Medical Marijuana Market Research Report and Outlook by 2028

The medical marijuana sector was valued at approximately US$ 11,706.50 million in 2021 and is projected to grow to US$ 40,027.59 million by 2028, reflecting a compound annual growth rate (CAGR) of 19.2% from 2022 to 2028. This report outlines the prevailing trends and key factors propelling the medical marijuana market. The growth is primarily driven by the increasing approvals of medical marijuana products and a growing acceptance of marijuana for medicinal purposes. However, the illegal use of cannabis as a recreational drug and widespread misconceptions about marijuana continue to hinder market expansion.

Medical marijuana is currently in its nascent stage within the healthcare industry. It is a powerful product that has gained global acceptance, with countries like China already manufacturing medicinal products derived from these plants, supported by a long-standing historical context. Medical marijuana plays a crucial role in healthcare, particularly for conditions that may not respond well to conventional treatments. Essentially, medical marijuana refers to the cannabis plant that has been processed to extract the essential cannabinoids necessary for therapeutic use.

In North America, the legalization of medical cannabis has gained momentum. For example, in 2012, Uruguay became the first nation to legalize recreational cannabis. Following this, Brazil authorized medical cannabis in 2014, and by 2016, it permitted the importation of medications containing CBD oil and THC. In 2017, Peru enacted legislation to regulate the medicinal use of cannabis and its derivatives. The Government of Canada passed the Cannabis Act in 2018, establishing a comprehensive legal framework for the production, distribution, sale, and possession of cannabis. As of February 2022, marijuana had been legalized in 37 states and the District of Columbia in the United States. Recently, countries like Mexico, Luxembourg, and Lesotho have also legalized marijuana for medical purposes.

Despite the broad legalization of cannabis, its legal cultivation and production have historically been concentrated in developing nations. In September 2019, Jamaica's Ministry of Commerce, Agriculture, and Fisheries announced a collaboration with the Harvard International Phytomedicines and Medical Cannabis Institute (HIPI) to explore the pharmacological benefits of marijuana. This partnership aims to bolster Jamaica's national marijuana industry. Furthermore, the World Health Organization (WHO) reports that approximately 80% of the global population utilizes cannabis for medicinal purposes. Thus, the increasing acceptance and cultivation of medical marijuana in developing countries significantly contribute to the market's growth.

The medical marijuana market is categorized by product type into dried form and extract form. The extract form segment dominated the market share in 2021 and is expected to achieve a higher CAGR of 19.3% during the forecast period. This growth is driven by the rising demand for liquid extracts in medical applications, the increasing trend towards health and wellness through natural products, and heightened awareness of the advantages of extracts over dried marijuana.

In terms of application, the medical marijuana market is divided into segments such as pain management, Tourette syndrome, Alzheimer's disease, migraines, depression and anxiety, multiple sclerosis, cancer, and others. The pain management segment held the largest market share in 2021, while the multiple sclerosis segment is anticipated to grow at the fastest CAGR of 20.3% from 2022 to 2028. The growth in the pain management segment is fueled by the rising incidence of trauma and hypertension, an increasing demand for muscle and nerve stimulators, and the growing prevalence of lifestyle-related disorders like obesity and diabetes.

Distribution channels for medical marijuana include retail pharmacies, e-commerce, and others. The retail pharmacy segment accounted for the largest market share in 2021, but the e-commerce segment is projected to grow at the fastest CAGR of 19.8% during the period from 2022 to 2028. The retail pharmacy segment benefits from a highly regulated supply chain, expert consulting, and patient solutions that enhance adherence to treatment.

Impact of COVID-19 on the Medical Marijuana Market

Despite the challenges posed by the COVID-19 pandemic, the medical marijuana market found significant growth opportunities. The demand for nutritious products surged during this period, as a healthy diet was seen as essential for building immunity against SARS-CoV-2. Companies producing hemp food products reported increased sales; for instance, Hemp Foods Australia (HFA) experienced a 22% sales increase in the last quarter of 2020.

Currently, countries like Australia and New Zealand only produce hemp products for the food and beverage sector, lacking CBD-based products due to regulatory restrictions. Conversely, in Hong Kong, CBD products are available despite a limited food market, and in Japan, CBD-infused food and beverages are offered in various outlets. However, nations like China and India have yet to permit CBD-based food products. The rising sales of cannabis and hemp products are expected to further propel market growth during the forecast period.

Companies in the medical marijuana market are employing various organic and inorganic strategies to enhance their presence. Organic strategies include product launches and approvals, while inorganic strategies involve acquisitions, collaborations, and partnerships. These strategies enable market players to expand their operations and strengthen their geographic reach, contributing to overall market growth. Notable developments in the medical marijuana sector include:

• In February 2021, CANAQUEST MEDICAL CORP announced a production and distribution agreement with PurCann Pharma and SiliCycle Inc. to facilitate the global export of Mentanine and Mentabinol formulations.


• In May 2020, Aphria Inc. announced its transition from the New York Stock Exchange to The Nasdaq Global Select Market, maintaining its listing under the ticker symbol "APHA." This move is expected to enhance its market presence.

Key sources referenced in the preparation of this report include the World Health Organization (WHO), the Centers for Disease Control (CDC), and the Food and Drug Administration (FDA), among others.