by Medicinal cannabis, also known as medical marijuana, refers to using the whole unprocessed marijuana plant or its basic extracts to treat diseases or improve symptoms. Medicinal cannabis is prescribed by doctors and is used to treat symptoms and side effects of illnesses like cancer, chronic pain, epilepsy and clinical depression. It works by interacting with brain’s cannabinoid receptor which reduces neurological inflammation and pain.
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 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
According to the report by Verified Market Research, Europe and North America are the largest markets for medicinal cannabis currently, together accounting for over 75% market share. Key factor attributed to this growth is legalization of medical cannabis in majority of countries in these regions along with growth of cannabis dispensaries. Moreover, increasing awareness about medicinal properties of cannabis and its use in treatment of various medical conditions like chronic pain, cancer, epilepsy and others has further boosted the demand. However, strict regulations around production and distribution of cannabis in some countries may hamper market growth during the forecast period.
SWOT Analysis
Strength:
The medicinal cannabis industry is rapidly growing. It is expected to serve a large patient base suffering from various medical conditions. Legalization of cannabis for medical use in many countries is helping improve access and availability. There is increasing acceptance of cannabis as an alternative treatment option among patients and physicians alike.
Weakness:
Stringent regulations continue to hamper wider adoption and availability of cannabis-based medicines. Despite legalization in some form across many nations, regulatory framework remains a challenge in many regions. Research on medical applications is still limited due to historic prohibition of the plant.
Opportunity:
The market provides huge opportunity as legal barriers continue to fall and more countries legalize medical use. Scope for cannabis-based product innovation is vast as research expands approved use cases. As aging populations deal with chronic pain and other conditions, medical cannabis could gain traction as an alternative treatment choice.
Threats:
Overregulation could delay commercial growth in some regions. Public acceptability issues persist for cannabis use. Competition from established pharmaceutical drugs poses pricing pressures. Emerging black markets also threaten to undermine legal supply chains if regulations do not keep pace with demand.
Key Takeaways
The Global Medicinal Cannabis Market Size is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis: The North American region currently dominates the market, accounting for the largest share. Countries like the US and Canada have been at the forefront of legalizing medical cannabis and driving commercial growth. Europe is another fast-growing regional market with countries gradually adopting legal frameworks for medical use.
Key players: Key players operating in the Medicinal Cannabis market are Deere & Company, AGCO Corporation, Agribotix LLC, Agrobot and Blue River Technology. These companies are investing heavily in R&D to develop innovative cannabis-based pharmaceutical products and formats like oils, pills, patches etc. They are also focusing on building commercial-scale cultivation and processing infrastructure to meet rising demand across major markets.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
