During the forecast period, from 2021 to 2028, the worldwide medical marijuana market is estimated to develop at a CAGR of roughly 17.5 per cent. Factors such as increased legalisation of cannabis for medicinal purposes and expanding awareness about its therapeutic benefits are driving the market. In 2018, the chronic pain sector held the greatest share of the global medical marijuana market, followed by arthritis and migraine segments. In 2018, North America dominated the global medical marijuana market, accounting for more than 40% of total revenue earned from this category.
- The legalisation of medical marijuana in the United States has been a significant influence in the market’s rise.
- The growing number of states that have legalised medical marijuana has increased demand for this product, which is projected to fuel growth in the coming years.
- Medical marijuana is used to treat chronic pain, seizures, and other diseases that are difficult to treat with standard drugs or therapies.
- Medical marijuana can be used as an alternative treatment for individuals who have not reacted well to established treatments or therapies, and it may be more effective than some prescription medications now available on the market.
- There are numerous strains of medicinal marijuana on the market now that may be tailored to individual requirements and symptoms, which will help drive growth over time as more people become aware of these possibilities.
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The Global Marijuana Market, Explained:
Cannabis Plant Dry Goods, Cannabis Resin, and Cannabis Oil are all available.
The product segment gives information on each product’s market share as well as the respective CAGR for the forecast period. It delivers in-depth market insights by laying out information about product price factors, trends, and profits. Furthermore, it analyses the most recent product advances and market innovation.
Chronic Pain, Arthritis, Migraine, Cancer, Other
The application segment divides the product’s numerous applications and offers information on the market share and growth rate of each application segment. It highlights the goods’ possible future applications as well as the driving and limiting forces for each application sector.
Marijuana legalisation has been one of the most contentious and hotly debated issues in recent years. Having said that, the stigma associated with the substance has significantly lessened. This is due, in part, to the recognition of its numerous health benefits, which have enabled people to perceive its value beyond recreational usage. Marijuana has been shown to benefit people suffering from cancer, chronic pain, and even youngsters with behavioural difficulties. However, for other countries, the health rationale for legalisation simply isn’t compelling enough. The argument would be that individuals who require medicinal marijuana should only be able to access it if they have a legal medical licence and that it should remain a controlled substance for everyone else.
But there is one thing that every country on the planet worries about, and that is money – especially, saving money and producing more of it. There is a whole other side to marijuana legalisation: economics. It is the driving factor behind the rapid growth of the legal marijuana business. Indeed, according to Technavio analysts, the legal marijuana market will increase at a 37 percent CAGR by 2020.
The Perks of Marijuana Legalisation
Taxing Marijuana Sales
The most obvious benefit of legalising marijuana is the increase in tax income. The Tax Foundation estimates that the marijuana sector may earn up to $28 billion in tax revenue at the federal, state, and local levels. A 10% surtax on a single pound of merchandise may raise up to $5.3 billion each year. And these data only apply to the United States. There are various approaches that can be taken to tax marijuana, and each of them would yield significant money, possibly exceeding tobacco earnings. Tax money also helps to offset any costs connected with the hazards of participating in the marijuana trade.
Major job creation
When most people consider legalising marijuana, they focus only on its consumption. They overlook the fact that, like any other kind of agri-business, marijuana production necessitates manual labour and a whole production cycle, from growing to sales. The marijuana sector in Colorado is an example of how marijuana can successfully produce jobs. According to an article published in March of this year by Marijuana Business Daily, Colorado issued roughly 27,000 professional licences to employees working at marijuana companies in 2015.
This figure does not include the thousands of extra people who are not required to obtain licences but nevertheless work in the business. . Furthermore, revenues for 2016 are expected to be between $1.1 and 1.3 billion, indicating that demand is continuing to climb and the need for personnel will only grow. While the unemployment rate in the United States has decreased significantly during Obama’s presidency, it now stands at 4.9 per cent, implying that 7.8 million people in the country are still unemployed. Colorado, on the other hand, has a much lower unemployment rate than the national average, which is almost probably due to job growth in the marijuana business and decriminalisation of the substance.
Lower incarceration rates means more than just money saved
While incarceration costs the most in the United States, it’s certainly not cheap in other countries in any way. In reality, incarcerating one person can cost the equivalent of a good year’s wage, if not more. According to the Edmonton Sun, each incarcerated inmate in Canada’s federal prisons, including those being held on petty drug offences, cost taxpayers about $118,000 per year in 2014, a 46 percent increase from 1994. Between 2015 and 2016, global incarceration rates climbed, and the amount of money it costs governments to put people in prison would be enough to make a significant dent in global poverty.
Possession of marijuana can result in a prison sentence of several years; growing it can result in a 25-year sentence. When you consider how many individuals are imprisoned for marijuana-related offences and how much it costs to keep them there, the figures are staggering. Legalization of marijuana will not only cut the expenses of jail, but it would also create a precedent for global legal system change. Furthermore, the money saved might be used to fund other areas such as education and infrastructure, which are crucial needs in countries such as the United States, China, and Russia, which have the greatest incarceration rates and the widest socio-economic divides in their populations.
