Written by: Tiffany Harper
The medical cannabis market has been growing annually and has shown positive future prospects. More new players have tapped into this market and certain countries have gotten on board with this movement.
The applications of this herb medically are numerous and the majority of the tests conducted on their efficacy have proved positive. Apart from helping heal, manage or cure diseases and medical conditions, cannabis has grown to a multi-billion industry over the years.
That means cannabis is no longer a self-remedy solution, but it has grown commercial and has been recognized on a global scale. How has this industry advanced and how will it continue to grow? Here is a report and forecast on the medical cannabis market global demand by industry, size, trend and technology advancement by 2025:
In 2018, the global legal cannabis market size was estimated at $13.8 billion and at its current growth rate, it is expected to reach a CAGR of 23.9 in 2025 which means something around $66.3 billion. The current change in statutes and regulations pertaining to cannabis legalization in certain countries is also driving more growth in this industry.
Also, identifying the different medical conditions that are cured or managed by using cannabis also fuels revenue. For example, cannabis has been reported to cure or manage diseases like arthritis, Parkinson’s disease, and other neurological disorders.
The increasing demand for effective pain management with the least side effects globally will heighten the need for legal cannabis. Almost all pharmaceuticals used to treat and manage medical disorders have their unfavorable side effects.
On the other hand, cannabis doesn’t have adverse side effects and all those factors are considered by consumers. In essence, the consciousness of consumers is also driving the growth of the legal cannabis sector and will continue doing so as data is more easily accessible freely.
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Cannabis is classified within its different classes and the parent classifications are recreational and medical. Some states and countries allow for recreational cannabis use but most of them only permit it for medical use.
The recreational cannabis market is larger than the medical marijuana industry and because of that, it might be easy to blur the lines between the two. Legal medical cannabis is prescribed by a doctor and its description is regulated by programs managed by the government. If cannabis isn’t regulated by the respective government programs, it is not classified as medical marijuana.
Some argue that any cannabis without THC is classified as medical marijuana but if it isn’t prescribed by a doctor, it doesn’t make up this market. If those sales were included in these industry calculations, these numbers would be much higher.
The government is trying to regulate both markets, recreational and medical cannabis industries with the intention of eradicating the black market.
Products of cannabis
The medical cannabis market has the following product types that sell the most:
Buds alone turned over revenue of about $7.3 billion in 2018 and oils are expected to turn over a CAGR of 20.5% within the next five years. Although the compounds found in cannabis can be isolated and used individually to treat diseases, doctors recommend the entire bud.
They state that the cannabinoids work together to combat that illness and they call that the entourage effect. Because of that, buds are also expected to be in great demand because they are the most prescribed by doctors.
In 2018, cannabis tinctures were estimated to have brought a turnover of $2.4 billion and its CAGR is forecasted to reach 28.7% by 2025. Smoking cannabis also heals glaucoma and nausea but is highly not recommended because of the adverse side effects. That causes the dry cannabis buds field to grow the slowest in the medical industry but instead witness vape sales increasing
The competition between existing players is very rife because a handful of companies have the financial means, technological resources, and legal clearance to tap into large-scale medicinal cannabis trade. That may cause the future of smaller players to be bleak but on the contrary, it may be bright.
There are research funds that are willing to fund startups to run innovative projects. Those research funds play a vital role in encouraging smaller companies to be involved in this movement. These funds also unlock fair competition because even lower-end businesses can have access to the resources the big players have.
Some of those big players include:
- Aphria, Inc
- Canopy Growth Corporation
- Aurora Cannabis
- Maricann Group, Inc
- The Cronos Group
- ABcann Medicinals, Inc
- Lexaria Corp.
- GW Pharmaceuticals, plc
- Organigram Holding, Inc
The growing demand and support given to newer players will break the entry barrier for new farmers and distributors.
As a student entrepreneur, you can also make full use of this initiative from the research funds. Same time, you must ensure that you don’t fall behind on your college and university studies.
Medical application insights
The industry is mainly comprised of the following categories:
- Mental disorders
- Chronic pain
The category holding the majority percentage of this industry is chronic pain which made away with 44% in 2018. The chronic pain statistics published by the National Health Interview Survey (NHIS) shows the potential of this industry.
In 2012, the NHIS published report states that there are more than 25 million adults that experience chronic pain and almost 40 million reported some type of pain.
The chronic pain field is followed by the mental disorders segment, which is predicted to be the fastest-growing by 2025. The increasing prevalence of mental disorders globally has opened room for medical cannabis usage.
Other applications also contribute to the growth of this market and they include multiple sclerosis, muscle spasms, arthritis, nausea, migraines, Irritable Bowel Syndrome and kidney failure. There is some evidence pointing towards people using cannabis to manage HIV/AIDS and muscular dystrophy which also makes up the applications of this herb.
Geographic location insights
The hotspots for medical cannabis are North America and Europe and other countries where it is legal. The demand in the North of America will remain the highest because of the U.S and Canada which entails the largest customer pool.
In Europe, the growth of the market may be limited because of the stringent rules and regulations pertaining to the cultivation and sale of cannabis.
According to one of the researches of Edubirdie review for college papers, that may also limit the overall availability on the global scale, which is contrary to the U.S that has 33 states where cannabis is legal. Because of the flexible regulations in the U.S, it has made up the largest market in the world and most of the revenue is derived from this country.
Polls show that the majority of Americans are in agreement with using cannabis for medicinal purposes. The growing support of Americans will fuel the growth in this region and thus remain the largest buyer of cannabis on a global scale.
The bottom line
Tapping into the medical cannabis market can be complex at times but once you make it in, the hard work pays off. The hotspots for development and growth are mostly in North America and then Europe, so that’s where you can consider looking for a gap in the market.
Tiffany Harper is an experienced freelance writer working with Aussie Essay <https://www.aussiessay.com/>, as a proofreader and the special subject matter expert with custom essay service <https://www.bestcustomessay.org/> and best essay writing service
<https://www.bestessaytips.com/review_essay.php>. She found herself in
writing very early and still improves her skills. Tiffany likes to write
during traveling and meeting new people. You can find her on Twitter