The global medical cannabis market is anticipated to be USD 20.24 Billion in 2023, and this value will grow to USD 56.75 Billion by 2028, registering a CAGR of 22.9% during the forecast period.
Medical cannabis, also known as medical marijuana, is a crude, unprocessed whole marijuana plant extract. This extract is used to treat various illnesses and diseases. For example, THC (Tetra hydro cannabinol) in cannabis treats nausea in chemotherapy and other treatments. However, United States boards and FDA (Food and drug administration) authorities are yet to approve cannabis as a legal medicine. Nevertheless, according to reports, in 2014, 20 countries legalized cannabis as medicine. Cannabis, which has cannabinol, is also used in pain management treatments, blood pressure, seizures, concentration, appetite, muscular problems, memory, Sensory stimulus, and other therapies.
Many countries are involved in the legalization of cannabis and allow legalized cannabis and its products, including exports. Recently in Australia, cannabis has been legalized and is used as a medicine. Exports of this legalized cannabis and its other products are exported and imported. Countries such as Israel, Canada, and Spain are in the process of legalizing available cannabis as a medical drug. Factors such as increased usage of cannabis in treatments such as pain management, neuronal disorders, muscular and joint pains, and others is propelling the demand for cannabis products and this trend is expected to accelerate in the upcoming years.
The growing R&D activities around medical cannabis to innovate effective drugs and increasing usage of medical cannabis to treat various conditions are majorly driving the medical cannabis market growth. The growing population and rising prevalence of chronic diseases such as cancers, brain disorders are contributing to the growth of the global market growth. For instance, increased cancers led to more research and clinical trials to study the effectiveness of Cannabidiol in cancer treatment. In addition, migraine and arthritis diseases and other chronic pain management issues are also resolved due to medical cannabis.
The growing application of medical cannabis in cancer treatments and the increasing cancer patient population worldwide are propelling the medical cannabis market growth. Medical cannabis has a wide range of applications, mainly in cancer therapy such as nausea and pains associated with chemotherapy are reduced with the help of medical cannabis, a relaxant. Dronabinol and nabilone are the two drugs approved by the FDA to relieve chemotherapy side effects. According to WHO, cancer is the leading cause of death worldwide, and it caused around 10 million deaths in 2020. More diagnosis results in more side effects, thus leading to a rise in the product need.
The rising usage of medical cannabis for various purposes fuels the market growth. The rising investors, key players, major pharmaceuticals, and biotechnology industries globally and their investigational approach are supporting the medical cannabis market growth. The increasing adoption of medical cannabis among governments in several nations for various purposes is boost the global market expansion further.
High costs associated with manufacturing and distributing medical cannabis products hamper market growth. These high costs are not affordable to many patients in various countries. The legal and regulatory barriers to using cannabis in some countries are one of the notable factors limiting the growth rate of the global medical cannabis market. Still, several countries do not have favorable laws and regulations for using cannabis, and countries that legalized cannabis have strict laws around the usage of cannabis. The lack of comprehensive clinical data proving the safety and efficacy of cannabis products is further hindering the medical cannabis market growth. The presence of stigma and misconceptions around the usage of cannabis products among older people, conservative groups, and healthcare professionals are impeding the market growth. However, this situation is expected to change in the coming days due to the growing awareness of the benefits of medical cannabis. Lack of insurance coverage for the treatments of medical cannabis is another key factor hampering the market’s growth rate. The limited access and availability of medical cannabis products limit the market’s growth rate. The presence of medical cannabis products and the awareness of the benefits of using these products are still not aggressively progressing in some countries, which is hampering the overall growth rate of the medical cannabis market.
Impact of COVID-19 on the global medical cannabis market:
In March 2020, the World Health Organization announced the covid-19 as an emergence in healthcare. As a result, the coronavirus was declared a pandemic, and the government imposed a lockdown and banned flights in many countries to control the spread of this disease. Many businesses faced losses due to the shutting down of production and supply chains, and people suffered unemployment. The rise in the cases of depression was noticed along with the declining economies and the increasing pressure on healthcare settings due to the continuous influx of covid patients. Recent studies have stated that cannabis may play a vital role in treating the mild symptoms of COVID-19. Hence, the demand for medical cannabis has increased during the outbreak in research and development activities. In addition, researchers have focused on developing a vaccine to treat COVID-19 using these products, showing positive results. Therefore, the market for medical cannabis is expected to be routine by the end of 2021.
Market Size Available
2022 to 2028
2023 to 2028
By Species, Derivatives, Application, End User, Route of Administration & Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges; PESTLE Analysis; Porter's Five Forces Analysis, Competitive Landscape; Analyst Overview of Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
This market research report on the global medical cannabis market has been segmented and sub-segmented into the following categories.
Medical Cannabis Market – By Species:
Based on the species analysis, the indica segment held a significant share of the global medical cannabis market in 2022. The growth is attributed to its use to treat insomnia, relax muscles, and relieve body pains, headaches, and migraines.
