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The market for medical marijuana products is estimated to expand at a compound annual growth rate of ~21.9% internationally, adding more than $21.2B from 2022 to 2027, the global research firm Technavio said in a research report this week.
Medical marijuana is used to relieve clinical symptoms such as pain and epilepsy, and CBD, or cannabidiol, the non-psychoactive ingredient in cannabis plants, is an essential component of the product category.
With medical cannabis legalized in the U.S. and Canada, North America is expected to contribute 47% to the growth over the forecast period, according to the Technavio report.
Medical marijuana is currently legalized in far more statesin the U.S. than recreational cannabis, with 38 states making the compound legal, compared to 24 states where adult-use cannabis is legal.
In 2018, the U.S. FDA approved the first cannabidiol-based drug, Epidiolex, from GW Pharmaceuticals for certain rare forms of epilepsy. Jazz Pharmaceuticals (JAZZ) acquired the UK-based biopharmaceutical company for $7.2B in 2021. Other companies focused on cannabinoid-related drugs include Skye Bioscience (OTCQB:SKYE).
However, when it comes to medical marijuana, the market share of the oil and tinctures made from cannabis extracts will be significant during the forecast period, according to Technavio.
With legalization on the rise, the increased demand will facilitate market growth amid new product launches, while side effects linked to inappropriate use of medical marijuana could be a significant headwind.
Notable cannabis players operating in the medical marijuana market include Aurora Cannabis (NASDAQ:ACB), Canopy Growth (NASDAQ:CGC), Cresco Labs (OTCQX:CRLBF), Cronos Group (CRON), CV Sciences (OTCQB:CVSI), HEXO Corp. (HEXO), Khiron Life Sciences (OTCPK:KHRNF), Medical Marijuana (OTCPK:MJNA), Organigram Holdings (OGI), and Tilray Brands (NASDAQ:TLRY).