March 1, 2024
Medicinal Cannabis Market

Medicinal Cannabis Market Is Estimated To Witness High Growth Owing To Rising Legalization Of Medical Cannabis

The medicinal cannabis market has witnessed significant growth in recent years owing to various benefits offered by cannabis-based products such as relief from chronic pain, nausea, depression and anxiety. Medical cannabis is rich in compounds such as cannabidiol (CBD) and tetrahydrocannabinol (THC) that help relieve symptoms of serious medical conditions like cancer, epilepsy, multiple sclerosis and Parkinson’s disease. The market has been further fuelled by legalization of medical marijuana in many countries across North America, Europe, Asia Pacific and Latin America.

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 from 2024 to 2030.

Key Takeaways

Key players operating in the Medicinal Cannabis Market are Deere & Company, AGCO Corporation, Agribotix LLC, Agrobot and Blue River Technology. These companies are engaged in various activities like new product development, facility expansion and partnerships to strengthen their market presence.

The key opportunities in the market include increasing research on therapeutic applications of cannabis, growing support from public and private entities for medical marijuana programs and launch of specialized cannabis-infused products.

Many countries are legalizing medical cannabis to gain economic benefits from cannabis cultivation and production. This is encouraging international players to expand globally through acquisitions and collaborations. In the coming years, North America, Europe and Asia Pacific are expected to witness significant investments in medicinal cannabis markets.

Market Drivers

The major driver for the Medicinal Cannabis Market Size is the increasing legalization of medical marijuana across various countries. According to recent reports, several U.S states, Canada, Australia, Italy, Poland, Colombia and South Africa have legalized medical marijuana due to prevailing clinical evidence of therapeutic applications. This has propelled the demand for cannabis-based pharmaceutical and wellness products. Another key driver is the rising aging population worldwide that is more prone to chronic conditions treatable with medicinal cannabis.

PEST Analysis

Political: The legalization of cannabis for medicinal use by more countries is a positive factor. However, strong drug laws in some nations can negatively impact the market.
Economic: Rising healthcare expenditure and increasing insurance coverage for medical cannabis acts as drivers. High research and production costs pose challenges.
Social: Growing patient acceptance and preference for organic remedies supplements demand. However, social stigma around substance use persists in certain regions.
Technological: Developments in delivery mechanisms and facility automation have improved manufacturing efficiency. Standardized indoor cultivation techniques boosted quality and yields.

North America continues to be the largest geographical market for medicinal cannabis in terms of value, led by Canada and certain US states. Europe is the second largest regional market mainly due to the increasing patient population and relaxed norms across key countries like Germany and the UK. The proliferation of medical cannabis clinics and availability of specialized products have further strengthened Europe’s position. Meanwhile, the Latin American market is demonstrating strong growth potential powered by nations such as Argentina, Brazil, Chile, Colombia and Mexico where medical use has been legalized or decriminalized recently.

The Asia Pacific region excluding Japan is emerging as the fastest developing market for medicinal cannabis globally. Countries like Australia, Thailand and South Korea have passed legislation permitting the regulated use of cannabis-based drugs over the last five years. Additionally, economic giant China with its huge patient base represents immense opportunities, provided regulations liberalize going forward. The Middle East and Africa also exhibit rising uptake driven by programs across nations to control chronic pains and enable palliative care. Overall, developing markets continue expanding the accessible patient pool and accentuating global industry expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it