US Medical Cannabis Market Research Report: By Product Type (Solids, Dissolvable/ Powders, Oil, Ointments & Creams), By Derivative (Cannabidiol, Tetrahydrocannabinol), By Route of Administration (Inhalation, Oral, Topical), By Application (Pain Management, Neurological Health Management, Mental Health Management), By Pain Management Sub-segments (Neuropathic Pain, Cancer, Inflammatory Pain) and By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, Online Pharmacy) - Forecast to 2035

US Medical Cannabis Market

As per MRFR analysis, the US Medical Cannabis Market Size was estimated at 4.01 (USD Billion) in 2023. The US Medical Cannabis Market Industry is expected to grow from 5(USD Billion) in 2024 to 15 (USD Billion) by 2035. The US Medical Cannabis Market CAGR (growth rate) is expected to be around 10.503% during the forecast period (2025 - 2035).

Key US Medical Cannabis Market Trends Highlighted

The US Medical Cannabis Market is experiencing significant growth driven by evolving state regulations, increasing acceptance of cannabis for medical purposes, and the push for research on its therapeutic benefits. Many states have enacted legal frameworks that allow for the medical use of cannabis, reflecting a shift in public opinion and governmental support. This change has opened doors for a variety of cannabis-based products aimed at treating conditions such as chronic pain, epilepsy, and multiple sclerosis, among others. The opportunity to explore and capture the market lies in expanding product lines, particularly in developing new formulations and delivery methods such as edibles, topicals, and tinctures, which appeal to a diverse consumer base.

Recent trends highlight an increase in the interest surrounding cannabinoids beyond THC and CBD, fostering innovation in product development. States like California and Colorado are leading examples of how a well-regulated market can thrive, influencing other states to consider similar legislative measures. Demand for sustainable and organic cannabis products is also rising, as consumers become more health-conscious. As further studies emerge on the efficacy of medical cannabis, there is a growing potential for partnerships between healthcare providers and cannabis companies, ultimately aiming to integrate these products into conventional medical solutions.

Access to medical cannabis continues to evolve, with many states pursuing ways to increase patient access and simplify the recommendation process, making it easier for patients to benefit from cannabis therapy.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Medical Cannabis Market Drivers

Increasing Acceptance of Medical Cannabis in Healthcare

The acceptance of medical cannabis as a legitimate treatment option is rapidly gaining momentum in the United States, driven by evolving perspectives from healthcare professionals and patients. According to a survey conducted by the American Medical Association, over 70% of American doctors now support the use of cannabis for therapeutic purposes. This shift represents a significant change from previous stigmas, contributing to the growth of the US Medical Cannabis Market Industry. Furthermore, legislative changes across various states have also fostered an environment where medical cannabis can be legally prescribed and used to treat conditions such as chronic pain, epilepsy, and multiple sclerosis.

In 2021, the American Academy of Family Physicians published findings indicating that approximately 40% of patients with chronic pain have turned to cannabis as an alternative to opioids, which aligns with the increasing patient demand for cannabis-based treatments. As more states reevaluate their cannabis policies and as healthcare practitioners become more knowledgeable about the benefits of cannabis, the market is poised for substantial growth, projected to expand significantly in the coming years.

Rising Incidence of Chronic Diseases

The prevalence of chronic diseases among the US population is a significant driver of the US Medical Cannabis Market Industry. According to the Centers for Disease Control and Prevention (CDC), about 60% of American adults live with at least one chronic condition, and nearly 40% have two or more chronic diseases. Medical cannabis has shown promise in relieving symptoms associated with various chronic conditions, including arthritis, diabetes, and heart disease. This situation is further compounded by data from the National Institute of Health, which suggests a growing recognition of medical cannabis among healthcare providers as an effective adjunct therapy.

Consequently, as the aging population increases and the number of individuals suffering from chronic illnesses rises, the demand for medical cannabis is expected to see a parallel increase, thus driving market growth.

Favorable Regulatory Environment

The US has witnessed a continuous evolution in the regulatory framework surrounding medical cannabis, significantly impacting the US Medical Cannabis Market Industry. States have increasingly adopted laws permitting the medical use of cannabis, with 38 states and the District of Columbia legalizing it for medicinal purposes as of 2023. This changing legal landscape not only enhances market access for producers but also encourages investments in Research and Development (R&D) of cannabis-based therapies. For instance, recent policy changes in states like New York and California have streamlined the approval process for medical cannabis products, setting a precedent for other states to follow.

