The Medicinal Cannabis Market is estimated to be valued at USD 19.44 Billion in 2024, growing at a CAGR of 22.9% over the forecast period (2024 – 2031). Legalization of cannabis for medical use is gaining momentum globally which is expected to drive the growth of the market. Furthermore, growing acceptance of cannabis for various medical applications such as cancer, arthritis, and neurological disorders is also fueling the market growth.
Market Dynamics
The global medicinal cannabis market is primarily driven by the growing legalization of medical cannabis and expanding therapeutic applications of cannabis. According to the World Health Organization (WHO), around 2.5 million people in the U.S. are currently using medicinal cannabis. The increasing adoption is attributed to the ability of cannabis to provide relief from chronic pain, cancer pain, and chemotherapy-induced nausea and vomiting. Also, medical marijuana provides relief in neurological disorders such as epilepsy, multiple sclerosis, Alzheimer's disease, and Parkinson's disease. The rising prevalence of these clinical conditions is creating high demand for medicinal cannabis. Overall, the lucrative growth opportunities offered by the emerging markets and continual research and development activities to develop cannabinoid-based drugs will aid the market expansion over the forecast period.
Growing acceptance of medical cannabis worldwide
One of the major drivers for the medicinal cannabis market has been the growing acceptance and legalization of medical cannabis products worldwide. An increasing number of countries are legalizing the use of cannabis for medical purposes as research shows it can help treat conditions like chronic pain, epilepsy, multiple sclerosis, and mental health issues. The number of countries where medical cannabis is legal has increased from just a handful in early 2000s to over 50 countries now. As more places legalize it, the market potential expands significantly.
Emerging clinical evidence supporting medical uses
Another major driver has been the growing body of clinical evidence and research supporting the medical uses of cannabinoids derived from cannabis. Multiple large clinical studies and trials have shown cannabis and its compounds like CBD and THC can effectively treat difficult medical conditions. This emerging clinical evidence is convincing more governments, institutions, doctors, and patients about the medicinal value of cannabis. As the approved medical uses expand based on research, the addressable patient population and market potential increases as well.
Regulatory hurdles and complexity
One key restraint for the medicinal cannabis market has been the significant regulatory hurdles and complexity surrounding this industry. Even in places where it is legal, rules and regulations around cultivation, manufacturing, distribution and sale of medical cannabis products vary widely between jurisdictions. Complying with constantly evolving regulations increases costs for companies. This regulatory complexity acts as a dampener on the growth potential of the overall market.
Social stigma and acceptance issues
Social stigma against cannabis remains a challenge, even in medical contexts. For many governments and sections of the society, cannabis is still seen as a recreational drug and its medical uses raise questions. This social stigma and lack of acceptance creates reluctance among some patients and doctors to use cannabis as medicine. It also acts as a political deterrent for some jurisdictions from legalizing medical cannabis altogether. Overcoming persisting social prejudices worldwide is vital for the long term growth of this industry.
Entering new international markets
As the trend towards legalization and acceptance of medical cannabis expands to new regions, it opens up significant market opportunities for companies. Emerging new medical cannabis markets like Latin America, Asia Pacific, and Africa offer substantial potential for expansion as more countries there liberalize regulations. First mover advantages can be gained by companies entering these new growth markets early.
Product and format innovation
As clinical research into cannabis therapeutics progresses, it paves way for more sophisticated product innovation catering to specific medical needs. Opportunities exist for developing precisely dosed and packaged medical cannabis products like orally disintegrating tablets, topical creams, capsule, and other novel delivery formats preferred by patients and doctors. Successful innovation in product utility and format will help drive the future market growth.
Link - https://www.coherentmarketinsights.com/market-insight/medicinal-cannabis-market-40
Key Development
- In March 2023, Irwin Naturals Inc., a premium manufacturer of vitamins, supplements, and CBD, announced the release of Irwin Naturals Cannabis' new CBD 25mg Softgels in Canada, which is available countrywide through the Starseed Medicinal Medical Group platform. CBD 25mg Softgels are the first of five CBD and THC products that Irwin Naturals Cannabis intends to distribute across Canada in the coming months under a licensing deal with Entourage Health Corp.
- In October 2022, Neuraxpharm, a leading Europe-based specialty pharmaceutical company, launched the "Change for Health" campaign, which aims to improve acceptance of medicinal cannabis and provide better information to patients, clinicians, and pharmacies. Neuraxpharm hopes that this awareness campaign will inspire healthcare professionals, regulators, patients, and the general public to reconsider their preconceived notions about cannabis and accept it as an effective, customized therapeutic option.
- In April 2022, Dr. Reddy's Laboratories Ltd., a leading multinational pharmaceutical company, and MediCane Health Inc., an international pharmaceutical company, announced the launch of their medicinal cannabis product in Germany. As part of a 2021 cooperation between Reddy's and MediCane, MediCane will supply Dr. Reddy's with medical cannabis products from its EU-GMP-certified facilities in Portugal, as well as logistical and regulatory support.
- In May 2021, Curaleaf Holdings, Inc., a leading international provider of cannabis consumer products, announced that its wholly-owned Curaleaf International subsidiary, Adven GmbH launched its own line of medical cannabis products in Germany, Europe's largest medical cannabis market
Key Players
BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis Inc., Canopy Growth Corporation, Insys Therapeutics Inc., Aphria Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals plc., Medical Marijuana Inc, Enveric Biosciences, Pascal Biosciences, Realize Therapeutics, Celadon Pharmaceuticals Plc., MAK Scientific LLC, MIRA Pharmaceuticals, and Cardiol Therapeutics
