The global medical cannabis market is set for substantial growth, projected to increase from $17.60 billion in 2023 to an impressive $121.33 billion by 2033.
This expansion, driven by a compound annual growth rate (CAGR) of 21.30%, is detailed in a recent report by Spherical Insights & Consulting.
The report identifies several key players in the industry, including Aurora Cannabis Inc., MedReleaf Corp., TerrAscend Corp., Canopy Growth Corporation, GW Pharmaceuticals, and others. These companies are at the forefront of a market that is rapidly expanding due to increased legalization and growing acceptance of cannabis as a legitimate medical treatment.
Medical cannabis, derived from cannabis plants, contains active compounds like THC (tetrahydrocannabinol) and CBD (cannabidiol). These compounds are known for their therapeutic benefits, including pain relief, anti-inflammatory properties, and the ability to reduce nausea, relax muscles, and stimulate appetite. The medication is used to treat a variety of conditions such as chronic pain, epilepsy, multiple sclerosis, chemotherapy-induced nausea, and certain mental health disorders like anxiety and PTSD.
The market’s growth is largely attributed to the increasing legalization of medical cannabis across various regions, which has created new opportunities for businesses to enter and operate legally. This shift has led to a change in public perception, with more patients and healthcare providers recognizing the potential health benefits of cannabis, particularly in managing chronic conditions.
Despite the optimistic growth forecast, the market faces significant challenges. Legal restrictions and complex regulatory frameworks in many areas continue to hinder the production, distribution, and prescription of medical cannabis. These barriers must be addressed to achieve universal acceptance and accessibility.
Among the product types, the concentrates segment is expected to hold the largest market share during the forecast period. Concentrates offer a potent and convenient method of administration, with high doses of cannabinoids like THC or CBD, and can be consumed through various methods such as vaping and dabbing.
In terms of applications, the chronic pain segment is anticipated to grow at the fastest pace. This growth is driven by the high prevalence of chronic pain globally, the limitations of traditional treatments, and the increasing acceptance of medical cannabis.
Distribution channels also play a crucial role in the market, with hospital pharmacies expected to maintain the highest revenue share. These pharmacies are equipped with stringent quality control systems and staffed by qualified professionals, ensuring the proper administration of medical cannabis to patients.
Geographically, North America is projected to dominate the market, thanks to early legalization efforts, substantial research investments, and growing public acceptance. Meanwhile, the Asia-Pacific region is expected to experience the fastest growth, driven by increasing acceptance, developing legal frameworks, and rising awareness of the therapeutic benefits of cannabis.
The report also highlights recent developments, such as Irwin Naturals Inc.’s launch of CBD 25mg Softgels in Canada and plans to introduce additional CBD and THC products across the country.