Furthermore, federal re-evaluations such as the potential reclassification of cannabis under the Controlled Substances Act could foster a more comprehensive regulatory environment, thus benefiting manufacturers and consumers alike. The increasing number of dispensaries and medical practitioners certified to recommend cannabis will likely contribute to market expansion.

Growing Interest in Cannabis-related Research

Research and Development in the field of medical cannabis have increased significantly, fostering advancements in understanding its therapeutic potential. The National Institutes of Health (NIH) reported a 200% increase in cannabis-related studies over the past five years, underscoring the scientific community's growing interest in exploring cannabis' medicinal properties. This surge in research is facilitated by grants and funding from institutions like the NIH, which are focused on investigating the efficacy of cannabis in treating a variety of conditions, including PTSD, anxiety, and chronic pain.

Furthermore, universities and research hospitals have begun collaborating with private cannabis companies to develop new cannabis-based treatments, which enhances product innovation. The increasing publication of peer-reviewed studies contributes to public awareness and acceptance, thereby driving demand in the US Medical Cannabis Market Industry.

US Medical Cannabis Market Segment Insights

Medical Cannabis Market Product Type Insights

The US Medical Cannabis Market has showcased a diverse array of product types, reflecting the varying preferences and therapeutic needs of consumers. Among these product types, Solids have gained traction due to their convenience and ease of dosage, making them a preferred choice for patients seeking consistent consumption. Dissolvable items and Powders represent an innovative approach, allowing for versatile applications and rapid onset of relief, often appealing to those who prioritize discreet and fast-acting solutions. Oils, characterized by their high bioavailability, dominate as a form of medical cannabis that offers flexibility in usage, whether consumed directly or added to foods and beverages.

On the other hand, Ointments and Creams have carved out a significant space in the market, as they allow localized application, catering well to patients with specific ailments such as skin conditions or joint pain. Each of these product types reflects the evolving landscape of the medical cannabis industry, driven by consumer demand for targeted and effective solutions. The growth of the US Medical Cannabis Market can be attributed to various factors, including increased patient awareness, supportive legislation, and advancements in product formulation, all contributing to a more informed customer base that seeks out specific benefits from different product types.

As the industry progresses, the distinct attributes of each product type could play a crucial role in shaping market dynamics, leading to a more educated market segmentation that aligns with patient needs and preferences. The continued emphasis on research and development within this segment is likely to result in new formulations and technologies, further enhancing the effectiveness and appeal of various product types in the medical cannabis landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Medical Cannabis Market Derivative Insights

The Derivative segment of the US Medical Cannabis Market plays a crucial role in addressing the diverse needs of patients seeking therapeutic benefits. This segment comprises major components such as Cannabidiol (CBD) and Tetrahydrocannabinol (THC), which are recognized for their distinct medicinal properties. CBD is widely acknowledged for its non-psychoactive benefits, commonly used in managing conditions such as anxiety, epilepsy, and chronic pain, thereby gaining substantial traction among health-conscious consumers. On the other hand, THC is known for its psychoactive effects, often utilized in pain management and appetite stimulation, particularly for patients undergoing treatments such as chemotherapy.

The growing acceptance of cannabis-derived products, coupled with legislative reforms in the US, is driving demand in the Derivative segment. Furthermore, ongoing research is likely to unveil new therapeutic applications, contributing to the expansion of this segment. The combination of these factors, along with increased public awareness and the push for natural treatment alternatives, is fostering significant growth and innovation within the US Medical Cannabis Market, ultimately enhancing patient care and accessibility to effective medicinal options.

Medical Cannabis Market Route of Administration Insights

The Route of Administration segment within the US Medical Cannabis Market holds crucial importance as it significantly influences the effectiveness, onset, and patient experience of cannabis therapies. Inhalation, commonly used for its rapid absorption and effect, is preferred by many patients seeking immediate relief, especially for conditions like chronic pain and anxiety. Meanwhile, the oral administration route has gained traction, offering convenience and the ability to precisely dose, making it popular among those preferring a discreet consumption method. Additionally, topical applications are emerging as a significant player in this segment, particularly appealing for localized pain relief and skincare solutions without the psychoactive effects associated with other consumption methods.

