Global Medical Cannabis Market Valued at USD 17.08 Billion in 2023
America Dominates Global Medical Cannabis Market, Anticipated to Exhibit 12,79% CAGR.
As per the latest report by Straits Research, the global medical cannabis market size was valued at USD 17,075.39 million in 2023. It is expected to reach USD 77,134.83 million by 2032, growing at a CAGR of 18.24% during the forecast period (2024–2032).
Medical marijuana, also called medical cannabis, is a herbal medication derived from Cannabis plants used to treat a specific symptom or illness, such as cancer, persistent pain, or mental disorders. The two main cannabinoids extracted from this plant and used medicinally are tetrahydrocannabinol (THC) and cannabidiol (CBD). Increased consumer awareness of the health benefits of cannabis and its expanding medical applications, such as the treatment of cancer, chronic pain, depression, arthritis, diabetes, glaucoma, migraines, epilepsy, multiple sclerosis, an acquired immunodeficiency syndrome (AIDS), amyotrophic lateral sclerosis (ALS), Alzheimer's, post-traumatic stress disorder (PTSD), and Parkinson's disease drive the growth of the medical cannabis market. In addition, the market expansion is fueled by novel product development and increased R&D efforts.
Market Dynamics
Increasing R&D Activities and Financial Support from Various Private and Governmental Sources Drive the Global Market
Numerous governmental and non-governmental organizations and industry titans support the study and creation of cannabinoids for medical use. Multiple medical conditions can be treated with cannabis's many beneficial properties. According to the National Institute on Drug Abuse, the National Institute of Health (NIH) supported 330 projects and contributed USD 140 million to cannabinoid research and development in 2017. During this time, USD 36 million was spent on 70 projects examining the therapeutic potential of cannabinoids, and USD 15 million was spent on 26 projects dedicated to cannabinoid research (CBD). Due to rising nodal agency spending, it is anticipated that the overall size of the medical cannabis market will grow during the forecast period.
Changing the Legal Status of Cannabis in Asian and African Nations Creates Tremendous Opportunities
While cannabis and the products made from it are illegal in most Asian countries, there are somewhere some laws that are changing. Despite the political and social difficulties, some Asian countries represent potential markets for CBD products. For instance, in November 2018, the Public Health Ministry decided to reclassify cannabis and change its legal status from being a wholly prohibited substance in Thailand. Despite research on cannabinoids, marijuana use is still illegal in Japan. The Asia-Pacific region is also the most attractive market for laboratory proficiency testing, according to a Medical Cannabis Network article from October 2019, because of the region's abundance of CBD oil manufacturers and research facilities. In April 2018, Zimbabwe became the second country in Africa to legalize cannabis for use in research and medicine. Like Lebanon, which made medical marijuana legal in that country in 2020. The shifting legality in Asian and African countries opens new markets for various manufacturers.
Regional Analysis
America is the most significant revenue contributor and is anticipated to exhibit a CAGR of 12.79% during the forecast period. The Americas dominated the global medical cannabis market in 2020 by holding the largest share of it. Increasing product adoption and the legalization of medical marijuana in 37 U.S. states are to blame for this sizeable market share. Due to the presence of significant manufacturers, the rising demand for medical cannabis products, and the number of companies conducting R&D.
Europe is anticipated to grow at a CAGR of 12.81% during the forecast period. Europe dominates the medical cannabis market. Europe has surpassed the Americas as the second-largest market as more countries in the continent legalize cannabis for medical purposes. The area's significant manufacturing and research activities are also expected to expand the local market. The diseases whose prevalence is increasing and propelling European market growth include multiple sclerosis, epilepsy, Alzheimer's, Parkinson's, post-traumatic stress disorder, depression, and anxiety. Due to the widespread use of medical cannabis products for pain management in European countries, the region's medical cannabis market is anticipated to expand more quickly.
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Key Highlights
- Based on product type, the global medical cannabis market is bifurcated into solids, dissolvable/powders, oil, and ointments and creams. The dissolvable/powders oil segment is the highest contributor to the market and is expected to grow at a CAGR of 17.88% during the forecast period.
- Based on derivatives, the global medical cannabis market is bifurcated into cannabidiol and tetrahydrocannabinol. The cannabidiol segment is the highest contributor to the market and is expected to grow at a CAGR of 18.14% during the forecast period.
- Based on the route of administration, the global medical cannabis market is bifurcated into inhalation, oral, and topical. The inhalation segment is the highest contributor to the market and is expected to grow at a CAGR of 18.48% during the forecast period.
- Based on the application, the global medical cannabis market is bifurcated into pain, neurological, and mental health management. The pain management segment is the highest contributor to the market and is expected to grow at a CAGR of 17.26% during the forecast period.
- Based on the distribution channel, the global medical cannabis market is bifurcated into hospital, retail, and online pharmacies. The hospital pharmacy segment is the highest contributor to the market and is expected to grow at a CAGR of 17.43% during the forecast period.
