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The global medical cannabis market, valued at USD 21.33 billion in 2024, is poised to reach USD 27.81 billion in 2025 and USD 211.54 billion by 2035, representing a CAGR of 22.5% during the forecast period.
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The new market study report highlight the information on current market size, industry trends, future growth scenarios, challenges, drivers and SWOT analysis.
Cannabis has recently gain traction globally as a medical drug to treat broad range of disease indications. It contains psychoactive compounds, such as tetrahydrocannabinol and cannabidiol that are known for its therapeutic efficacy. Medical cannabis is generally prescribed to relieve from symptoms, such as anxiety, musculoskeletal disorders and depression. With growing awareness of its therapeutic efficacy, several countries of Europe and North America has provided supportive guidelines to use medical cannabis when available treatment has shown ineffectiveness.
Furthermore, a research article published by University of Cagliari, cannabis has been widely adopted to treat mental health disorders such as anxiety, bipolar disorder and schizophrenia. The research further showed that some patients of bipolar disorders get relief from depressive symptoms with consistent usage of cannabis-based drugs. In addition, medical cannabis (also known as medicinal cannabis or medical marijuana) has anti-inflammatory property and has anti-nausea effects which makes it a valuable drug to manage symptoms such as chemotherapy-induced nausea, chronic pain and epilepsy. It is important to highlight here that the USFDA has approved synthetic cannabis-related drugs, namely Marinol® , Syndros® and Cesamet™ (containing nabilone) for therapeutic usage.
Driven by the increasing usage of medical cannabis for the treatment of mental health conditions and nausea treatment, there is a surge in the demand for cannabis-based drugs, which contributed to the growth of market. Some of the recent medical cannabis market trends that are shaping the industrial growth includes microdosing concept to alleviate the posttraumatic stress disorder (PTSD), irritable bowel syndrome symptoms and movement disorders. In order to meet with growing demand for medical cannabis, the stakeholders are actively involved in expansion. In June 2024, Verano Holdings announced the opening two new retail dispensaries, MÜV Naranja and MÜV Port Richey in Miami and Pasco county, respectively.
Furthermore, several industrial players are focusing on technological innovations that facilitate the extraction of cannabis. For instance, in May 2024, ENTEXS launched new ENTEXS Ethanol Extraction Platform with Inline THC Remediation. This latest platform will transform the hemp extraction, offering higher efficacy in purification. With consistent technology progression and awareness of medical cannabis benefits in treating mental health conditions, we believe medical cannabis market will remain progressive during the forecast period.
Notably, the industrial players are required to adhere with regulatory guidelines and focus on precise dosage to use for medical purposes. With the rise in acquisitions in this domain, we anticipate the enormous efforts put together by the stakeholders to develop the medical cannabis. In December 2024, Canopy Growth acquired Acreage Holdings. As stated by David Klein (Chief Executive Officer, Canopy Growth).” Completing the acquisition of Acreage marks the final step in establishing Canopy USA as a unified platform, which we believe offers significant upside as the Canopy USA portfolio of brands can now capitalize on the rapidly expanding U.S. cannabis market, independent of the need for federal legalization. With a vertically integrated presence across key U.S. states in the Midwest and Northeast, as well as licensing agreements which support asset-light operations in state-legal markets nationally, Canopy USA is well positioned to demonstrate efficient growth ahead.”
The market report provides invaluable information on the top players who are presently active across various segments of the growing industry as mentioned in the table below.
| Key Report Attributes | Details | |
| Historical Trend | Since 2019 | |
| Forecast Period | Till 2035 | |
| Current Market Size | $27.81 Billion | |
| Market Size 2035 | $211.54 Billion | |
| CAGR (Till 2035) | 22.5% | |
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| By End Users |
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| PowerPoint Presentation (Complimentary) |
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| Customization Scope | 15% Free Customization | |
| Excel Data Packs (Complimentary) |
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One of the key objectives of the medical cannabis market report was to estimate the current size, opportunity and the market growth potential, over the forecast period, till 2035. We have provided informed estimates on the likely evolution of the market for the forecast period.
