Global-Cannabis-Market-Demand

(MENAFN- Straits Research) Introduction

Cannabis is a genus of flowering plants that have been utilized for thousands of years because of its acknowledged therapeutic and medicinal effects. It is also well-documented for its social and spiritual applications. Three dominant species are C. Sativa, C. indica, and C. ruderalis. Most cultivars cultivated now are hybrids that exhibit characteristics of two or more of these primary species. The increasing legalization of cannabis, particularly for medicinal purposes, in several countries is expected to fuel the cannabis market's expansion throughout the forecast period.

Market Dynamics Increasing Legalization of Cannabis to Drive the Global Cannabis Market

Increasing medical benefits of cannabis, mainly for alleviating chronic pain, are driving the legalization movement in the world's leading nations. In 2018, Canada became the second country after Uruguay to legalize cannabis for recreational consumption. The Drug Policy Alliance anticipated that Mexico would legalize and regulate cannabis use in 2019. Colombia, Peru, Argentina, Ecuador, and Venezuela have legalized medicinal marijuana or decriminalized personal use, although Brazil is unlikely to legalize recreational marijuana usage in addition to its current medical authorization.

As of July 2019, eleven states and the District of Columbia have legalized the possession and recreational use of marijuana in the United States. In contrast, thirty states in the United States have approved the medical use of cannabis. Considering the many desire for cannabis and its medical advantages, it is anticipated that more states may follow suit in the coming years.

Thailand authorized medical marijuana in December 2018 Asia. Cannabis use is de facto permitted in various regions of India, and there is a great deal of regional inventiveness. However, the country remains a long way from legalizing cannabis, which may hinder the expansion of the Asia-Pacific cannabis market. Consequently, the increasing legalization of cannabis, particularly for therapeutic purposes, in several countries is expected to boost the growth of the cannabis market over the forecast period.

Cannabis contains hundreds of chemical components, the majority of which are cannabinoids. Due to their chemical composition, cannabinoids have been connected to chronic pain treatment, which is why cannabis' byproducts, such as medicinal cannabis, are often utilized for chronic pain management.

Likewise, cannabis' effect on insulin can help regulate and prevent diabetes. American Alliance for Medical Cannabis (AAMC) research has connected cannabis to stabilizing blood sugar levels, reducing blood pressure, and improving blood circulation. In addition, cannabis can treat and prevent eye illnesses such as glaucoma, which destroys the optic nerve and leads to vision loss by increasing intraocular pressure. Cannabis and its derivatives will be increasingly utilized in the future due to the plant's vast array of health benefits and the growing emphasis on these advantages.

Regional Insights

By region, the global cannabis market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

North America dominated the market and is expected to register a CAGR of 14.5% during the forecast period. As a psychoactive drug, cannabis enjoys widespread popularity in the United States for recreational and medicinal purposes. By 2020, 15 states and two U.S. territories will have legalized cannabis for recreational use. Thirty-five states and four U.S. territories have legalized medical cannabis. CV Sciences is a critical player in the United States, selling phytocannabinoids derived from hemp, including CBD oil, to the beauty care, pet care, nutraceuticals, specialty beverage, and functional food industries. Increasing cannabis legalization for medicinal and recreational use by adults is anticipated to drive the U.S. cannabis market over the forecast period.

South America is the second largest region. It is estimated to reach a predicted value of USD 18 billion by 2030 at a CAGR of 13.9% during the forecast period. In Argentina, the Ministry of Health (MoH), the National Comprehensive Drug Policy Department (SEDRONAR), and the National Agency for Medicines, Foods, and Medical Technology are the primary regulatory bodies having authority over cannabis medications (ANMAT). The country approved the use of cannabis oils for medical purposes in March 2017 but continued to outlaw the cultivation of the plant and the possession of its seeds. In 2017, Argentina joined the growing number of South American nations that have loosened cannabis regulations. With the legalization of cannabis production for therapeutic purposes and the formation of new company alliances and expansions, the Argentine market is anticipated to expand dramatically in the following years.

Europe is the third largest region. Germany authorized medicinal cannabis in March 2017 to meet patients' growing demand for cannabis products. In Germany, medical cannabis products are sold exclusively in pharmacies and are prescribed as a last resort, meaning the patient has exhausted all other therapeutic options. In 2018, Germany imported approximately 7.6 metric tonnes of all cannabis products, including cannabis flowers, extracts, preparations, and completed medicinal products, according to the International Narcotics Control Board (INCB), compared to approximately 4.5 metric tonnes in 2017. In addition, Germany's demand for medicinal cannabis products is anticipated to reach about 16 tonnes in 2020. The cultivation of medical cannabis in the country is authorized through a competitive bidding process. In 2019, Germany's health regulator, the Federal Institute of Drugs and Medical Products (BfARM) authorized Aurora, Aphria, and Nuuvera to cultivate 10,400 kilos of medicinal cannabis over four years. This may encourage market expansion during the forecast period.

Key Highlights

• The global cannabis market size was worth USD 27.28 billion in 2022. It is estimated to reach an expected value of USD 189.89 billion by 2031 at a CAGR of 24% during the forecast period (2023-2031).
• By product type, the global cannabis market is segmented into capsules, concentrates, edibles, and other product types. The concentrates segment dominated the market and is estimated to register a CAGR of 15% during the forecast period.
• By application, the global cannabis market is divided into medical and recreational. The recreational segment dominated the market and is estimated to register a CAGR of 14.7% during the forecast period.
  
• By compound type, the global cannabis market is segmented into Tetrahydrocannabinol (THC), Cannabidiol (CBD), and Balanced THC and CBD. The Tetrahydrocannabinol (THC) segment dominated the market and is estimated to grow at a CAGR of 15.1% during the forecast period.