Though it may be impossible to totally remove the stigma associated with marijuana, the economic case for legalising is unmistakable. Furthermore, aside from the issue of black market sales, which is a concern with any product, the advantages come with little safety hazards. Currently, APAC countries are leading the way toward legalisation, and as additional countries gain a better understanding of the economic ramifications of legalising marijuana, more countries will follow following.
India: The Ancient Home of Cannabis Indica
Despite the fact that marijuana and its usage are still stigmatised, the global push to legalise the substance is gathering momentum.
Ten states in the United States have already legalised it, and up to 33 have approved it for medical purposes. In 2018, Canada became the world’s second country to legalise recreational cannabis use. Even Latin American countries like as Peru, Venezuela, Chile, and Columbia have legalised or decriminalised cannabis for personal use to varying degrees.
When you travel to Asia, the storey changes slightly. Except for Thailand, cannabis legalisation is not high on the priority list of many governments in the region. The government is stepping up medical marijuana legalisation initiatives, which will eventually allow all Thais to grow six cannabis plants in their homes and sell their produce to the government for processing into medical marijuana. Countries such as the Philippines and Indonesia have among of the harshest marijuana laws in the world, while India falls somewhere in the middle. Cannabis is widely consumed and traded in the country, albeit illegally. According to a 2019 study conducted by the All India Institutes of Medical Sciences, approximately 7.2 million Indians ingested cannabis in the previous year. According to UNODC research, the retail price of cannabis in India was $0.10 per gramme, the lowest in the world.
According to the legislation, marijuana is still prohibited in the country. The Narcotic Drugs and Psychotropic Substances Act prohibits the manufacturing and sale of cannabis resin and flowers but allows for the use of cannabis leaves and seeds, which are regulated by the states.
However, there are several signs to indicate that this may be a big year in the movement to legalize weed in India. Here’s why-
Growing State Support For Weed Legalization
Several Indian states and public authorities have responded positively and offered their agreement to the discussion over legalising marijuana in the country during the previous few years.
Uttrakhand became the first state in the country to authorise commercial hemp farming in 2018. The state government even granted the Indian Industrial Hemp Association (IIHA) a pilot licence to grow the fibre on 1,000 hectares.
Following the verdict, the Madhya Pradesh government followed likewise this year. The issue has come to a halt, with no more progress being made. P.C. Sharma, the Law Minister of Madhya Pradesh, told the press that the state administration has decided to legalise cannabis production in the state for medical and industrial purposes. However, progress on the matter has stopped since that declaration, with no additional developments taking place.
Another piece of good news came out of Manipur last year, the state that is said to have some of the best cannabis in the country. In a news conference, Manipur’s Chief Minister, N Biren Singh, stated that the government was seriously considering legalising medical marijuana to assist enhance the state’s revenue. He also proposed that start-ups be included in the legalisation process if they had a great potential to be a part of this business.
With acknowledgement of cannabis’s therapeutic qualities growing among Indian legislators, the expanding state backing is only a positive indication for the movement. Let us hope that the discussion picks up momentum and moves to the forefront in 2020, which could lead to even more favourable developments towards pot legalisation in India.
Vedi Herbals: The First Medical Cannabis Clinic in India
You can’t fathom a store openly selling pot in India right now, with weed being outlawed and possession subject to severe penalties.
All of that changed in February 2020, when the country received its first Medical Cannabis Clinic in Bangalore.
Vedi Herbals, the clinic’s name, was founded by Odisha-based start-up HempCann Solutions and will purportedly sell cannabis-infused tablets and oils. To boost health and wellness, the clinic will prescribe cannabis-infused tablets. The clinic employs a team of ayurvedic doctors who may provide prescriptions for anti-anxiety and anti-inflammatory medications. Vedi Herbals specialises in treating stress, back pain, fever, and even chronic disorders such as anorexia. As part of its offerings, the clinic sells tablets, powders, and cannabis oil.
With the clinic having been granted a pan-India licence, its success in Bangalore could pave the door for its nationwide development.
The Great Legalization Movement
Any movement requires qualified leaders who are up to the challenge of bringing about change, and Viki Vaurora is just that. He is the founder of The Great Legalisation Movement India (GLM India), a non-profit organisation that seeks to legalise cannabis use for medical and industrial uses in India.
The movement has long sought to alter Indians’ perceptions of marijuana, with the goal of removing the stigma associated with the drug. From cannabis conferences to web series production and even a legal challenge to the NDPS Act in court, the organisation has been at the forefront of weed legalisation in India.
In the summer of 2019, the Delhi High Court granted GLM’s writ case seeking cannabis decriminalisation under the NDPS. With the next hearing slated for 2020, the case could be the tipping point that kickstarts the drive to legalise marijuana in India.
While there is no certainty that cannabis will ever be legalised in India, this year’s developments are certainly encouraging. If everything goes as planned, 2020 might be a watershed moment for marijuana legalisation in India.