Marijuana, or Cannabis, is a psychoactive drug extracted from the Cannabis plant and is primarily used for medical and recreational purposes. Apart from the 483 known components in the plants, tetrahydrocannabinol (THC) is the main psychoactive component along with at least 65 others cannabinoids, including cannabidiol (CBD).

Legality of Marijuana

The legality of marijuana for medicinal and recreational purposes varies from country to country. Besides, these policies in most of the countries are regulated by three United Nations treaties, namely, the 1961 Single Convention on Narcotic Drugs, the 1971 Convention on Psychotropic Substances, and the 1988 Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

The use of cannabis for recreational purposes is prohibited in most countries. But the countries that have legalized the recreational use of Cannabis are Canada, Georgia, Uruguay, and South Africa, along with the District of Columbia in the United States and the Australian Capital Territory in Australia.

Commercial production and sale of marijuana are legal nationwide in Canada and Uruguay along with all subnational U.S. jurisdictions except for Washington, DC. Additional some countries, like the Netherlands, have adopted a policy of limited enforcement where the sale of cannabis is tolerated at licensed coffeeshops.

Countries like Argentina, Brazil, Chile, Colombia, Czech Republic, Denmark, Finland, Germany, Ireland, Israel, Italy, Jamaica, Lebanon, Malta, New Zealand, Norway, Peru, Poland, Portugal, Sri Lanka, Switzerland, Thailand, the United Kingdom, Uruguay, and others have legalized the use of marijuana for medical purposes. While, rest of them have restrictive laws that permit only the use of certain cannabis-derived pharmaceuticals, such as Sativex, Marinol, or Epidiolex. Furthermore, the United States and the District of Columbia have legalized the medicinal use of cannabis, but at the federal level, its applications remain prohibited.

Market dynamics

The medical marijuana market is expected to have a double-digit growth rate during the forecast years, owing to the increasing adoption of medical marijuana for treating patients with chronic conditions, rising legalization of medical marijuana in numerous countries, and the elimination of black marketing of marijuana. Furthermore, the elevating count of research and development activities and clinical trials along with the growing application of cannabis seeds in cosmetic products are also likely to expand the global market size in the upcoming years.

However, factors such as the high cost of cannabis in developed markets, complex regulatory structure for the use of medical marijuana, and the side effects associated with its long-term usage are likely to decrease the demand for medical marijuana globally.

Furthermore, the growing adoption of marijuana for recreational purposes coupled with elevating count of the geriatric population worldwide are likely to offer lucrative growth opportunities in the next few years. The World Population Aging 2020 Highlights, by the United Nation’s Department of Economic and Social Affairs, estimated a global count of 727 million people aging 65 years or over in 2020. Nevertheless, the side effects associated with the use of cannabis and the shortage of skilled professionals will still serve to be the challenging factors, restricting the growth of the medical marijuana market.

Market segmentation

The legal marijuana market is segmented into type, product type, and medical application. Based on type the market is fragmented into medical and adult use. The adult-use segment is dominating the market, owing to the legalization of cannabis in Canada and the US. Whereas, the medical segment is reported to have steady growth, accounting for the increasing awareness about medical benefits of this drug coupled with its robust demand for pain management.

The product type segment is divided into flower and oil. The oil segment is calculated to have the majority of market shares, owing to the legalization of marijuana for recreational application and the increasing use of marijuana oil in countries like Canada, Colombia, Uruguay, etc.

On the basis of medical application, the market is segmented into chronic pain, mental disorder, cancer, and others. The segmental growth is led by chronic pain, followed by mental disorders and cancer. The growth is attributed to the increasing use of this component to elevate pain.

Besides, the growing awareness about the benefits of consuming cannabis is also likely to support the segmental growth during the forecast years. Region-wise, North America is expected to dominate the segment, accounting for the legalization of marijuana and the presence of key cultivators within this region.

Medical marijuana in the pipeline

A rich pipeline and the involvement of companies shall further accelerate the growth of the cannabis industry. Prominent companies, such as Arena Pharmaceuticals, Canbex Therapeutics, Centrexion Therapeutics, Corbus Pharmaceuticals, MedReleaf, Tetra Bio-Pharma, Therapix Biosciences, TO Pharmaceuticals, and others, are exploring the usage and benefits of this drug in treating different ailments and are at different stages of clinical trials.

Pipeline therapies include Olorinab (Arena Pharmaceuticals), VSN16R (Canbex Therapeutics), CNTX-6016 (Centrexion Therapeutics), Lenabasum (Corbus Pharmaceuticals), Caumz (Tetra Bio-Pharma), THX-110 (Therapix Biosciences), Cannabis oil (TO Pharmaceuticals), and others.

Market players

Marijuana products offer medical benefits and are thereby used in the treatment of numerous chronic conditions. This is the major factor attracting prominent players for research and development of this drug, increasing their product offering. The list of major players involved with the production of products from marijuana accounts to Canopy Growth Corporation, Aurora Cannabis, Aphria, Inc., Tilray, ABcann Medicinals, Inc., The Cronos Group, Maricann Group, Inc., Organigram Holding, Inc., Lexaria Corp., GW Pharmaceuticals, plc., United Cannabis Corporation, Tikun Olam, Ltd., and Cannabis Sativa, Inc.