Market analysts project that the U.S. medical cannabis market will be valued at $19.48 billion by 2024.
The medical marijuana market in the United States will be worth nearly $20 billion in six years time, according to a new market research report. Analysts at Hexa Research believe a favorable regulatory environment and an increase in the number of states with legal medical cannabis will propel the market from $5.44 billion in 2016 to $19.48 billion in 2024.
“The medical marijuana market is at the nascent stage of development and is expected to grow significantly during the forecast period owing to rising consumer demand,” the Hexa Research report’s summary reads.
As of now, 29 U.S. states and Washington D.C. have passed laws legalizing cannabis for consumption in medical cases. That number is expected to rise over the next few years, as campaigns for ballot initiatives are already underway in Utah, Oklahoma, and Missouri. A separate industry research report published earlier this year even suggested medical marijuana legalization could expand across the entire U.S. in four years.
“… The number of states receiving approval to consume marijuana for medical use is expected to grow substantially; hence the market is expected to flourish over the forecast period,” reads the report by the market research and consulting organization.
California currently leads all states in the U.S. medical marijuana market, according to the report, accounting for 45.4 percent of all revenue in 2016. Michigan, which legalized medical marijuana in 2008 and has since struggled to establish its program, has recently passed a collection of bills to develop its market. Hexa Research predicts Michigan’s medical cannabis market will respond and grow at a CAGR exceeding 17 percent.
The report found chronic pain to be the largest segment of medical marijuana patients in 2016, accounting for 46 percent of the nation’s entire medical market. It anticipates that the arthritis segment will grow significantly over the next few years, due to an aging population and lifestyle-related issues that contribute to joint inflammation and pain. Hexa Research predicts that the demand for medical marijuana for arthritis will grow at a compound annual growth rate (CAGR) of 17.8 percent over the projected period.
The other top symptoms and conditions that dominated the medical marijuana market in 2016 were found to include cancer, epilepsy, nausea, Alzheimer’s disease, anorexia, AIDS and HIV, glaucoma, cachexia, Crohn’s disease, migraines, and multiple sclerosis.
Solid edibles, which include products like cannabis-infused brownies, or candies, were valued at $2.47 billion in 2016 and are expected to grow at a 17.8 percent over the forecast period. Liquid edibles, including cannabis-infused coffee and root beer, were worth $0.8 billion in 2016 and are expected to experience the fastest growth of all product segments over the next four years.
Further fueling the nation’s medical marijuana market is the support for legalizing medical marijuana among Americans now being at an all-time high.
“Consumer attitude towards the herb is continuing to shift positively every year owing to its acceptance and… benefits,” the Hexa report reads.
The report also highlights companies that have entered the cannabis industry and includes Medical Marijuana, Inc. among those it considers as current key players operating in the cannabis space.
The entire report — “U.S. Medical Cannabis Market Size and Forecast, By Usage (Chronic Pain, Arthritis, Migraine, Cancer), By Consumption (Solid Edibles, Inhalation, Liquid Edibles, Topical), By State (California, Colorado, Washington, Arizona, Michigan), And Trend Analysis, 2014 – 2024″ – is available via Hexa Research.