Medical Cannabis Market Growth Report & Global Outlook 2028

Medical Cannabis Market Forecast to 2028 - Global Analysis by Product Type (Flowers, Concentrates, Tablets, Cannabis Oil and Topical Ointments, Capsules, and Beverages and Edibles); Medical Application (Pain Management, Neurological Health Management, Mental Health Management, and Others); Compound (Tetrahydrocannabinol (THC)-Dominant, Cannabidiol (CBD)-Dominant, and Balanced THC and CBD)

Publication Month : Apr 2021

  • Report Code : TIPRE00015806
  • Category : Pharmaceuticals
  • Status : Published
  • No. of Pages : 192
Inquire Before Buy



[Research Report] The medical cannabis market size is expected to grow from US$ 8,926.6 million in 2020 to US$ 49,116.4 million by 2028; it is estimated to record a CAGR of 23.9% from 2021 to 2028.

Analyst Perspective:

The medical cannabis has been used for centuries for its medicinal properties and is now gaining recognition and acceptance in many parts of the world. It is often prescribed or recommended by healthcare professionals to help manage symptoms or improve the quality of life for patients with specific condition. The medical cannabis market has experienced substantial growth and transformation in recent years, driven by increasing acceptance, changing regulations, and growing patient demand. Medical cannabis products are available in various forms to cater to different patient preferences and medical conditions. These includes flowers, oil, capsules edibles, topical, and concentrate. Companies are investing in product innovation, developing new formulations, an improving delivery method to enhance efficacy, dosage control and patient convenience. Medical cannabis is being used to alleviate symptoms and manage a wide range of medical conditions. Some of the primary conditions for which medical cannabis is prescribed or recommended include chronic pain, multiple sclerosis, epilepsy, inflammatory bowel disease, and chemotherapy-induced nausea and vomiting. Clinical studies and trials are being conducted to explode the efficacy and safety of medical cannabis for various conditions. The scientific advancement help build confidence among healthcare professionals and regulators, contributing to the growth of the medical cannabis market. Furthermore, there has been a rise in awareness and understanding of the potential medical benefits of cannabis among patients, healthcare professionals. The knowledge about the therapeutic properties of cannabis, the patients are seeking alternative treatment options and exploring medical cannabis as a potential solution for their conditions. Therefore, the increasing patient demand is a significant driver for the medical cannabis market.

Market Overview:

Medical Cannabis refers to the use of the cannabis plants or its extracts to alleviate symptoms or treat certain medical conditions. The cannabis plant contains numerous chemical compounds called cannabinoids, which interact with the body’s endocannabinoid system to produce various therapeutic effects. Medical cannabis can be consumed through various administration methods, including smoking, vaporizing, ingesting edibles, using tinctures, applying topicals, and taking capsules. The potential economic opportunities in the medical cannabis market have attracted significant investment and led to the growth of the industry. Companies are investing in cultivation facilities, research and development, production infrastructure, and distribution networks to meet the increasing demand for the medical cannabis market. For instance, in Nov 2022, Biopharmaceutical Research Company announced the completion of a $20M Series A fundraising, enabling the Company to scale its operations aggressively, increase its product offering, conduct sponsored research, and execute on its go-to-market strategy. Furthermore, the investment influx has contributed to the expansion and maturation of the medical cannabis market.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Medical Cannabis Market: Strategic Insights

Market Size Value inUS$ 8,926.6 million in 2020
Market Size Value byUS$ 49,116.4 million by 2028
Growth rateCAGR of 23.9% from 2021 to 2028
Forecast Period2021-2028
Base Year2020
Analyst Image


Have a question?

Akshay will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Market Driver:

Increasing Number of Approvals for Medical Cannabis Products to Drive Medical Cannabis Market Growth

The medicinal potential of cannabis has attracted various researchers and companies to use cannabis in medical applications. For instance, tetrahydrocannabinol (THC) is predominantly being used for producing medicinal products. The US Food and Drug Administration (FDA) has approved THC-based medicinal products such as nabilone (Cesamet) and dronabinol (Marinol) that are prescribed for the treatment of nausea in patients receiving chemotherapy; these drugs are also prescribed to stimulate appetite in patients with wasting syndrome developed as one of the indications in AIDS. Similarly, various marijuana-based products have been approved or are in clinical trials. For instance, nabiximols (Sativex) is an approved drug that has been commercialized in Canada, and the UK and a few European countries. Nabiximols is a cannabis extract used to treat spasticity and neuropathic pain related to multiple sclerosis. It is formulated with a combination of THC and other cannabidiol (CBD). In February 2020, CanaQuest Medical Corp, a Canadian company, applied for the approval of the production and commercialization of Mentabinol to Health Canada. Mentabinol is a THC-based product, and its approval application has been filed under the Cannabis Act.

In addition to accepting medical cannabis products from western countries and commercializing them in Asian markets, countries such as Australia, Singapore, Thailand, New Zealand, and South Korea have also legalized the cultivation of cannabis. For instance, in March 2021, the Ministry of Health and the Medicinal Cannabis Agency in New Zealand approved the commercialization of medical cannabis products of Tilray across the country. Furthermore, the country is also one of the leading providers of medical cannabis to Australia. Tilray’s products are manufactured at a certified facility in Canada with good manufacturing practices (GMP). Thus, the rise in approvals of medical cannabis and business expansion of companies are bolstering the medical cannabis market growth during the forecasted period.

