Medical Marijuana Market Analysis By Application (Chronic Pain, Arthritis, Migraine, Cancer), By Country (U.S., Canada, France, Italy, Switzerland, Israel, Belgium, Croatia, Finland, Netherlands, Portugal, Czech Republic, Estonia), And Segment Forecasts, 2018 - 2025

Industry Insights

The global medical marijuana market size was valued at USD 11.4 billion in 2015 and is projected to grow with CAGR of 17.1% during the forecast period. The market is experiencing growth due to rising awareness regarding various medical applications such as pain management, appetite enhancement, and reducing eye pressure.

Medical marijuana is mainly classified into two types, namely Cannabis Sativa and Cannabis indica, which originate from the countries of the western hemisphere and central & south Asian region respectively. The growing number of countries legalizing the use of medical marijuana in various parts of this world is one of the key factors driving the usage rate of cannabis in therapeutic applications.

U.S. medical marijuana market by application, 2013 - 2025 (USD Billion)

The growing number of mergers and acquisitions in the medical cannabis industry is one of the key attributes that is expected to boost the market over the coming few years. Some of the recent M&A activities in 2016 are as follows:
          • Nexus Corporation was acquired by Gibraltar Industries
          • Cannabase entered into a partnership with BioTrackTHC

The growing number of states legalizing medical marijuana and increasing demand for cannabis in medical and recreational applications are some of the pivotal factors that are expected to propel demand for medical marijuana over the coming years. The growing research and development activities is also expected to drive the demand for the drug over the forecast period.

Application Insights

The chronic pain segment held 39.6% of the revenue share in 2015. Reports of various researchers, states that medical cannabis is safe for treating patients with chronic pain and neuropathic pain. The growing number of clinical trials with marijuana to treat neuropathic and chronic pain is one of the key indicators, which showcases rising usage of cannabis in pain management over the coming few years. The New York’s “New Medical Marijuana Law” states that a patient certified by a healthcare professional to use medical marijuana, possessing a patient identification card registered with the New York State Department of Health is eligible to use medical marijuana for pain management.

However, cancer will be the fastest growing application segment with a CAGR of 18.2% during the forecast period. By federal law, the usage of cannabis without a research setting is considered to be illegal. However, the rapidly growing number of states, districts, and territories enacting laws to legalize the drug is also driving its demand in the cancer treatment.

Various clinical trials have indicated that marijuana has displayed cancer cell destroying capabilities. However, the drug is not approved by the U.S. FDA for the treatment of cancer, which is a key restraining factor for the growth of this application segment. Moreover, the growing prevalence of cancer and increasing interest amongst researchers regarding the use of medical marijuana in cancer treatment are some of the factors responsible for driving this market over the coming years.

Regional Insights

On account of the fact that the medical use of cannabis is not yet approved in the majority of Asian and Latin American economies thus, the regional scope is limited to North America, Europe and RoW. North America held a majority of the share of nearly 49.0% in 2015. The surging pace of cannabis legalization in the U.S. is one of the key factors contributing to its increased demand. In the U.S., cannabis has been legalized for recreational uses in 4 states and 5 states, namely, California, Maine, Arizona, Massachusetts, and Nevada have voted for its legalization for recreation needs also.

Europe medical marijuana market, by country, 2015

Moreover, growing number of significant players investing in the U.S. and the Canadian market is also expected to drive the market over the forecast period. North America is also projected to be the fastest growing market with a CAGR of 22.0% during the forecast period.

Competitive Insights

Some of the major players operating in this market are Cara Therapeutics Inc.; Cannabis Sativa, Inc.; CannaGrow Holdings, Inc.; United Cannabis Corporation; Growblox Sciences, Inc.; GreenGro Technologies, Inc.; GW Pharmaceuticals plc; International Consolidated Companies, Inc.; and Lexaria Corp.

The Canadian government’s announcement to limit the number of licenses for growers, and distributors will positively reinforce the growth of the large players such as Aurora Cannabis, Canopy Growth, and Aphria Inc.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2025. For the purpose of this study, Grand View Research has segmented the medical marijuana market on the basis of application and region:

• Application Outlook (Revenue, USD Million; 2013 - 2025)

  • Chronic Pain

  • Arthritis

  • Migraine

  • Cancer

  • Others

• Regional Outlook (Revenue, USD Million; 2013 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Belgium

    • Croatia

    • Finland

    • France

    • Italy

    • Netherlands

    • Portugal

    • Romania

    • Switzerland

    • Czech Republic

    • Estonia

  • ROW

    • Israel