Medicinal Cannabis Market is driven by Growing Acceptance of Legalization of Cannabis

 

Medicinal Cannabis Market 

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
The Global Medicinal Cannabis Market Size is expected to witness high growth over the forecast period from 2024 to 2031.

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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