As per our research report, the global medical cannabis market is anticipated to be USD 24.87 Billion in 2024. The global market size is further estimated to reach USD 69.75 Billion by 2029, 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 that is used to treat various illnesses and diseases. For instance, THC (Tetra hydro cannabinol) in cannabis treats nausea in chemotherapy and other treatments.
The global medical cannabis market has experienced significant growth in the recent past and the momentum is anticipated to accelerate further during the forecast period owing to the shifting societal attitudes towards cannabis, growing legalization efforts and increasing recognition of its therapeutic potential. For instance, as of 2022, medical cannabis has gained legal status in more than 50 countries worldwide. Medical professionals and patients have been turning to cannabis-based treatments for managing various health conditions, including chronic pain, epilepsy and anxiety. For instance, according to a study done by the JAMA Network Open, medical cannabis use saw a surge from 0.9% in 2015 to 2.7% in 2018 in the U.S., which says the growing acceptance and increasing usage of medical cannabis in the U.S. due to the medical benefits of medical cannabis. On the other hand, the European Monitoring Centre for Drugs and Drug Addiction said that 40% of EU citizens support the usage of cannabis for medicinal needs. Moreover, the legalization of medical cannabis in several countries has paved the way for increasing R&D and product innovation. Currently, the products of medical cannabis are available in the form of oils, tinctures, capsules and topical creams that address various patient needs and preferences.
The global medical cannabis market is anticipated to witness promising growth during the forecast period due to factors such as increasing acceptance, regulatory reforms and growing investments in research and development.
The shift towards the legalization of medical cannabis in various countries around the world is opening new opportunities for the medical cannabis market. For instance, the United Nations says over 50 countries have legalized medical cannabis in some form worldwide. The support for the legalization of medical cannabis is growing significantly worldwide. For instance, an estimated 91% of Americans support the legalization of medical cannabis in a survey conducted by Gallup in 2021. The governments of several countries have recognized the potential medical benefits of cannabis and reformed their laws in the recent past and this has given way for medical cannabis products to become widely available to patients who can benefit from its therapeutic properties. The sales of medical cannabis products are growing rapidly. For instance, as published in Canada Regulatory Review, medical cannabis exports from Canada were valued at USD 43 million in 2020, which was a hike of 229% from 2019. According to reports of the Israeli Ministry of Health, the number of patients enrolled in the medical cannabis registry of Israel increased by 2202 people in October 2023.
There is a notable shift towards the acceptance of medical cannabis among patients, healthcare professionals and regulatory authorities because of its therapeutic potential. The growing body of scientific evidence supporting the efficacy of cannabis-based treatments for various medical conditions, including chronic pain, epilepsy, multiple sclerosis and nausea associated with chemotherapy has significantly contributed to the increased acceptance of medical cannabis among people in various countries. For instance, the research of the European Journal of Pain has confirmed that cannabis-based medicines were effective in reducing chronic pain intensity in patients with neuropathic pain, fibromyalgia, rheumatoid arthritis, and cancer-related pain.
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 and brain disorders is another key factor propelling the growth of the global market. 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 rising cancer patient population worldwide are supporting 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 caused more than 10 million deaths in 2020.
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 boosting the global market expansion further.
For instance, as per the information published by the National Institutes of Health (NOH), the average price of medical cannabis saw an increase from $9.69 per gram in 2018 to $10.30 per gram in 2019. 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 is 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.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2024 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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Segments Covered |
By Species, Derivatives, Application, End User, Route of Administration & Region |
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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 |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, G.W. Pharmaceuticals, plc. |
Based on the species, the indica segment dominated the market in 2023, holding 41.9% of the global market share and is estimated to grow at a CAGR of 14.6% during the forecast period. The growing demand for Indica for its therapeutic effects in pain management is one of the major factors propelling the segmental expansion. For instance, sales of Indica strains for pain relief purposes increased by approximately 25% globally in 2022. The rising adoption of Indica strains to treat insomnia and anxiety and the favorable regulatory environment in certain regions for Indica cultivation and consumption are contributing to the growth rate of the Indica segment in the global market. Indica strains constitute over 60% of prescriptions for chronic pain management in regions with legalized medical cannabis. The rising preference for Indica strains among medical users due to their sedative and relaxing properties and emerging research highlighting the efficacy of Indica strains in managing certain medical conditions are further promoting the growth of the Indica segment.
