Market Overview:
Medicinal cannabis refers to the use of cannabis and its cannabinoids to relieve symptoms of diseases or medical conditions. The two main active compounds in the Cannabis plant are delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). While THC is known to cause psychoactive effects, non-psychoactive CBD is touted for its therapeutic benefits such as pain relief, anti-inflammatory, anti-anxiety and more. Medicinal cannabis products are available in various forms including dried cannabis, extracts, edibles and more. Growing acceptance of medicinal cannabis in various therapeutic areas is positively impacting the market growth.
Market key trends:
Therapeutic applications of cannabis are on a rise, driving the medicinal cannabis market growth. Cannabis is being increasingly used for conditions such as chronic pain, arthritis, cancer pain, epilepsy and neurological disorders. Moreover, cannabis extracts containing high CBD and low THC are gaining acceptance for treatment of pediatric epilepsy and childhood seizures. Also, cannabis extracts are showing promise for treatment of mental health issues including PTSD, anxiety and depression. Legalization of cannabis in more countries is further fuelling the market expansion. Growing research on cannabis compounds promises discovery of novel therapeutics, presenting lucrative opportunities for market players. However, challenges around standardization, dosing and quality control need to be addressed to ensure patient safety.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate due to high initial investment required for setting up cultivation and processing facilities. However, increasing legalization is reducing entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate as the buyers have alternatives like pharmaceutical drugs. However, medicinal cannabis is gaining popularity due to advantages over alternatives.
Bargaining power of suppliers:The bargaining power of suppliers is high as few companies control the supply of raw materials required for the production of medicinal cannabis.
Threat of new substitutes:The threat of substitutes is low as medicinal cannabis has few substitutes that can provide the medical benefits it offers for certain indications.
Competitive rivalry: high due to presence of numerous players operating in the global market.
Key Takeaways:
The Global Medicinal Cannabis Market Demand is expected to witness high growth, exhibiting CAGR of 24.% over the forecast period, due to increasing legalization of medicinal cannabis and growing awareness about its medical benefits.
Regional analysis: North America is expected to dominate the global medicinal cannabis market during the forecast period. This is attributed to the early legalization of cannabis for medical use and presence of key players in the region. Asia Pacific is expected to exhibit the fastest growth rate over the coming years, led by countries like Australia, South Korea, Thailand, and China.
Key players: Key players operating in the medicinal cannabis market are BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Inc., Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals, plc., and Medical Marijuana Inc. These players are focusing on business expansion to strengthen their global presence through collaborations and partnerships.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