However, the cannabis sativa segment is also expected to show fast growth during the forecast period due to the applications of the plant species in industrial fiber, seed oil production, food recreation, and medical purposes. Additionally, the high cultivation rates for the plant are further propelling the growth of sativa segment in the global market.
Medical Cannabis Market – By Derivatives:
Based on the derivatives, the cannabidiol segment led the market in 2022 and the domination is also expected in the coming years owing to the growing older people population and chronic diseases, particularly in adults.
However, the THC segment is also expected to show significant growth during the forecast period in the worldwide market due to the applications of 2 THC drugs called dronabinol and nabilone, which are FDA-approved for treating nausea after chemotherapy. The growing number of cancer cases worldwide is further contributing to the segmental growth in the worldwide market.
Medical Cannabis Market – By Application:
Based on the application, the cancer segment held the largest share of the global medical cannabis market in 2022 and is expected to grow at a promising CAGR during the forecast period owing to the increasing number of patients with cancer disease and growing awareness of the availability of different treatment procedures.
However, the arthritis segment is also expected to show fast growth due to the continuously rising cases of arthritis. According to statistics, around 350 million people worldwide had arthritis in 2022, and approximately 1 in every 4 U.S. adults have arthritis. Therefore, the condition's prevalence is expected to boost its growth during the forecast period.
Medical Cannabis Market – By End-User:
Based on the end-user, the pharmaceutical industry segment leads the medical cannabis market. The growth is attributed to funds and investments from private and public organizations.
However, the R&D centers segment is also expected to show fast growth due to the rising clinical research on cancer and the applications of medical cannabinoids in various treatments.
Medical Cannabis Market – By Route of Administration:
Based on the administration route, the oral solutions and capsules segment represented the largest share of the market in 2022 and is estimated to grow at the highest CAGR during the forecast period. The growth of this segment can be credited to a growing number of countries that are gradually legalizing the usage of cannabis across the globe are some factors swelling the market growth of medical cannabis over the forecast period.
However, the vaporizers segment is also expected to grow at a healthy CAGR during the forecast period due to the convenience of cannabinoids in medical use.
Medical Cannabis Market - By Region:
Undoubtedly, the North American medical cannabis market is the largest regional segment for medical cannabis worldwide. Legalizing medical cannabis in several states in the United States and Canada is majorly contributing to the medical cannabis market in North America. The growing awareness among healthcare providers and patients regarding the benefits of medical cannabis to manage diseases such as chronic pain, anxiety, and other health conditions is driving the North American medical cannabis market growth. The growing acceptance from patients to consider using medical cannabis products for disease management in North American countries favors regional market growth. In addition, the presence of key market participants and growing investments by the market players in the R&D around developing new and effective medical cannabis products further promote the growth of the North American market.
The Europe medical cannabis market is predicted to register rapid growth during the forecast period in the global market. Several European countries have legalized medical cannabis, including Germany, Italy, Poland, and the Netherlands. The number of companies entering the medical cannabis market in Europe is gradually increasing over the last few years. The growing usage of medical cannabis products in European clinical trials and research studies is fueling the European market growth. The European region has a robust regulatory environment to ensure the quality of medical cannabis products, further estimated to drive market growth in Europe. Germany is one of the potential regional markets for medical cannabis in Europe and is anticipated to capture a major share of the European market during the forecast period.
The Latin American medical cannabis market has grown substantially over the last few years and is anticipated to grow at a noteworthy CAGR during the forecast period. Cannabis has been legalized in Latin American countries such as Colombia, Argentina, and Brazil, and these countries have been supporting R&D activities to innovate effective medical cannabis products that can treat a variety of diseases. In addition, a robust regulatory environment for medical cannabis products in the Latin American region ensures the quality of products to the patients.
The Asia-Pacific medical cannabis market is expected to witness a healthy CAGR during the forecast period. The APAC market has experienced several developments in recent years, and many countries have started exploring the benefits of medical cannabis products. However, countries of APAC have strict laws and regulations for the usage of cannabis. Therefore, APAC countries such as Australia, New Zealand, and Thailand are predicted to showcase a promising CAGR during the forecast period. In addition, the growing R&D activities by the market players in the APAC medical cannabis market are further propelling the region’s market growth rate.
The MEA medical cannabis market is anticipated to hold a moderate share of the global market during the forecast period.
KEY MARKET PARTICIPANTS:
A few of the notable players operating in the global medical cannabis market profiled in this report are BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, G.W. Pharmaceuticals, plc.
RECENT HAPPENINGS IN THIS MARKET:
The global medical cannabis market is expected to reach USD 56.75 billion by 2028.
The medical cannabis market is projected to grow at a CAGR of 22.9% during the forecast period 2023 to 2028.
BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals, plc., are the keyplayers in the medical cannabis market.
North America region is accounted for the largest revenue share for the global market during the forecast period.
Key factors that are driving the medical cannabis market are increasing in geriatric population, growing prevalence of chronic diseases and other medical disorders fuels the market growth.
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