A new report published by The Insight Partners shows that the global medical marijuana market is expected to grow at a CAGR of 19.2% reaching a value of $40 billion by 2028. The global medical marijuana market size was valued at just $11.70 billion in 2021. The increasing approvals of medical marijuana products and rising acceptance of the medicinal use of marijuana are among the key drivers for this market growth.
Researchers believe that the medical marijuana industry will be one of the fastest growing sectors investors can participate in over the next decade. The U.S. electric vehicle market, which is expected to exhibit substantial growth during the same forecast period (2021-2028), has an estimated CAGR of 25.4% according to a report published by Fortune Business Insights earlier in the year.
It is true that the COVID-19 pandemic has harmed many cannabis companies’ bottom lines; however, it hasn’t impacted the medical marijuana market in the same way it has the recreational/adult-use market. Increased demand from patients over the past year has helped prop up the medical marijuana industry during these tough times.
Millions of Americans, especially older individuals, are turning to medical marijuana for managing their chronic pain symptoms. 37 states and the District of Columbia have legalized marijuana usage for medical purposes as of April 2022. This increasing number of states that have legalized medical marijuana makes it easier for more people to obtain a prescription from their doctor, making cannabis more accessible than ever before.
The medicinal potential of marijuana has attracted various researchers and companies to use marijuana in medical applications. For instance, in June 2018, the Food and Drug Administration approved Epidiolex, the country’s first FDA-approved drug derived from cannabidiol, manufactured by G.W. Pharmaceuticals. It has been approved for adults and children aged two years or older.
The FDA also approved THC-based medicinal products such as Cesamet which contains nabilone as its active ingredient. Cesamet is a synthetically derived product that has a structure similar to THC, and is typically prescribed by doctors for the treatment of nausea in patients receiving chemotherapy, especially when other medications fail to control nausea and vomiting symptoms.
The FDA has already approved Marinol and Syndros for therapeutic uses in the US. Marinol and Syndros contain the active ingredient dronabinol — a synthetic 9-THC considered the psychoactive component of cannabis.