Medical Cannabis Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Buds/Marijuana Flower, Cannabis Extracts), By Active Ingredient (Tetrahydrocannabinol (THC), Cannabidiol (CBD), Others), By Distribution Channel (B2B, B2C), By Application (Chronic Pain, Mental Disorders, Cancer, Epilepsy, Others), By End User Industry (Pharmaceutical & Biotechnology Companies, Academic & Research Institutions, Others), By Region and Competition, 2020-2030F

Market Overview

Global Medical Cannabis Market was valued at USD 28.54 billion in 2024 and is expected to reach USD 87.41 billion by 2030 with a CAGR of 20.51% during the forecast period. This is attributed to the growing government fundings, increase in research and development activities (R&D), and growing acceptance across the world. The medical cannabis market is a rapidly growing industry that is gaining acceptance and legal recognition in many countries around the world.

Medical cannabis refers to the use of the cannabis plant or its extracts to treat a range of medical conditions, including chronic pain, nausea, seizures, and anxiety, among others. The market for medical cannabis includes a wide range of products, including dried cannabis flower, oils, capsules, tinctures, and edibles. These products can be administered in different ways, such as smoking, vaporizing, or ingestion, depending on the patient's needs and preferences. One of the main factors driving the growth of the medical cannabis market is increasing public acceptance of cannabis as a legitimate medical treatment option. As more research is conducted into the medical properties of cannabis and more patients report positive outcomes from using cannabis to manage their conditions, demand for medical cannabis products is growing. In Australia, medical cannabis was legalized in 2016, and the number of medical cannabis prescriptions has increased from 1,000 in 2017 to over 100,000 in 2021, according to the surveys conducted by Therapeutic Goods Administration.

The medical cannabis market is benefiting from advancements in cannabis cultivation and production techniques, which are leading to higher-quality products and greater consistency in dosing and potency. The legalization of medical cannabis has made it easier for patients to access this treatment option, especially in places where it was previously illegal. A study published in JAMA Internal Medicine found that states with medical cannabis laws had a 25% lower opioid overdose mortality rate compared to states without medical cannabis laws.

Key Market Drivers

Regulatory Advancements and Legalization

The global medical cannabis market is significantly propelled by the progressive legalization and regulatory reforms across various countries. As of 2023, numerous nations, including Canada, Germany, Australia, and several U.S. states, have established legal frameworks permitting the use of cannabis for medical purposes. For instance, in the United States, 36 states and 4 territories have approved the use of cannabis for either medical or recreational purposes. In Canada, medical cannabis has been legal since 2001, and the Cannabis Act of 2018 further legalized recreational use, creating a comprehensive regulatory environment. ​

These regulatory advancements have facilitated increased research, cultivation, and distribution of medical cannabis products. In Europe, countries like Germany have seen a 43% increase in sales of medical cannabis to pharmacies, reflecting the impact of supportive policies. Such legal frameworks not only enhance patient access but also encourage investments in the sector, fostering market growth.​

Rising Prevalence of Chronic Diseases

The escalating incidence of chronic diseases globally is another pivotal driver for the medical cannabis market. Conditions such as cancer, arthritis, epilepsy, and chronic pain disorders are increasingly prevalent, necessitating alternative therapeutic options. Medical cannabis has emerged as a viable treatment, offering symptom relief and improved quality of life for patients.​

For example, in the United States, the Centers for Disease Control and Prevention (CDC) reports that 6 in 10 adults have a chronic disease, and 4 in 10 have two or more. This substantial patient population underscores the demand for effective treatments like medical cannabis. Moreover, studies have indicated that cannabis can serve as an adjunct therapy, potentially reducing reliance on opioids and mitigating associated risks.

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Key Market Challenges

Limited Clinical Evidence and Research Constraints

Despite the growing acceptance of medical cannabis, a significant challenge remains in the form of limited clinical evidence supporting its efficacy for various medical conditions. While anecdotal reports and preliminary studies suggest potential benefits, comprehensive clinical trials are necessary to establish standardized dosing, safety profiles, and therapeutic outcomes.​

Regulatory barriers often hinder research efforts. For example, in the United States, cannabis is classified as a Schedule I substance under federal law, imposing strict regulations on research activities. This classification complicates the approval process for clinical studies, limiting the accumulation of robust scientific data. The lack of extensive clinical evidence poses challenges for healthcare providers in prescribing medical cannabis and for patients seeking reliable treatment options.

Stigma and Public Perception

The historical association of cannabis with recreational drug use contributes to persistent stigma and negative public perception, which can impede the growth of the medical cannabis market. In many societies, misconceptions about cannabis's effects and legality deter patients from considering it as a treatment option and discourage healthcare professionals from recommending its use.​

This stigma also influences policy-making and regulatory decisions, potentially leading to restrictive laws that limit access to medical cannabis. Efforts to educate the public and healthcare community about the medical benefits of cannabis are essential to overcoming these barriers. As awareness increases and societal attitudes shift, it is anticipated that acceptance of medical cannabis will grow, facilitating market expansion.

