Market Size

The medical cannabis market size is estimated to be worth USD 24.87 billion in 2024 and is anticipated to reach USD 69.75 billion by 2029 with a CAGR of 22.9% during the forecast period.

Market Drivers

The increasing awareness across the healthcare industry regarding the medicinal benefits of cannabis is the primary factor contributing to the market growth. The growing product innovations, continuous product launches, and the supportive regulatory framework across the regions drive the market growth. The continuous investments in R&D by the market players to enhance the effectiveness and the wide application of cannabis-based products in treating various disease conditions propels the market growth opportunities. According to the data provided by the National Conference of State Legislatures, by 2024, 24 states, two territories, and the District of Columbia have legalized small amounts of cannabis for recreational use.

Market Restraints

Even though cannabis is gaining traction in most countries, few countries do not legalize cannabis-derived products, which hampers the global market growth. The concerns related to the utilization of medical cannabis are breathing problems, panic attacks, amnesia, cannabinoid hyperemesis syndrome, and others, that limit the adoption rate, leading to restricted market growth.  

Segment Analysis

Global Medical Cannabis Market Analysis – By Species

The indica segment dominated the global medical cannabis market revenue with a prominent share. The increased medical benefits indica species provide, such as more sedation and relaxation, pain-relieving, and calming properties, contribute to the segment growth. The indica is known to enhance dopamine levels, which control the brain centers related to pleasure, putting the person in a good mood; this escalates the segment revenue growth. 

The sativa segment is estimated to record the fastest growth during the forecast period due to its wide acceptability in the treatment of depression symptoms and mood disorders.

Global Medical Cannabis Market Analysis – By Derivatives

The cannabidiol segment held the largest share in the global medical cannabis market and is anticipated to maintain its domination during the forecast period. Cannabidiol oil is a significant product derived from cannabis, which is a popular treatment method for most ailments. The increased legalization of cannabidiol products across most regions and the ease of availability fuel the segment expansion.

The Tetrahydrocannabinol (THC) segment is projected to have notable growth during the forecast period. Tetrahydrocannabinol is widely known as a recreational drug and is extensively active in the treatment of multiple sclerosis, nausea, and vomiting. Occurred by various treatment methods such as chemotherapy, alcohol use disorder, and others are accelerating the segment growth.  

Global Medical Cannabis Market Analysis – By Application

The epilepsy segment held the most prominent share in the medical cannabis market due to its beneficial effects on patients. Most of the people suffering from epilepsy state that cannabis-derived products have shown efficient results in inhibiting seizures, which drives the segment growth.

The cancer segment is expected to grow fastest during the forecast period as it has wide application in treating nausea and vomiting caused by the rapid process.

Global Medical Cannabis Market Analysis – By End-User

The pharmaceutical industry segment accounted for the greatest market share in medical cannabis market revenue and is projected to continue the dominance during the forecast period. The increased health benefits and the utilization of cannabis in various medical conditions are contributing to the segment's growth. The rising investments by the major pharmaceutical firms in the development of innovative therapeutics from cannabis fuels the segment revenue.

The research and development centers segment is predicted to record considerable growth in the coming years. The growing R&D activities on the cannabis plant to derive various effective benefits from cannabis-based products are increasing the segment growth rate.

Global Medical Cannabis Market Analysis – By Route of Administration

The oral solutions and capsules segment dominates the global market and is projected to record the highest CAGR during the forecast period. The increased adoption of cannabidiol-based therapeutics to treat various disease indications promotes segment expansion.

The vaporizers segment is expected to account for considerable growth in the coming years owing to the increased adoption of cannabis products for recreational activities.  

Regional Analysis

The North American region accounted for the largest share, registering substantial market growth in the coming years. The increased legalization procedures of medical cannabis, the favorable regulatory framework, and the rising prevalence of chronic diseases across the region are contributing to the regional market share growth.

European region held the second-largest share in the medical cannabis market owing to expanding pharmaceutical industry across the region. According to the data provided by the European Monitoring Centre FOR Drugs and Drug Addiction, the European government does not support the legalization of cannabis or its products sale for recreational use.  

The Asia Pacific regional market is estimated to witness substantial growth during the forecast period owing to increased government support initiatives.

Recent Market Developments

• In May 2023, Toast, a multi-state operating brand, announced its partnership with the Nirvana Group, a premier diversified cannabis company. The major aim of the partnership is expected to provide innovative new offerings to patients and consumers in New Mexico.