The global medicinal cannabis market is expected to grow from USD 16.9 billion in 2022 to USD 73.6 billion by 2028
The global medicinal cannabis market is poised for exponential growth in the coming years. According to industry forecasts, the market is expected to surge from a valuation of USD 16.9 billion in 2022 to a staggering USD 73.6 billion by 2028. This corresponds to a compound annual growth rate (CAGR) of 31.0% over the forecast period. This impressive growth is attributed to a combination of factors, most notably the escalating global legalization of medicinal cannabis, increasing awareness about its therapeutic benefits, and burgeoning demand for cannabis-infused medicinal products. As the world warms up to the benefits of medicinal cannabis, an increasing number of countries are moving towards the legalization of this plant for medicinal purposes. This growing acceptance and legalization are largely fuelling the expansion of the medicinal cannabis market. Countries that were once stringent about cannabis laws are now reassessing their stance, recognizing the potential health benefits and economic value that medicinal cannabis brings to the table. Alongside this paradigm shift, there is a remarkable growth in awareness about the therapeutic benefits of medicinal cannabis. Various studies have identified cannabis as a potential treatment for a range of conditions, including chronic pain, epilepsy, multiple sclerosis, and PTSD, among others. As more research is conducted, and the benefits become widely known, the acceptance and demand for medicinal cannabis are surging simultaneously. In terms of regional distribution, North America holds the dominant position in the global medicinal cannabis market. This dominance is driven by the extensive legalization of medicinal cannabis in Canada and several US states, including California, Colorado, and Washington. North America’s market share is further bolstered by the presence of well-established cannabis companies and a populace that’s increasingly open to using cannabis for medicinal needs. The European market, while not as mature as North America’s, is rapidly catching up. The major catalyst for this growth is the increasing legalization of medicinal cannabis across the continent. Notably, countries like Germany and the UK have led the way in embracing medicinal cannabis. This progressive stance is expected to stimulate market growth in the region during the forecast period. Meanwhile, the Asia Pacific market is anticipated to witness substantial growth in the upcoming years. This can be attributed to the escalating demand for medicinal cannabis products in the major economies of China, Japan, and India. While regulatory hurdles persist, the potential for growth in this region is immense, given the vast population and growing acceptance of alternative medicine. The global medicinal cannabis market is characterized by the presence of several key players. These include Canopy Growth Corporation, a leader in the cannabis and hemp industry; Aurora Cannabis Inc., known for its high-quality medical cannabis products; Cronos Group Inc., a global cannabinoid company; Aphria Inc., a leading global cannabis company; and Tilray Inc., a pioneer in pharmaceutical-grade cannabis products. Other noteworthy players include GW Pharmaceuticals plc, a company that focuses on discovering, developing, and commercializing novel therapeutics from its proprietary cannabinoid product platform; MedReleaf Corporation, an Aurora Cannabis subsidiary; Aleafia Health Inc., dedicated to bringing Canadians medical cannabis care; HEXO Corp., an award-winning consumer packaged goods cannabis company; and Organigram Holdings Inc., a leading producer of cannabis products.
Here are some of the key trends driving the growth of the global medicinal cannabis market:
- Increasing legalization of medicinal cannabis in various countries: Medicinal cannabis is now legal in over 40 countries and 38 US states. This is creating new opportunities for the growth of the medicinal cannabis market.
- Growing awareness about the benefits of medicinal cannabis: There is a growing awareness about the potential health benefits of medicinal cannabis for a variety of conditions, including chronic pain, nausea and vomiting, cancer, and multiple sclerosis. This is driving demand for medicinal cannabis products.
- Rising demand for medicinal cannabis products: The demand for medicinal cannabis products is rising due to the increasing prevalence of chronic diseases and the growing popularity of natural and alternative therapies.
The global medicinal cannabis market is still in its early stages of development, but it is expected to grow significantly in the coming years. This growth will be driven by the increasing legalization of medicinal cannabis, growing awareness about the benefits of medicinal cannabis, and rising demand for medicinal cannabis products.
The global medicinal cannabis market is expected to grow exponentially in the coming years, with industry forecasts predicting a surge from a valuation of USD 16.9 billion in 2022 to USD 73.6 billion by 2028. This corresponds to a compound annual growth rate (CAGR) of 31.0% over the forecast period 1. The impressive growth is attributed to a combination of factors, including the escalating global legalization of medicinal cannabis, increasing awareness about its therapeutic benefits, and burgeoning demand for cannabis-infused medicinal products 1. As more countries move towards the legalization of medicinal cannabis, the market is expected to expand further. The growing acceptance and legalization are largely fueling the expansion of the medicinal cannabis market, with countries that were once stringent about cannabis laws now reassessing their stance and recognizing the potential health benefits and economic value that medicinal cannabis brings to the table 1.
Various studies have identified cannabis as a potential treatment for a range of conditions, including chronic pain, epilepsy, multiple sclerosis, and PTSD, among others 1. As more research is conducted, and the benefits become widely known, the acceptance and demand for medicinal cannabis are surging simultaneously 1.
In terms of regional distribution, North America holds the dominant position in the global medicinal cannabis market, with a market share of over 90% 1. This dominance is driven by the extensive legalization of medicinal cannabis in Canada and several US states, including California, Colorado, and Washington 1. North America’s market share is further bolstered by the presence of well-established cannabis companies and a populace that’s increasingly open to using cannabis for medicinal needs 1. The European market, while not as mature as North America’s, is expected to grow at a significant pace, driven by the legalization of medicinal cannabis in several countries, including Germany, Italy, and the Netherlands 1.
It is important to note that while the potential therapeutic use of medical cannabis is promising, further research is needed to fully understand the effects of medical cannabis on various conditions 1.
Learn more:
1. marketdataforecast.com2. statista.com3. statista.com4. straitsresearch.com5. gettyimages.com