Medical Cannabis Market Size, Statistics Report 2028

Market Insights

The global medical cannabis market value was US$ 8,926.6 million in 2020 and is expected to amass US$ 49,116.4 million by 2028. It is anticipated to rise at a CAGR of 23.9% during the forecast period 2021–2028.

The global medical cannabis market is rising due to the increasing number of approvals for medical cannabis products, growing research on the medicinal use of cannabis, mounting government funding for spreading awareness about the benefits of medicinal cannabis, and many other factors.

Aphria, Inc.; Aurora Cannabis; Cannabis Science, Inc.; Canopy Growth Corporation; and Medical Marijuana, Inc. are among the prominent players in the medical cannabis market. Collaboration among companies is projected to boost the market growth in the coming years.

COVID- 19 Impact

Despite COVID-19 Pandemic, Global Medical Cannabis Market has an Overall Positive Outlook

Although most people may recognize cannabinoids as psychoactive drugs, they may also be beneficial for treating a few diseases, including COVID-19 to an extent. A recent study published in the Journal of Natural Products suggested several potential areas in which cannabinoid molecules may play a role in treating SARS-CoV-2 infections. In the US, the pandemic contributed to the rising sales of cannabis. Nine states in the US witnessed their sales being doubled in 2020 than in 2019. New Mexico experienced a 55% rise in cannabis sales in the first six months of 2020. Also, in Canada, sales increased exponentially during the COVID-19 pandemic. In South and Central America, the medical cannabis market is anticipated to grow rapidly in the coming years. In 2020, the Government of Argentina legalized cannabis cultivation for medical purposes at home. Thus, the impact of COVID-19 on the global medical cannabis market was low.

Future Trends

Advancements in cannabis testing and services are escalating the drug development and regulatory guidance industries. With the approval of cannabis in medicine, a few start-ups emerged in the sector. In Spain, marijuana has been decriminalized, but the enforcement differs with the specific laws of different provinces. Companies producing and distributing cannabis flowers in Europe include CanPharma, Demecan, and Sanity Group. They have obtained licenses from Bedrocan and other EU-GMP-certified cultivators. Also, South & Central American countries such as Uruguay, Argentina, Chile, and Colombia have initiated the cultivation of cannabis for medical purposes. Moreover, governments are collaborating with companies operating in the market to upsurge the import of cannabis for medical use. For example, in October 2018, Tilray, Inc. strengthened its presence in Chile by acquiring Alef Biotechnology, SpA. Therefore, growing distribution is anticipated to attract more investments, leading to market expansion from 2021 to 2028.

Drivers

Rising Acceptance for Medicinal Use of Cannabis in Developing Countries

Several regions such as Middle East & Africa (MEA), Asia Pacific (APAC), Europe, South and Central America (SCAM), and North America have legalized the consumption and cultivation of medical cannabis. In August 2020, Lebanon became the second country in the MEA, after Israel, to legalize cannabis for medical use. Similarly, in February 2019, Thailand legalized the use of medical cannabis. According to the World Health Organization (WHO), 80% of the world's population uses cannabis for medical purposes. Thus, the rising acceptance, cultivation, and production of cannabis in developing countries are positively contributing to the growth of the global medical cannabis market.

Escalating Government Funding for Spreading Awareness and Exploring Medicinal Benefits of Cannabis

Several countries worldwide are adopting medical cannabis laws. The government funding for spreading awareness and exploring the medical benefits of cannabis. In 2016, the Republic of North Macedonia invited Cannabis experts to train local health providers in using cannabis in clinical practices. The European governments are gaining funds to increase research & development on cannabis use for COVID-19 treatment. In September 2020, EXMceuticals Inc. requested funds to emphasize R&D activities related to COVID-19. In September 2019, the US government allocated US$ 3 million for analyzing the medical properties of cannabis that can relieve pain. Hence, the growing research funding by numerous governments for exploring the medicinal benefits of cannabis is bolstering the global medicinal cannabis market growth.

Restraints

Illegal Use of Cannabis as Street Drug and Associated Misconceptions

Cannabis is the most widely consumed illegal drug in North America, Europe, and Asia. The supply chains of cannabis in these regions involve several small independent entrepreneurs or contractors from illegitimate groups. Globally, the political stigmatization of cannabis as a street drug hampers the consumption of cannabis-based medicines, mainly due to misconceptions and miscommunications. Thus, inappropriate administration and illegal sale of cannabis are challenging the growth of the global medical cannabis market.