As patients become more educated about the benefits of different administration routes, the US Medical Cannabis Market segmentation will likely continue to evolve, shaped by shifting consumer preferences and a growing body of research highlighting the efficacy of specific methods. The emphasis on personalized medicine and the diverse needs of patients underscore the importance of route of administration, driving innovation and expanding product offerings within the broader market landscape. Furthermore, regulatory developments and increased acceptance of medical cannabis in the US contribute to the growing demand across these administration methods.

Medical Cannabis Market Application Insights

The Application segment of the US Medical Cannabis Market focuses on various therapeutic uses, primarily Pain Management, Neurological Health Management, and Mental Health Management. Pain Management is notably significant due to the rising prevalence of chronic pain conditions across the US population, which has led to a shift in treatment preferences towards cannabis-based therapies as alternatives to opioid medications. Neurological Health Management has gained attention as cannabis is increasingly recognized for its potential benefits in managing conditions like epilepsy and multiple sclerosis, appealing to patients seeking non-pharmaceutical interventions. Additionally, Mental Health Management is crucial, particularly as awareness grows around mental health issues and the therapeutic effects of cannabis on anxiety and depression, making it a dominate focus for both consumers and healthcare providers.

These applications are supported by evolving legislation and increasing acceptance within the medical community, driving a robust demand for medicinal cannabis products in the US. Overall, each of these areas showcases the versatility and potential of the US Medical Cannabis Market, as it responds to growing patient needs and healthcare challenges.

Medical Cannabis Market Pain Management Sub-segments Insights

The US Medical Cannabis Market is increasingly recognized for its role in pain management, with various conditions driving its segmentation. Among these, neuropathic pain, cancer-related pain, and inflammatory pain stand out as critical focuses. Neuropathic pain affects millions of Americans, often resulting from conditions like diabetes or injury, and has been challenging to treat with conventional medications. The cancer pain segment is significant, as patients often experience persistent pain due to the disease itself or its treatment, creating a strong demand for effective relief options. Inflammatory pain, commonly associated with conditions such as arthritis and other autoimmune disorders, represents another essential aspect of the pain management landscape.

The therapeutic properties of cannabis, particularly cannabinoids, are gaining attention for their potential to provide relief from these complex pain conditions, reflecting a growing acceptance of medical cannabis as a viable treatment option. As the US healthcare system continues to evolve, the insights into the US Medical Cannabis Market segmentation underscore the importance of developing targeted therapies to effectively address these prevalent health issues.

Medical Cannabis Market Distribution Channel Insights

The Distribution Channel segment of the US Medical Cannabis Market is a vital component influencing the accessibility and reach of cannabis products across the nation. With the increasing acceptance of medical cannabis in the United States, various avenues have emerged for distribution, prominently including Hospital Pharmacy, Retail Pharmacy, and Online Pharmacy. Hospital pharmacies play a crucial role, particularly in providing medications to inpatient settings and ensuring that patients receive their prescriptions in a controlled environment. Retail pharmacies, on the other hand, hold a significant share in this market due to widespread accessibility, allowing patients to conveniently obtain their cannabis products alongside traditional medications. The Online Pharmacy segment has experienced a surge in popularity, driven by the growing trend of e-commerce and the need for discreet purchasing options, which enhances patient privacy.

Each distribution channel contributes uniquely to the overall growth of the US Medical Cannabis Market, supported by evolving regulations and patients' increasing demand for effective therapeutic options. As the market expands, understanding these channels will be essential for industry stakeholders looking to capitalize on emerging opportunities while addressing challenges such as regulatory compliance and logistical hurdles.

US Medical Cannabis Market Key Players and Competitive Insights

The US Medical Cannabis Market has experienced significant growth in recent years, driven by changing regulations, increased acceptance of cannabis for medicinal purposes, and evolving consumer preferences. The competitive landscape is characterized by a mix of established players and new entrants, all striving to capitalize on the expanding market. Companies are increasingly focusing on product innovation, strategic partnerships, and mergers and acquisitions to enhance their market share and improve their product offerings. The landscape is also shaped by the varying state laws governing cannabis usage, necessitating adaptability among companies to comply with diverse regulations while meeting consumer needs. As competition intensifies, businesses are investing heavily in branding, marketing, and customer engagement strategies to differentiate themselves in an increasingly crowded marketplace.

