Frost & Sullivan’s recent analysis on medical cannabis in the US finds that, even though the Food and Drug Administration (FDA) has approved only a few medical marijuana-derived products, there will be a strong growth trajectory over the next few years. The total revenue of the US market is expected to grow from $5.32 billion in 2017 to $10 billion in 2022, at a compound annual growth rate (CAGR) of 13.6%.
Frost & Sullivan, in partnership with Tarsus, has recently released its analysis, US Medical Marijuana Market, Forecast to 2022, which provides an assessment of trends, challenges, and growth opportunities. Business models, market dynamics, technology applications, and investment opportunities are also discussed.
Emerging growth opportunities in this market include:
- Health Canada, the department of the Canadian government responsible for their national public health, covers the use of medical cannabis for pain and diseases like epilepsy, and will be a reference for future US policies.
- Billions of dollars are being invested in cannabis research across the globe to study the effects of cannabis on different medical conditions.
- Big pharma companies have the capital and regulatory expertise to get Cannabis Based Drugs (CBD) approved.
The medical marijuana market is growing in the United States despite the fact that the Food and Drug Administration (FDA) has not yet approved any medical marijuana products. These marijuana-based products have not yet passed through the rigorous tests and clinical trials required for medical drug approvals in the United States. At the Federal level, marijuana is still considered an illegal Schedule 1 drug. Individual states, however, have laws in place for the legal use of medical marijuana, and in some states, for the use of recreational marijuana. Cannabidiol (CBD) products are also legally available in some US states as well as in many other countries. The market generates a lot of money, though much of that money is still considered a black market.
