The medicinal cannabis market has seen significant growth over the past decade owing to the legalization of cannabis for medical use in various parts of the world. Medicinal cannabis refers to the use of the whole unprocessed marijuana plant or its basic extracts to treat diseases or improve symptoms. There has been increasing research backed by evidence that suggests cannabis derivatives like cannabidiol (CBD) and tetrahydrocannabinol (THC) can help in reducing seizures, chronic pain, arthritis symptoms, and attenuate cancer treatment side effects.
The Global medicinal cannabis market is estimated to be valued at US$ 14589.08 Bn in 2024 and is expected to exhibit a CAGR of 13. % over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Medicinal Cannabis are Deere & Company, AGCO Corporation, Agribotix LLC, Agrobot and Blue River Technology. These key players are focusing on new product launches, investments in R&D and expansions to strengthen their market position.
Key opportunities in the medicinal cannabis market include increasing number of countries legalizing medical cannabis along with rising product acceptance. Cannabis legalization for medical use is expected in countries like Thailand and Poland over the forecast period providing new growth avenues.
Technological advancements are expanding application scope of medical cannabis. Improvements in breeding techniques are helping develop cannabis-based products and extracts with consistently high concentrations of target compounds like CBD and THC. Indoor vertical farming technologies are also optimizing cannabis cultivation.
Market drivers
Growing body of research supporting medical use of cannabis majorly drives the market. Clinical studies reveal effectiveness of cannabis in controlling epileptic seizures, reducing cancer therapy side effects and managing chronic pain and arthritis. This is increasing acceptance amongst patients and physicians alike. Another key driver is increasing legalization of medical cannabis across countries. Products with proven benefits and controlled THC content are gaining approvals, expanding options for legal access and fuelling overall demand.
Current Challenges in Medicinal Cannabis Market:
The Medicinal Cannabis Market Size is still in a nascent stage and faces various challenges that hinder its growth potential. Regulatory hurdles around the world pose significant roadblocks for this industry. Restrictive laws and lack of legal framework in many countries make it difficult for companies to invest and patients to access medical cannabis treatments. There are also social and cultural stigmas associated with cannabis use which negatively impact its acceptance as a mainstream medicine. Ensuring quality control and product standardization remains a challenge due to the complexity of cannabis compounds. Further research is still needed to fully understand the medical benefits and side effects of different cannabis components.
SWOT Analysis
Strength: Supportive regulations in some jurisdictions allowing for commercial use and research. Growing body of evidence proving medical benefits for various conditions.
Weakness: Lack of regulatory clarity and legal restrictions in many countries. Social stigma around cannabis use in healthcare. Limited understanding of long term effects of medical cannabis.
Opportunity: Untapped potential for developing new cannabis-based medicines. Growing acceptance of medical cannabis therapies among patients and doctors. Emerging opportunity in wellness markets like supplements, skincare.
Threats: Competition from traditional pharmaceutical drugs. Risk of over-dependency or substance abuse. Strict policies in anti-cannabis nations hampering global expansion.
Concentrated Regions:
North America currently accounts for the largest share of the global medicinal cannabis market, driven by the commercialization and widespread patient access in Canada and certain states in the US. Favorable regulations, growing prevalence of chronic conditions, and acceptance of cannabinoid therapies have supported the market growth in this region.
Fastest Growing Regions:
The Asia Pacific region is projected to witness the highest growth during the forecast period owing to factors like increasing chronic disease burden, growing awareness of medical cannabis benefits, and positive government policies in countries like Australia, Thailand, South Korea, and others. Expanding patient population, investments by leading companies, and evolving regulations indicate strong future potential for the APAC medicinal cannabis market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it