GTI has established a robust presence in the US Medical Cannabis Market, embodying key strengths that contribute to its competitive edge. The company's extensive operational footprint allows it to strategically position dispensaries and cultivation sites across various states, ensuring accessibility and convenience for patients. GTI is recognized for its commitment to high-quality products, which has earned it a loyal customer base. The company's focus on research and development enables it to innovate effectively, introducing new strains and products tailored to the specific needs of medical cannabis patients. Furthermore, GTI's operational efficiency and strong management team bolster its competitive position, allowing it to navigate the complexities of the cannabis market with relative ease.

Green Thumb Industries has emerged as a prominent player in the US Medical Cannabis Market, showcasing a comprehensive range of products and services that cater to the diverse needs of consumers. The company operates numerous dispensaries and cultivation facilities, ensuring a significant market presence in key states. Green Thumb Industries is known for its high-quality cannabis products, including flower, edibles, and topicals, which resonate well with patients seeking therapeutic options. Strategic mergers and acquisitions have further strengthened the company's position, allowing it to expand quickly and enhance its product offerings. Their commitment to social responsibility, alongside a focus on patient education and community engagement, sets Green Thumb Industries apart in a competitive landscape. The combination of innovative product development, effective distribution channels, and patient-centric services solidifies Green Thumb Industries' stature in the US Medical Cannabis Market.

Key Companies in the US Medical Cannabis Market Include

• GTI


• Green Thumb Industries


• Acreage Holdings


• Cresco Labs


• MedMen Enterprises


• Harvest Health and Recreation


• Columbia Care


• Curaleaf


• Charlotte's Web Holdings


• Ascend Wellness Holdings


• Planet 13 Holdings


• Trulieve


• Verano Holdings


• Liberty Health Sciences

US Medical Cannabis Market Industry Developments

The US Medical Cannabis Market has seen significant developments as legalization efforts continue across various states. Recent legislative changes in states like Maryland and New York have expanded access to medical cannabis, further mainstreaming its use for conditions such as chronic pain and anxiety. Companies such as Green Thumb Industries and Curaleaf have been actively increasing their footprints through new dispensaries and product launches. Mergers and acquisitions have been noteworthy, with Columbia Care acquiring Green Leaf Medical in September 2023, aimed at expanding its market presence in the mid-Atlantic region. Cresco Labs also announced in August 2023 its intention to acquire Columbia Care, enhancing its operational capabilities and reach.

The market is experiencing growth, with businesses like Harvest Health and Recreation recording increases in stock valuations amid rising investor interest. Additionally, Charlotte's Web Holdings has reported strong sales figures in its hemp-derived CBD products. Over the past two to three years, states have increasingly recognized the medicinal benefits of cannabis, leading to a more robust regulatory environment and higher consumer acceptance as seen by significant revenue increases in states that have legalized medical cannabis.

US Medical Cannabis Market Segmentation Insights

Medical Cannabis Market Product Type Outlook

• Solids


• Dissolvable/ Powders


• Oil


• Ointments & Creams

Medical Cannabis Market Derivative Outlook

• Cannabidiol


• Tetrahydrocannabinol

Medical Cannabis Market Route of Administration Outlook

• Inhalation


• Oral


• Topical

Medical Cannabis Market Application Outlook

• Pain Management


• Neurological Health Management


• Mental Health Management

Medical Cannabis Market Pain Management Sub-segments Outlook

• Neuropathic Pain


• Cancer


• Inflammatory Pain

Medical Cannabis Market Distribution Channel Outlook

• Hospital Pharmacy


• Retail Pharmacy


• Online Pharmacy

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	4.01(USD Billion)
MARKET SIZE 2024	5.0(USD Billion)
MARKET SIZE 2035	15.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.503% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	GTI, Green Thumb Industries, Acreage Holdings, Cresco Labs, MedMen Enterprises, Harvest Health and Recreation, Columbia Care, Curaleaf, Charlotte's Web Holdings, Ascend Wellness Holdings, Planet 13 Holdings, Trulieve, Verano Holdings, Liberty Health Sciences
SEGMENTS COVERED	Product Type, Derivative, Route of Administration, Application, Pain Management Sub-segments, Distribution Channel
KEY MARKET OPPORTUNITIES	Expanding patient access initiatives, Telehealth consultations for prescriptions, Innovative delivery methods development, Research on therapeutic applications, Partnerships with healthcare providers
KEY MARKET DYNAMICS	regulatory changes, consumer acceptance, market competition, product innovation, pricing pressures
COUNTRIES COVERED	US