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Growing adoption of medical marijuana is expected to propel revenue growth in near future.
Written By: Jen Neville
June 5, 2018
The global legal marijuana market is expected to reach USD 146.4 billion by end of 2025, according to a new report by Grand View Research, Inc. Growing adoption of marijuana in several medical applications such as cancer, mental disorders, chronic pain and others is expected to propel revenue growth in near future.
Legal marijuana has started gaining traction worldwide due to very high demand among consumers and increasing legalization of recreational or medical marijuana in various countries. Additionally, high public and private investment for research and the development of safer forms of ingesting marijuana such as tinctures, oils, vapes and other edibles are expected to positively reinforce market growth.
The number of conditions treated using medical marijuana is growing rapidly, as new patients are added to the market, the demand for medical marijuana is expected to increase multiple folds over the forecast period. Countries like Canada and the U.S. are moving towards legalization of marijuana for recreational purposes, this, in turn, is expected to create a shift from medical to recreational marijuana. Lengthy purchase and approval process for medical marijuana prescription and ease of availability of recreational marijuana is expected to trigger this change.
Increasing number of companies operating in the marijuana market is expected to bolster the quantity and variety of products reaching the end users.Products like marijuana oil have started gaining traction over the past few years owing to increased effectiveness and safety as compared to smoking it.
Also, the growing research in cannabis industry has led to the introduction of new marijuana strains. These advances in new product development is expected to enhance product adoption among consumers.
Legal marijuana market is witnessing strong technological and information exchange. Countries like Canada, the U.S., Germany and Australia are expected to emerge as leading markets in terms of sale, whereas, countries like Israel are focusing on research and technology development and are leveraging on knowledge transfer.
Further Key Findings From the Report Suggest:
• The U.S. legal marijuana market size was estimated at USD 7.06 billion in 2016 and is expected to grow at a CAGR of 24.9% from 2017 to 2025
• Medical marijuana emerged as the largest marijuana type segment in 2016 and is estimated to be valued at USD 100.03 billion by 2025
• By product type, marijuana buds segment was estimated to be dominant in 2016 with revenue share of 62.9% and is estimated to be valued at USD 82.9 billion by end of 2025
• Some players operating in legal marijuana market are Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, Maricann Group, Inc., Tilray, The Cronos Group, Organigram Holdings, Inc, ABcann Medicinals, Inc., and Tikun Olam