Key Market Trends

Technological Innovations and Product Diversification

The medical cannabis industry is witnessing rapid technological advancements, leading to the development of diverse product formulations and delivery methods. Innovations such as cannabis-infused edibles, oils, tinctures, and topical applications cater to varying patient preferences and medical needs. For instance, companies like Tilray have expanded their product lines to include CBD and THC-rich edibles, enhancing patient options. ​

Additionally, technology is playing an increasingly important role in the cannabis industry. Artificial intelligence (AI) is being used to develop new cannabis strains and improve cultivation techniques, while blockchain technology is utilized to track cannabis from seed to sale. These technological advancements not only improve product quality and safety but also streamline supply chain management, contributing to market growth.​

Expansion into Emerging Markets

The global medical cannabis market is expanding into emerging regions, driven by changing legal landscapes and increasing awareness. In Asia-Pacific, countries like Thailand have legalized medical cannabis, integrating it into traditional medicine and hospital treatments. Thai hospitals now offer cannabis-based therapies for pain and chemotherapy side effects, reflecting governmental support for medical cannabis.

Similarly, in Europe, countries such as Germany and the UK have seen significant growth in medical cannabis usage. Germany's cannabis imports rose by over 37% in 2022, indicating expanding medical adoption. These developments in emerging markets not only broaden the global reach of medical cannabis but also present new opportunities for industry stakeholders.​

Segmental Insights

Product Type Insights

Based on the Product Type, the Buds/Marijuana Flower category holds the largest market share, primarily due to its longstanding familiarity, natural composition, and widespread usage among both patients and healthcare providers. This form of cannabis is often preferred because it requires minimal processing, allowing for faster access and more cost-effective treatment compared to other derived products such as oils, tinctures, or edibles. Patients and practitioners often view the flower form as more flexible, especially when used through methods like vaporization or controlled smoking, which can offer quick relief for symptoms such as chronic pain, nausea, or anxiety. Another key reason for its dominance is the relatively straightforward cultivation and supply chain structure. In many countries where medical cannabis has been legalized, the infrastructure for cultivating, harvesting, and distributing raw cannabis flower is more established compared to that of value-added derivatives. Furthermore, in markets such as North America, physicians often prescribe marijuana flower due to its customizable dosage potential, allowing patients to manage their intake according to their specific needs.

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Regional Insights

Based on the region, North America has emerged as the dominant region in the global Medical Cannabis market. This position attributed to early legalization, robust infrastructure, and significant investment in research and development.​ This dominance is primarily driven by the United States and Canada, where progressive regulatory frameworks have facilitated the growth of the medical cannabis industry. In the U.S., 38 states and the District of Columbia have legalized medical marijuana, and 24 states plus D.C. have allowed recreational use. Canada legalized medical cannabis nationwide in 2001 and recreational use in 2018, creating a comprehensive legal environment that supports industry expansion.​

The presence of well-established healthcare infrastructures and increasing acceptance among healthcare professionals have further propelled market growth in North America. Additionally, substantial investments in research and production facilities have led to the development of standardized and regulated cannabis-based medications, enhancing the credibility and adoption of medical cannabis treatments.

Recent Developments

• In December 2024, Aurora Cannabis announced distribution partnership between the Entourage Effect and MedReleaf Australia. Under this agreement, the Entourage Effect provide distribution and support to pharmacies in Australia and also serve as a wholesaler of cannabis products for MedReleaf Australia.
• In October 2024, Trulieve Cannabis announced partnership with Black Buddha Cannabis (a women- owned medical marijuana brand) aiming to introduce Black Buddha Cannabis products into Trulieve dispensaries within Arizona and Pennsylvania.
• In August 2024, Aurora Cannabis and Vectura Fertin Pharma enter into a commercial collaboration with Cogent International Manufacturing (a wholly owned subsidiary of Vectura Fertin Pharma). Under this agreement, Cogent will launch CBD Lozenge on medical cannabis patient platform of Aurora’s Cannabis, offering access to patient feedback which will be utilized for validating the cannabis product proposition and patient responses.

Key Market Players

• Canopy Growth Corporation.
• Aphria, Inc.
• Maricann Group, Inc.
• Tikun Olam - Cannabit Pharmaceuticals Ltd.
• MedReleaf Corporation
• GW Pharmaceuticals plc.
• Cannabis Sativa, Inc.
• Medical Marijuana, Inc.
• Aurora Marijuana Inc.
• Cronos Group Inc

Report Scope:

In this report, the Global Medical Cannabis Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Medical Cannabis Market, By Product Type:

o   Buds/Marijuana Flower

o   Cannabis Extract

• Medical Cannabis Market, By Active Ingredients:

o   Tetrahydrocannabinol (THC)

o   Cannabidiol (CBD)

o   Others

• Medical Cannabis Market, By Distribution Channel:

o   B2B

o   B2C

• Medical Cannabis Market, By Application:

o   Chronic Pain

o   Mental Disorders

o   Cancer

o   Epilepsy

o   Others

• Medical Cannabis Market, By End User Industry:

o   Pharmaceutical & Biotechnology Companies

o   Academic & Research Institutions

o   Others

• Medical Cannabis Market, By Region:

o   North America

§  United States

§  Mexico

§  Canada

o   Europe

§  France

§  Germany

§  United Kingdom

§  Italy

§  Spain

o   Asia-Pacific

§  China

§  India

§  South Korea

§  Japan

§  Australia

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East and Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive landscape

Company Profiles: Detailed analysis of the major companies present in the global Medical Cannabis market.

Available Customizations:

Global Medical Cannabis Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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