Cannabis Industry in New York is Projected to Reach $7.07 Billion by 2025
by Susan Hill Business ConsultantThe New York cannabis industry size is expected to reach USD
7.07 billion by 2025, according to a new report by Grand View Research, Inc.,
exhibiting a CAGR of 14.7% over the forecast period. Cannabis sales are
increasing due to its medical benefits, especially in the treatment of ailments
such as chronic pain, mental disorders, and cancer. The imminent legalization
of recreational marijuana in New York is expected to drive growth over the next
few years.
The market is primarily driven by the ongoing
legalization of medical
marijuana for treating patients with Parkinson’s disease, cancer,
arthritis, Alzheimer’s disease, neurologic problems such as depression, anxiety,
& epilepsy, and others. Furthermore, anticipated legalization of
recreational cannabis in 2019 may significantly decrease marijuana trade via
illicit channels. The state is also expected to generate tax revenue on the
sale of marijuana.
In addition, increase in geriatric population over
the past years has led growth in adoption of cannabis for treatment of chronic
pain, acute pain, and mental disorders. This is fueling the need for effective
pain management programs and treatments for such disorders. Owing to its
increasing popularity, the number of registered medical practitioners
prescribing cannabis has also increased from 611 in 2016 to 1,718 in 2018.
By cannabis type, the medical cannabis segment led
the market in 2018 with a revenue of USD 1.84 billion, owing to its increasing
use in treatment of chronic pain, mental disorders, cancer, and other medical
conditions. New York has only legalized medical use of cannabis and is yet to
legalize recreational use. The imminent legalization of recreational marijuana
is expected to shift consumers from medical to recreational cannabis. With
other factors such as lower price and ease of access also in play, the
recreational marijuana segment is anticipated to grow at the fastest rate over
the forecast period.
By medical application, the chronic pain segment led
the market in 2019 and is projected to demonstrate a steady growth over the
next few years. This is due to an increasing patient pool suffering from
chronic pains that cannot be treated or alleviated by common medical therapies,
thus increasing the adoption of cannabis. The mental disorders segment is
anticipated to grow at the fastest rate over the forecast period, owing to
increasing adoption of marijuana for treatment of disorders such as epilepsy and
Alzheimer’s.
Growing number of collaborations between the federal
and state governments in the U.S. is another major step in opening up the
cannabis market to a larger number of patients. Also, the increasing disposable
income of individuals has enabled access to sophisticated medical solutions.
Several startups are venturing into R&D and manufacturing of marijuana
products.
Further
key findings from the report suggest:
- The market demand is expected to grow rapidly owing to alterations
in government policies and increase in applicable treatment areas for
marijuana, opening up new revenue channels for players
- Medical cannabis dominated the New York cannabis industry in 2018,
owing to its increasing use in treatment of chronic pain, mental
disorders, cancer, & other medical conditions, and recreational
marijuana consumption still being illegal in the state
- Chronic pain application segment led the market in 2019, owing to a
high prevalence of chronic pain and its association with other medical
conditions
- Some of the key players operating in New York are Citiva; Valley
Agriceuticals; PalliaTech, Inc.; MME LLC; Etain Health LLC; PharmaCann;
and Columbia Care LLC. The growing demand is expected to favor the entry
of several new players in the future.
Request a Sample Copy
of the New York Cannabis Market Research Report @ www.grandviewresearch.com/industry-analysis/new-york-cannabis-market/request/rs1
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Created on Mar 5th 2020 03:04. Viewed 526 times.