side effects associated with inappropriate use of marijuana is one of the factors hampering the market growth. The active ingredients in medical marijuana are known as cannabinoids. THC is one of the most important and active cannabinoids. The amount of THC in medical cannabis is based on how the plant is raised, prepared, and stored. Moreover, marijuana contains many other chemicals and the amount varies from plant to plant. Such factors can make it difficult to identify the required dosage of medical marijuana for patients.
Moreover, users can experience a variety of side effects, including mood swings, lack of coordination, raised appetite, red eyes, dry mouth, nausea, coughing, infection of the throat, decreased reaction time, and others. Such side effects can adversely affect the introduction of medical marijuana, Hence, impeding the growth potential of the market during the forecast period.
North America is estimated to contribute 47% to the growth of the global market during the forecast period.
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Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, marijuana is legal in countries such as the US and Canada. In August 2019, the Supreme Court in Mexico ordered the Health Ministry to issue a regulation on marijuana use within six months. Such government initiatives to legalize medical marijuana are primarily driving market growth in the region.
Market players operating in Canada legally export medical marijuana to the US. the US is one of the leading markets in the region, around 33 states have approved the use of marijuana for medical applications. Patients receive a card, which serves as proof of identity to use the product as recommended by their doctor. Expansion of dispensaries and product launches can propel the growth momentum of the global market in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The medical marijuana market is experiencing dynamic shifts influenced by regulatory changes and emerging research. Cannabis Sativa and Cannabis Indica, primary species, drive product diversity. FDA (Food and Drug Administration), pivotal in drug approvals, greenlit Epidiolex, Marinol, Syndros, and Cesamet. The oil and tincture segment, popular for CBD ((cannabidiol) integration, caters to diverse therapeutic needs. Stada, a key player, amplifies market competition.
Chronic pain, neuropathic pain, and neurological disorders are pivotal segments, with New York State Department of Health exploring applications for Amyotrophic Lateral Sclerosis (ALS). In the Asia Pacific, medical marijuana gains traction for Parkinson's, Alzheimer's, and cancer treatments. The market's trajectory intertwines legislative evolution, scientific breakthroughs, and patient-driven demand.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Analysis and Report Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.86% |
Market growth 2023-2027 |
USD 21.25 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.59 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, Canada, Germany, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aurora Cannabis Inc., Canopy Growth Corp., Cresco Labs LLC, Cronos Group Inc., CV Sciences Inc., Etain LLC, HEXO Corp., Isodiol International Inc., Jazz Pharmaceuticals Plc, Khiron Life Sciences Corp, Maricann Group Inc, Medical Marijuana Inc., MediPharm Labs Inc., Organigram Holdings Inc., Phoena Holdings Inc, Skye Bioscience Inc., Tikun Olam, Tilray Brands Inc., Trevena Inc, and Verano Holdings LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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