The North America medical cannabis market witnessed significant growth in the past and is expected to grow at a CAGR of 17.1% during the forecast period (2022-2030).
Medical cannabis, also known as medical marijuana, is a herbal medication derived from Cannabis plants used to treat specific symptoms or diseases, such as cancer, chronic pain, and psychiatric disorders. Tetrahydrocannabinol (THC) and cannabidiol (CBD) are the main cannabinoids extracted from this plant that provide medicinal benefits. The market is developing because of expanding R&D efforts and financial assistance from numerous private and public organizations. The market for medical cannabis is expanding because of rising chronic disease prevalence and consumer acceptance of cannabis-based medicines.
Additionally, it is anticipated that the advancement of medicinal cannabis will fuel the development of this industry over the coming years through clinical trials and judgments made by regulatory agencies in developed countries. In addition, it is anticipated that over the forecast period, the status of medicinal cannabis will improve because of clinical trials and decisions taken by regulatory agencies in developed countries. But the market is constrained by a dearth of knowledge about the advantages of medical marijuana and strict regulatory requirements.
In North America, the population is affected by several chronic diseases, including glaucoma, multiple sclerosis, epilepsy, spasticity brought on by multiple sclerosis or spinal cord injury, fibromyalgia, and chemotherapy-induced nausea and vomiting. Because there is strong evidence that cannabis is an effective treatment for many ailments, the demand for cannabis-based medications is rising along with the prevalence of these conditions.
Eli Lilly and Company (U.S.) was initially prescribed for nausea and vomiting by cancer treatment. According to a study published in the Lancet Oncology journal, from 2018 to 2040, there will be a 53% increase in the number of patients requiring chemotherapy annually.
Legalization of Medical Cannabis in Various Regions
As more people become aware of its benefits, BD made from hemp is becoming legal in several countries. Numerous reasons, including nausea and vomiting connected to chemotherapy, stiffness in multiple sclerosis, HIV/AIDS cachexia, and neuropathic pain, provide evidence for the legal medicinal use of cannabis.
Cannabis has been shown to have positive health impacts, but it also has negative ones. Heavy or prolonged cannabis usage has been linked to addiction, altered brain development, decreased life satisfaction, cognitive impairment, and poor educational outcomes, according to a 2017 study published in the Pharmacy and Therapeutics journal. According to a study, dizziness was the non-serious side effect that participants exposed to cannabinoids reported occurring the most frequently (15.5% of the time). Chronic bronchitis and psychosis-related health issues are also more likely to develop in cannabis users over the long term. It is clear from the available data that cannabis' negative side effects can have a significant negative influence on market expansion.
Chronic illness patients are becoming more prevalent in North America. Numerous causes, such as an aging population, poor lifestyles, and environmental problems, are to blame. Medical marijuana can treat chronic conditions like epilepsy, cancer, arthritis, and pain.
Rising Awareness About the Benefits of Medical Cannabis
There is a growing awareness about the benefits of medical cannabis. People are becoming more aware of the potential of medical cannabis to treat a variety of conditions. This is leading to an increase in the demand for medical cannabis products.
The North America medical cannabis market is segmented based on Product Type, Derivative, Route of Administration, Application, Pain Management, Neurological Health Management, Mental Health Management, and Distribution Channel.
Based on Product Type, the North America market is segmented by Solids, Dissolvable/Powders, Oil and Ointments, and Creams
Dissolvable/Powders dominated the market and is expected to register a CAGR of 16.4% over the forecast period.
Based on Derivatives, the North America market is segmented by Cannabidiol and Tetrahydrocannabinol.
Cannabidiol dominated the market and is expected to register a CAGR of 16.9% over the forecast period.
Based on the Route of Administration, the North America market is segmented by Inhalation, Oral, and Topical.
Inhalation dominated the market and is expected to register a CAGR of 16.9% over the forecast period.
Based on Application, the North American market is segmented by Pain Management, Neurological Health Management, and Mental Health Management.
Pain Management dominated the market and is expected to register a CAGR of 18.7% over the forecast period.
Based on Pain Management, the North American market is segmented by Neuropathic Pain, Cancer, and Inflammatory Pain.
Inflammatory Pain dominated the market and is expected to register a CAGR of 18.8% over the forecast period.
Based on Neurological Health Management, the North American market is segmented by Sclerosis, Epilepsy, Alzheimer’s Disease, Parkinson’s Disease, and Others
Epilepsy dominated the market and is expected to register a CAGR of 15.8% over the forecast period.
Based on Mental Health Management, the North American market is segmented by Post- Traumatic Stress Disorder, Depression, Anxiety, and Others.
Anxiety dominated the market and is expected to register a CAGR of 13.9% over the forecast period.
Based on Distribution Channel, the North America market is segmented by Hospital Pharmacy, Retail Pharmacy, and Retail Pharmacy
Hospital Pharmacy dominated the market and is expected to register a CAGR of 13.5% over the forecast period.
The North America medical cannabis market is segmented by country into U.S. and Canada. U.S. dominates the country market and is expected to grow at a CAGR of 17.2% during the forecast period.
The U.S. and Canada each have a separate medical cannabis market in North America. The U.S. market is expected to grow due to important research associations, regulatory guidelines, and rising product acceptability. The available capital and investments in the businesses fuel the market's expansion. The businesses with their headquarters in this area are growing in new areas.
The U.S. industry is expanding because of the legalization of medical cannabis in several states. Oklahoma became the 30th U.S. state to legalize medical marijuana on June 26, 2018. The first state to legalize cannabis for both recreational and medical use was South Dakota in 2020. 37 U.S. states have legalized medicinal marijuana as of May 2021. Puerto Rico, the District of Columbia, and other U.S.-dependent territories have legalized it.
The target market is expected to grow as medical cannabis is increasingly legalized in U.S. states. Additionally, it is anticipated that regulatory norm revisions will make doing business easier. Cannabis licenses in Oregon, for instance, are tied to a particular stage of the production process, such as producer, processor, distributor, laboratory, retailer, or researcher. The 70/30 regulation, which required retailers to grow 70% of the medical cannabis they sold, was abolished in Colorado. Vertical integration of medical marijuana operations is still necessary in Florida and Hawaii. Around 32 states in the U.S. passed or had bills relating to cannabis in either chamber. This legislation sought to legalize medicinal marijuana, increase the amount of THC in therapeutic products, and serve other objectives.
One of the biggest producers of medical cannabis is located in Canada. With the legalization of medical cannabis in other nations, the companies with their headquarters in Canada are growing internationally. Cronos Group (Canada) operates on five continents, whereas Canopy Growth Corporation (Canada) is in Australia, Europe, Africa, and South America, thanks primarily to its subsidiary, Spectrum Therapeutics. Aurora Cannabis, Aphria Inc., and Tilray Inc. are significant manufacturers with Canadian corporate headquarters. The announcement of combining Tilray Inc. with Aphria Inc. in 2021 will create the largest cannabis firm by revenue worldwide.
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