The hybrid segment is predicted to witness the fastest CAGR of 22.7% during the forecast period. Hybrid strains offer a balance of Indica and Sativa effects. Customized therapeutic profiles of hybrid strains that can cater to diverse patient needs are majorly driving the growth of the hybrid segment. For instance, sales of hybrid strains for therapeutic use in the Middle East and Africa region are growing significantly. The growing preference for hybrid strains to address multiple medical symptoms simultaneously due to their versatility and the growing availability of genetically engineered Hybrid varieties with specific cannabinoid profiles are boosting the growth rate of the hybrid segment in the global market.
The cannabis sativa segment is expected to prominent CAGR of 16.68% during the forecast period. Sativa strains are primarily preferred for managing symptoms of depression and mood disorders. The growing acceptance of sativa strains among patients due to their uplifting and euphoric effects and rising adoption in the treatment of fatigue-related conditions are favoring the growth of the sativa segment in the global market.
Based on the derivatives, the cannabidiol segment led the market in 2023 and the domination is also expected in the coming years owing to the growing aging population and chronic diseases, particularly in adults. The availability of a wide range of CBD-infused products, including oils, tinctures, capsules, and topical creams is one of the key factors propelling the expansion of the CBD segment in the global market. The growing adoption of CBD for its therapeutic properties and widespread legalization across various regions are further boosting the growth rate of the CBD segment. The United States, Canada, and Germany are key markets for CBD-infused products and have been experiencing increasing patient prescriptions and sales of CBD-infused pharmaceuticals.
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. The rising awareness and increasing adoption of THC due to its psychoactive properties and therapeutic potential in managing certain medical conditions is contributing to the growth of the THC segment. The market participants located in countries such as the United States, Canada, and Israel have been investing significant amounts in clinical trials to explore the therapeutic potential of THC.
Based on the application, the cancer segment held the largest share of 36.88% of the global medical cannabis market in 2023 and is expected to emerge as the fastest-growing segment in the global market during the forecast period owing to the increasing number of patients with cancer disease and growing awareness of the availability of different treatment procedures. The growing awareness among healthcare professionals regarding the potential of medical cannabis to alleviate symptoms such as pain, nausea, and loss of appetite, commonly associated with cancer and its treatments, is primarily fueling the expansion of the cancer segment in the global market. For instance, an estimated 70% of oncologists have reported that they considered using medical cannabis as a treatment option with their patients in recent times.
However, the arthritis segment is also expected to show a prominent CAGR during the forecast period 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. The rise in awareness regarding the potential of medical cannabis to reduce inflammation, alleviate pain, and improve joint function in arthritis patients is one of the significant factors boosting the expansion of the arthritis segment in the global market.
Based on the end-user, the pharmaceutical industry segment is the largest segment and captured 46.7% of the global market share in 2023 and is anticipated to grow at the fastest CAGR during the forecast period owing to the increasing funds and investments from private and public organizations. An increasing number of collaborations between pharmaceutical companies and cannabis producers, growing advancements in cannabis-based drug formulations and regulatory approvals for medical cannabis products are driving the growth of the pharmaceutical industry segment in the global market. The major market participants such as GW Pharmaceuticals, Tilray and Canopy Growth Corporation have been continuously investing hefty amounts in the R&D of medical cannabis to boost innovation.
However, the R&D centers segment is anticipated to grow at a notable CAGR during the forecast period due to the rising clinical research on cancer and the applications of medical cannabinoids in various treatments. The major R&D centers such as the University of California and the University of Oxford have established their dedicated research centers to study the therapeutic potential of cannabinoids.
Based on the administration route, the oral solutions and capsules segment represented the largest share of the market in 2023 and is estimated to grow at the highest CAGR during the forecast period. The growth of this segment is majorly attributed to the growing number of countries that are gradually legalizing the usage of cannabis across the globe. An increase in the demand for precise dosing and standardized formulations and ease of consumption are propelling the growth of the oral solutions and capsules segment in the global market.
However, the vaporizers segment is also expected to grow at a CAGR of 12.1% during the forecast period due to the convenience of cannabinoids in medical use.
Undoubtedly, North America 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.
Europe 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 increased 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.
Latin America 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 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, APAC has 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 market is anticipated to hold a moderate share of the global market during the forecast period.
Companies playing a prominent role 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.
By Species
By Derivatives
By Application
By End-User
By Route of Administration
By Region
Frequently Asked Questions
The global medical cannabis market is expected to reach USD 69.75 billion by 2029.
The medical cannabis market is projected to grow at a CAGR of 22.9% during the forecast period.
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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