The
global medicinal cannabis market continues to garner increased traction for
treatment of chronic pains and other medical conditions. Medicinal cannabis or
medical marijuana refers to the use of cannabis and its cannabinoids to treat
diseases or alleviate symptoms. Medicinal cannabis contains tetrahydrocannabinol
(THC) and cannabidiol (CBD) as the major constituents found to act as pain
relievers and reduce inflammation. Several countries have now legalized
cannabis for medical purposes, with some also permitting recreational use of
the drug. This provides an assurance to patients that the cannabis used is safe
and legal.
The global Medicinal Cannabis Market is estimated to be valued at
US$ 14589.08 Bn in 2024 and is expected to exhibit a CAGR of 13% over the
forecast period 2024 to 2031, as highlighted in a new report published by
Coherent Market Insights.
Market key trends:
The medicinal cannabis market has witnessed significant growth attributed to
increasing legalization of cannabis in various countries for medical purposes.
According to the United Nations Office of Drugs and Crime (UNODC), around 50
countries and territories have legalized the use of cannabis for medical
purposes. Key players in the market are engaged in collaborative activities for
product development and commercialization. For instance, in January 2022,
Abbiva, a leader in next-generation cannabinoid formulations, announced a
collaboration with Evio Beauty for the development and commercialization of
their patented encapsulation technologies for cosmeceutical and nutraceutical
sectors. In addition, increased research and development activities for new
product launches have expanded application areas of medicinal cannabis. For
instance, Tilray has launched medical cannabis nasal spray for patients with
central nervous system related conditions in Canada, Australia, and additional
markets where medical cannabis is legal. These factors are expected to propel
growth of the global medicinal cannabis market during the forecast period.
Porter’s
Analysis
Threat of new entrants: The medicinal cannabis industry requires substantial
investment which poses a barrier for new companies. However, growing social
acceptance and evolving regulations represent an opportunity.
Bargaining power of buyers: There is strong buyer power due to increasing
number of suppliers entering the market. Buyers can select high quality
products at competitive prices.
Bargaining power of suppliers: Cultivators have moderate power due to
fragmented supply base. However, suppliers can collaborate to balance buyer
power.
Threat of new substitutes: Alternatives include synthetic cannabinoids but
natural substitutes have limited availability. Cannabis remains a popular
holistic treatment choice.
Competitive rivalry: The industry sees intense rivalry considering high growth
prospects and evolving regulations. Companies focus on quality, product
differentiation and regional expansion to gain market share.
Key Takeaways
Regional
analysis comprises- North America dominates the market currently owing to
legalization in major countries like the US and Canada. However, Asia Pacific
is expected to grow fastest with countries reforming their cannabis laws.
Key
players operating in the Medicinal Cannabis market are Deere & Company,
AGCO Corporation, Agribotix LLC, Agrobot and Blue River Technology.
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