The medical cannabis market analysis also features the likely distribution of the current and forecasted opportunity within the market across various segments, such as type of products (flower, concentrates, edibles, topicals & transdermals and others), type of source (natural and synthetic), type of species (cannabis indica, cannabis sativa, and hybrid), type of derivative (cannabidiol, tetrahydrocannabinol / delta-8-tetrahydrocannabinol, cannabicyclol, cannabinol, cannabigerol, cannabichromene and other derivates), route of administration (inhalation, oral, and topical), type of application (pain management (neuropathic pain, cancer, and inflammatory pain), neurological health management (Alzheimer’s disease, epilepsy, Parkinson’s disease, migraine and neuromuscular diseases), and mental health management (anxiety, bipolar disorder, depression, post-traumatic stress disorder (PTSD), and schizophrenia)), by distribution channel (hospital pharmacy, retail pharmacy, and online pharmacy), end users (hospitals, pharmaceutical companies, research & development institutes, rehabilitation centers and other end users), geographical region (North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America) and leading players.
In order to account for future uncertainties associated with some of the key parameters and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of industry’s evolution.
All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. The financial figures mentioned in this market report are in USD, unless otherwise specified.
Based on the type of product, the global medical cannabis market is segmented into flower, concentrates, edibles, topicals & transdermals and other products. According to our analysis, currently concentrates hold the largest share (more than 25%) of the market. This can be attributed to the fact that concentrates have a potent form of THC which shows more effectiveness in relieving from the symptoms of various disease indications. Further, healthcare providers prefer medical cannabis concentrates as it provide high therapeutic effect with small dosing. Moreover, concentrates can also be used through various methods such as dabbing or vaping, offering patients different options to consume medical cannabis for managing medical conditions.
However, it is worth noting here that the edible products segment is likely to grow at a higher CAGR during the forecast period. This lucrative growth is due to the fact that edible products are convenient to consume and available in a wide range of flavors which makes it more palatable.
The global market is segmented based on the type of source into natural and synthetic. According to our study, natural source accounts for the highest medical cannabis market share. Naturally occurring cannabis compounds such as cannabinoids has anti-inflammatory properties and responsible for psychological effects. These compounds are widely used to treat muscle spasms, chronic pain, vomiting during chemotherapy and nausea. Moreover, it is also used to increase appetite in people who have HIV / AIDS.
However, it is important to highlight here that synthetic source segment is likely to grow at a substantial CAGR during the projected period. This is likely to be the result of growing use of synthetic cannabinoids such as nabilone and Dronabinol are used to prepare medical products that can potentially mimic the THC compounds effects.
This segment highlights the distribution of global medical cannabis market size across different type of species, such as Cannabis indica, Cannabis sativa, and hybrid. It is worth mentioning here that currently Cannabis indica is the most popular species which is widely used for the treatment of anxiety, stress and insomnia. Moreover, Cannabis indica has high amount of cannabidiol and tetrahydrocannabinol which are used to treat several neurological conditions and chronic pain management. Owing to its widespread adoption for the treatment of a broad range of disease indications, this segment will continue to grow at a higher CAGR during the forecast period.
Based on the type of derivatives, the market for medical cannabis is divided into cannabidiol, tetrahydrocannabinol / delta-8-tetrahydrocannabinol, cannabicyclol, cannabinol, cannabigerol, cannabichromene and other derivates. Currently, tetrahydrocannabinol / delta-9-tetrahydrocannabinol accounts for the highest medical cannabis market share (nearly 60%). Tetrahydrocannabinol is a primary psychoactive component which is used to treat nausea, pain, vomiting and mental health conditions.
However, it is worth noting here that cannabidiol market segment is likely to register a higher CAGR during the forecast period. This is due to the fact that cannabidiol is the second most common derivative which is accepted to treat anxiety, depression and epilepsy. Moreover, with growing acceptance of cannabidiol by the regulatory agencies to treat medical conditions has further supported the growth of this segment.
The global medical cannabis market is categorized based on the route of administration into inhalation, oral, and topical. Among these, the inhalation segment is currently dominating the market and the trend is likely to remain unchanged during the projected period. Inhalation route of administration is highly preferable as it offers instant effect and ensure high target efficiency. Vaping is one of the popular categories that can be used to intake cannabis for instant relief. Moreover, it is important to highlight here that medical cannabis is widely available in the form of powder which can be directly administered with the help of inhalers. Driven by the growing preferences, this segment will continue to grow at a higher CAGR during the forecast period.
