Medical Marijuana Market size worth over $87.4bn by 2027
Published Date: March 22, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Medical Marijuana Market size is set to exceed USD 87.4 billion by 2027, according to a new research report by Global Market Insights, Inc.
The medical marijuana market growth is owing to the suitable legal framework in states and countries across regions. The increasing number of R&D activities coupled with numerous clinical trials are also expected to upsurge the market expansion during the forecast period.
Increasing applications open newer growth avenues in the market
The growing prevalence of cancer is one of the primary driving forces for the market value. Medical marijuana is currently being studied for the treatment of cancer as it is claimed to be effective against the illness. Several formulations of medical marijuana are currently approved to treat the nauseatic conditions caused post-chemotherapy as well as cancer related pain. Hence, the rising prevalence of cancer significantly contributes to the market revenue. Further, medical marijuana is also being considered to replace certain NSAIDs (Non-steroidal anti-inflammatory drugs) as it is relatively safer than opiates and can be prescribed to patients with problems relating to ulcers and kidneys. Cumulatively, these factors are projected to propel the demand for medical cannabis during the forecast timeframe.
Banking system creates one of the major roadblocks in the medical marijuana success story
The medical marijuana market operates with the participation of several key supply chain participants, including cultivators, processors, as well as dispensaries, among others. As U.S. is noted to be one of the leading countries in the market, several businesses target various parts of the country to engage in the market while being profitable. As for any traditional business, a considerable financial support in terms of capital investment and smooth transactions, among others, become essential even for businesses dealing with medical marijuana. However, the banking system is governed by the federal government of U.S. which identifies medical marijuana as illegal, even though majority of states have legalized its cultivation and consumption. Owing to this setback, several financial institutions refrain from engaging with businesses operating in the industry while some are noted to offer higher fees to small- and medium-sized enterprises (SMEs). Such activities reduce the business profitability while causing hindrances in the workflow. Several dispensaries are also noted to operate without a bank account and dealing only with cash, thereby increasing the social risks associated with it. Such loopholes are anticip ated to cause roadblocks for the medical cannabis market in the country in the short- to mid-term forecast period while amendments are anticipated over the long-term forecast period. These are also noted to lead to tandem effect on the global market.
Growing confidence in medical marijuana for the treatment of muscle spasms is poised to optimistically fuel the industry growth
Muscle spasms segment in the medical marijuana market is estimated to showcase 18.1% growth rate till 2027. It is slated that nearly 3 million people have multiple sclerosis globally. This is complimented by nearly 15 million cases of spinal injuries with similar symptoms leading to limited movement, severe pain as well as abrupt sleep schedule. It is noted that traditional medications provide relief but are sometimes associated with side effects. This has garnered a significant attention towards medical marijuana as it eases the pain and also decreases muscle spasms. Several animal researches have also suggested that medical marijuana eases muscle spasms and assists sleep. These factors largely contribute to the robust growth witnessed by muscle spasms segment.
Browse key industry insights spread across 150 pages with 214 market data tables & 13 figures & charts from the report, “Medical Marijuana Market Size By Application (Pain Management, Muscle Spasms, Nausea, Anorexia, Seizures), By Route of Administration (Inhalation, Oral, Topical), By Distribution Channel (Dispensaries, Online), Industry Analysis Report, Regional Outlook, Price Trends, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Oral route of administration is predicted to garner stable revenue
The medical marijuana market for oral segment accounted for USD 4.9 billion in 2020. The bioavailability of orally ingested medical marijuana is noted to be in the range of 5% - 20% and the effects are noticeable 2-3 hours post consumption. The market penetration of several pills and sprays has largely impacted the segment growth. A similar trend is expected for the segment over the forecast period, making it a crucial route of administration in the market.
Several advantages of online channels offer a smooth delivery of medical cannabis from store-to-door
The online channels held around 41.6% of medical marijuana market share in 2020. Online channels offer the advantages such as timely delivery, ensuring adequate supply as well as increased market access to patients as well as the elderly population. These are noted to gain traction gradually as consumers as well as suppliers get accustomed to the traditional brick and mortar distribution model. As the online channels offer increased convenience, the segment is anticipated to compliment the distribution of medical cannabis during the forecast period.
The rising geriatric population is one of the prominent factors spurring the growth of medical marijuana in the European countries
Europe medical marijuana market is estimated to reach over USD 62 billion by 2027. The legalization of medical cannabis in Germany in 2017 has led to other countries of Europe to consider legalization bills. Significant public support in the favor of legalization has also compelled the governments to simplify the regulatory structure. Large patient population in the region is also noted to remain one of the significant factors contributing to the regional growth.
Inorganic growth strategies shape the supply-side market
Large scale legalization of medical marijuana in numerous countries has attracted several players in the industry. Key companies operating in the medical marijuana market are Aurora Cannabis, Inc., Aphria, Inc., GW Pharmaceuticals, Medical Marijuana, Inc., The Supreme Cannabis Company, Tilray, Emerald Health Therapeutics, Cannabis Sativa, Inc., and Namaste Technologies Inc., among others. Acquisition and expansion strategies are noted to remain prominent among manufacturers to gain revenue share while establishing a firm reputation in the market.