The ever-growing legalization of cannabis is driving the marijuana market. Many countries, like Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, and more, have legalized the use of cannabis for medicinal purposes. According to a new report by Grand View Research, Inc., as of 2019, the legal marijuana market was valued at 17.7 billion US dollars and is expected to reach 73.6 billion by 2027. As the market grows, it is important to look at the leading statistics, like the geography, the medical applications, and the product type. Keep reading for a brief cannabis market analysis below.
North America dominated the cannabis market by 88.4% in 2019. From medical to adult-use, cannabis is becoming increasingly normalized in the United States. By the beginning of 2020, cannabis has been legalized in 11 states for adults over the age of 21 and for medical use in 33 states. To keep up with each individual state and their laws on marijuana use as time goes on, follow DISA Global Solutions.
Usage in Medical & Mental Health
The medical application of cannabis can be used for chronic pain, mental disorders, cancer, and much more. Chronic pain is at the top of the list for contributions to the cannabis market with the patient revenue share of 43.6% in 2019. There is a growing need for pain management across the globe, as many people suffer from chronic pain illnesses. According to the Centers for Disease Control and Prevention (CDC), in 2016, around 20.4% of adults in the US had chronic pain. Mental disorders are also expected to be a fast-growing segment in the coming years.
Categories of Cannabis
Based on product type, cannabis is broken down into three main categories: buds, oils, and tinctures. As of 2019, buds were at the top of the market with a revenue of 9.1 billion US dollars, while the oils are expected to experience more growth in the next few years. Dried buds are normally used for smoking to alleviate pain, reduce cancer growth, and to stop the progression of Alzheimer’s disease. Smoking is also much more economical than oral products or tinctures, which is why most people prefer smoking it.
Cannabis Market Growth
Continuous research and standardization of products for medicinal purposes are expected to increase the popularity, as well as demand for cannabis in the future. With marijuana having the potential to treat conditions like Alzheimer’s, anorexia, HIV-AIDS, glaucoma, cancer, arthritis, epilepsy, nausea, pain, cachexia, Crohn’s disease, migraines, multiple sclerosis, spasticity, and wasting syndrome, the market is only expected to grow. Over the coming years, many will be jumping on the opportunity to be a part of this new innovation.
Looking for a more thorough and specialized cannabis market analysis? Contact Canna Business Services to learn more about the cannabis consulting services we have to offer.