Segmental Analysis:

Based on product type, the medical cannabis market is categorized into flowers, concentrates, tablets, cannabis oil and topical ointments, capsules, and beverages and edibles. In 2019, the flowers segment is likely to hold the largest share of the medical cannabis market. However, the beverages and edibles segment is expected to witness the highest CAGR in medical cannabis market during 2021 to 2028, owing to long lasting relief compared to inhalation methods. This is especially beneficial for the patients with chronic conditions wo require sustained symptom management throughout the day and night. The cannabis flowers are resinous whose buds can be processed into pharmaceutical-grade drugs by extracting active cannabinoids. Various products such as elixirs, tinctures, salves, poultices, creams, and other formulations can be made from the flowering tops for external and internal ailments.

The cannabinoids present in the cannabis flower affect the nervous system, including the brain and nerves. The medicines are available through prescription in the form of dried flowers or extracts of standardized quality. The flowers hold a major share in the medical cannabis market as the highest levels of cannabinoids are found in the leaves and flowers of cannabis.  Thus, the factors mentioned above are driving the skin care segment in medical cannabis market during the forecast period.

Regional Analysis

The North America medical cannabis market was valued at US$ 6,221.99 million in 2020 and is projected to reach US$ 34,818.59 million by 2028; it is expected to grow at a CAGR of 24.2% during the forecast period. The North America medical cannabis market is segmented into the US, Canada and Mexico. The United States held the largest market in North America, and the medical cannabis market is expected to grow due to increasing public awareness regarding to the medical cannabis, increasing number of research and collaboration to explore innovative therapeutic application. For instance, In Feb 2023, Bennabis Health and Canna Care Docs joined forces to provide affordable, reliable resources and safe access for medical cannabis patients. This unique collaboration allows the two organizations to strengthen their positions as market leaders and deliver significant savings for medical cannabis patients. In addition, adoption of digital tools in healthcare operations for improving the quality and reducing the costs simultaneously is also responsible to augment the growth of the medical cannabis in the US and other North American countries., which will fuel the growth of medical cannabis market.

Key Player Analysis

The medical cannabis market analysis consists of players, such Aphria, Inc., Aurora Cannabis, Cannabis Science, Inc, Canopy Growth Corporation, Medical Marijuana, Inc., VIVO Cannabis Inc, Tikun Olam, Tilray, The Cronos Group, Canvory among others are the top two players owing to the diversified product portfolio offered.

Recent Developments

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the medical cannabis market. A few recent key market developments in the medical cannabis market are listed below: 

  • In Feb. 2023, Aurora Cannabis Inc. and MedReleaf Australia launched the CraftPlant, a new medical cannabis brand for patients in the Australian market. The CraftPlant brand includes three new products for doctors to prescribe – Greendae, Navana and HiVolt.
  • In April 2021, Reddy's Laboratories and MediCane Health Launched the Medical Cannabis Products in Germany. As part of a collaboration between Dr. Reddy's and MediCane started in 2021, MediCane will supply medical cannabis products to Dr. Reddy's from its EU-GMP-certified facilities in Portugal and provide logistical and regulatory support.
  • In May 2021, Curaleaf Holdings, Inc. launched its range of medical cannabis products in Germany. The initial launch of a high THC oil product aims to meet immediate patient demand and it will be extended over the year to incorporate a number of different strengths and THC/CBD formulations in both oil and flower formats, addressing a wide range of patient needs.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Product Type, Medical Application, Compound

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

What is the cost of medical cannabis products?

The cost of medical cannabis varies according to the forms of medical cannabis. For instance, one gram of cannabis bud may cost ~ US$ 2-US$ 20 and may increase as per the quantity and dosages.

What are the driving factors for the medical cannabis market across the globe?

Key factors that are driving growth of the market are increasing number of approvals for medical cannabis products, rising acceptance for medicinal use of cannabis in developing countries, growing research on medicinal use of cannabis, and escalating government funding for spreading awareness and exploring medicinal benefits of cannabis. However, illegal use of cannabis as street drug and misconceptions regarding cannabis is a key factor restraining the market growth.

What is Medical Cannabis?

Cannabis belongs to the cannabaceae family. Cannabis is also known with other names such as grass, pot, hash, weed, reefer, dope, herb, mull, buddha, ganja, joint, stick, buckets, cones, skunk, hydro, yarndi, smoke and hooch. It is used for medical purposes for many years. Recent studies show that cannabis may be useful to help conditions such as nausea and vomiting, particularly when associated with chemotherapy, glaucoma, epilepsy, and asthma. Therefore, it is often called as medical cannabis.

The List of Companies - Medical Cannabis Market

  1. Aphria, Inc.
  2. Aurora Cannabis
  3. Cannabis Science, Inc.
  4. Canopy Growth Corporation
  5. Medical Marijuana, Inc.
  6. VIVO Cannabis Inc
  7. Tikun Olam
  8. Tilray
  9. The Cronos Group

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Related Reports