Based on the type of application, the global medical cannabis industry is segmented into chronic pain management (neuropathic pain, cancer, and inflammatory pain), neurological health management (Alzheimer’s disease, epilepsy, Parkinson’s disease, migraine and neuromuscular diseases), and mental health management (anxiety, bipolar disorder, depression, post-traumatic stress disorder (PTSD), and schizophrenia).
Currently, chronic pain management occupies the highest share (nearly 40%) of the market. Cannabis based products are widely adopted for the chronic pain management (in addition to pain management devices) in patients suffering from neuropathic pain, inflammatory pain and pain associated with other chronic conditions. Additionally, the supportive framework to use cannabis-based products for the treatment of chronic pain is likely to be the key factor for the highest share.
However, in the long run, we believe that mental health management segment is likely to grow at a substantial CAGR during the forecast period. This can be attributed to the growing research on cannabis-based drugs to treat post-traumatic stress disorder, bipolar disorder and anxiety.
This segment further highlights the categorization of global market based on the distribution channel into hospital pharmacies, retail pharmacies, and online pharmacies. According to our market study report, currently hospital pharmacies segment holds the largest medical cannabis market share. This can be attributed to the fact that cannabis-based drugs are only prescribed by the certified hospital pharmacies and recommended by the healthcare practitioners for specific disease indications. Additionally, the increasing number of patients with mental health conditions has further fueled the growth of this segment during the forecast period.
Moreover, hospitals are equipped with advanced infrastructure and expert professionals so patients also prefer to administer their doses from the certified faculties. However, retail pharmacies may gain traction during the upcoming years owing to the growing legalization of medical cannabis and increasing technological support to enhance services and reduce operational costs.
Based on the end user, the global medical cannabis market is segmented into hospitals, pharmaceutical companies, research & development institutes, rehabilitation centers and other end users. Currently, hospitals account for the largest share of the market and the trend of dominance is likely to remain unchanged during the forecast period. This can be attributed to the fact that hospitals receive the largest pool of patients with mental health conditions and chronic conditions. Healthcare experts are adopting medical cannabis in hospitals to treat patients with anxiety, depression and also using for chronic pain management.
The global market is distributed across different geographical regions, such as North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America. Driven by the favorable regulatory support for cultivation and medical usage of cannabis, North America is currently dominating the medical cannabis market share (nearly 50%). Furthermore, the rising incidence of chronic conditions and mental health issues in this region has further fueled the demand for medical cannabis to treat patients.
However, in the long run, we believe that Europe region is likely to grow at a higher CAGR during the forecast period. This is primarily due to the rising awareness about medical benefits of cannabis in treating neurological disorders and chronic pain management in this region. Additionally, European countries have legalized cannabis cultivation for medical and recreational purposes in this region, which further contributes to the unprecedented growth of this region during the projected period.
The “Medical Cannabis Market: Industry Trends and Global Forecasts, till 2035” research report features an extensive study of the focus on competitive landscape of strategic initiatives, emerging mega trends, company profiles and key drivers and restraints. Key takeaways of the medicinal cannabis market report are briefly discussed below.
Currently, the global market landscape of medical cannabis has the presence of several well-established industrial players who are presently focused on the development of cannabis-based products. In order to leverage the competitive edge, the market players are focusing on strategic initiatives including new product launch, drug research, product portfolio enhancement, mergers and collaborations. However, their current focus is on technological innovation for the extraction of cannabis and sustainability.
It is important to highlight here that In October 2024, Releaf (UK’s fastest medical cannabis provider) signed a multi-million-pound contract agreement with Glass Pharms (medical cannabis producer). Under this agreement, Glass Pharms will offer 145 kg of premium quality medical grade cannabis to Releaf. As stated by Tim Kirby (Managing Director, Releaf)," This partnership with Glass Pharms marks a significant milestone not just for Releaf but for the entire UK medical cannabis industry. It's the largest deal in UK history and underlines the growing recognition of medical cannabis as a legitimate healthcare solution. By securing a high-quality domestic supply of this medication, we're not just meeting demand-we're setting a new standard for reliability and patient care in this sector."
