U.S. Medical Marijuana Market worth over $14.8bn by 2027
Published Date: April 20, 2021 Authors: Sumant Ugalmugle, Rupali Swain
U.S. Medical Marijuana Market size is set to surpass USD 14.8 billion by 2027, according to a new research report by Global Market Insights, Inc.
The U.S. medical marijuana market growth is owing to the suitable legal frameworks and increasing application of marijuana for a myriad of medical conditions across the U.S. states. Also, the increasing number of R&D activities coupled with numerous clinical trials are also expected to foster the market expansion during the forecast period. Furthermore, after legalizing the use of medical marijuana products in many states, there has been a fast-growing interest. These products have become popular due to their multiple uses that which include possible healing properties. Thus, usage of medical marijuana for various medical conditions will upsurge the market value of U.S. medical marijuana.
Increasing legalization of medical marijuana in various U.S. states will increase the growth avenues
Most of the U.S. states have started to approach medical marijuana from the perspective of public health rather than from a recreational use prospective. Also, U.S. medical marijuana programs have continued to develop. Thus, various U.S. states have demonstrated positive public health outcomes through the application of medical marijuana, thereby fueling the marker revenue. Majority of the U.S. population are in favor of using marijuana for medical applications, owing to which various states have now passed medical marijuana laws. Therefore, the application of marijuana for medical purposes has been legalized in 34 U.S. states as of 2020. Moreover, growing prevalence of chronic pain associated with cancer, neurological disorders, arthritis and HIV/AIDS will drive the industry growth.
Banking system creates one of the major drawbacks in the market
The U.S. medical marijuana market operates with various key suppliers such as processors, dispensaries and cultivators among others and U.S. is one of the leading countries in the industry. Therefore, several businesses target various parts of the country to engage in the market of U.S. medical marijuana. Additionally, a considerable financial support in terms of smooth transactions and capital investments become essential even for businesses dealing with medical marijuana. However, the banking system is governed by the U.S. federal government that identifies medical marijuana as illegal, even though majority of states have legalized its cultivation and consumption. Thus, due to such factors, the financial institutions offer higher fees to medium and small-sized enterprises, thereby reducing the business profitability while causing hindrances in the workflow.
Rising use of medical marijuana for the treatment of muscle spasms is poised to positively impact the market demand
The muscle spasms segment in the U.S. medical marijuana market is estimated to witness of 9.1% growth rate till 2027 led by increasing prevalence of multiple sclerosis. According to the National Multiple Sclerosis Study, it is anticipated that, approximately 1.0 million individuals are living with multiple sclerosis in U.S. Thus, this has garnered a significant attention towards medical marijuana, as it decreases muscle spasms and eases the pain, thereby supplementing the market progression of U.S. medical marijuana.
Browse key industry insights spread across 225 pages with 300 market data tables & 16 figures & charts from the report, “U.S. 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, Zonal Outlook, Price Trends, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Various advantages associated with oral route of administration will spur the segment growth
The oral segment accounted for USD 1.5 billion in 2020 impelled by various advantages of oral marijuana products including capsules. These products have a longer duration of action and can be advantageous for chronic symptoms. In addition, the bioavailability of such oral medical marijuana is noted to effective withing 2-3 hours of post consumption.
Several advantages of online channels offer a smooth delivery of medical cannabis from store-to-door
The online channels segment captured around 39.9% of the U.S. medical marijuana market share in 2020. Online channels offer the advantages including timely delivery, ensuring adequate supply. Also, it has been observed that patients as well as the elderly population in U.S. are able to access the product easily via online channels. Thus, as the online channels offer increased convenience, the segment is predicted to show the significant industry expansion during the forecast period. Furthermore, a switching trend of suppliers from traditional to mortar distribution model has been noted, thereby supplementing the segment value.
The growing legalization of marijuana in Mountain States will enhance the market growth
Mountain states in the U.S. medical marijuana market size will reach USD 2.3 billion by 2027 on account of increasing number of states legalizing marijuana and related products. Also, rising research and development activities pertaining to commercialization of medical marijuana products will further augment the zonal growth. Large patient population in the zone is also noted to remain one of the significant factors contributing to the zonal expansion. Moreover, medical marijuana is used to treat several medical conditions such as chronic pain, seizures and anxiety that will increase the demand for U.S. medical marijuana products and boost the industry value.
Companies undertake inorganic growth strategies to strengthen their business portfolio and revenue
Eminent key players operating in the U.S. medical marijuana market include 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.