A new market report has indicated the medical cannabis industry is set to see remarkable growth over the next four years.
The report, issued by Technavio, a technology research and advisory company, indicates the medical marijuana market will see a compound annual growth rate (CAGR) of 21 percent between 2018 until 2022.
“The increasing use of cannabis for medical purposes is a major factor driving the market’s growth,” Technavio said in its announcement.
When it comes to the expansion of cannabis for medical purposes, the main market driving this growth will be North America, according to the report.
“Owing to the growing consumption of medical marijuana, the region will offer the maximum growth opportunities to the companies in this medical marijuana market during the next four years,” the abstract for the report said.
Recognition for the potential of the medical cannabis market
In an interview with the Investing News Network (INN) Neil Closner, CEO of MedReleaf (TSX:LEAF) confirmed he views the international medical cannabis market as the largest option available for companies in the space.
If you look to countries that are moving towards [legalization of medical cannabis,] many of them are larger than Canada is and many of them will have full government covered cannabis for medical purposes,” Closner said.
He offered Germany as an example of a country with a population of 80 million with full insurance coverage.
David Argudo, CEO of High Hampton Holdings (CSE:HC) said in an interview with INN at the Lift Cannabis Expo in Vancouver earlier this year he expects the amount of research to be done on cannabis to escalate.
“I think we are going to see more [cannabis research data] even sooner than 15 years,” Argudo told INN. “I think that there is a lot of data out there already.”
As the cannabis industry begins to gain legitimacy across the globe, more research is expected to take place and provide answers to what the drug is actually capable of doing as a treatment for patients.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: High Hampton Holdings is a client of the Investing News Network. This article is not paid-for content.