Strategic Insights

Market Segmentation

By Product Type

Wide Range of Drug Formulations and Cannabinoid Content Surge the Segmental Share

The global medical cannabis market is segmented into flowers, concentrates, cannabis oil & topical ointments, capsules, tablets, and beverages & edibles. Among these, the flowers segment led the market in 2020 and is expected to continue its dominance over the forecast timeframe. The buds of cannabis flowers can be processed into pharmaceutical-grade drugs by extracting active cannabinoids. These drugs are used to reduce fatigue conditions. Various products such as elixirs, tinctures, salves, and other formulations are made from the flowering tops for external and internal ailments. The flowers segment dominates the global medical cannabis market due to highest levels of cannabinoids content.

Due to the high acceptance and growing legalization of cannabis, edibles and beverages infused with non-psychoactive cannabis extract e.g., tetrahydrocannabinol are gaining notable traction in the market. Thus, the segment is anticipated to record a stellar annual growth rate in the coming years.

Global Medical Cannabis Market, by Product Type – 2020 & 2028

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By Medical Application

Pain-Alleviating Medications Strengthen the Dominance of Segment

Based on medical application, the global medical cannabis market is categorized into pain management, neurological health management, mental health management, and others. In 2020, the pain management segment held the maximum market share. It is anticipated to witness the fastest growth in the medical cannabis market in the upcoming years. Medical cannabis is increasingly a popular alternative to pain-relieving medications such as opioids.

The neurological health management segment held the second-largest market share in 2020. The research activities reveal that cannabinoid-based drugs have therapeutic potential for a wide range of neurological conditions and and psychiatric disorders. Further, cannabinoid medicines are being developed to decrease seizures, intellectual disability, and mortality.

Regional Insights

Geographically, the global medical cannabis market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.

North America dominated the market in 2020 and is anticipated to retain its dominance throughout the forecast timeframe. It is anticipated to register the highest CAGR from 2021 to 2028. The regional medical cannabis market is segmented into the US, Canada, and Mexico. The rising public awareness regarding medical cannabis and increasing research and partnership to explore innovative therapeutic applications are driving the market expansion. Moreover, adopting digital tools in healthcare operations to enhance quality and simultaneously reduce the cost is responsible for augmenting the growth of medical cannabis in the US and other North American countries. The US dominates the medical cannabis market due to the legalization and appeal of cannabis products. For instance, medical cannabis is legalized in 36 states in the US for medical use. The rapidly growing number of cancer patients, chronic pain patients, and patients with various neurological disorders such as anxiety and depression are driving medical cannabis lab development.

Europe is the second-leading region in the global medical cannabis market. Many European countries have already approved medicinal cannabis, while a few countries are now allowing adults to use medical cannabis for leisure purposes. The UK is the world's biggest exporter of medicinal cannabis. Companies in the UK are now spending more on medical cannabis research to improve cannabinoid-based medicine. For example, MediPen, a biotechnological company in Cannabinoid, has launched its medical cannabis research facility in the UK.

Lucrative Regions for Medical Cannabis Market

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Top Market Players:

• Aphria, Inc (US)
• Aurora Cannabis (Canada)
• Cannabis Science, Inc (US)
• Canopy Growth Corporation (Canada)
• Medical Marijuana, Inc (US)
• VIVO Cannabis Inc (Canada)
• Tikun Olam (Israel)
• Tilray (US)
• The Cronos Group (Canada)
• CANVORY (Austria)

Key Developments:

• July 2019:

  Aurora Cannabis and UFC launched clinical research on the use of hemp-derived CBD products by MMA Athletes.

• February 2019:

  Tilray increased cannabis supply by acquiring Natura Naturals Holdings.

Report Coverage

The global medical cannabis market research report provides detailed insights into market size, trends, shares, and forecasts. Also, it provides an analysis of drivers, restraints, opportunities, future trends, segments, and industrial landscape. The impact of COVID-19 is explained with respect to regional and global markets. The segmental analysis features the dominant markets with respective revenue shares and compound annual growth rates. Top players leading the market growth are also profiled in the report.