Medical Marijuana Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Dried Flowers, Oils & Extracts, Tinctures, Edibles, Topical Products, Capsules/Tablets, Others), By Application (Pain Management, Neurological Disorders, Mental Health Disorders, Appetite Stimulation, Others), By End User (Hospitals & Clinics, Research & Development Centers, Home Care Settings, Others) and Region Forecast 2020-2031

Medical Marijuana Market size was valued at US$ 17,352.8 million in 2024 and is expected to reach US$ 42,366.0 million by 2031, growing at a significant CAGR of 13.6% from 2025-2031. Moreover, the U.S. Medical Marijuana Market is projected to grow at a CAGR of 13.5% over forecast period. The market refers to the legalized use of cannabis and its chemical compounds, such as cannabinoids (THC and CBD), for the treatment and management of various medical conditions. It encompasses products derived from cannabis plants, including dried flowers, oils, extracts, capsules, and edibles, which are prescribed or recommended by healthcare professionals to address symptoms such as chronic pain, nausea, epilepsy, multiple sclerosis, and certain mental health disorders.

The market has witnessed significant growth in recent years, driven by increasing legalization across various countries, rising awareness of its therapeutic benefits, and growing acceptance among patients and healthcare providers. Advancements in cannabis cultivation, product innovation, and research into cannabinoid-based therapies are expanding treatment options for a wide range of conditions. Furthermore, favorable government policies, coupled with investments by pharmaceutical and biotech companies, are accelerating the development of standardized medical cannabis products. The market is poised for continued expansion as ongoing clinical studies validate the efficacy and safety of medical marijuana, creating opportunities for broader adoption worldwide.

Facts & Figures

• According to the Centers for Disease Control and Prevention (CDC), cannabis is the most used federally illegal drug in the United States, with approximately 52.5 million people, or about 19% of Americans, using it at least once in 2021.
• The CDC reports that approximately 3 in 10 people who use cannabis may develop cannabis use disorder, highlighting the importance of monitoring and addressing potential misuse.

Key Developments:

• In May 2025, Thailand reclassified cannabis as a narcotic, reversing its 2022 decriminalization. This policy shift mandates that cannabis can only be sold with a medical prescription, aiming to curb recreational use and address concerns over youth access. Shops previously selling cannabis for recreational purposes are now required to transition into medical dispensaries under stricter regulations.
• In July 2025, Texas Governor Greg Abbott vetoed a bill that would have banned all THC consumables, including products like THC-infused vapes and gummies. The veto preserves a billion-dollar industry in the state and maintains access to THC products for consumers. This decision underscores the ongoing debate over cannabis regulation in the United States, particularly concerning the balance between public health concerns and consumer access.

Medical Marijuana Market Segmentation:

Based on the product type:

• Dried Flowers
• Oils & Extracts
• Tinctures
• Edibles
• Topical Products
• Capsules/Tablets
• Others

Among the various product types in the market, oils and extracts are anticipated to be the leading segment driving growth. These products are preferred for their precise dosing, ease of consumption, and higher concentration of active cannabinoids like CBD and THC, making them suitable for a wide range of medical applications. Patients and healthcare providers increasingly favor oils and extracts due to their versatility in managing chronic pain, neurological disorders, and mental health conditions. The growing availability of standardized, pharmaceutical-grade formulations further reinforces their dominance, positioning oils and extracts as the most influential driver in market expansion.

Based on the application:

• Pain Management
• Neurological Disorders
• Mental Health Disorders
• Appetite Stimulation
• Others

Within the market, pain management is anticipated to be the leading application segment driving market growth. Medical marijuana has shown significant effectiveness in alleviating chronic pain associated with conditions such as arthritis, cancer, and neuropathy, making it a preferred alternative to traditional opioid-based therapies. Healthcare providers increasingly recommend cannabis-based products to improve patient quality of life while minimizing dependency risks. Rising awareness among patients about its therapeutic benefits, coupled with supportive clinical evidence, is fueling adoption. As a result, pain management continues to be the most influential application segment contributing to the expansion of the market.

Based on the end user:

• Hospitals & Clinics
• Research & Development Centers
• Home Care Settings
• Others

In the market, hospitals and clinics are anticipated to be the leading end-user segment driving growth. These institutions play a critical role in prescribing and administering cannabis-based treatments for chronic pain, neurological disorders, and other medical conditions. The structured environment of hospitals and clinics ensures proper dosage, monitoring, and patient safety, which increases healthcare providers’ confidence in recommending medical marijuana. Additionally, the integration of medical cannabis into formal treatment protocols and clinical programs is expanding patient access. As a result, hospitals and clinics remain the primary drivers of market adoption and sustained growth in the medical marijuana industry.