Medicinal cannabis, also known as medical marijuana, refers to using the whole unprocessed marijuana plant or its basic extracts to treat symptoms of illness and other conditions. It contains compounds that can relieve symptoms and pain associated with various ailments including multiple sclerosis, HIV/AIDS, epilepsy, cancer, mental illnesses and chronic pain conditions. Medicinal cannabis products offer relief without severe side effects, making them preferable alternatives to opioid drugs which are highly addictive and pose serious health risks.
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 Opportunity:
According to the reports, the United States is struggling from a major public health crisis due to misuse and overuse of opioid pain relievers both prescribed and illicit opioids. Medicinal cannabis is an effective alternative to manage chronic and acute pain with lower risk of addiction and abuse as compared to opioids. Studies have found a significant reduction in opioid overdoses and opioid-related hospitalizations in states with legalized medical marijuana programs. Wider acceptability and availability of medicinal cannabis products can help combat the ongoing opioid epidemic by providing patients with safer treatment options for pain management. This presents lucrative prospects for players in the medicinal cannabis market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Medicinal Cannabis Market is moderate as significant capital investments are needed to start new production and cultivation facilities. However, there is growing interest in entering this market given the forecasted high growth rates.
Bargaining power of buyers: The bargaining power of buyers in the Medicinal Cannabis Market is high as there are many suppliers operating in this fragmented market. This gives buyers the option to choose from multiple suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as while there are many suppliers, the buyers have substantial influence given the fragmented nature of supply.
Threat of new substitutes: The threat of substitutes is low as cannabis has unique medical properties and there are limited substitutes available.
Competitive rivalry: The competitive rivalry in the market is high given the forecasted growth rates and involvement of many companies.
SWOT Analysis
Strength: The Medicinal Cannabis Market is expected to grow at a CAGR of 13% till 2031 on the back of improving regulatory environment and increasing adoption for medical conditions.
Weakness: Limited standardization and guidelines around production qualities and testing can impact the efficacy and consistency of products. Lack of educated healthcare practitioners also limits prescriptions in some regions.
Opportunity: Many regions have untapped market potential as regulations continue to evolve. Medical research is also progressing to identify new ailments that can be potentially treated with cannabis-based therapies and drugs.
Threats: Overregulation or bans in some jurisdictions remains a challenge. Public acceptance is still evolving in conservative markets. Increased competition threatens pricing and market share of existing players.
Key Takeaways
The Global Medicinal Cannabis Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The market size is projected to increase from US$ 14589.08 Bn in 2024 to US$ 73724.65 Bn by 2031, growing at a CAGR of 13%.
Regional analysis shows that North America dominates the market currently owing to legalization in major markets like the US and Canada. However, Europe is witnessing the fastest growth on the back of evolving regulations across countries. The Asia Pacific region also offers promising growth opportunities led by countries like Australia, Israel and South Korea among others.
Key players operating in the Medicinal Cannabis Market are Deere & Company, AGCO Corporation, Agribotix LLC, Agrobot, and Blue River Technology. Deere & Company and AGCO Corporation are established industry leaders with significant market shares. While smaller players like Agribotix LLC and Agrobot are focusing on innovative solutions for niche agriculture segments. Blue River Technology is deploying advanced robotics and AI to transform the agricultural industry.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