Driven by the ongoing agreements and partnerships between industrial players to enhance supply of medical cannabis, we believe that medical cannabis market will continue to grow at a steady rate.
The global market for medical cannabis is likely to be propelled by the growing incidence of chronic conditions across the globe. A recent report published by American Physiological Association in March 2024 stated that nearly 55.6% adult population of the United States have chronic pain, anxiety and depression. Moreover, 69.4% of the U.S. adult population with co-occurring chronic pain, anxiety and depression stated that their working capacity dropped due to these conditions.
Considering these growing concerns, the leading players of this industry are aiming to develop medical cannabis that aid in managing chronic pain and also help to overcome anxiety and depression. Furthermore, the supportive guidelines to cultivate and develop cannabis-based products is further fueling the medical cannabis market growth during the forecast period.
Although, the medical cannabis market is witnessing an upward trajectory, there are some challenges that needs to be addressed. Some of the potential challenges are limited approved drugs, lack of standardized guidelines and availability of other therapeutic drugs. Notably, the USFDA has approved only a limited number of cannabis-based drugs to treat chronic pain and mental health issues. This limited availability of drugs and lack of standard guidelines may create significant challenges for the market players in drug development.
Additionally, the availability of other therapeutic drugs for pain management and neurological conditions treatments may also hinder the adoption rate of medical cannabis. Additionally, people have a perception that constant usage of cannabis-based drugs may leads to addiction also limit the adoption rate, thereby impede the market growth.
Some of the emerging trends that are anticipated to grow the market includes rising technological advancements and expanding research on cannabis-based drugs. Currently, the key players of the industry are focusing on advancing cultivation systems such as aeroponics and hydroponics to accelerate cultivation across the globes. Moreover, the industrial players begin to leverage genetic engineering to develop hybrid cannabis varieties with specific characteristics and advanced technologies for cultivation of cannabis. For instance, in December 2024, Figgro launched MJBizCon, a cultivation management product module. This latest model expands Figgro’s ERP platform manage thousands of cannabis plants at one place while offering real-time integration with compliance tracking system. This new system helps cannabis operators in tracking clones of cannabis plants, inventory management and distribution of cannabis.
Recently in April 2024, a research report released by Johns Hopkins Medicine showed that d-limonene (oil derived from cannabis) has significantly reduced the panic and anxiety without altering the effect of THC which is an active ingredient of cannabis. In addition, the legalization of cannabis for medical usage has catered the attention of industrial players to expand research on cannabis drugs. However, the primary focus will remain on sustainability and rising awareness among population about therapeutic benefits of cannabis.
The global medical / medicinal cannabis market is currently valued at USD 27.81 billion and is expected to reach at USD 211.54 billion by 2035. Driven by the growing research on the cannabis drugs, the market is anticipated to grow at a CAGR of 22.5% during the forecast period. It is important to highlight here that several industrial players have accelerated their research and clinical trials on various cannabis-based products. Several industrial leaders and research organizations are expanding their research and capabilities on the medical cannabis which is anticipated to be a key growth factor of the market.
In December 2024, Barney’s Farm Genetics entered into a merger agreement with Sensei Seeds and ILGM, and the merger is expected to close in early 2025. As highlighted by Derry Brett (Group CEO)," 2025 will be a transformative year, not only for our business, but for growers and cannabis connoisseurs worldwide. This is more than a business merger-it's a game changer, uniting our reputation for prestige genetics with Sensi's vast library of heritage seed and ILGM's loyal customer base of home growing enthusiasts. Once combined, we'll be able to offer growers the most unique, elevated and sought after cannabis genetics on the market."
Examples of key players engaged in this field of medical cannabis (which have also been captured in this report) include Aurora Cannabis, Acreage Holdings (acquired by Canopy Growth), Arcadia Biosciences, ADREXpharma, Babylon Sciences, Bedrocan International, Canopy Growth, Cara Therapeutics, CannaCare Health, DocMJ, Demecan, Dutch Harvest, Jazz Pharmaceuticals, Lexaria Bioscience, Medical Marijuana, PharmaCielo, Sensi Seeds, Tilray Brands.
Several recent developments have taken place in the field of medical cannabis. We have outlined some of these recent initiatives below.